Not New Jersey; old Jersey, in the Channel Islands. I recently read a paper by Brandon Dixon, an undergraduate economics student at the University of Chicago, that examines currency arrangements in the periphery of the United Kingdom. The paper should be issued in a month or two and I will post a link when it is, because the paper also discusses Scotland. One of the sources Dixon cites on the history of currency in Jersey is this summary by its government, which briefly discusses the island's free banking period (see pages 12-14). There were more than 100 note issuers by 1817, and even churches issued notes! Consolidation then set in. Later in the century, I gather in 1873 (the year of a worldwide financial panic), a number of banks failed. A subject for detailed research by somebody who can go and poke around local archives?
This archived content originally appeared at Freebanking.org, the predecessor site to Alt-M.org, and does not carry the sponsorship of the Cato Institute.