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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.|
|Document Type:||Working Paper|
|Appears in Collections:||Claremont Colleges Working Papers in Economics, Department of Economics, Claremont McKenna College|
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