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Clearinghouse loan certificates as interbank loans in the United States, 1860–1913

  • Christopher Hoag (a1)

Before the founding of the Federal Reserve, bank clearinghouse associations served as an emergency lending facility during the National Bank Era (1863–1913). This article clarifies the operation of clearinghouse loan certificates during panic periods. If clearinghouse loan certificates do not circulate among the general public, then they bear similarities to interbank loans among clearinghouse member banks. In general, the central clearinghouse organization does not act alone as a lender of last resort to make loans from the central clearinghouse to individual member banks.

Corresponding author
C. Hoag, Trinity College, 300 Summit Street, Hartford, CT 06106, USA; Email:
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Thanks to three anonymous referees for their comments as well as to the editor for helpful guidance. Thanks also to Ms Mirjana Orovic for allowing me to collect the data. The usual disclaimer applies.
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