The 26 year period from 1837 to 1863 is known as the Free Banking era in US history. Banks operated with fewer laws and regulations than in any other. And anyone who could meet minimum requirements could open a bank. Allowing such freedoms did not work very well as many free banks failed and their banknotes became worthless. This is not a viable environment to culture the best forex trading. One of the most disastrous experiences with the free banking occurred in Michigan.
Early in 1837, the state legislature passed in the first free banking law to encourage banking and promote economic stability. Unfortunately it did not. Because banks created money by issuing banknotes people found banking an excellent way to raise money by printing banknotes to finance speculative or dishonest business ventures.
By the end of 1839, most free banks had failed and the public was left with worthless banknotes. Many of the financial shenanigans pulled by banks in Michigan and other free banking states were carried out by wildcat banks. Wildcat banks were open and by dishonest bankers who intended to defraud the public by issuing banknotes far in excess of what they plan to redeem and specie which is gold or silver. The plan would work in this manner. First off to discourage the public from regaining banknotes, bank offices were set up in remote places where only the wildcats would dare to tread. the bank would put the bogus bank notes into circulation by investing the cash and assets that could be sold easily for gold or silver or for the banknotes of a sound bank. These were some of the first forex trading tips in history. As soon as the bank had been known circulation it would close. This is similar to what some micro-nations do with their currencies to make a quick profit.