Wildcat Banking Michigan

About Wildcat Banking Michigan

Michigans wildcat banking era from 1837 to 1844 produced some of the most worthless banknotes in American history. The Michigan General Bank Law of 1837 allowed anyone to open a bank with minimal requirements. Banks were established in remote areas, sometimes literally in wilderness areas inhabited by wildcats. These banks issued notes that were virtually impossible to redeem for specie. Over 40 banks were established, most issuing worthless currency. The notes were backed by mortgages on remote or nonexistent property. Michigan repealed the free banking law in 1844. The wildcat banking era demonstrated the dangers of unregulated banking and influenced the National Banking Acts of 1863 and 1864 that imposed federal regulation.