The Story of Money: 12--State-Chartered Banks
|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.