Chapter

Middle Atlantic

Howard Bodenhorn

in State Banking in Early America

Published in print December 2002 | ISBN: 9780195147766
Published online November 2003 | e-ISBN: 9780199832910 | DOI: http://dx.doi.org/10.1093/0195147766.003.0006
Middle Atlantic

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Bank chartering in New York, Pennsylvania, and Maryland was contentious, often corrupt, high‐stakes politics. The corruption surrounding bank chartering made it difficult for cooperative interbank relationships to develop. Although a regional clearinghouse arose in New England in the 1820s, comparable clearinghouses were not formed in the principal Middle‐Atlantic cities until the 1850s. Corrupt chartering practices also meant that many banks became entangled with state internal improvement schemes, often to a bank's detriment. The financial panic of 1839 threw the region's banking systems into turmoil. New York and Pennsylvania's systems nearly collapsed during the depression of the early 1840s.

Keywords: bank chartering; clearinghouse; corruption; depression; financial panic; interbank relationships; internal improvements; New York; Pennsylvania

Chapter.  14839 words. 

Subjects: Economic History

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