Clearinghouses and the Origin of Central Banking in the United States
Author:
- Gary GortonGGGary Gorton
- 3 March 1985
- journal article
- Published by Cambridge University Press (CUP) in The Journal of Economic History
- Vol. 45 (2) , 277-283
Abstract
The pre-1914 U.S. banking industry is not easily characterized as a market operating through a price system. The endogenous development of the clearinghouse as the industry's organizing institution can be explained by inherent characteristics of demand deposits. During banking panics the clearinghouse united banks into an organization resembling a single firm which produced deposit insurance.Keywords
This publication has 3 references indexed in Scilit:
- Banking in the theory of financeJournal of Monetary Economics, 1980
- The Nature of the FirmEconomica, 1937
- Substitutes for Cash in the Panic of 1907The Quarterly Journal of Economics, 1908