Scottish free banking ended in 1845 due to the careless extension of England's Peel's Act to Scotland on the assumption that what was good for England suited Scotland too; the Act capped note issues and imposed 100% marginal reserve requirements, ultimately giving the Bank of England a currency monopoly without solving instability.
causalpending
Speaker
George SelginEvidence Quote
“that ended up giving the Bank of England ultimately a complete monopoly of currency and it didn't solve the problem because you had Bank of England deposits that could equally serve as reserves for other banks”
Created: 6/15/2026, 9:20:23 AM
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