Antebellum Financial papers...also known as 'sleep aids'

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The real problem with the northern states is the banks were extremely sound and were driving the unbacked currencies out by buying them up and redeeming them.
The Troubled World of Antebellum Banking in Georgia
By Carole E. Scott

The following article was written in 2016 to provide additional material for a 2000 B>Quest article about antebellum banking in the South. Scott is the editor of B>Quest, 1996-2016

Throughout the nation before the Civil War the appropriate role—if any—and structure of banking was a major political issue. Banking in Georgia was embroiled in struggles between agricultural and commercial interests and between the less developed up country and the low country.


https://www.westga.edu/~bquest/2000/antebellumGAbanks.pdf

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The Boston and Philadelphia bankers could find the banks issuing notes without specie backing and with a distribution of non performing loans and had good enough lawyers to enforce redemption, or cause the bank to collapse.
The potential for fraud in state created banks, in the south and the Midwest was enormous.
 
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WARNING / DANGER - Heavy Math

Financial Deepening and Economic Growth During the US Antebellum Era 1834-1863
by Abdus Samad
Utah Valley University

INTRODUCTION
Financial deepening, and economic growth and economic development are widely discussed and debated issues. Schumpeter (1912) argued that banks providing intermediary services such as mobilizing savings, allocating resources, facilitating transactions, risk taking, and risk management support innovation, and produce economic development.

Industrial development in Britain and elsewhere has been viewed as a direct result of the development of financial institutions. Hicks (1969) and Bagehot (1962) argued that financial institutions played a pivotal role in Britain’s industrial revolution. In the continental United States, bank success stories during the antebellum period were mixed. In the Antebellum Period, banks were considered “wildcats” (Hamond, 1957), “legal swindle” and fraudulent. Repeated suspension of specie and a large scale failure were the reason of for these assumptions. It was widely believed that banks invariably issued depreciated currency, these practices benefited a few but “everybody would suffer from the harm they would cause” (Scott, 2000). As a result, several states in the Midwest banned banks. Illinois was one of them.

In addition, there were also persistent complaints by the farmers of the antebellum period that banks were biased against lending farmers even though agriculture was an important source of GDP. Banks, according to Redlich (1968), did not provide capital to the development of industries. Banks were established by the merchants and traders to cater to their needs of short term capital supply. Importantly, banks, according to Redlich (1968), were engaged in merchant lending because of the mercantile philosophy of the early banks—lending for the very short term (Redlich 1968).

The other views were that banks were engaged in the internal development programs.

Taus (1967) said that “during the 1850s, banks became heavily interested in railway road construction” (page, 53). The construction of railroads, roads, and canals began. The railroads construction boom started in the 1830s and continued until the Civil War. The railroads connected to various parts and cities. At the end of the 1850s, the Eastern coast and the Great Lakes were connected to the western side of the Mississippi, and Chicago by the railroads.

By the end of the 1840s not only was the Erie Canal linked to Lake Eire, more than 10,000 miles of turnpikes were operating. Travel times significantly reduced before the Civil War. In the center of these developments were banks which contributed to the American economic growth. Due to the development transport, population growth, and industrial boom in the North and increased agricultural production in the West and South, the American economy experienced economic growth during the antebellum period. As a result, the average per capita GDP increased during these periods.

http://www.na-businesspress.com/JABE/SamadA_Web18_5_.pdf
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jgoodguy

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WARNING / DANGER - Heavy Math

Financial Deepening and Economic Growth During the US Antebellum Era 1834-1863
by Abdus Samad
Utah Valley University

INTRODUCTION
Financial deepening, and economic growth and economic development are widely discussed and debated issues. Schumpeter (1912) argued that banks providing intermediary services such as mobilizing savings, allocating resources, facilitating transactions, risk taking, and risk management support innovation, and produce economic development.

Industrial development in Britain and elsewhere has been viewed as a direct result of the development of financial institutions. Hicks (1969) and Bagehot (1962) argued that financial institutions played a pivotal role in Britain’s industrial revolution. In the continental United States, bank success stories during the antebellum period were mixed. In the Antebellum Period, banks were considered “wildcats” (Hamond, 1957), “legal swindle” and fraudulent. Repeated suspension of specie and a large scale failure were the reason of for these assumptions. It was widely believed that banks invariably issued depreciated currency, these practices benefited a few but “everybody would suffer from the harm they would cause” (Scott, 2000). As a result, several states in the Midwest banned banks. Illinois was one of them.

