Research in Economic History: Volume 30

Did the expansion of democratic institutions play a role in determining central government spending behavior in the 19th and 20th centuries? The link between democracy and increased central government spending is well established for the post-Second World War period, but has never been explored during the first “wave of democracy” and its subsequent reversal, that is 1870–1938. The main contribution of this paper is the compilation of a dataset covering 24 countries over this period to begin to address this question. Utilizing various descriptive techniques, including panel data regressions, we explore correlations between central government spending and the institutional characteristics of regimes. We find that the data are consistent with the hypothesis that democracies have a broader need for legitimization than autocracies as various measures of democracy are associated with higher central government spending. Our results indicate that the extension of franchise had a slight positive impact on central government spending levels, as did a few of the other democracy variables. We also find that early liberal democracies spent less and monarchies more than other regimes; debt increases spending; and participation in the Gold Standard reduced government spending substantially.

This paper uses a method devised by Geary and Stark to estimate regional GDPs for 24 Swedish provinces 1855–2000. In empirical tests, we find that the Swedish estimations yield results of good precision, comparable to those reported in the international literature. From the literature, we generate six expectations concerning the development of regional GDPs in Sweden. Using the GDP estimations, we test these expectations empirically. We find that the historical regional GDPs show a high correlation over time, but that the early industrialization process coevolved with a dramatic redistribution of productive capacity. We show that the regional inequalities in GDP per capita were at their lowest point in modern history in the early 1980s. However, while efficiency in the regional system has never been as equal, absolute regional differences in scale of production has increased dramatically over our investigated period. This process has especially benefited the metropolitan provinces. We present detailed sources of our estimations and also sketch a research agenda from our results.

The increased use of checks in nonlocal payments at the end of the nineteenth century presented problems for their clearing and collection. Checks were required to be paid in full (at par) only when presented directly to the drawn-upon bank at its counter. Consequently, many, primarily rural or small-town, banks began to charge remittance fees on checks not presented for collection in person. Such fees and the alleged circuitous routing of checks in the process of collection to avoid them were widely criticized defects of the pre-Federal Reserve payments system. As the new Federal Reserve established its own system for check clearing and collection, it also took as an implicit mandate the promotion of universal par clearing and collection. The result was a bitter struggle with non-par banks, the numbers of which initially shrunk dramatically but then rebounded. A 1923 Supreme Court decision ended the Fed’s active (or coercive) pursuit of universal par clearing, and non-par banking persisted thereafter for decades. Not until the Monetary Control Act of 1980 was universal par clearing and true monetary union, in which standard means of payment are accepted at par everywhere, achieved.

We analyze heights of Indian scouts in the U.S. army born between ca. 1825 and 1875. Their average height of ca. 170 cm (67 in.) confirms that natives were tall compared to Europeans but were nearly the shortest among the rural populations in the New World. The trend in their height describes a slightly inverted “U” shape with an increase between those born 1820–1834 and 1835–1839 of ca. 1.8 cm (0.7 in.) (p = 0.000) and a subsequent slight decline after the Civil War. This implies that they were able to maintain and perhaps even improve their nutritional status through the Civil War, though harder times followed for those born thereafter. We also recalculate the heights of Native Americans in the Boas sample and find that the Plains Indians were shorter than most rural Americans. The trend in the height of Indians in the Boas sample is similar to that of the scouts.

The principle of tariffs dispersion, or differential tariffs depending on country of origin, is well known. For instance, Canada adapted a double column of tariffs after 1846, Spain in 1877, and Switzerland in the 1880–1890s. But there has never before been a comprehensive measure for any national economy, to our knowledge. This contribution proposes an original and exhaustive measure of customs tariffs dispersion depending on the origin of imported products for France between 1850 and 1913. Part of this dispersion arises indirectly as the result of compiling the nomenclature – or the schedule of categories – for France’s general trade chart. Our study nevertheless reveals the existence of direct discriminatory practices applied to certain countries for certain products. The creation of this measure yields important insights. First, tariff dispersion’s evolution completes the analysis of the chronology of trade policy. Second, it is possible to link tariff discrimination, imports in particular sectors, and national production. In our opinion, the paper should pave the way to work that reintroduces a country-specific dimension into the study of late 19th century commercial policy.