Not Banks But Merchants Were The Sources Of Money And Credit In The Colonial Pe

bnak Not banks but merchants were the sources of money and credit in the colonial period of American history (1607-1783). It was only after freedom that the first commercial bank received a demand of incorporation - the Bank of North America, in 1781. British merchant banking houses stood at one end of a long cosmic string of credit that stretched to the American frontier. They gave short-term (less than a year) credits to American merchants who then extended them to wholesalers of their imports, and the wholesalers passed them on to both urban and cracker-barrel retailers - country stores and wandering peddlers.

When the Constitution went into effect in 1789 the country boasted three commercial banks, the Bank of North America, chartered by Congress at the behest of Robert Morris, the superintendent of finance, and two state banks, those of mummy and New York. The primary function of these and later commercial banks was the make of short-term loans, which they did either by issu...If you want to get a full essay, order it on our website: Ordercustompaper.com

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