In addition, there were also persistent complaints by the farmers of the antebellum period that banks were biased against lending farmers even though agriculture was an important source of GDP. Banks, according to Redlich (1968), did not provide capital to the development of industries. Banks were established by the merchants and traders to cater to their needs of short term capital supply. Importantly, banks, according to Redlich (1968), were engaged in merchant lending because of the mercantile philosophy of the early banks—lending for the very short term (Redlich 1968).

The other views were that banks were engaged in the internal development programs.

Taus (1967) said that “during the 1850s, banks became heavily interested in railway road construction” (page, 53). The construction of railroads, roads, and canals began. The railroads construction boom started in the 1830s and continued until the Civil War. The railroads connected to various parts and cities. At the end of the 1850s, the Eastern coast and the Great Lakes were connected to the western side of the Mississippi, and Chicago by the railroads.

By the end of the 1840s not only was the Erie Canal linked to Lake Eire, more than 10,000 miles of turnpikes were operating. Travel times significantly reduced before the Civil War. In the center of these developments were banks which contributed to the American economic growth. Due to the development transport, population growth, and industrial boom in the North and increased agricultural production in the West and South, the American economy experienced economic growth during the antebellum period. As a result, the average per capita GDP increased during these periods.

http://www.na-businesspress.com/JABE/SamadA_Web18_5_.pdf
53

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Interesting!

Not dull at all, got to have money to fight wars or run governments.
 

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Very good, and relatively short - 39 pages - paper on the economic / population / political impacts of the Transportation Revolution in the antebellum era...

The Transportation Revolution and Antebellum Sectional Disagreement
by John J. Binder

The transportation revolution had several important effects on the antebellum political equilibrium. First, it caused western and southern political views to differ by bringing more easterners and European immigrants into the West. Second, it reduced the costs of rerouting western exports to the non-South, which decreased the expected costs to the West of conflict with the South. Third, it greatly increased western population, which brought more free states into the Union and changed the balance in the Senate. Fourth, it increased northern numerical superiority over the South, giving the North a major advantage if an armed conflict did occur. These changes led the West to ally with the East and caused the South to secede.

https://indigo.uic.edu/bitstream/handle/10027/7736/transportation.pdf?sequence=1
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The other effect was that the falling cost of travel dispersed the southern white population. People who wanted to get away from slavery had a better chance to do that, in Missouri, Arkansas and the Pacific west. At the same time dispersing the slave system into Texas put pressure on cotton prices. The international market for cotton maintained demand temporarily, but that could not continue. Moreover, the need to involuntarily move slaves from place to place was easy to attack.
Railroads had a large effect on the economy and people, but the also affected the east coast publications, which made money on inflamed opinion, in my opinion. The politicians and journalists had a national market for inflammatory rhetoric by 1860. They no longer had to be honest about the costs of conflict and the Whig party particularly fell apart under that stress.
 
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The problem stems from Britain. When the British repealed the corn laws it was much easier for British investors to work in the Great Lakes states, which were connected to Canada. Growth in the Great Lakes was good for Br. No. America, which was demonstrated during the Civil War when the stress on the East-West railroad network was maximized.
 
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#10
In the war itself, once the United States eliminated New Orleans as a competitor to Chicago and Cincinnati, and the US controlled the Mississippi as far south as Memphis, the economic part of the war was over.
 
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The other aspect of the railroad and telegraph revolution was that it put enormous pressure on the state banking systems. Sound banks had much better chance to buy up the notes issued by wildcat local banks. Some type of commercial common market was about to supercede the mutual defense arrangements of the Constitutional era, about as Hamilton had expected.
 
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#12
The revolution involved making all steamship travel quicker, more reliable and safer. The effect on wealthy people travelling back and forth across the Atlantic, and on poor people taking the risk of crossing the ocean was fatal to the future of slavery. It became obsolete, except with respect to the harvest season in cotton and sugar production.
 
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#14
The transportation revolution thesis could be extended to show that even by 1870 secession would have been obviously futile.
The technical improvements in railroads, and the rapid extension of the system even over unoccupied territory in the west, created an unmistakable dominance in the paid labor states. To that extent the secessionists knew 1860-61 was the last chance.
 

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Rollins College
Rollins Scholarship Online
Master of Liberal Studies Theses
2009

The Ports of Secession: The Economics of Florida Ports in the Secession Crisis
by Michael P. Robbins

This Open Access is brought to you for free and open access by Rollins Scholarship Online. It has been accepted for inclusion in Master of Liberal Studies Theses by an authorized administrator of Rollins Scholarship Online. For more information, please contact rwalton@rollins.edu.

