Debt Defaults and the Perils of 19th Century American Capitalism

FAIN: FT-278558-21

David Thomson
Sacred Heart University (Fairfield, CT 06825-1023)

Research leading to a book about how state debt defaults shaped the development of the national finance system in the United State from the 1840s through the 1870s.

State debt in the 19th century played a large role in defining and imperiling American capitalism. I am interested in reconstructing the role and activities of United States state debt defaults in the 1840s and the 1870s. During both periods of time, numerous states in the North and South defaulted leading to widespread national and international ramifications. The state debt defaults offer a fascinating window into nineteenth century economic life and play a role in understanding the nationalization of American financial infrastructure during this time period. This realization of the nation’s latent financial power during a period of great financial turmoil and Civil War goes a long way towards explaining the reorientation and refashioning of American finance in the nineteenth century along national lines—but with lingering transnational consequences.