The Engine of Enterprise: Credit in America Credit in America

Tracing credit from colonial times to the present and highlighting its productive role in building national prosperity, Rowena Olegario probes questions that have divided Americans: Who should have access to credit? How should creditors assess creditworthiness? How can borrowers and lenders accommodate to the risks of a credit-dependent economy? American Households, Businesses, And Governments Have Always Used Intensive Amounts Of Credit. The Engine Of Enterprise Traces The Story Of Credit From Colonial Times To The Present, Highlighting Its Productive Role In Building National Prosperity. Rowena Olegario Probes Enduring Questions That Have Divided Americans: Who Should Have Access To Credit? How Should Creditors Assess Borrowers' Creditworthiness? How Can People Acommodate To, Rather Than Just Eliminate, The Risks Of A Credit-dependent Economy? In The 1970s Alexander Hamilton Saw Credit As The Invigorating Principle That Would Spur The Growth Of America's Young Economy. His Great Rival, Thomas Jefferson, Deemed It A Grave Risk, Inviting Burdens Of Debt That Would Amoung To National Self-enslavement. Even Today, Credit Lies At The Heart Of Longstanding Debates About Opportunity, Democracy, Individual Responsibility, And Government's Reach. Olegario Goes Beyond These Timeless Debates To Explain How The Institutions And Legal Frameworks Of Borrowing And Lending Evolved And How Attitudes About Credit Both Reflected And Drove Those Changes. Properly Managed, Credit Promised To Be A Powerful Tool. Mismanaged, It Augured Disaster. The Engine Of Enterprise Demonstrates How This Tension Led To The Creation Of Bankruptcy Laws, Credit-reporting Agencies, And Insurance Regimes To Harness The Power Of Credit While Minimizing Its Destabilizing Effects. -- From Dust Jacket. The Sound Of Your Hammer: The Foundations Of Credit In The New Republic -- To Be A Bankrupt Is Nothing: Credit, Enterprise, And Risk In Antebellum Era -- There Is Considerable Friction: Credit In The Reconstruction Nation -- To Open Up Mass Markets: A Nation Of Consumers And Home Owners -- Children, Dogs, Cats, And Moose Are Getting Credit Cards: The Erosion Of Credit Standards -- Postscript: Creative And Destructive Credit. Rowena Olegario. Includes Bibliographical References And Index. Cover -- Title -- Copyright -- Dedication -- Contents -- Introduction -- The Debates about Credit -- The Phases of Credit -- Chapter 1. "The Sound of Your Hammer": The Foundations of Credit in the New Republic -- Mercantile Credit and Economic Development -- Debt as the Basis for Money -- The Moral Economy -- Borrowing for Consumption -- Usury Laws -- Bankruptcy and Insolvency -- Jefferson in Debt: The Ordeals of Independence -- Chapter 2. "To Be a Bankrupt Is Nothing": Credit, Enterprise, and Risk in the Antebellum Era -- The Spread of Financial Institutions -- Booms and Busts -- The Defense of Credit -- Credit, Reputation, and Expansion: The Role of Merchants -- Usury Laws -- Household Borrowing -- Bankruptcy and Imprisonment for Debt -- The Beginnings of Credit Reporting -- Chapter 3. "There Is Considerable Friction": Credit in the Reconstructed Nation -- Gold versus Paper Money -- Alternative Sources of Credit -- The South -- Credit for Business -- Commercial Paper -- Trade (Mercantile) Credit -- Investment Banks -- Bonds -- Sales Finance Companies -- Mortgage Lending -- Residential Loans -- Consumer Credit -- Bankruptcy and Insolvency -- Credit Reporting -- Chapter 4. "To Open Up Mass Markets": A Nation of Consumers and Home Owners -- Stabilizing the Banking System -- Consumer Credit -- Small Personal Loans -- Installment Credit -- World War II and After -- Credit Cards -- Discrimination and Consumer Protection -- Mortgage Lending -- Enlarging the Secondary Markets -- Business Credit -- Sales Finance Companies and Factors -- Trade Credit -- Bankruptcy and Debt Collection -- Credit Reporting -- Bonds and Credit Rating -- Chapter 5. "Children, Dogs, Cats, and Moose Are Getting Credit Cards": The Erosion of Credit Standards -- Volatile Inflation and Interest Rates -- Improved Information Technology -- More Liberal Markets -- Securitization "American households, businesses, and governments have always used intensive amounts of credit. The Engine of Enterprise traces the story of credit from colonial times to the