Wirtschaftliches Verpacken

Banking theories in the United States before 1860

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Monograph

Identifikator:: 1726007022

URN:: urn:nbn:de:zbw-retromon-104966

Document type:: Monograph

Author:: Sachsenberg, Ewald http://d-nb.info/gnd/101406304

Title:: Wirtschaftliches Verpacken

Place of publication:: Berlin

Publisher:: VDI-Verlag

Year of publication:: 1926

Scope:: 242 Seiten; Illustrationen

Digitisation:: 2020

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: V. Anhang

Collection:: Economics Books

118 BANKING THEORIES IN UNITED STATES ring, on one occasion, to the deposits of banks of circulation as ¢createable at will.” ! He seems, however, to have freed himself but partially from the current fallacy, when, in a later definition of banks of deposit and discount, he failed to see that the loan by the bank of money left with it subject to payment on demand constitutes in itself an addition to the quantity of media of pay- ment, inasmuch as both the original depositor and the recipient of his money (or of the notes or deposit credit based upon it) command purchasing power to the full extent of the money en- trusted to the bank.” Henry C. Carey recognized that deposits are created by the banks and that the “loan that is based upon a deposit doubles the apparent amount of currency — the power of purchase remaining with the real owner of the money, while being exercised, and to the same extent precisely, by him to whom the bank has lent a Carey believed, as we saw earlier in the chapter, that it is the deposits, rather than notes of banks, that introduce violent changes in the volume of media of payment; and he criticized Peel’s Act of 1844 upon this ground.* It is more important, he thought, that the law prescribe an ample reserve against the fluctuating element of bank credit, namely, deposits, than that it do so against notes.’ Robert Hare, who objected strenuously to the theory that bank loans are in essence the loans of the depositors of the bank to its borrowers, was not deceived as to the character of deposits. The latter, like notes, are the product of the bank itself.® Charles H. Carroll agreed with Hare with respect to the origin of deposits, although he differed completely from him in maintaining that banks can serve only as intermediaries in their lending operations, since the advance to customers of more dollars than were re- 1 Currency and Banking (1839), p. 71. See also, “Principles of Banking,” Free Trade Advocate (July 4, 1829), ii, 3, 4. 2 Cp. Currency and Banking, p. 71. 3 H. C. Carey, Principles of Social Science (1858), ii, 421. See also, Past, Present, and Future (1848), pp. 180 ff. 4 Carey, Past, Present, and Future, p. 180. 5 Ibid., p. 182. 6 Hare, “Do Banks Increase Loanable Capital?” Hunt's Merchants’ Magazine (1852), xxVi, 703.

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