Banking Structure and the National Capital Market, 1869–1914

Marie Sushka, W. Brian Barrett

Research output: Contribution to journalArticlepeer-review

23 Scopus citations


We examine (1) why, when a national capital market developed in the United States, regional interest rate differentials existed and seemed to narrow toward 1900, and (2) the changing patterns of banking behavior in the post-Civil War period. We show that a national capital market was established early (1870s), and regional rate differentials were a response to variations and changes in the interest sensitivity of business loan demand. Bank structure was characterized by monopoly, but it declined because of increasing sophistication of business financing decisions, which became more sensitive to open market rates (in particular the stock market) and to loan rates themselves.

Original languageEnglish (US)
Pages (from-to)463-477
Number of pages15
JournalThe Journal of Economic History
Issue number2
StatePublished - 1984

ASJC Scopus subject areas

  • History
  • Economics, Econometrics and Finance (miscellaneous)
  • Economics and Econometrics


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