Editing Central bank (section)

===Early national central banks===
[[File:Thomas Malton after Sir Robert Taylor PrincipalFront ofBankofEngland1791.jpg|thumb|The [[Bank of England]] in 1791]]

The Swedish central bank, known since 1866 as [[Sveriges Riksbank]], was founded in [[Stockholm]] in 1664 from the remains of the failed [[Stockholms Banco]] and answered to the [[Riksdag of the Estates]], Sweden's early modern parliament.<ref>[http://www.riksbank.com/templates/Page.aspx?id=9159 History of Sveriges Riksbank] Riksbank.com {{webarchive|url=https://web.archive.org/web/20080504165055/http://www.riksbank.com/templates/Page.aspx?id=9159|date=2008-05-04|df=y}}</ref> One role of the Swedish central bank was lending money to the government.<ref>Bordo, M. (December 2007), [http://www.clevelandfed.org/research/commentary/2007/12.cfm "A Brief History of Central Banks"] {{Webarchive|url=https://web.archive.org/web/20080203115046/http://www.clevelandfed.org/research/Commentary/2007/12.cfm |date=3 February 2008 }}, Federal Reserve Bank of Cleveland.</ref>

The establishment of the [[Bank of England]] was devised by [[Charles Montagu, 1st Earl of Halifax]], following a 1691 proposal by [[William Paterson (banker)|William Paterson]].<ref>{{cite book|url=https://books.google.com/books?id=EkUTaZofJYEC&q=British+Parliamentary+reports+on+international+finance|title=Committee of Finance and Industry 1931 (Macmillan Report) description of the founding of Bank of England|quote="Its foundation in 1694 arose out the difficulties of the Government of the day in securing subscriptions to State loans. Its primary purpose was to raise and lend money to the State and in consideration of this service it received under its Charter and various Act of Parliament, certain privileges of issuing bank notes. The corporation commenced, with an assured life of twelve years after which the Government had the right to annul its Charter on giving one year's notice. Subsequent extensions of this period coincided generally with the grant of additional loans to the State."|access-date=10 May 2010|isbn=9780405112126|year=1979|publisher=Arno Press |archive-date=1 July 2023|archive-url=https://web.archive.org/web/20230701075449/https://books.google.com/books?id=EkUTaZofJYEC&q=British+Parliamentary+reports+on+international+finance|url-status=live}}</ref> A [[royal charter]] was granted on {{date|1694/07/27}} through the passage of the [[Tonnage Act 1694|Tonnage Act]].<ref>H. Roseveare, [https://books.google.com/books?id=V1MkAQAAIAAJ The Financial Revolution 1660–1760] (1991, Longman), p. 34</ref> The bank was given exclusive possession of the government's balances, and was the only limited-liability corporation allowed to issue [[banknote]]s.<ref>{{cite book|last=Bagehot|first=Walter|title=Lombard Street: A Description of the Money Market (1873)|date=5 November 2010|publisher=Henry S. King and Co. (etext by Project Gutenberg)|location=London|url=http://www.gutenberg.org/ebooks/4359|access-date=24 January 2013|archive-date=9 May 2012|archive-url=https://web.archive.org/web/20120509060631/http://www.gutenberg.org/ebooks/4359|url-status=live}}</ref>{{page needed|date=October 2015}} The early modern Bank of England, however, did not have all the functions of a today's central banks, e.g. to regulate the value of the national currency, to finance the government, to be the sole authorized distributor of banknotes, or to function as a [[lender of last resort]] to banks suffering a [[liquidity crisis]].

In the early 18th century, a major experiment in national central banking failed in [[France]] with [[John Law (economist)|John Law]]'s [[Banque Royale]] in 1720–1721. Later in the century, France had other attempts with the [[Caisse d'Escompte]] first created in 1767, and [[Charles III of Spain|King Charles III]] established the [[Bank of Spain]] in 1782. The [[Russian Assignation Bank]], established in 1769 by [[Catherine the Great]], was an outlier from the general pattern of early national central banks in that it was directly owned by the Imperial Russian government, rather than private individual shareholders. In the nascent [[United States]], [[Alexander Hamilton]], as Secretary of the Treasury in the 1790s, set up the [[First Bank of the United States]] despite heavy opposition from [[Jeffersonian Republicans]].<ref>Federal Reserve Bank of Minneapolis. "A History of Central Banking in the United States" [https://www.minneapolisfed.org/about/more-about-the-fed/history-of-the-fed/history-of-central-banking online] {{Webarchive|url=https://web.archive.org/web/20180929233339/https://www.minneapolisfed.org/about/more-about-the-fed/history-of-the-fed/history-of-central-banking |date=29 September 2018 }}</ref>