In 1791 the $10 million capitalization of the First Bank of the United States was vastly greater than the combined capital of all other banks. The Bank had an enormous impact on the economy within two months of opening its doors for business by flooding the market with its discounts and banknotes and then sharply reversing course and curtailing liquidity. Although the added liquidity initially helped push a rising securities market higher, the subsequent drain caused the first U.S. securities market crash by forcing speculators to sell their stocks. Several reasons are analyzed for the Bank's credit restriction.

Translator's introduction: To understand the significance of this paper, the American reader should recall that, as Talcott Parsons says, German “idealistic empiricism” led to a repudiation of analytical social and economic theory “in favor of the concrete uniqueness and individuality of all things human.” The “general analytical level of scientific comprehension [was] a priori excluded” from the field of human action. Understanding of things human “in terms of the concrete individuality of the specific historical case became the goal.” Professor Arthur Spiethoff, once a student, later an assistant, of Gustav von Schmoller, and a friend of Edwin F. Gay while the latter studied in Berlin, moved away from that point of view. He recognized analytical theory as a legitimate subject and thereby deviated from what can be considered the typical nineteenth-century German attitude.

Using data from a sample of over 2,000 individual strikes in the United States from 1881 to 1894 this article examines geographic, industrial, and temporal variations in the use of strikebreakers and the sources from which they were recruited. The use of strikebrekers was not correlated with business cycle and did not vary appreciably by region or city size, but employers located outside the Northeast or in smaller cities were more likely to use replacement workers recruited from other places. The use of strikebreakers also varied considerably across industries, and was affected by union authorization and strike size.

During the 1920s the New York Stock Exchange's position as the dominant American exchange was eroding. Costs to customers, measured as bid-ask spreads, spiked when surging inflows of orders collided with the constraint created by a fixed number of brokers. The NYSE's management proposed and the membership approved a 25 percent increase in the number of seats by issuing a quarter-seat dividend to all members. An event study reveals that the aggregate value of the NYSE rose in anticipation of improved competitiveness. These expectations were justified as bid-ask spreads became less sensitive to peak volume days.

Southern unions were the weak link in the American labor movement, organizing a smaller share of the labor force than did unions in the northern states or in Europe. Structural conditions, including a racially divided rural population, obstructed southern unionization. The South's distinctive political system also blocked unionization. A strict racial code compelling whites to support the Democratic Party and the disfranchisement of southern blacks and many working-class whites combined to create a one-party political system that allowed southern politicians to ignore labor's demands. Unconstrained by working-class voters, southern politicians facilitated strikebreaking and favored employers against unions.

Economic analysis of the labor supply of married women has long emphasized the impact of the unemployment of husbands—the added worker effect. This article re-examines the magnitude of the added worker effect in the waning years of the Great Depression. Previous studies of the labor supply of married women during this period failed to take account of various institutional features of New Deal work relief programs, which reduced the size of the added worker effect.

This article addresses two questions. First, when and to what extent did capital markets integrate north and south of the Alps? Second, how mobile was capital? Analysing a unique new dataset on pre-modern urban annuities, we find that northern markets were consistently better integrated than Italian markets. Long-term integration was driven by initially peripheral places in the Netherlands and Upper Germany integrating with the rest of the Holy Roman Empire where the distance and volume of inter-urban investments grew primarily in the sixteenth century. The institutions of the Empire contributed to stronger market integration north of the Alps.

The introduction and diffusion of what Alfred Chandler called modern business enterprise had a profound capital-saving impact on the American economy. Given the availability of the railroad and telegraph, purchasing more managerial labor services paid off principally via increased speed of production and inventory turnover, which spread costs of holding capital over a larger volume of output. This article challenges the consensus that nineteenth- and early twentieth-century technological change in the United States was overwhelmingly labor saving and interprets the factor-saving bias of modern business enterprise as representative rather than anomalous.

This paper is concerned with the relative efficiency of farming in open fields or enclosures in England. It uses surveys covering the acreage, yield, and output of the principal grain crops for the period 1795–1801, initially concentrating in some detail on selected but widely distributed English counties before concluding with a section which summarizes the data for England. Efficiency meant improvements in per unit acre yields and in total parish output. But it also had important implications for total agricultural productivity because the land which was saved by improved farming in enclosures was used to promote a better balance between arable and animal farming.

