The Downfall of America’s First Central Bank

On pages 194-195 of The Mystery of Banking by Murray N. Rothbard, we read:

“Despite the monopoly privileges conferred upon the Bank of North America and its nominal redeemability in specie, the market’s lack of confidence in the inflated notes led to their depreciation outside the Bank’s home in Philadelphia. The Bank even tried to bolster the value of its notes by hiring people to urge redeemers of its notes not to insist on specie-a move scarcely calculated to improve the long-run confidence in the Bank.

After a year of operation, Morris’s political power slipped and he moved quickly to shift the Bank of North America from a central bank to a purely commercial bank chartered by the state of Pennsylvania. By the end of 1783,… the first experiment with a central bank in the United States had ended.”

This quote is cited from page 327 of The Creature from Jekyll Island, A Second Look at the Federal Reserve by G. Edward Griffin.


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