Economics ETDs

Publication Date



From introduction:

Periods of depression in the business cycle which usually follow the boom conditions of prosperity will, in all cases, have a decided effect upon the business of banking. Good banking practice, when the depression sets in, demands a collection of the loans made in the period of prosperity in order to avert the decline in the value of the security behind them. This does not work out in most cases, however. Borrowers are not only unable to repay loans made by the banks in the boom period, but must even have additional funds to carry on their businesses. The inability of the customers to collect from their debtors in such periods, and the losses due to declining prices on merchandise sold and left unsold, tend to throw the entire credit machinery out of line. Banks under these circumstances are endangered both by a decline in the value of security given on loans made during the boom period, and by their desire to assist their customers in the ensuing period of depression through further extensions of credit. It is not surprising that then such periods are usually accompanied by a large increase in the rate of bank failures.

Degree Name


Level of Degree


Department Name

Department of Economics

First Committee Member (Chair)

George W. Terborgh

Second Committee Member

George W. Terborgh

Third Committee Member


Document Type



Records in the thesis show only the one professor as advisor.