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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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This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

A. P. Andrew (1908). Substitutes for cash in the panic of 1907. Quarterly Journal of Economics, 22, pp. 497516.

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G. Bryan (1915). The law of clearing houses. Virginia Law Review, 2, pp. 447–56.

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R. Phillips (2003). Coping with financial catastrophe: the San Francisco clearinghouse during the earthquake of 1906. Research in Economic History, 21, pp. 79104.

G. Richardson (2007). The check is in the mail: correspondent clearing and the collapse of the banking system, 1930 to 1933. Journal of Economic History, 67, pp. 643–71.

W. Swanson (1908). The crisis of 1860 and the first issue of clearing-house loan certificates: II. Journal of Political Economy, 16, pp. 212–26.

E. Tallman and J. Moen (2012). Liquidity creation without a central bank: clearing house loan certificates in the banking panic of 1907. Journal of Financial Stability, 8, pp. 277–91.

R. H. Timberlake (1984). The central banking role of clearinghouse associations. Journal of Money, Credit, and Banking, 16, pp. 115.

E. Wicker (2000). Banking Panics of the Gilded Age. Cambridge: Cambridge University Press.

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Financial History Review
  • ISSN: 0968-5650
  • EISSN: 1474-0052
  • URL: /core/journals/financial-history-review
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