The Federal Reserve Fractional Banking Scam Has Been Around Since 1661

Commonly regarded as the world’s oldest central Bank, Sveriges Riksbank, first named Stockholms Banco, was founded by Johan Palmstruch in 1657.

His third bank proposal had succeeded because he bribed the King with half the profits (King Charles X Gustav).

Depositors had to pay the bank a fee, with no interest received. The bank payed out cash and checks.

Loans secured against property appeared in 1659. These methods were all imitations of banks in Amsterdam and Hamburg.

Palmstruch was an innovator as he was the first one to use deposits to finance loans.

Beginning in 1661, the depositors were given credit notes instead of money. They were banknotes called "dalers", the first ones in Europe.

The first series of banknotes were all handsigned. The second series were not.

The banknotes were popular because they were more light and convenient than the big, heavy copper coins previously used.

The bank began printing and lending banknotes continually in 1663. The loan amounts quickly outnumbered the deposits.

This is where the fractional reserve banking nightmare began. 

The oldest surviving banknote in the world, from 1666.

The signatures would soon be gone, making the banknotes easier to counterfeit.

In 1664, the bank collapsed as a result of issuing too many notes without the necessary collateral. Palmstruch was unable to honour the withdrawals after the value of the banknotes had fallen (there was a "run on the bank").

The bank ceased operations in 1664, after a mere seven years in operation. Palmsruch was imprisoned and condemned to death, but later received clemency.

On the 17th September, 1668, the bank's ownership was transferred to the government.

Changing its name to Sveriges Riksbank in 1866, the Bank has a long and interesting history, and is still the bank of Sweden.

It is interesting that a Federal Reserve type fractional banking system was around in 1657 but the culprits and the problem were both dealt with properly and quickly, rather than allowing the bank to pay its private debts out of the public purse in perpetuity, as they are today.

Did the Robber Baron banksters who set up the Federal Reserve in 1913 base their system on the corrupt blueprint of the Stockholms Banco from 1663?  Doubt it not!  

I have added emphasis to the parts that also deal with the problems and possible solutions of the Federal Reserve.

Information from listverse and Wikipedia.