Because California was a pioneer in the development of large-scale branching, we use its experience during the 1920s and 1930s to assess the effects of branching on competition and on the stability of banking systems. Using individual bank balance sheets, income statements, and branch...

Scholars differ on whether central bank intervention mitigates banking panics. In April 1929, a fruit fly infestation in Florida forced the U.S. government to quarantine fruit shipments from the state and destroy infested groves. In July, depositors panicked in Tampa and surrounding cities. The...