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Sources of Credit and the Extent of the Credit Market: A View from Bankruptcy Records, Mississippi 1929-1936

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  • Mary Eschelbach Hansen

Abstract

This paper exploits newly-collected, highly-detailed data on sources of credit drawn from documents filed by a sample of petitioners for bankruptcy in Mississippi in the 1930s. The bankruptcy documents reveal that long-distance credit networks were extensive during this period. Credit networks were dominated by trade credit, particularly book credit that was extended from business to business. At this time, the bank-to-business lending channels that are common today were only beginning to develop. Manufacturers had both fewer long-distance creditors and fewer financial intermediaries as creditors than either merchants or farmers. New sources of consumer credit, though, were available even in the relatively under-developed Deep South. Â

Suggested Citation

  • Mary Eschelbach Hansen, 2014. "Sources of Credit and the Extent of the Credit Market: A View from Bankruptcy Records, Mississippi 1929-1936," Working Papers 2014-09, American University, Department of Economics.
    • Handle: RePEc:amu:wpaper:2014-09
    DOI: 10.17606/2pqq-sd29
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