Banking theories in the United States before 1860

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Identifikator:: 1896933912

Document type:: Multivolume work

Author:: Keith, Arthur Berriedale http://d-nb.info/gnd/119086794

Title:: Responsible government in the Dominions

Place of publication:: Oxford

Publisher:: Clarendon Press

Year of publication:: 1912-

Collection:: Economics Books

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Identifikator:: 1896935052

URN:: urn:nbn:de:zbw-retromon-238139

Document type:: Volume

Author:: Keith, Arthur Berriedale http://d-nb.info/gnd/119086794

Title:: Responsible government in the Dominions

Volume count:: Vol. 2

Place of publication:: Oxford

Publisher:: Clarendon Pr.

Year of publication:: 1912

Scope:: XI Seiten, Seiten 570-1100

Digitisation:: 2022

Collection:: Economics Books

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Title:: Part IV. The federations and the union // Chapter II. The commonwealth of Australia

Collection:: Economics Books

112 BANKING THEORIES IN UNITED STATES circulation.! Vethake thought similarly.? Gallatin, on the other hand, preferred to regard bills of exchange and promissory notes as substitutes for currency. In his opinion, the essential distinction is, that the bills of exchange are only a promise to pay in currency, and that the failure of the drawers, drawees, and indorsers, does not, in the slightest degree, affect the value of the currency itself, or impair that permanent standard of value by which the performance of all contracts is regulated.’ Gouge, after endorsing this view with respect to ledger accounts, bills of exchange, and promissory notes, added: An increase of these three kinds of commercial medium may have the same effect on prices as an increase of money. Where the spirit of specula- tion is excited, men, after having exhausted their cash means, strain their credit. Cash and credit are then competitors in the market, and raise prices on one another.4 Raguet, Tucker, and Carroll followed Gallatin.’ a ET ie Lea No less significant than the problem whether bank deposits should be classed as currency was that of determining whether they were in any measure created by the banks themselves. We have seen that the overwhelming majority of the writers conceived of the lending operations of banks as confined in essence to the advance of capital left with them by stockholders and depositors. That such a view would tend to be more readily accepted by those who regarded all deposits as representing money brought to the bank by its patrons is evident, but the two points are by no means the same. The one involved the problem of the ability of banks to create bank notes and deposits; the other involved the problem of the significance of such a creation, if its possibility be granted. Some of those who assigned to banks only an inter- mediary function believed also that international gold move- 1 Thomas R. Dew, Great Question of the Day (1840), p. 6; and Essay on the Interest of Money (1834), p- 16. 2 Vethake, Principles of Political Economy (1838), pp. 148, 149. See also, Mid- dleton, The Government and the Currency (1850), pp- 88-91. 3 Gallatin, Considerations, etc. (1831), p. 29. 4 Gouge, Short History of Paper Money, etc. (833), pp- 19, 20. 5 Raguet, Currency and Banking (1839), pp. 173-177; Tucker, Theory of Money and Banks (1839), p. 142; Carroll, “The Banking and Credit Systems.” Hunl’s Merchants’ Magazine (September, 1858), xxxix, 311.

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