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Story of Money


Section 12: U.S. banks and money Previous | Next | Section Index
State-chartered banks took over
For 25 years after the Second Bank’s charter expired, state-chartered banks dominated the nation’s monetary system. Banks issued paper money or deposit claims when they accepted deposits of specie (meaning gold or silver coins) and when they made loans. As the number of state-chartered banks began to increase, however, some people saw a need to control these banks’ note issue.

Bank of New York
New York City, chartered in 1784

Bank of Massachusetts
Boston, chartered in 1784

Bank of North America
Philadelphia, chartered in 1781
 
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