Public Banking

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Public Banking is promoted in a Populist Era style in response to the apparently failed concept of centralized banking by the Public Banking Institute. The Public Banking Institute characterizes Public Banking as a means to preserve capital formation and lending in the best interests of local/regional/national public need. According to the Institute, 14 states have established legislation to study or indeed implement a Public Banking system similar in structure to the Bank of North Dakota which has shown a long history of the marked advantages and successes of such a system.

The Public Banking Institute web site was created by Ellen Brown, also the creator of the Web of Debt website and author of the book The Web of Debt, The Shocking Truth About Our Money System And How We Can Break Free.

From the numerous articles found on the Web of Debt site are found:

Historical examples of successful banking systems

  • Colonial Scrip of Benjamin Franklin's day [1][2]
  • Lincoln's Greenbacks [3]
  • Currency of the islands of Guernsey and Jersey [4][5]
  • Currency of Australia during the first half of the 1900's [6]
  • Currency of Germany prior to World War II [7]

Characteristics of successful banking systems

  • Issuance with very little or no interest or debt
  • Issuance for goods or services tendered to the government

Results of successful banking systems

  • No inflation therefore..
  • Stable Prices
  • Stable Markets
  • Business cycle dampening
  • High rates of employment
  • No National Debt
  • Limited requirements for regulation
  • Limited systemic risk


Articles and resources


Public Banking Institute -
Web of Debt -
Bank of North Dakota -

Related SourceWatch articles


External resources

External articles