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-Andrew Jackson, the seventh president of the United States, closed the main official bank responsible for issuing fiat money in 1836.

-The institution was similar to today's Federal Reserve System and had a monopoly on the issuance of currency.

-Jackson promoted the closing of the bank to prevent the issuance of unbacked money and to avoid arbitrary privileges.

-The Second Bank of the United States disappeared in January 1836, laying the foundation for "free banking".

-Under the free banking system, banks could issue money backed by gold and silver.

-The free banking period lasted from 1836 to 1913 and economic growth was strong and inflation low.

-In 1913, President Woodrow Wilson created the Federal Reserve, with increased government intervention.

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there was bank runs towards the end of that period though, with banks issuing more notes than they had gold and silver to redeem it

it was only really during the time of a great increase of supply of gold that banking based on gold redemption certificates was calm, 1836 to 1857

you cannot trust banks to issue redemption certificates, that's why bitcoin

And people got rugged all the time. People play the same game, just with different sized rugs.