What law did Lincoln sign in 1863 that created a national banking system?

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The law Lincoln signed in 1863 that created a national banking system was the National Banking Act of 1863.

Signed on February 25, 1863, the measure was originally called the National Currency Act. It authorized federally chartered banks, established the basic national banking framework, and created the Office of the Comptroller of the Currency to supervise those institutions. National banks could issue notes backed by U.S. government securities, helping the Union finance the Civil War and bring greater uniformity to American paper money.

A common mix-up is the National Banking Act of 1864, which substantially amended and expanded the 1863 law. The Federal Reserve Act came much later, in 1913, and created the Federal Reserve System rather than Lincoln’s national banking structure. The National Banking Acts remained an important foundation of U.S. banking until the Federal Reserve era.

Source: Wikipedia · fact-checked Sept. 2026

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