Working Paper

National bank notes and silver certificates


Abstract: 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: Paper money; National bank notes; Silver;

https://doi.org/10.26509/frbc-wp-200622

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File(s): https://doi.org/10.26509/frbc-wp-200622
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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Working Papers (Old Series)

Publication Date: 2006

Number: 0622