||This paper covers an early history of American capital and also general financial markets. At first it studies the environment and roots that created the culture, legal framework and customs that shaped these markets in the USA. Mainly this paper focuses on the impact of government policies put into practice by Secretary of Treasury Alexander Hamilton. First there is his Plan for Redemption which was badly executed. This thesis also pays attention to the unconstitutionality of the Assumption of State debts. Than the concern moves on to the issue of First and, after Hamilton’s death also the Second Bank of the United States. Here the paper studies mainly National Bank’s effects of banking sector as well as consequences for the securities market. Focus is placed mainly on crisis in the years of 1792 and 1837. Author also mentions the panic of 1857. This thesis tries to show that many problems of that day American economy had roots in reckless actions of Federal Government which affected the institutional framework of young financial and capital markets. These actions several times triggered or facilitated manias and panics which in return caused damages to the whole economy.