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the supply oF money – banK behaViour and the implications For monetary analysis

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Aside from the short-lived exceptions of the First Bank of the United States and the Second Bank of the United States, bank chartering was solely a function of the states until 1863. Only in that year, with the passage of the National Currency Act, was a federal role in the banking system per- manently established. The intent of the legisla- tion was to assert federal control over the monetary system by creating a uniform national currency and a system of nationally chartered banks through which the federal government could conduct its business.2 To charter and super- vise the national banks, the act created the Office of the Comptroller of the Currency...

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