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The Panic of 1857: Origins, Transmission, and Containment

Published online by Cambridge University Press:  03 March 2009

Charles W. Calomiris  and
Larry Schweikart
Charles W. Calomiris
Affiliation:
Professor of Finance, The Wharton School, University of Pennsylvania, Philadelphia, PA 19104
Larry Schweikart
Affiliation:
Professor of History, University of Dayton, Dayton, OH 45469.
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Extract

We explain the origins of the Panic of 1857, examine its spread, and compare state banking systems's responses. We describe the decline in western land and railroad investments and the consequent stress on securities brokers and banks in eastern cities, and trace the transmission of the shock to other regions. Bank performance depended not only on regional conditions and links to eastern banks, but on the ability to coordinate behavior. Southern branch banks and coinsuring banks in Ohio and Indiana were particularly successful.

Type
Articles
Information
The Journal of Economic History , Volume 51 , Issue 4 , December 1991 , pp. 807 - 834
Copyright
Copyright © The Economic History Association 1991

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