Wildcat Banking

Unraveling the Mysteries of Wildcat Banking: A Journey into America's Banking History

Understanding Wildcat Banking

Explore the fascinating era of wildcat banking in the United States from 1837 to 1865, characterized by banks established in remote areas with minimal federal oversight. Learn about the regulatory landscape of the Free Banking Era and the state-level variations in banking regulations.

Origins of the Term Wildcat Banking

Delve into the intriguing origins of the term "wildcat banking," tracing its roots to Michigan in the 1830s and its association with risky and unsound banking ventures. Discover how the term evolved to symbolize unstable banks at risk of failure, as depicted in Westerns.

Currency Issued by Wildcat Banks

Gain insights into the currency issued by wildcat banks and the obstacles faced by note-holders in redeeming them. Explore the questionable securities used to back wildcat currencies, ranging from specie to bonds, and the challenges of distinguishing legitimate bills from forgeries.

Facts on Wildcat Banking:

1. Wildcat banks were chartered under state laws and regulated at the state level, leading to varying banking regulations across different states during the Free Banking Era. (Source)
2. The term "wildcat" was initially used to refer to impetuous speculators and later applied to any unsound or perilous business venture, including banks. (Source)
3. Wildcat banks issued their own currency until the National Bank Act of 1863 prohibited this practice, posing challenges for note-holders seeking redemption. (Source)