Money and Credit on the American Frontier

Abstract

This case, set on the American frontier in the 1840s, concerns a village store that issued credit to local customers. Like archaeologist-detectives, we can interpret an archival note that suggests that customers could exchange credit at the store. This case demonstrates the ingenuity of entrepreneurial social groups faced with a shortage of hard currency. It helps us question the nature of money, how credit is issued, the importance of social capital for developing financial capital, and the benefits and drawbacks of various early financial instruments. Lessons from the store that acted like a bank can be applied in the present day, as questions about digital currencies arise.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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Resources

Notes from archives held in the Missouri History Museum (Figures 1 and 2) offer a first-hand glimpse of the frontier credit system.

Figure 1. Benjamin J. Harris, St. Louis. Promise to Pay Will Clark $300, 17 Sep 1831

Figure

Source: The Missouri History Museum, A0289, http://www.frontierlife.amdigital.co.uk/Documents/Details/MHM_A0289-01770

Figure 2. Abraham Chaplin. Promise to Pay George Rogers Clark the Sum Demanded of $150, 24 Sep 1779

Figure

Source: The Missouri History Museum, A0289, http://www.frontierlife.amdigital.co.uk/Documents/Details/MHM_A0289-00195

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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