From the moment of its admission to the Union in 1845, Florida's economy was structured around its numerous ports and the ability to ship resources to centers of production and commerce. The population of Florida reflected this reality. Most Floridians were part-timers, snowbirds who came south not for the enjoyable weather so much as the economic opportunities created by climate and peninsular
geography. During the peak season of December to April in the 1840s and 1850, the Gulf Coast's population swelled with the arrival of Northerners and foreigners seeking profit in Apalachicola, primarily in the cash crop industry of cotton. Down the coast in Tampa, the cattle industry was growing as local ranchers found markets in the Caribbean Sea. The ability to connect cotton and cattle with buyers was facilitated by Florida's approximately 1,800 mites of coastline and an expanding shipping industry.


Throughout its initial fifteen years of statehood, shipping defined the state's economy. During the winter months, non-southerners by birth far outnumbered the permanent or lifelong residents of the Florida Gulf-Coast. Though it was the southernmost state in the Union, it would have been a stretch to consider Florida truly a part of the South, either in demographics or culture. In the decades preceding the American Civil War, the state's centers of population were exclusively port cities inhabited by a regionally, nationally, and racially diverse lot. A lack of cohesive state identity made Florida less of an actor and more of an object in the conflict that was to come.

https://scholarship.rollins.edu/cgi/viewcontent.cgi?article=1034&context=mls
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Federal Reserve Bank of Minneapolis
Research Department Staff Report 425
May 2009

Transportation and Development: Insights from the U.S., 1840—1860
Berthold Herrendorf
Arizona State University
James A. Schmitz Jr.
Federal Reserve Bank of Minneapolis
Arilton Teixeira
Capixaba Research Foundation

ABSTRACT
We study the effects of large transportation costs on economic development. We argue that the Midwest and the Northeast of the U.S. is a natural case because starting from 1840 decent data is available showing that the two regions shared key characteristics with today’s developing countries and that transportation costs were large and then came way down. To disentangle the effects of the large reduction in transportation costs from those of other changes that happened during 1840—1860, we build a model that speaks to the distribution of people across regions and across the sectors of production. We find that the large reduction in transportation costs was a quantitatively important force behind the settlement of the Midwest and the regional specialization that concentrated agriculture in the Midwest and industry in the Northeast. Moreover, we find that it led to the convergence of the regional per capita incomes measured in current regional prices and that it increased real GDP per capita. However, the increase in real GDP per capita is considerably smaller
than that resulting from the productivity growth in the nontransportation sectors.


https://www.minneapolisfed.org/research/sr/sr425.pdf
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University of Tennessee, Knoxville
Trace: Tennessee Research and Creative Exchange
Doctoral Dissertations Graduate School
5-2013

The Dixie Plantation State: Antebellum Fiction and Global Capitalism
by Katharine Aileen Burnett

This Dissertation is brought to you for free and open access by the Graduate School at Trace: Tennessee Research and Creative Exchange. It has been accepted for inclusion in Doctoral Dissertations by an authorized administrator of Trace: Tennessee Research and Creative Exchange. For more information, please contact trace@utk.edu.

ABSTRACT
“The Dixie Plantation State: Antebellum Fiction and Global Capitalism” connects the development of literature of the U.S. South to the ideological tensions inherent in the southern plantation economy before the Civil War. Southern literary form during this time reflects an economy that was sustained by international capitalism but which imagined itself as a version of provincial feudalism. The antebellum southern economy was defined by slavery and individual plantations, which created a culture that was isolated, rural, and oppressive. However, with global trade through cotton plantations as the driving force behind regional profit, the southern economy was also shaped by a form of laissez-faire, liberal capitalism that emphasized individual opportunism and modernization. The texts I discuss create myths of plantation life and re-imagine southern society under the plantation economy in ways that simultaneously support and question the ideological foundations of the system. Literary representation then becomes a method of merging nineteenth-century models of capitalism and international trade with the ostensibly self-contained tendencies of the plantation and the racial oppression of the slave system.
Each chapter is organized around a different literary form or genre and incorporates a comparative study of British fiction and fiction of the U.S. South. I argue that the form of nineteenth-century southern literature developed in tandem with the expansion of transatlantic trade. Therefore, the antebellum authors I discuss in this study do not consistently separate literary value from practical business or financial concerns. In chapters that focus on the historical romance, the sketch form, social problem novels and African-American autobiographical narratives, I highlight the interconnected nature of literary representation and economic change. Authors such as William Gilmore Simms, Joseph Glover Baldwin, George Tucker, Maria J. McIntosh, and Martin Delany drew from British novels such as Sir Walter Scott’s Waverley, Charles Dickens’s Sketches by Boz, and Elizabeth Gaskell’s North and South to represent the South as both economically progressive and culturally traditional. In this sense, fiction allowed southern authors to engage with the quasi-feudal space of the plantation within the modern economic models of the nineteenth century, without fully rejecting or denying either.


