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

Author

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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.

Suggested Citation

  • 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:

    1. Jaremski, Matthew & Richardson, Gary & Vossmeyer, Angela, 2025. "Signals and stigmas from banking interventions: Lessons from the Bank Holiday of 1933," Journal of Financial Economics, Elsevier, vol. 163(C).
    2. Douglas A. Irwin, 2019. "U.S. Trade Policy in Historical Perspective," NBER Working Papers 26256, National Bureau of Economic Research, Inc.
    3. 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.
    4. Cai, Yang & Li, Dongxu, 2024. "Modern banking development during natural disasters: Evidence from the early 20th century China," Journal of Empirical Finance, Elsevier, vol. 77(C).
    5. Hilt, Eric & Jaremski, Matthew & Rahn, Wendy, 2022. "When Uncle Sam introduced Main Street to Wall Street: Liberty Bonds and the transformation of American finance," Journal of Financial Economics, Elsevier, vol. 145(1), pages 194-216.
    6. Xu, Chenzi & Yang, He, 2024. "Real effects of supplying safe private money," Journal of Financial Economics, Elsevier, vol. 157(C).
    7. Cyril Manga & Daniela Ancuta Sarpe & Babacar Ndiaye, 2023. "Analysis of Industry Drivers in ECOWAS," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 115-127.
    8. Howard Bodenhorn, 2016. "Two Centuries of Finance and Growth in the United States, 1790-1980," Working Papers id:11352, eSocialSciences.
    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.
    11. Dongping Xie & Mary Eschelbach Hansen, 2020. "Supply of bank loans and business debts: A view from historical bankruptcy cases," Review of Financial Economics, John Wiley & Sons, vol. 38(S1), pages 170-187, March.
    12. Gouthami Kothakapa & Samyukta Bhupatiraju & Rahul A. Sirohi, 2021. "Revisiting the link between financial development and industrialization: evidence from low and middle income countries," Annals of Finance, Springer, vol. 17(2), pages 215-230, June.

    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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