Banking, ancient and modern ..together with full instructions as to the business methods of the Treasury Department at Washington, . t par. Virginia appears to have issued no loan bank, nor is there an)^record of the use of bills of credit until 1755,and then for a comparatively moderate sum first andonly loan bank wasissued in 1733. Con-necticut first author-ized the issue of pa-per to be loaned inthe same year, and in175 I followed the ex-ample of Massachu-setts in retiring itspaper. New Yorksuffered but little fromthe loan bank craze,but its governmentmade repeated ands
Banking, ancient and modern ..together with full instructions as to the business methods of the Treasury Department at Washington, . t par. Virginia appears to have issued no loan bank, nor is there an)^record of the use of bills of credit until 1755,and then for a comparatively moderate sum first andonly loan bank wasissued in 1733. Con-necticut first author-ized the issue of pa-per to be loaned inthe same year, and in175 I followed the ex-ample of Massachu-setts in retiring itspaper. New Yorksuffered but little fromthe loan bank craze,but its governmentmade repeated andscandalous issues ofbills of credit for thepayment of trumped-up and fictitious claimsupon the Jersey, in 1721,created a loan bank ot^ to be lentout in small was author-ized for ^20,000, in1728. These, with afew emissions of billsof credit to meet tem-porary deficiencies,and for the eciuipmentof troops to take part in the wars with the French in Canada, seemed tohave been the limit of the issues of paper in this province, and the com-mon rate of (l(.j)reciation was about two of bills for one of II. H First HanU, DeiivL-r, Colo \i. illl: IlCKIOO. lianking, in an\- sense- in which the wortl is now understood, had itsbirth in America during the rc\olulionar\- peiiod lasting from 1775 to 49 the adoption of the Federal Constitution in 1788. Yet the financial pol-icy of the Confederation, while directed by the Continental Congress, aswell as that of nearly every one of the thirteen states during the sametime, was so far a repetition of the worst sins of the colonial i)eriod as tomake legitimate private banking impossible for the greater part of thisterm and difficult or unprofitable for the remainder. Until the constitu-tional prohibition of bills of credit and of legal-tender paper came intoforce there was no room for the modern bank. It was estimated that just before the war of the revolutio
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Keywords: ., bookcentury1800, bookde, booksubjectbanksandbanking, bookyear1895
