Champ, Bruce; Freeman, Scott; Weber, Warren E - In: Journal of Money, Credit and Banking 31 (1999) 3, pp. 568-89
Interest rates under the U.S. National Banking System (1863-1914) appear to imply that banks failed to exploit an arbitrage opportunity for two reasons: yields on government bonds exceeded the tax rate on note issue by approximately 150 basis points, and short-term interest rates varied...