Abstract
New England experienced a significant economic transformation after the Revolutionary War. Despite an extensive literature on American development, little is known about the precise role of banks in this process. This article exploits a detailed dataset from Plymouth County, Massachusetts to show that the first bank during its early stage was far more selective in lending than the pre-existing personal credit market. Thus the mere introduction of a single bank did not broaden access to credit. Following the liberalization of chartering policy in the 1820s, however, freer entry and competition drove banks to extend credit to farmers and artisans.