<P> The National Bank Act of 1863 was passed on February 25th, 1863, and was the first attempt to establish a central bank after the failures of the First and Second Banks of the United States, and served as the predecessor to the Federal Reserve Act of 1913 . The act allowed the creation of national banks, set out a plan for establishing a national currency backed by government securities held by other banks, and gave the federal government the ability to sell war bonds and securities (in order to help the war effort). National banks were chartered by the federal government, and were subject to stricter regulation; they had higher capital requirements and were not allowed to loan more than 10% of their holdings . A high tax on state banks was levied to discourage competition, and by 1865 most state banks had either received national charters or collapsed . </P> <P> The 1864 act, based on a New York State law, brought the federal government into active supervision of commercial banks . It established the Office of the Comptroller of the Currency with the responsibility of chartering, examining and supervising all national banks . </P> <P> On July 13, 1866, the banking Act of 1865 was extended beyond requiring every national banking association, state bank, or state banking association to pay a 10% tax on any notes paid out by them . The act of 1866 added that any persons, as well as of state banks and state banking associations used for circulation to also be taxed 10% . This act was considered enforced by the court case Veazie Bank v. Fenno, supra . The official enactment by Congress read, "That every national banking association, state bank, or state banking association shall pay a tax of ten percent on the amount of notes of any person, state bank, or state banking association used for circulation and paid out by them after the 1st day of August, 1866, and such tax shall be assessed and paid in such manner as shall be prescribed by the Commissioner of Internal Revenue ." </P> <P> Most state banks flipped charters to avoid the tax . It was not until the 1870s and 80s when the growing popularity of checks developed by state banks and the declining importance and profitability of bank notes issued by national banks caused a resurgence in chartering of state banks . </P>

Does the constitution authorize the federal government to charter a national bank