Private banks in early Michigan, 1837–1884

Bailey, Christopher A.; Hossain, Tarique; Pecquet, Gary M.

doi:10.1007/s11698-016-0155-4

Cited by 6 publications

(2 citation statements)

References 13 publications

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“…In their analysis of private banking era notes in Michigan, Christopher Bailey et al . (2018) concur with Jaremski's analysis, but say that when many currencies or currency substitutes were simultaneously in use for an extended period, the role of exchange brokers in everyday business increased. As an interesting take on the evolution of transaction costs, they consider the emergence of such brokers as costs for a financial system that used both heterogeneous currencies and money substitutes.…”

Section: IImentioning

confidence: 72%

Multi-currency regime and markets in early nineteenth-century Finland

Voutilainen

Turunen

Ojala

2019

Financial History Review

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Pre-industrial money supply typically consisted of multiple, often foreign currencies. Standard economic theory implies that this entails welfare loss due to transaction costs imposed by currency exchange. Through a study of novel data on Finnish nineteenth-century parish-level currency conditions, we show that individual currencies had principal areas of circulation, with extensive co-circulation restricted to the boundary regions in between. We show that trade networks, defined here through the regional co-movement of grain prices, proved crucial in determining the currency used. Market institutions and standard price mechanisms had an apparent role in the spread of different currencies and in determining the dominant currency in a given region. Our findings provide a caveat for the widely held assumption that associates multi-currency systems with negative trade externalities.

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Section: IImentioning

confidence: 72%

Multi-currency regime and markets in early nineteenth-century Finland

Voutilainen

Turunen

Ojala

2019

Financial History Review

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“…Timberlake describes this money as "unaccounted." Subsequent research has documented other instances of unaccounted money including Michigan when the state was nearly without banks (Baily, Hossain and Pecquet 2018), and New Orleans when it was occupied by northern troops during the Civil War (Pecquet and Thies 2010). During the National Bank Era, clearinghouse associations took the lead in issuing money during financial crises (Dwyer andGilbert 1989, Gorton 1985).…”

Section: Introductionmentioning

confidence: 99%

Clearinghouse Certificates during the Great Depression: A Non-Example of "Unaccounted Money"

Thies

2020

QJAE

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This article examines the non-issue of bank clearinghouse certificates during the Great Depression of the 1930s. Instead of a market failure, this non-issue is found to have been the result of an intervention. At the time, the issue of clearinghouse certificates to temporarily meet the need of the economy for a medium of exchange following a financial panic was a well-established practice. To make a long story short: In 1933, plans were underway by bankers to resort to this expedient. Merchants and the public at large were anxious to get their hands on the money substitute. But federal authorities said no. Instead of a short-term fix, following which the economy would return to its former ways, federal authorities had other plans. This paper examines both the specifics of the issue of emergency money during the Great Depression and the general principles involved in such issues.

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Samuel J. Tilden, Iron Money and the Election of 1876

Thies

2019

Public Choice Analyses of American Economic History

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Private banks in early Michigan, 1837–1884

Cited by 6 publications

References 13 publications

Multi-currency regime and markets in early nineteenth-century Finland

Multi-currency regime and markets in early nineteenth-century Finland

Clearinghouse Certificates during the Great Depression: A Non-Example of "Unaccounted Money"

Samuel J. Tilden, Iron Money and the Election of 1876

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