present, highlighting its productive role in building national prosperity. Rowena Olegario probes enduring questions that have divided Americans: Who should have access to credit? How should creditors assess borrowers' creditworthiness? How can people acommodate to, rather than just eliminate, the risks of a credit-dependent economy? In the 1970s Alexander Hamilton saw credit as "the invigorating principle" that would spur the growth of America's young economy. His great rival, Thomas Jefferson, deemed it a grave risk, inviting burdens of debt that would amoung to national self-enslavement. Even today, credit lies at the heart of longstanding debates about opportunity, democracy, individual responsibility, and government's reach. Olegario goes beyond these timeless debates to explain how the institutions and legal frameworks of borrowing and lending evolved and how attitudes about credit both reflected and drove those changes. Properly managed, credit promised to be a powerful tool. Mismanaged, it augured disaster. The Engine of Enterprise demonstrates how this tension led to the creation of bankruptcy laws, credit-reporting agencies, and insurance regimes to harness the power of credit while minimizing its destabilizing effects"--Book jacket American households, businesses, and governments have always used intensive amounts of credit. The Engine of Enterprise traces the story of credit from colonial times to the present, highlighting its productive role in building national prosperity. Rowena Olegario probes enduring questions that have divided Americans: Who should have access to credit? How should creditors assess borrowers'creditworthiness? How can people accommodate to, rather than just eliminate, the risks of a credit-dependent economy?In the 1790s Alexander Hamilton saw credit as “the invigorating principle” that would spur the growth of America's young economy. His great rival, Thomas Jefferson, deemed it a grave risk, inviting burdens of debt that would amount to national self-enslavement. Even today, credit lies at the heart of longstanding debates about opportunity, democracy, individual responsibility, and government's reach.Olegario goes beyond these timeless debates to explain how the institutions and legal frameworks of borrowing and lending evolved and how attitudes about credit both reflected and drove those changes. Properly managed, credit promised to be a powerful tool. Mismanaged, it augured disaster. The Engine of Enterprise demonstrates how this tension led to the creation of bankruptcy laws, credit-reporting agencies, and insurance regimes to harness the power of credit while minimizing its destabilizing effects. American households, businesses, and governments have always used intensive amounts of credit. The Engine of Enterprise traces the story of credit from colonial times to the present, highlighting its productive role in building national prosperity. Rowena Olegario probes enduring questions that have divided Who should have access to credit? How should creditors assess borrowers creditworthiness? How can people accommodate to, rather than just eliminate, the risks of a credit-dependent economy? In the 1790s Alexander Hamilton saw credit as the invigorating principle that would spur the growth of Americas young economy. His great rival, Thomas Jefferson, deemed it a grave risk, inviting burdens of debt that would amount to national self-enslavement. Even today, credit lies at the heart of longstanding debates about opportunity, democracy, individual responsibility, and governments reach. Olegario goes beyond these timeless debates to explain how the institutions and legal frameworks of borrowing and lending evolved and how attitudes about credit both reflected and drove those changes. Properly managed, credit promised to be a powerful tool. Mismanaged, it augured disaster. The Engine of Enterprise demonstrates how this tension led to the creation of bankruptcy laws, credit-reporting agencies, and insurance regimes to harness the power of credit while minimizing its destabilizing effects. Contents Introduction Chapter One. “The Sound of Your Hammer” Chapter Two. “To Be a Bankrupt Is Nothing” Chapter Three. “There Is Considerable Friction” Chapter Four. “To Open Up Mass Markets” Chapter Five. “Children, Dogs, Cats, and Moose Are Getting Credit Cards” Postscript Appendix Notes Acknowledgments Index