Background Antebellum Period At the end of the Second Bank of the United States in 1836, the control of banking regimes devolved mostly to the states. Different states adopted policies including a total ban on banking (as in Wisconsin), a single state-chartered bank (as in Indiana and Illinois), limited chartering of banks (as in Ohio), and free entry (as in New York). While the relative success of New York's "free banking" laws led several states also to adopt a free-entry banking regime, the system remained poorly integrated across state lines. Though all banknotes were uniformly denominated in dollars, notes would often circulate at a steep discount in states beyond their issue.
Background Antebellum Period At the end of the Second Bank of the United States in 1836 the control of banking regimes devolved mostly to the states Different states adopted policies including a total ban on banking (as in Wisconsin) a single state-chartered bank (as in Indiana and Illinois) limited chartering of banks (as in Ohio) and free entry (as in New York) While the relative success of New York's "free banking" laws led several states also to adopt a free-entry banking regime the system remained poorly integrated across state lines Though all banknotes were uniformly denominated in dollars notes would often circulate at a steep discount in states beyond their issue