About the OCC:
Early Banking in the U.S. (1791-1832)

If you have questions about the history
of the OCC or the national banking system,
feel free to address them to to our historian.

Because of their crucial importance to the life of the community, U.S. banks have always operated under rules more demanding than those applied to other businesses. In most states of the early federal union, bank organizers needed special permission from the state government to open and operate. For a while, an additional layer of oversight was provided by the Bank of the United States, a central bank founded in 1791 at the initiative of the nation's first Secretary of the Treasury, Alexander Hamilton. Its Congressional charter expired in 1811. A second Bank of the United States was created in 1816 and operated until 1832. In those days, city bankers tended to be extremely cautious about to whom they lent and for how long. To make sure they had enough cash available to meet unexpected demands from depositors, bankers generally made short-term loans only. Thirty to sixty days was the norm. Typically manufacturers and shopkeepers would use these funds to pay their suppliers and workers until they could sell the goods to customers. After that sale they would pay off the bank loan. More of the Changing World of Banking: Introduction1790 to 18321832 to 1864 1865 to 1914 1929 to 1970 1970 to Today