New National Bank Loan Rate Estimates, 1887–1975

Abstract

Regional rates of return in the United States differed widely following the Civil War and some differences persisted until well after World War II. Our understanding of the evolution of short-term interest rates is based primarily on portfolio rates of return estimated from bank accounting data. This paper uses new national bank loan rate series for 1887–1975 to present a revised view of the evolution of regional short-term interest rates. Two findings are of particular interest. The organization of the Federal Reserve System was accompanied by significant convergence in regional bank loan rates. Rates in the postbellum South were lower than previously thought.

Citation

Redenius, S.A. (2006), "New National Bank Loan Rate Estimates, 1887–1975", Field, A.J., Clark, G. and Sundstrom, W.A. (Ed.) Research in Economic History (Research in Economic History, Vol. 24), Emerald Group Publishing Limited, Leeds, pp. 55-104. https://doi.org/10.1016/S0363-3268(06)24002-3