Arbeitspapier

Liquidity creation without a lender of last resort: Clearinghouse loan certificates in the banking panic of 1907

We employ a new data set comprised of disaggregate figures on clearinghouse loan certificate issues in New York City to document how the dominant national banks were crucial providers of temporary liquidity during the Panic of 1907. Clearinghouse loan certificates were essentially bridge loans arranged between clearinghouse members that enabled and were issued in anticipation of monetary gold imports, which took a few weeks to arrive. The large New York City national banks acted as private liquidity providers by requesting (and the New York clearinghouse issuing) a volume of clearinghouse loan certificates beyond their own immediate liquidity needs. While loan certificates were a temporary solution at best to the liquidity crisis in 1907, their issuance allowed the New York banks to serve their role as central reserve city banks in the national banking system.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 2006-23b

Classification
Wirtschaft
Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: U.S.; Canada: Pre-1913
Economic History: Financial Markets and Institutions: U.S.; Canada: Pre-1913
Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
Social Choice; Clubs; Committees; Associations
Subject
clearinghouse
financial crisis
panic
lender of last resort

Event
Geistige Schöpfung
(who)
Tallman, Ellis W.
Moen, Jon R.
Event
Veröffentlichung
(who)
Federal Reserve Bank of Atlanta
(where)
Atlanta, GA
(when)
2007

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Tallman, Ellis W.
  • Moen, Jon R.
  • Federal Reserve Bank of Atlanta

Time of origin

  • 2007

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