March 19th: “on a day like this back in 1874, Banco de España became the Spanish national bank”
The regulatory standard by which Banco de España became the Spanish national bank dates back to March 19th 1874, and was signed by Jose de Echegaray, who at the time was minister of finance.
That year, the monopoly on banknotes issuance was established. The Regulator put an end to plurality of issuance and, as a consequence, regional banks were either integrated into Banco de España or adopted a new scheme as commercial banks. This decision emanated from the urgent financial needs of an unstable government that faced great conflicts in the mainland (third Carlist war and cantonalism), as well as in the colonies (the war of Cuba and piracy conflicts in Philipines).
For further information: QUANTITATIVE THEORY OF MONEY. MONEY DEMAND IN SPAIN: 1883-1998.Abre en ventana nueva
