Before 1864 U.S. banking was dominated by an unregulated system of state banks, each issuing its own currency, with little regulation.

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The statement is correct. The U.S. banking system before 1864 was largely unregulated and consisted of state banks that issued their own currency. There was no central banking authority or federal regulation, which led to instability in the banking industry. The National Bank Act of 1864 was designed to create a national banking system that would provide more stability and regulation to the industry.