Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: arrogantsob
...“Wildcat” banking'...

The wildcat banking problem took care of itself. Or rather, the market took care of it. Review the history of Suffolk Bank, which served as a private bank note clearing house and effectively cleaned up the New England banking industry.

20 posted on 03/22/2011 10:54:37 AM PDT by SeeSharp
[ Post Reply | Private Reply | To 11 | View Replies ]


To: SeeSharp

That market correction took a long time and only occurred after years of fraud and large losses by those defrauded by these “banks”. And New England was not the center of the problem with the wildcats. They were most prevalent where there was an undeveloped banking system such as the frontier areas. I believed that is why they were called “wildcats” as in being located where wildcats were common.

The whole episode was another example of an insufficient money supply which always accompanies the so-called gold standard. People had to use their ingenuity to devise other currencies to keep the economy moving. And not all of it was good.


45 posted on 03/22/2011 1:03:30 PM PDT by arrogantsob
[ Post Reply | Private Reply | To 20 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson