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According to [1], it started with Franklin:

In addition to membership libraries, Benjamin Franklin also played a role in the development of the first lending library. In 1790, Franklin donated a collection of books to a Massachusetts town that named itself after him. Though the town asked Franklin to donate a bell, he determined that "sense" was more important than "sound." Franklin residents voted for those donated books to be freely available for town members, creating the nation's first public library.

[1] https://dp.la/exhibitions/history-us-public-libraries/beginn...






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