The U.S. National Banking System, 1863 to 1913, contributed to the development of the U.S. commercial banking with the issue of uniform, national bank notes that moved the domestic exchange rates much closer to par, and by strengthening a market for a large block of government securities. State banks, on the other hand, deprived of the power of note issues, continued to operate on the basis of demand deposits. Thus, the great shift toward deposit banking in "country" bank areas.
