UBC Graduate Research

Cooperative economics : a step by step guide to local currency development Rosenblatt, Alison


The presence of local currencies far outdates that of the national dollar. The idea of a single currency did not even come into being until the 19th century when the Bank of England was established as the only bank allowed to print banknotes in Great Britain (Tibbett, 1997; Davies, 2009). Massachusetts bay colony was the first to issue paper currency in North America in 1690. The first bank notes were issued by the Bank of Montreal in 1817. Local paper currencies first appeared in the US in the form of municipal currencies during the ‘Free Banking’ era of 1837-65; a period when there was no central bank in the US (Jayaraman & Oak, 2005). The United States did not have a Central Bank until after the Civil War when a national currency became the norm and municipal currencies were no longer used (Solomon, 1996). Canada did not have a national currency until confederation in 1867 and did not have a Central Bank3 until 1933.

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Attribution-NonCommercial-NoDerivs 2.5 Canada