The Check is in the Mail
Correspondent Clearing and the Collapse of the Banking System, 1930 to 1933
Bibliographic Data
| ID | 10098504 |
|---|---|
| Authors | Geoffrey Richardson (0000-0002-8362-6388, National Bureau of Economic Research, corresponding author), Gary Richardson (0000-0003-2122-8285) |
| Year | 2007 |
| Volume | 67 |
| Issue | 3 |
| Pages | 643-671 |
| Publication date | 2007-09-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Journal of Economic History (JOURNAL) |
| Journal identifiers | ISSN: 0022-0507 • E-ISSN: 1471-6372 |
| Publisher | Cambridge University Press (CUP) (PUBLISHER) |
| DOI | 10.1017/s0022050707000265 |
| OpenAlex | W2025339886 |
| Language | EN |
| Citations received | 11 |
| References cited | 31 |
Weaknesses within the check-clearing system played a hitherto unrecognized role in the banking crises of the Great Depression. Correspondent check-clearing networks were vulnerable to counter-party cascades. Accounting conventions that overstated reserves available to corresponding institutions may have exacerbated the situation. The initial banking panic began when a correspondent network centered in Nashville collapsed, forcing over 100 institutions to suspend operations. As the contraction continued, additional correspondent systems imploded. The vulnerability of correspondent networks is one reason that banks that cleared via correspondents failed at higher rates than other institutions during the Great Depression
Anxiety · Business · Clearance · Clearing · Computer security · Depression (economics · Economics · Financial system · Great Depression · Keynesian economics · Panic · Political science · Vulnerability (computing · Banking stability, regulation, efficiency · Computer Science · Economic, financial, and policy analysis · Finance · Global Financial Crisis and Policies · Law · Medicine · Psychology
The Founding of the Federal Reserve, the Great Depression, and the Evolution of the U.S. Interbank Network
Monetary Intervention Mitigated Banking Panics during the Great Depression
Arresting Banking Panics
Network Contagion and Interbank Amplification during the Great Depression
Firm Networks in the Great Depression
Contagion of fear
In the eye of a Storm
Financial crisis, contagion, and the British banking system between the world wars
Elastic infrastructure
Bank Lending and Deposit Crunches during the Great Depression
Flight-to-safety and the credit crunch
Historical statistics of the United States
The Causes of the Banking Panic of 1930
Federal Reserve Check Clearings and Collections
Historical Analogy to the Fight Against Par Check Collection
The Federal Reserve Banks' System of Par Collections
Should Interbank Balances Be Abolished
A Reconsideration of the Causes of the Banking Panic of 1930
A Reinterpretation of the Banking Crisis of 1930
The failure of the bank of United States
Enlargement of Clearing House Functions
Some Phases of the New Check Collection System
Did Monetary Forces Cause the Great Depression
A Monetary History of the United States, 1867-1960
| Unique citing works | 11 |
|---|---|
| Citations per year | 0,65 |
| Citation span | 2009 - 2026 (18) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 11 |