a central bank like the federal reserve in the united states can help survive a bank run

Though the Manhattan Company moved out of the water business, it remained a household name. This service continued until 1842 when New York City established its own municipal water system, and the Manhattan Company's Waterworks closed its operations. In order to transport water through the growing city, six miles of wooden pipes were laid in just the first year, providing clean water to 400 homes, shops, and businesses.

The charter, with its unusual clause, was successfully passed. Burr had added a clause into the charter that would allow the directors of the Manhattan Company to start a bank with excess capital not needed by the water company.

In 1799, Hamilton and Burr presented a charter for the governor's signature that would provide clean water to New York City residents through a private company, the Manhattan Company. And the two men who led the charge were none other than Alexander Hamilton and Aaron Burr. But it wasn't until an outbreak of yellow fever reached its peak in 1798, that a group of people decided to take action. Unsanitary conditions prompted concern about the spread of disease. Most New Yorkers had no easy access to clean water. By the end of the 18th century, there were close to 60,000 people living in New York City. Rachel: You might be surprised to find out that JPMorgan Chase began by supplying water to Lower Manhattan.

A central bank like the federal reserve in the united states can help survive a bank run