First Banking in Texas • In 1822, the Mexican government set up the first bank in Texas. • In 1889 James Everett McAshan founded the first National Bank.
Texas has problems with banks • Texas had cases of loans going bad and when they used the money they lost their farms
Private Banks • Private banks became most common type of bank during the Civil War. • Most of them were wealthy cotton farmer’s. • They were unregulated by state. • Texans demand a better banking system.
State-Chartered Banks • Government would regulate state-chartered banks. • Ranchers and Business people needed credit. • Could also issue paper currency that retained its value. • They needed these services to grow.
Call for A State Banking System • Main goal to change laws against state chartered banks. • Have both State and National banks in 1904. • State banks began under Governor Thomas B. Love. • Law makers made Department of Insurance and Banking to supervise banking.
Section 3 Texas Industries • The Lumber industry boom after the civil war to build houses. • As older industries grew, new ones sprang up. • These including textiles, cottonseed oil production, mining, and meatpacking.
Gristmills Milling Wood • Gristmills take grain and grind it. • Sawmills operated in Texas. • A sawmill is a machine that cuts timber into boards.
Growth of Industry After the Civil War • Gristmills remain vital after the civil war. • Flour and gristmills products comprised the top industry in Texas in 1880