Free banking system. Previous to the panic of 1835 there were no general laws in any of the
states providing for the incorporation of banking associations. Each bank operated under a
special charter passed for its own benefit. This system of incorporation had aroused much
opposition on the grounds of monopoly, favoritism and corruption and logrolling in the various
legislatures. After the panic of 1835 there was an agitation in favor of general banking laws under
which any body of men associated together for the purpose could by complying with the law
engage in the banking business.