The Union's establishment of the National Banking System

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The establishment of the National Banking System by the Union was the first significant step toward a unified banking network since 1836. It allowed for the chartering of banks by the federal government and required them to hold U.S. government bonds as collateral for their notes. This helped to stabilize the nation's currency and banking system, although it did not establish the gold standard nor result in the reestablishment of the Bank of the United States. The system lasted beyond the Civil War and contributed to the growth of a national economy. However, it also led to the issuance of depreciated paper money, as the value of the notes was linked to the fluctuating value of the bonds held as collateral.

The Union's Establishment of the National Banking System