State Banks and the Bank War, 1830 to 1840

Work the inflation example in the box first. Then use the bank sheet to show how loans and notes can push prices up.

Graph the number of banks from 1830 to 1840 and explain the Bank War and Specie Circular. The directions on the page read: Read the text and study the table. Then use page 2 to graph the data and answer the questions. An answer key is included.

Yes, both. We made it for 8th grade Economics and Money, and it works the same at home or at school. At home, a student can work through it alone and then go over it with you, which shows quickly what is solid and what needs another look. In class it works as independent practice, homework or a warm-up, and you can print one copy or a full set.

Subtract the old price from the new price and divide by the old price, then write it as a percent. A hat that goes from $2 to $3 has a 50 percent inflation rate.

Congress had little gold or silver and no power to tax, so it kept printing paper money, more than $200 million by the end of 1779.

Federal deposits moved to state banks, and no national bank pressed them to pay in gold or silver, so they made more loans and notes.