The Program
From 1863 to 1935, National Bank Notes were issued by banks throughout the country and in U.S. territories. Banks with a federal charter would deposit bonds in the U.S. Treasury. The banks then could print banknotes worth up to 90% of the value of the bonds. The federal government would back the value of the notes - the issuance of which created a demand for the government bonds needed to back them.
The program was a form of monetization of the Federal debt. Bonds eligible as collateral for posting to the Treasury were said to have the "circulation privilege" and the interest they bore provided seigniorage to the National Banks.
Read more about this topic: National Bank Note
Famous quotes containing the word program:
“President Lowell of Harvard appealed to students ‘to prepare themselves for such services as the Governor may call upon them to render.’ Dean Greenough organized an ‘emergency committee,’ and Coach Fisher was reported by the press as having declared, ‘To hell with football if men are needed.’”
—For the State of Massachusetts, U.S. public relief program (1935-1943)
“The actions of each dancer were scrutinized with great care and any little mistake noted and remembered. The strain upon a dancer was consequently so great that when a fine dancer died soon after a feast it was said, “The peoples’ looks have killed him.””
—Merle Colby, U.S. public relief program (1935-1943)