Starting from the Medieval period, women in the Italian Alps experienced a progressive erosion in property rights over the commons. We collected documents about the evolution of inheritance regulations on collective land issued by hundreds of villages over a period of six centuries (thirteenth-nineteenth). Based on this original dataset, we provide a long-term perspective of decentralized institutional change in which gender-biased inheritance systems emerged as a defensive measure to preserve the wealth of village insiders. This institutional change also had implications for the population growth, marriage strategies, and the protection from economic shocks.

New economic historians' explanations of market activity slight the timing of change, as well as the importance of institutions and attitudes. These deficiencies, unimportant in analyses of goods market activity, are unacceptable in analyses of political activity. To extend the domain of economic history to political activity, therefore, I summarize the political market in sentiment (what voters want ex ante), loyalty (what voters want ex post), and acquiescence (what voters accept). To show how these measures facilitate analysis of political activity, I discuss the origins of the American Civil War.

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.

During the 1920s, federal personal income tax rates, which had been dramatically increased during World War I, were sharply reduced. These tax rate cuts have often been cited as an example of a successful supply-side policy, but they have also been criticized as policies designed primarily to benefit the wealthy. We argue that a primary motive for the tax cuts of the 1920s was the desire to reduce the tax avoidance by wealthier individuals that occurred as a result of the previous tax rate increases and that the tax cuts enacted did reduce tax avoidance.

By 1950 cotton had emerged as one of California's leading crops and California had become an important cotton producing state. The institutional and environmental settings associated with cotton cultivation in California differed markedly from those found in the Cotton South. Both institutional conditions, such as the size of farms, and environmental factors, such as the region's dry weather during the harvest season, help explain the more rapid mechanization of picking in California.

Being a brief account of Northern money market conditions from 1861 through 1865, including representative empirical tables, together with yield curves and graphs, and containing speculations on the influence of gold.

Did late-nineteenth-century U.S. tariffs promote infant industries? After earlier failures, the tinplate industry became established and flourished after receiving protection with the 1890 McKinley tariff. Treating producers' entry and exit decisions as endogenous, a probability model is estimated to determine the conditions under which domestic tinplate production will occur. Counterfactual simulations indicate that, without the McKinley duties, domestic tinplate production would have arisen about a decade later as U.S. iron and steel input prices converged with those in Britain. Although the traiff accelerated the industry's development, welfare calculations suggest that protection does not pass a cost-benefit test.

Very few issues in American economic history have stirred as many contrasting views as the debate regarding the effects of the British Navigation Acts on the Thirteen American Colonies. The most recent entry in the long argument is Robert Thomas' analysis of the problem. Thomas constructs quantitative estimates of the impact of the Acts which are designed “… to measure, relative to some hypothetical alternative, the extent of the burdens and benefits stemming from imperial regulation of the foreign commerce of the 13 colonies.” He presents these estimates to test the hypothesis that: “… membership in the British Empire, after 1763, did not impose a significant hardship upon the American Colonies.” Thomas has employed new data in constructing his estimates, and he has carefully brought economic theory explicitly into the discussion. His framework requires the construction of a “counterfactual” hypothesis against which to evaluate the impact of policy. As he views it: “The only reasonable alternative in this case is to calculate the burdens or benefits of British regulation relative to how the colonists would have fared outside the British Empire, but still within a mercantilist world.” Given such a model, the value of the burden and benefit is estimated in terms of market prices and the pattern of trade which would have emerged had the colonies been free in 1763.

The article examines the development of the insurance function of trade unions. It analyzes how such policies worked, and why union benefit packages differed across occupations. It also addresses the impact of insurance policies on union organization. Insurance benefits increased the ability of unions to attract and retain members. They did not, however, significantly increase the power of union leaders relative to employers or union rank and file.

Certain data from the familial world have value as a means for charting increments in wealth over the long term. Dowries from medieval Ragusa (Dubrovnik), 1235 to 1460, provide such evidence where other surviving records prove inadequate. Social cohesion and endogamy allowed the noble merchant citizenry to utilize dowries to redistribute personal fortunes broadly, thereby creating broad-based wealth. Comparisons with Italian towns indicate dowry increase was widespread but often served different social and economic purposes. Analyzing dotal strategies at Ragusa allows a glimpse of the means a cohesive elite could employ to promote economic growth.