General Question

rawrgrr's avatar

Does anyone know when Fractional Reserve Banking was created?

Asked by rawrgrr (1559points) April 16th, 2011 from iPhone

I’m doing an essay for school on social credit an flaws in the monetary system and stuff an I can’t seem to find the date. If anyone knows that would be great. Thanks!

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8 Answers

optimisticpessimist's avatar

Hope this helps. However, I cannot guarantee the accuracy of the content and suggest you find others sources as well.

rawrgrr's avatar

@optimisticpessimist Thanks for the link! but there’s no date :( aha I guess it’s just been around for so long nobody really knows

jerv's avatar

Actually, I think it is a relatively recent thing; I almost want to say it was the 1940s sometime, at least in the US. Let me do a little digging in case I am wrong though.

optimisticpessimist's avatar

From reading the link I provided, it seemed fractional banking has been in existence since the 16th century. It just was not called that apparently. It would depend upon whether you are only covering the modern era or if you are going all the way back to the origins. Wiki… also mentioned the goldsmiths in the history of fractional reserve banking as the origins, but mentioned no dates.

optimisticpessimist's avatar

Here is another one. Go down to Medieval England.
This deals with the modern era.
Here scroll down to History of fractional reserve banking.
A video, I did not watch it.

Good luck

RareDenver's avatar

Something makes me want to say Italy but at the end of the day some version of it has been around as long as people have made a show of their power/wealth, which is pretty much as long as people have been around. Primates still have their own version of Fractional Reserve Banking in the sense that the leader of the pack/tribe offers protection to them all (which when push comes to shove he can’t actually do) in return for their investment in him.

rawrgrr's avatar

Thanks everyone for your answers. This essay has ruined my weekend.. aha

Based on my research it seems that it’s been around for many many years and the founding fathers even warned us against it. This research has really changed my view on everything. I strongly recommend everyone watch this/these video, you will be shocked to learn what really goes on in the economy.

@optimisticpessimist Thanks for those links but unfortunately I don’t have time to read/watch all of it but it’s very interesting and ill check it out later. thanks!

jerv's avatar

@rawrgrr The founding fathers warned us of many things, but like most kids, we didn’t/don’t listen :p
Thanks for that link!

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