In 1829 the Spanish Bank was practically born of San Fernando like a liquidator society of the National Bank of San Carlos. It was created by the Real Cell of the 9 of 1829 July, with a capital of 60 divided million of real in 30. 000 actions of 2, 000 real ones. The debt of the State with the Bank of San Carlos ascended in 1829 to 309. 475. 984 real ones, of who it only paid 40 million in cash stops to settle it. This took to the bank to the bankruptcy, but the shareholders of San Carlos received in return actions of the new Bank of San Fernando by the difference. The statutes, written up by Sa’inz of Andean, specified like aims the emission of tickets to the carrier for Madrid, the discount and like moneylender of the Treasure. Basically it was not a deposit bank, and their operations were limited by the fear to undergo the laborious luck of its predecessor. With it its activity was restricted, and it did not get to use nor half of his assets in the first four years of life. Its preoccupation was to take care of circulating tickets in Madrid and the credits of the State. With the carlista war (1833-1839), the State it required the attention of the bank, to the end that became an appendix of this one, placing it in continuous economic hardships. operations with individuals were marginalized, and the organization ended at a precarious situation, until the end of which it stops to maintain price of the actions was forced to buy part of them.

the bank of Isabel II

In 1840, as a result of the confiscation, the activity of the bank increased, but for that reason it did not let maintain his narrow entailment with the State, that lasted until 1843. This circumstance restrained without a doubt some the economy of the country, because they lacked institutions of credit that they facilitated resources to the commerce and the industry. It was then when Jose Salamanca, along with other capitalists and retailers, propu under creation of the Bank of Isabel 11 (January of 1844). The Bank of San Fernando was against the initiative, but he himself month began to work of Isabel II. First it had the monopoly to emit tickets, reason why to the second it was authorized to him to emit certificates to the carrier. original capital was of 100 distributed million of real in 20. 000 actions of 5, 000 real ones. Its method to operate more modern than the one of his predecessor, he promoted a rivalry between which contributed to improve the banking situation in Madrid. The Bank of Isabel li, with its modern lines of performance, was extended, and created in 1846 the Spanish Bank of Cadiz, that also became ticket emitter. The expansion of this one exasperated to the Bank of San Fernando, until the end of not accepting tickets emitted by competition, although both institutions developed in different means. In 1846, the crisis that had begun in France e England both arrived at Spain, causing a difficult situation to banks. In view of it Santillán, minister of Property, proposed in January of 1847 the union of both organizations, initiative that well was welcomed by both given its precarious situation. The fusion was made with the intervention of the new minister of Property, Salamanca, that as it leaves interested from the Bank of Isabel II favored to this one.

the new Spanish bank of San Fernando

On the fusion, the birth of the new Bank of San Fernando counted with a capital of 400 million of real, of which 200 came a equal parts of both banks, and the other 200 subscribed the shareholders later. But this number never was gotten to cover. The crisis did not stop; rather it increased. And thus, in 1848, worsened by an embezzlement of the own director of the organization, the actions that in January they quoted to 262 percents lowered to 44% in the month of October. The government continued being incapable to pay his debts, and incobrables assets of individuals, coming from the Bank of Isabel II, took to a lamentable situation. In order to put remedy to him, the law of 4 of May of 1849 divided the bank in two departments, the one of emission and the one of operations, and at the same time the monopoly granted itself to him of emission for all Spain except for Barcelona and Cadiz. With this it was hoped to recover the credibility of the bank and tickets in circulation. Although the law was not effective, the modernization of the bank took to a reconstruction of he himself, changing the figure of the director by the one of governor. First was Santillán, named in December of 1849, that introduced a drastic reform of the system: it reduced capital a 120 million of real, eliminated departments both, regulated the ticket emission and created new banks. It presented the public balance weekly, against the established doctrine of the mystery of the credit, and improved the administration. In summary, it put bases of a central bank. Their improvements were shaped in the law of 15 of December of 1851. The activities of the bank continued, with numerous emissions and constants reforms of adaptation to a already increasing economy, until the law of 28 of January of 1856 established that New Bank of San Fernando took the name from Bank of Spain.

the bank of Spain

It was born by virtue of the law of 28 of January of 1856, but its condition of only bank of issue of tickets of legal course (until then were 15 bank ofs issue), as well as their category of national did not arrive until the Real Decree of 19 from March of 1874. Until this date it has to emphasize the extension of the capital to 200 million of real, the rejection to create a National Bank with English capital and two reforms monetary. First of these reforms it was adopted in 1864 to reduce the metallic content of the currency and the rights of minting, and to avoid therefore the flight of Spanish currency towards other countries, at the same time that decimal introduced the account system. The second reform it produced in October of 1868, to adapt to the system of the Latin Monetary Union, with which the peseta happened to be the unit, divided in 1 00 céntimos. Before the cancellation of the acquired rights of the other bank ofs issue, the opportunity occurred them to megre with the Bank of Spain changing the actions on a par, therefore did it mostly, becoming branches of the new national organization. The retirement and change of all existing paper money were not obtained until 1884, operation that was combined with the distribution of the new ones tickets, in principle local, to happen finally soon to regional and to nationals. This implied a great volume of emission, which it increased the capital up to 700 million, number next to 750 million allowed by the law, and forced the bank to take care of in metalist (silver) the current payments, to be able to restrain the fiduciary circulation. One stayed an austere policy of emissions, and its convertibility only in silver, because the gold conversion had give inn in 1883 by the flights to the foreigner. This attitude discredited the Spanish currency in the international market. Since we have been able to verify, the Bank of Spain did not do more than to to alleviate the economic difficulties of the State from its foundation end of century XIX. The loss of the last colonies in 1898 created a destabilization in the country that was not regularized until already entered century XX. Always in common agreement with the government, the bank became agent of this one abroad and got to participate in Bank of Morocco. It granted loans to the sultanato in 1910, and 1918 to the North American and French banks, operations that put of manifesto the Spanish economic resurgence.

