For much of the 1800s the dollar as we know it did not exist: the United States had no national currency, and banks of various sizes (and of various levels of stability) issued their own. Sound money circulated alongside forgeries at various rates of exchange. The first step Congress took to reigning in the chaos was the passage of a single national currency, issue by the government itself through federal banks. Along with that act, the U.S. established a charter system for state banks, taking their approval out of the hands of corrupt state legislatures.

On this day, June 20, in 1863 the First National Bank of Philadelphia received the first state charter.

The act-mandated differences in the minimum capital requirements for national and state banks led to a resurgence in state banks. National branches had to hold at least $50,000 in reserve at all times in towns with population up to 6000; $100,000 cities with a population from 6000 to 50,000; and $200,000 for banks in cities with populations exceeding 50,000. In contrast, the minimum capital requirements for state banks was sometimes as low as $10,000.