Banking theories in the United States before 1860

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Monograph

Identifikator:: 1755492553

URN:: urn:nbn:de:zbw-retromon-133529

Document type:: Monograph

Author:: Miller, Harry Edward http://d-nb.info/gnd/1055250875

Title:: Banking theories in the United States before 1860

Place of publication:: Cambridge

Publisher:: Harvard University Press

Year of publication:: 1927

Scope:: XI, 240 S.

Digitisation:: 2021

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Part III. Bank notes and bank deposits

Collection:: Economics Books

PRINCIPLES OF NOTE ISSUE 157 of the plan claimed that a more uniform currency would result, the danger of an excessive amount of currency would be lessened, and, finally, the clearings would be economically conducted. Gallatin, however, thought the country was too large for a unified clearing and collection system.! The question of par redemption of notes at points other than those at which they were issued was the subject of considerable controversy in connection with the second Bank of the United States and its branches, and in connection with the Suffolk sys- tem. Such considerations as the elimination of “shaving shops” and of wild-cat banking lent strength to the demand for par re- demption at Boston, New York, and other commercial centers; and yet it was pointed out that for a country bank to redeem its notes at par in a distant city was to force it to give its notes a property which specie itself did not possess. Gallatin regarded it as improper to make ‘“‘any attempt whatever to regulate ex- change, to compel banks to redeem their notes at par or at a certain discount at any other place than that specified on the face of the notes, or in any way to give a uniform value in different places to bank notes, which are in their nature a local currency.” It is unjust to exact of paper currency “that which gold and silver, of which it is the representative, cannot perform.” 2 3. TAXING BANKS FOR REGULATIVE PURPOSES A fairly popular suggestion was that which would remove the motive for excessive note issue by having the government appro- priate all profits above a certain percentage of the bank’s capital. Raymond urged this as a substitute for government monopoly Colwell, Ways and Means of Payment (1859), pp. 636-642. Colwell would include checks and bills of exchange in the clearings. A writer in Hunt's Merchants’ M. aga- zine for 1856 proposed the establishment of a national bank with many branches to serve other banks as a collection agent for checks and commercial paper. (E.Y. C., in vol. xxxiv, p. 26.) ¢ Gallatin, “Suggestions” (1841), in Writings, iii, 425. ! Idem, Letter to Flagg (Dec. 31, 1841), Writings, ii, 568. Cp. Report of the Committee of Ways and Means on the Bank of the United States (April 13, 1830), p. 13; “Bank of the United States,” American Quarterly Review (March, 1831), ix, 226; Tucker, Theory of Money and Banks (1839), pp. 203-302.

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