• anonymous
how would having a national bank help the united states earn money?
  • Stacey Warren - Expert
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  • chestercat
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  • Mr.Z " Banks often accumulated very large deposits of gold and silver from many individual depositors. Since most of this gold and silver never left the vault, banks would loan out a portion of it for a fee in interest, defraying their costs for operating the bank, while making a profit for themselves. When a bank made a loan it generally issued banknotes, again redeemable for coin, to the borrower. Consequently, a bank would have not only the original depositor’s receipts circulating as money but also the banknotes it had loaned, resulting in more banknotes circulating than it had coins to cover them. Of course, the bank would be holding valuable interest-bearing debts in the form of loans and mortgages, but these were payable in the future, often over many years, while the bank was obligated to redeem its banknotes for coin money on demand." That's a bank. " A commercial bank that is chartered under the federal government and is a member of the Federal Reserve System." That's a national bank. How DO you think a NB would help the U.S earn money?
  • anonymous
thank you so much :)

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