Econ history paper

oRI∈INs RND RIsE OF COMMERCIAL BANKs To1870 PREsErrED Bˇ mc酣 BLl△ 毗 snm眦 Rn△DB⒒KEW-Rs

sTnRT OF B瓜ⅣK1ⅣG · Roman Era

o 01砣 ofthe temρ les and i汛 o dis刂not bu"dings

° Julius Caesar- ■ AlIoWed bankers to con1scate Iand

。 Loan sharks- 。 Iegit⒈ nate commerce used institu刂 onal banks

· κnights Temp∶ ar-During the Crusades 。 Ran the eadiest Eu“,刊听de`Mideast banking system

:悬;舁:彗r%IF褶:I扌η扩 曲κ

"PⅢ ”帼 伽em

COMMERC肽 L BANK1N∈ DUR1N∈ TⅡE REV0LU·ⅡoⅣ · American Revolution

° Con耐 nentaI Congress 。 PⅡ nted

“ continenta∶ s"

· Bank of North Amer∶ ca 。 First Iegitirnate comrne“ 丬aI bank

。 founded in1781 。 Robe【 t Mor"s ° Loaned to

■ ReVduuonary govemment ■ PdVate c"Ⅱ zens

COWERCIAL BANK1N∈ · Most obta∶ ned charters · PIayed key roIe in economy

。 Channe"ng money to entrepreneurs ■ Commerchl banks 。 saVIngs banks ■ lnsurance companies

· Fractional Lend∶ ng 。 OnIy Ient a仃 aCuon of money

· NormaI hddings 。 specie o Notes of other banks ° Commerch!ρaper 。 PubⅡ c secu丬 ties o Mo忖gages o ReaI estate(rather sma")

● Discount Loans 。 Only requires the ρrinciρ al on the due date o MostIoans Iasted onIy a feW days

o staggered Loans · By1800

∷ o Eaoh M司 or Ci″ o Most rnercantile Ienders

F1RsT B众ⅢK0F VNITm sTnTEs1791ˉ 1811 ● ˉConα蔚vod in1790ˉ

o DeaI"th the Ⅵ旧r debt o Putthe government on soIid foot∶ ng o lssue cu盯 enCy notes o Functon as a℃ ommerchlban卩

· ModeIed a钆er B白 nk of England o sta吐 Ca田 tal°f$10m" o seⅢ ng stock o Federal Govemment oWned$2m" 。 Had8branches

· CIosed in181日 ° Thoug"no longer needed