Kapitalismus und Sozialismus

Banking theories in the United States before 1860

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Monograph

Identifikator:: 101266578X

URN:: urn:nbn:de:zbw-retromon-24415

Document type:: Monograph

Author:: Pohle, Ludwig http://d-nb.info/gnd/116260793

Title:: Kapitalismus und Sozialismus

Edition:: Zweite Auflage

Place of publication:: Leipzig ; Berlin

Publisher:: B. G. Teubner

Year of publication:: 1920

Scope:: 1 Online-Ressource (IV, 175 Seiten)

Digitisation:: 2018

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: II. Die sozialistische Kritik an der bestehenden Wirtschaftsordnung

Collection:: Economics Books

166 BANKING THEORIES IN UNITED STATES The crisis of 1857 did much to bring about a sudden realization of the significance of New York as a growing financial center, and the problems of a central reserve city, if not of a central reserve bank, were now analyzed more deeply than ever before.! But Nathan Appleton seems to have been the only one to give much heed to the need of further centralization of control at New York. Even he did no more than to lament that the power exercised by the banks of the metropolis of giving the keynote to the whole country in the matter of expansion and contraction was subdi- vided among fifty-five directorates, acting independently, anél no longer under the harmonizing influence of a Gallatin.’ About the same time appeared the noteworthy suggestion that a central bank of issue be founded at Boston,owned and controlled by all the banks of New England and New York and enjoying a monopoly of the privilege of note issue for the district. Its notes were to be receivable and payable at par by all the subscribing banks. It was to receive deposits, but, in order that it might not compete with the subscribing banks, it was to be allowed ‘to discount only for its stockholders, the local banks.” It could thus “relieve the temporary pressures to which small banks are so liable,” jealously preserving a reserve of from 33 to so per cent for the purpose. The author would have preferred to include the whole country in his scheme, if Congress could be prevailed upon to enact it.? Some slight attention was given to the possible service of a na- tional bank in bringing interest rates in the several sections of the country more nearly to an equality by effecting a more advan- tageous distribution of capital. Thus one proponent of a national bank observed that seasonal variations in the demand for money in the different parts of the country would be met by loans to each other by the branches of the national bank at the direction of the parent bank.? In general, however, emphasis was placed ! See Chapter XVII, below. 2 Appleton, Letler to Boston Daily Advertiser, Oct. 12, 1857. 3 J.S. Ropes, “The Financial Crisis,” New Englander (Nov., 1857), Xv, 712, 713. Some of the details given in the text have been taken from a further elaboration by the same author in Bankers’ Magazine. ¢ John R. Hurd, 4 National Bank, or No Bank (1842), p. 40.

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