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Claremont Colleges Working Papers in Economics, Department of Economics, Claremont McKenna College >
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http://hdl.handle.net/10419/23379
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| Title: | | Putting Legal Restrictions Theory to the Test: An Arkansan Experiment, 1861-1863  |
| Authors: | | Weidenmier, Marc D. Burdekin, Richard C. K. |
| Issue Date: | | 2003 |
| Series/Report no.: | | Working paper series / Claremont McKenna College 03,04 [rev.] |
| Abstract: | | During the Civil War the Arkansas legislature funded their expenditures primarily through interest-bearing warrants and war bonds. After these issues were made legal tender in November 1861, the discount attributed to them disappeared immediately and they began to circulate widely. By mid- 1862 they appeared to be preferred to Confederate notes – which were also made legal tender in November 1861 but required military intervention to support their acceptance. The widespread circulation and potential dominance of legal tender interest-bearing currency is consistent with legal restrictions theory. Confederate notes supplanted the Arkansas issues only after the legislature suspended interest payments in November 1862. |
| Subjects: | | Legal restrictions interest-bearing currency civil war |
| JEL: | | N21 E42 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Claremont Colleges Working Papers in Economics, Department of Economics, Claremont McKenna College
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