
Contents
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New Securities, New Risks New Securities, New Risks
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The Insurance Company of North America The Insurance Company of North America
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Patterns of Proliferation, Rates of Returns Patterns of Proliferation, Rates of Returns
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Fire Insurance Fire Insurance
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Reorganizing Port City Power Reorganizing Port City Power
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A Careful Silence: American Insurance and the Slave Trade A Careful Silence: American Insurance and the Slave Trade
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Three Forging “Golden Chains”: The Constitutional Project of Chartering Insurance Companies, 1790–1800
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Published:November 2021
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Abstract
In the 1790s, the American states began to charter large numbers of banks and insurance companies. In the short term, incorporations produced strife, but partisans usually found that it was easier to create institutions of their own than to block those of their opponents. For company founders, incorporation certainly served as a financial risk management strategy, but corporate constitution-making involved more than the financial calculations of private individuals. As this chapter argues, corporate constitution-making was closer akin to political constitution-making than is evident at first glance. This chapter describes the controversial incorporation of the Insurance Company of North America, the first joint-stock insurance company of the United States. It continues by surveying the nearly 30 insurance companies (mostly marine and fire) chartered in the United States by the end of the year 1800. It discusses the scope of their activities, which included a small amount of slave trade insurance. Protected from political and legal risk by their charters and buffered against commercial risk by their investments, insurance companies built a collaborative American insurance sector that soon won prominence within local merchant communities.
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