the law Cambó

A new era in the trajectory of the bank the mark the Law of Banking Arrangement of 1921, inspired by Francisco Cambó, minister of Property. Basically what it emphasizes of the same one is that turned the Bank of Spain central bank, in damage of the deprived clients, to same time that contributed to the government a monetary policy, defined for the first time the concept of central bank and deprived bank, and he established that the government participated in the benefits of the bank. In this same law the ticket emission was prorogued, that expired in 1921, until 1946. The capital of 150 to 177 million pesetas was extended, and the fiduciary circulating top happened of 5, 000 million to 6. 000. amplitude of this law does not allow us to enter more details, but without the smaller doubt it supposed a great impulse in the development of the bank. Between 1920 and 1930 there were no great changes in the organization in spite of seeing itself affected by the successive devaluations of the peseta. The problems of organic character they began with the Republic, until the end of which lndalecio Dark, minister of Property, pointed the one possibility nationalization of the bank, but the crisis was surpassed with the distribution in the advice of three members of bank and three of the State. More it advanced, the situation got worse with the civil fight, and the bank, like Spain, was divided in two. The Bank of Spain was governed from March of 1936 by Luis Nicolau to d’Olwer, named by the government of the Republic, and like lieutenant governor first it appeared Pedro Pan, who later was the creator of the Bank of Spain in Towns. The situation in which was the country did that it controlled the branches, intervention that lasted until the 11 of May of 1938, in that the government of the Republic transferred the Bank of Spain to Barcelona. Then it again took the control from the Catalan branches, and operated and it held meeting of shareholders during fight, last the 8 of January of 1939. It stopped his activities with the fall of Barcelona. Parallelly, in the national zone the members of the administration of the bank were being grouped to establish a new administration power station in Towns under protection of the Meeting of Defense. The 24 of September of 1936, the advice in that city under the presidency met of Pedro Pan and representatives of the shareholders. His first initiative, consisted of unifying the policy of the existing branches in zone national. One named like lieutenant governor in Towns to Antonio Artigas, and the new guidance equipment was organized. The situation era of character provisional before the taking of Madrid, that was believed imminent, but when being delayed this one, the 12 of March of 1938, almost two years later, named governor to Antonio Goicoechea, who simultaneously assumed the control of all the official bank (Real estate mortgage bank, Outer Bank of Spain and Bank of Industrial Credit). In Santander, the 18 of September of 1938, a new meeting of shareholders took place, in whom it was authorized to direction of the bank to exert necessary the legal actions for the recovery of gold sent to Russia by the government of the Republic. A decree of the 12 of November of 1936, valid one for the zone controlled by the Meeting of Towns, desmonetizó all the tickets emitted by Bank of Spain in date previous to the 18 of July of that year, measurement that extended to certificates in silver. The lack of paper was let feel during all the fight, to the end to have to emit it with character of urgency in great amount of city councils, of all Spain. Also tickets in Barcelona by the Generalitat and the Bank of Spain were emitted; in Bilbao and Santander by private banks, and in Gijón and again in Santander by the Bank of Spain. The Council of Asturias and Leon made a series in 1937, and Ministry of Property in Madrid also covered its necessities emitting a series in 1937. While, in the national zone, the 21 of November of 1936 began to emit the Bank of Spain in Towns, that continued doing it until the 10 of August of 1938. Finalized the war, the desmonetizados tickets continued in the same situation, and had validity only the emitted ones in Towns. As of 1939, all paper was emitted in Madrid. A new period of the Bank of Spain began in 1939, but before the lack of silver and gold reserves and the warlike situation in the outside, the minister of Property, Larraz, decided on an internal reform, starting up a monetary and financial ordering and reorganizing Bank of Spain. The law of 13 of March of 1942 gave by eliminated the exercises from 1939 1941, and initiated a new stage. The evolution of bank inspired the writing of new statutes, that took effect the 24 of 1947 July and which they stayed effective until nationalization of the Bank the 7 of 1962 July. As of this date, in addition to bank of issue and vigilant of the deprived bank, him it corresponds to manage the monetary policy according to the government directives, to keep the reserve funds and currencies and to control the payments to the outside. The 14 of November of 1969 replaced the Spanish Institute of Foreign Currency, and from the 19 of June of 1971 it assumed functions of the Institute of Credit of the Savings banks, own of the means and Institute of Credit and length term. The evolution experienced by the Bank until the present time, has been a constant adaptation to the economic tendencies of this last one time, guided by the necessities of the country and the reflection of the performance of banks of our geographic surroundings, but conserving basically the norm and changes of the last statutes.


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