Suffolk Bank
In addition to Jackson and Parker, other prominent shareholders of the bank included William Appleton, Nathan Appleton, Timothy Bigelow, John Brooks, Gardiner Greene, Henry Hubbard, Augustine Heard, Amos Lawrence, Abbott Lawrence, Luther Lawrence, William Prescott, Dudley Leavitt Pickman, and Benjamin Seaver.This practice caused many people to doubt the exact worth of certain notes and in turn have little faith in some banks.The Suffolk System was the predecessor to modern banking practices and led to the creation of the Federal Reserve that still operates today.The Panic of 1837, a deflationary backlash inducing depression and unemployment, was caused by many different factors including the practices of the Second Bank of the United States and political failures.These practices included, lending reserves to other banks and keeping the payment system operating.[10] Although the Suffolk System was a great regulator of unsound banking practices, it lacked the ability to properly administer the total volume of banknote circulation.The Suffolk System's many good qualities could no longer outweigh the lack of their ability to increase note circulation."[16] John Jay Knox Jr., a former Comptroller of the U.S. Treasury, stated that the success of the Suffolk Bank demonstrated that:
Banking in theUnited StatesRegulationMonetary policyBanking chartersCredit unionFederal savings bankFederal savings associationNational bankState bankCredit cardDeposit accountsCheckingMoney-marketSavingsCertificate of depositFederal Deposit InsuranceCorporation (FDIC)National Credit Union ShareInsurance Fund (NCUA)Check 21 ActElectronic funds transfer (EFT)ATM cardDebit cardWire transferSubstitute checkACH NetworkBill paymentclearinghouse bankBostonMassachusettsspeciebank notescorporate charter38th Massachusetts General CourtBoston AssociatesPatrick Tracy JacksonDaniel Pinckney ParkerBoston Exchange Coffee HouseState Street75 State StreetExchange PlaceWilliam AppletonNathan AppletonTimothy BigelowJohn BrooksGardiner GreeneHenry HubbardAugustine HeardAmos LawrenceAbbott LawrenceLuther LawrenceWilliam PrescottDudley Leavitt PickmanBenjamin SeaverCivil WarUnited Statescurrencysilverclearing houseNew Englandregulatory banking systembanknotesFederal Reserveredeemingpar valuecounterfeitingPanic of 1837deflationarydepressionunemploymentSecond Bank of the United Statesrecessioncentral bankmoney supplyThe Suffolk Bankbanknotebank noteNational Bank Act of 1864monopolizeHistory of Money and Banking in the United StatesMurray RothbardJohn Jay Knox Jr.Comptroller of the U.S. TreasuryFederal Reserve SystemMinneapolisFederal Reserve Bank of MinneapolisCambridge, MARiverside PressCengageAdam Smith InstituteRothbard, Murray N.Ludwig von Mises InstituteBaker LibraryHarvard Business SchoolSanta Barbara, CAABC-CLIOThe Journal of Economic HistoryCambridge University Presscentral banking in the United Statespre–1913Monetary policy of the United StatesCommercial RevolutionBills of creditTobacco Inspection ActMaryland Tobacco Inspection Act of 1747Currency Acts1st Industrial RevolutionSecond Continental CongressU.S. dollar banknotesContinental currency banknotesBank of PennsylvaniaU.S. Finance SuperintendentBank of North AmericaArticle I of the U.S. ConstitutionU.S. Treasury DepartmentU.S. Treasury SecretaryU.S. Treasury securityFirst Bank of the United StatesCoinage Act of 1792United States MintU.S. dollar coinsHalf dime1792 half dismeHalf centLarge centTreasury NoteBanking in the Jacksonian EraMcCulloch v. Maryland