The Specie Standard and Central Banking in the United States Before 1860

Central banking institutions during the past quarter-century have been almost free of the constraints that inhibited their actions during the nineteenth century. The special conditions under which earlier central banking institutions were formed and operated frequently have been lost to view; and while contemporary observers have come to regard the first two Banks of the United States sympathetically, the functional evolution of these institutions within the framework of specie standards has been largely neglected. The period between the end of the Second Bank and the organization of the Federal Reserve System is subsequently treated as the Dark Ages of monetary policy, better forgotten than deplored.