National Bank Notes and Silver Certificates
31 Pages Posted: 30 Jul 2007
Date Written: December 2006
From 1883 to 1892, the circulation of national bank notes in the United States fell nearly 50 percent. Previous studies have attributed this to supply-side factors that led to a decline in the profitability of note issue during this period. This paper provides an alternative explanation. The decline in note issue was, in large part, demand-driven. The presence of a competing currency with superior features caused the public to substitute away from national bank notes..
Keywords: bank notes, silver certificates, National Banking System, national banks
JEL Classification: E42, E50, G21, N22
Suggested Citation: Suggested Citation