[22] Higher prices would tend to drive notes back out. However, during a boom fever, overpriced land looks cheap, keeping the Michigan notes in Chicago. Later, when the Michigan money flew out, the Michigan banks dishonored their notes, sucking capital from Chicago when it most needed it.
[23] Positive feedback loops are also called spirals, snowballing factors, cumulative factors, perverse factors, reinforcing factors, aggravating factors, non-equilibrating factors, etc.
[24] Tragically, neo-classical economists and their successors have stuffed these insights down the memory-tubes of history. Their reasons, if any, do not bear examination, and are generally
not even given.
[25] One could write another paper or book on their various wiles, and the legislative logrolling processes of partial funding and whipsawing that stretch out 2-year construction periods into 25-year periods, piling up capitalized interest.
[26] There was a double peak in some measures. Pres. Jackson's Specie Circular of 1836 halted Federal land sales in 1836. In 1837, Congress and The President began distribution of Federal surpluses to the states. This revived local investment for a while. Thus, the peak is usually described as 1836-37.
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