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Journal of Banking & Finance Vol. 87 2018

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

Matthew Jaremski1,2; Peter L. Rousseau3

1 National Bureau of Economic Research · 2 Colgate University · 3 Vanderbilt University

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.

DOI
10.1016/j.jbankfin.2017.10.010
Volume
87
Pages
264-281
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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