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Working Paper

National Bank Notes and Silver Certificates

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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.
12.01.2006ISSN 2573-7953 WP 06-22DOI 10.26509/frbc-wp-200622
Keywords bank notes, silver certificates, national banking system, national banks
JEL Classification Codes E42, E50, G21, N22

Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.

Suggested Citation

Champ, Bruce, and James B. Thomson. 2006. “National Bank Notes and Silver Certificates.” Federal Reserve Bank of Cleveland, Working Paper No. 06-22. https://doi.org/10.26509/frbc-wp-200622