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National Banking's Role in U.S. Industrialization, 1850–1900

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  • Jaremski, Matthew

Abstract

The passage of the National Banking Acts stabilized the existing financial system and encouraged the entry of 729 banks between 1863 and 1866. These new banks concentrated in the area that would eventually become the Manufacturing Belt. Using a new bank census, the article shows that these changes to the financial system were a major determinant of the geographic distribution of manufacturing and the nation's sudden capital deepening. The entry not only resulted in more manufacturing capital and output at the county level, but also more steam engines and value added at the establishment level.

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  • Jaremski, Matthew, 2014. "National Banking's Role in U.S. Industrialization, 1850–1900," The Journal of Economic History, Cambridge University Press, vol. 74(1), pages 109-140, March.
    • Handle: RePEc:cup:jechis:v:74:y:2014:i:01:p:109-140_00
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    Cited by:

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    6. Colvin, Christopher L., 2015. "The past, present and future of banking history," QUCEH Working Paper Series 15-05, Queen's University Belfast, Queen's University Centre for Economic History.
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    9. I. Shovkun, 2016. "Neo-industrialization in Ukraine: are there macroeconomic background and investment potential?," Economy and Forecasting, Valeriy Heyets, issue 4, pages 48-69.
    10. Alice Kasakoff & Andrew Lawson & Purbasha Dasgupta & Michael DuBois & Stephen Feetham, 2018. "The effects of family and location on wealth: A longitudinal study of the US North, 1850–1870," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 38(59), pages 1815-1842.
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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • N21 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: Pre-1913
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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