Using recently collected examination data from a sample of Texas state-chartered banks over the period 1919-26, the role of moral hazard in increasing ex-ante asset risk is analyzed. During this period, a state-run deposit insurance system was in place that was mandatory for all state-chartered...

In 1910, Texas instituted a highly unique deposit insurance program for its state chartered banks consisting of two separate plans: the depositors guaranty fund, similar in operation to the deposit insurance schemes adopted in several other states; and the depositors bond security system, which...

This paper uses historical data on Texas banks to examine one possible reform to government-provided deposit insurance, increased reliance on market incentives. The Texas experience is unusual because banks faced two options under which they could join a state-mandated deposit insurance program,...

This paper explores the consequences of a deepening in financial markets by examining the case of Texas at the turn of the last century. In the early 1900s, the Texas legislature legalized state-chartered banks, and, as a result, Texas experienced increased financial-market depth. The evidence...

This paper explores the actions of the Bank of England and the Banque de France in promoting international economic stability during the mid-nineteenth century. The evidence presented below indicates that the Bank of England acted in concert with the Bank of France, through France's reliance on...