[2] Prior to the Panic of 1837, the banking system across the nation was expanding and greatly contributed to economic growth and development.
[3] In 1842 he influenced Louisiana to require all banks to hold short-term self-extinguishing assets similar to the real bills principle in Britain.
The intent of this aspect of the law was to allow banks to track their individual position and assess the overall state of the local money market.
[6] The Forstall System enabled New Orleans’ banks to establish a reputation of dependability that allowed their notes to circulate widely.
[1] This abundance of trade and specie build up allowed New Orleans’ banks to focus solely on monetary policy without having to worry about aiding capital formation.
[7] In the first years of the Forstall System, attempts to renew the issued ninety-day paper often led to strong objection, and the creator was often shamed.
[3] During 1861–1862 (following Louisiana's secession from the union), both political and military pressures caused conflicts with banks’ abilities to make specie payments.
[3] In November 1877, an anonymous writer from The Banker’s Magazine reported that the stipulations associated with the law establishing the Forstall System were strictly adhered to, including the reserves of specie and short-term paper.