Monday, April 27, 2009

Wildcat Banking, Banking Panics, and Free Banking in the United States

The Federal Reserve Bank of Atlanta Economic Review (December 1996) published "Wildcat Banking, Banking Panics, and Free Banking in the United States" by Gerald P. Dwyer, Jr. He writes:
"Will electronic money resemble the banknotes circulated in the U.S. free banking period? Walter Wriston, a former Chairman of Citicorp, and others have suggested that money used for transactions on the Internet may resemble nineteenth-century banknotes more than it will today’s money."
"Free banking disappeared when it was taxed out of existence by the federal government in 1865. This action was not due to apparent dissatisfaction voiced by citizens of free banking states. In fact, the national banking law adopted during the Civil War included many provisions similar to the free banking laws."

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