MGMT 1030 Lecture Notes - Lecture 10: Federal Reserve Act, Card Money
20 Jul 2016
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Document Summary
1)banking in new france and early british north america. Merchants often assumed the role of credit in the economy of new france. Imbalance of trade with europe drained specie out of the colony. Card money proved to be a short term solution to currency problems in new. Instability in the colonial financial structure continued after 1763. Transferable certificates for government purchases the first reliable form of currency on upper canada after 1792. Army bills during the war of 1812 were legal tender notes redeemed by the. Bank of montreal established in 1817, followed by others, including the bank of. Granted the power to issue bank notes. Limits on the amount of debt in relation to deposits. General conservative nature of chartered banking in british north america resulted in a branch banking system. Different approach from banking in the united states, where a fear of centralized authority and monopoly resulted in a loose system of many banks.
