State banks rejected proposals to accept each other's banknotes at full face value because inter-regional trust was limited—a Boston bank would not trust a newly-chartered three-month-old state bank in another region, as they only accepted notes from banks with established histories of good conduct and timely payments.

causalpending

Speaker

Dr. Jane Nodell

Evidence Quote

“if you're the bank of Boston you don't want to accept the State Bank of some...Bank of a state that was started three months ago...they were not interested in that”

Source

A Masterclass In Central Banking | Professor Jane Knodell— Forward Guidance
Created: 8/11/2026, 1:31:04 AM

My Notes

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