Abstract/Details

Banks, insider lending and industries of the Connecticut River Valley of Massachusetts, 1813–1860


2000 2000

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Abstract (summary)

The Connecticut River Valley (CRV) industrialized early, yet lacked nearly all of the factors that apparently underlay the successful industrialization of eastern Massachusetts, Rhode Island and the Philadelphia region. Lamoreaux's model of bank insider lending was applied to explain this enigma. According to this model, since many insiders were industrialists, extensive insider lending among New England banks resulted in a flow of funds to manufacturing.

To test this hypothesis, a random sample of borrowers from two commercial banks and a complete sample from two savings banks was culled from bank loan ledgers. Federal and state censuses town histories were used to determine occupations of the borrowers and the nature of the businesses that borrowed. The data was analyzed to determine the extent of bank lending to Insiders, and to manufacturers and artisans.

Contrary to Lamoreaux's model, little insider lending was found, and the insiders were not industrialists. Individual banks lent only modest amounts to manufacturers and artisans, and bank lending was a very small source of industry capital. The largest recipients of bank credit, as a percent of bank loans, were the local elites of lawyers, followed by merchants and farmers. Loans to individual farmers were typically small, however. Loans to industries and artisans went to a wide variety of industries and firm types. While commercial banks lent short term, the savings banks lent long term, noticeably to railroads. These results suggest that access to credit was a factor that shaped the unique pathway to both rising Industrialism and capitalism in the CRV during the antebellum period.

Indexing (details)


Subject
Economic history;
Banking;
American history;
Lending;
Regions;
Studies
Classification
0509: Economic history
0770: Banking
0337: American history
Identifier / keyword
Social sciences; Banks; Connecticut River Valley; Industries; Insider lending; Massachusetts
Title
Banks, insider lending and industries of the Connecticut River Valley of Massachusetts, 1813–1860
Author
Lockard, Paul Andre
Number of pages
273
Publication year
2000
Degree date
2000
School code
0118
Source
DAI-A 61/02, Dissertation Abstracts International
Place of publication
Ann Arbor
Country of publication
United States
ISBN
9780599645769, 0599645768
Advisor
Friedman, Gerald
University/institution
University of Massachusetts Amherst
University location
United States -- Massachusetts
Degree
Ph.D.
Source type
Dissertations & Theses
Language
English
Document type
Dissertation/Thesis
Dissertation/thesis number
9960767
ProQuest document ID
304608830
Copyright
Database copyright ProQuest LLC; ProQuest does not claim copyright in the individual underlying works.
Document URL
http://search.proquest.com/docview/304608830
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