The economics of market coordination for the pre-Fed check-clearing system: A peek into the Bloomington (IL) node

B-Tier
Journal: Explorations in Economic History
Year: 2008
Volume: 45
Issue: 4
Pages: 445-461

Authors (4)

Chang, Howard H. (not in RePEc) Danilevsky, Marina (not in RePEc) Evans, David S. (University of Chicago Law Scho...) Garcia-Swartz, Daniel D. (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

On the basis of anecdotes centered on the alleged "circuitous routing of checks," researchers focusing on the pre-Fed check-clearing system have usually argued that it was inefficient. In this paper we study a 1910 check remittance register from the State National Bank of Bloomington, Illinois--we dissect the way the bank forwarded checks to various destinations for clearing and collection. We find that the bank followed an orderly process of check remittance according to which checks tended to move in the "right direction." This casts doubts on the alleged pervasiveness of cycling and circuitous routing of an extreme nature in the pre-Fed check-clearing process.

Technical Details

RePEc Handle
repec:eee:exehis:v:45:y:2008:i:4:p:445-461
Journal Field
Economic History
Author Count
4
Added to Database
2026-01-25