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

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  • Matthew S. Jaremski
Abstract
The passage of the National Banking Acts stabilized the existing financial system and encouraged the entry of 729 banks between 1863 and 1866. The national banks not only attracted more deposits than previous state banks, but also concentrated in the area that would eventually become the Manufacturing Belt. Using a new bank census, the paper shows that these changes to the financial system were a major determinant of the geographic distribution of manufacturing. The sudden 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.

Suggested Citation

  • Matthew S. Jaremski, 2013. "National Banking's Role in U.S. Industrialization, 1850-1900," NBER Working Papers 18789, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:18789
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    5. 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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    9. 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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    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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