https://trace.tennessee.edu/cgi/viewcontent.cgi?article=2878&context=utk_graddiss

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University of Tennessee, Knoxville
Trace: Tennessee Research and Creative Exchange
Doctoral Dissertations Graduate School
5-2013

The Dixie Plantation State: Antebellum Fiction and Global Capitalism
by Katharine Aileen Burnett

This Dissertation is brought to you for free and open access by the Graduate School at Trace: Tennessee Research and Creative Exchange. It has been accepted for inclusion in Doctoral Dissertations by an authorized administrator of Trace: Tennessee Research and Creative Exchange. For more information, please contact trace@utk.edu.

ABSTRACT
“The Dixie Plantation State: Antebellum Fiction and Global Capitalism” connects the development of literature of the U.S. South to the ideological tensions inherent in the southern plantation economy before the Civil War. Southern literary form during this time reflects an economy that was sustained by international capitalism but which imagined itself as a version of provincial feudalism. The antebellum southern economy was defined by slavery and individual plantations, which created a culture that was isolated, rural, and oppressive. However, with global trade through cotton plantations as the driving force behind regional profit, the southern economy was also shaped by a form of laissez-faire, liberal capitalism that emphasized individual opportunism and modernization. The texts I discuss create myths of plantation life and re-imagine southern society under the plantation economy in ways that simultaneously support and question the ideological foundations of the system. Literary representation then becomes a method of merging nineteenth-century models of capitalism and international trade with the ostensibly self-contained tendencies of the plantation and the racial oppression of the slave system.
Each chapter is organized around a different literary form or genre and incorporates a comparative study of British fiction and fiction of the U.S. South. I argue that the form of nineteenth-century southern literature developed in tandem with the expansion of transatlantic trade. Therefore, the antebellum authors I discuss in this study do not consistently separate literary value from practical business or financial concerns. In chapters that focus on the historical romance, the sketch form, social problem novels and African-American autobiographical narratives, I highlight the interconnected nature of literary representation and economic change. Authors such as William Gilmore Simms, Joseph Glover Baldwin, George Tucker, Maria J. McIntosh, and Martin Delany drew from British novels such as Sir Walter Scott’s Waverley, Charles Dickens’s Sketches by Boz, and Elizabeth Gaskell’s North and South to represent the South as both economically progressive and culturally traditional. In this sense, fiction allowed southern authors to engage with the quasi-feudal space of the plantation within the modern economic models of the nineteenth century, without fully rejecting or denying either.


https://trace.tennessee.edu/cgi/viewcontent.cgi?article=2878&context=utk_graddiss

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#20
Cornell University School of Hotel Administration
The Scholarly Commons
Working Papers School of Hotel Administration Collection
3-18-2018

Labor Scarcity, Finance, and Innovation: Evidence from Antebellum America
by Yifei Mao (Cornell University School of Hotel Administration, ym355@cornell.edu) and Jessie Jiaxu Wang (Arizona State University)

Part of the Economic History Commons, Labor Economics Commons, Labor History
Commons, and the United States History Commons
This Working Paper is brought to you for free and open access by the School of Hotel Administration Collection at The Scholarly Commons. It has been accepted for inclusion in Working Papers by an authorized administrator of The Scholarly Commons. For more information, please contact hlmdigital@cornell.edu.

Abstract
This paper establishes labor scarcity as an important economic channel through which access to finance shapes technological innovation. We exploit antebellum America, a unique setting with (1) staggered passage of free banking laws across states and (2) sharp differences in labor scarcity between slave and free states. We find that greater access to finance spurred technological innovation as measured by patenting activities, especially in free states where labor was relatively scarce. Interestingly, in slave states where slave labor was prevalent, access to finance encouraged technological innovation that substituted for free labor, but discouraged technological innovation that substituted for slave labor.

https://scholarship.sha.cornell.edu/cgi/viewcontent.cgi?article=1050&context=workingpapers
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