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The dawn of an ‘age of deposits’ in the United States

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  • Jaremski, Matthew
  • Rousseau, Peter L.

Abstract

Individual deposits in the United States grew from 5% to 23% of GDP between 1863 and 1913. A comprehensive database shows bank entry underlying this trend while historical events, including the National Banking Acts, resumption in 1879, and the election of 1896, influenced deposits at the bank-level. The nation's embrace of deposits was thus driven by stability of the monetary system and confidence in the safety and utility of established and well-capitalized banks. Bank-level and county-level regressions confirm these patterns for national banks over the entire postbellum period and for a sample of Midwest state and national banks from 1888.

Suggested Citation

  • Jaremski, Matthew & Rousseau, Peter L., 2018. "The dawn of an ‘age of deposits’ in the United States," Journal of Banking & Finance, Elsevier, vol. 87(C), pages 264-281.
    • Handle: RePEc:eee:jbfina:v:87:y:2018:i:c:p:264-281
    DOI: 10.1016/j.jbankfin.2017.10.010
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    Cited by:

    1. Jaremski, Matthew & Mathy, Gabrial, 2017. "Looking Back On the Age of Checking in America, 1800-1960," MPRA Paper 78083, University Library of Munich, Germany.
    2. Panicos O. Demetriades & Peter L. Rousseau & Johan Rewilak, 2017. "Finance, Growth And Fragility," Discussion Papers in Economics 17/13, Division of Economics, School of Business, University of Leicester.
    3. Chwieroth, Jeffrey M. & Walter, Andrew, 2019. "The financialization of mass wealth, banking crises and politics over the long run," LSE Research Online Documents on Economics 100765, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    Bank deposits; Financial development; National banking system; Bank notes;
    All these keywords.

    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
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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