2006/09/01 by Jane Knodell · 1 citation
Economics, Econometrics and Finance · Social Sciences · Business, Management and Accounting · Engineering · #Historical Economic and Social Studies #American Constitutional Law and Politics #American History and Culture #Boom #State (computer science) #Debt #Frontier #Veto #Financial system #Investment banking #Monetary reform #Balance sheet #Chinese financial system #Economics #Bank rate #Quantitative easing #Investment (military) #Club #Business #Economy #Finance #Monetary policy #Monetary economics #Political science #Central bank #Law #Engineering
paper · doi:10.1017/s0022050706000258
openalex publication_date 2006/09/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/27
Revisiting an old debate between “traditional” historians and “New” economic historians about the short-run monetary effects of President Jackson's war on the Second Bank, I offer new arguments for the traditionalists. I develop a framework accounting for growth in commercial bank credit based on the “investment club” characteristics of antebellum state-chartered banking and apply it to state bank balance sheet data for 1830–1836. The removal of the Second Bank indeed magnified the boom in commercial banking, and the replacement of Second Bank branches with state-chartered banks as lenders and federal government depositories amplified the boom in frontier lands and state debt.