Because National Bank notes had to be backed by government securities, as the government retired its post-Civil War debt it became exceedingly costly to supply currency, so the currency supply shrank even as the country grew rapidly, causing severe currency shortages and financial crises in the late 19th and early 20th centuries.
causalpending
Speaker
George SelginEvidence Quote
“the currency supply shrank even as the country was growing very rapidly and that was the thing that set the stage for severe currency shortages and financial crises in the last decades of the 19th century”
Created: 6/15/2026, 9:20:23 AM
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