How did banks work in the 1800s?

The banks worked mostly as they work today, but more slowly and using mostly paper. That is, someone would make a deposit, the clerk would count the money, register it in a book and give the depositant a receipt of the deposit. The bank would keep the money and regularly send the money and a copy of the registry to the central bank. read more

Between 1800 and 1914, manufacturing industry grew steadily in importance to become dominant within the economy and this was reflected in the structure of class relations. read more

In contrast, the dramatic growth of the United States created capital requirements that far outstripped the limited capital resources of American banks. Investment banking in the United States emerged to serve the expansion of railroads, mining companies, and heavy industry. read more