A History of Money and Banking in the United States: The Colonial Era to World War II (71 page)

The other logical alternative is the Rueff Plan, of returning to the classical gold standard after a massive increase in the world price of gold. But this too is unlikely, especially over powerful American opposition. Barring acceptance of a new world currency, the Americans would be content to keep inflating and simply force the hard-money countries to keep appreciating their exchange rates, but again it is doubtful that German, French, Swiss, and other exporters will be content to keep crippling themselves in order to subsidize dollar inflation. Perhaps the most likely prognosis is the formation of a new hard-money European currency bloc, which might eventually be strong enough to challenge the dollar, politically as well as economically. In that case, the dollar standard will probably fall apart, and we may see a return to the currency blocs of the 1930s, with the European bloc this time on a harder and quasi-gold basis. It is at least possible that the future will see gold and the hard European currencies at last dethrone the triumphant but increasingly uneasy dollar.

Index

(Prepared by Richard Perry)

Academy of Political Science (APS),

American Bankers Association (ABA),

239, 241, 249–51

205–06, 237, 244, 247, 256–58, 283, 482

Accountants, 325, 326

American Car and Foundry, 302, 311

Acheson, Dean G., 306, 347, 464, 466, 477

American Economic Association (AEA),

199, 215–18, 234, 246

Adams, Brooks, 209–10, 214

American Federation of Labor, 275, 448

Adams, Charles, 270, 311, 422

American Locomotive Company, 302

Adams, Henry, 209

American Smelting and Refining, 370

Adams, Thomas S., 221n

American Telephone and Telegraph

Addis, Charles Frances, 365, 391, 447

Company (AT&T), 198, 207, 267, 296,

Agricultural Adjustment Administra-

379

tion, 333, 471

Anaconda Copper, 279

Agricultural Credits Act

Anderson, Benjamin M., 277, 278n, 304,

of 1921, 284

426n, 445, 449, 458, 486n

of 1923, 285

Andrew, Abram Piatt, 236, 245–46, 249,

Aldrich, Nelson W., 206, 243–49, 252–57,

253–54

302

Articles of Confederation, 62

Aldrich Bill, 206, 244, 253

Astor, John Jacob, 84

Aldrich Plan, 254–57

Astor, Vincent, 302, 310

Aldrich-Vreeland Act, 244

Auchincloss, Gordon, 310

Jeckyll Island retreat, 252–53

Austrian economics, 7, 11n, 25, 40

National Monetary Commission,

business cycle theory, 94

245–48

Aviation Corporation, 301n

Aldrich, Winthrop W., 302, 302n,

309–12, 315–17, 341–42, 458, 484

Bacon, Robert, 192

Alexander, Magnus W., 454

Bailey, W. J., 414

Allied Supreme Council, 391

Baker, George F., 207, 235, 245

Allison, William Boyd, 199

Baker, Newton D., 281

Altschul, Frank, 456

Baldwin, Henry, 148n

Aluminum Corporation of America

Baldwin, Stanley, 367n

(ALCOA), 267, 378

Ballantine, Arthur A., 289

Amalgamated Sugar Company, 332n,

“Bancor,” 481, 483

333

Bankers Magazine
, 148, 204, 240

America, Colonial

Banking, 87, 113, 143, 168, 295, 428, 448

army impressments, 60

Act of 1933, 315

commodity money during, 48,

Act of 1935, 317, 331, 337, 341–42

compulsory legal tender in, 52

bank holiday, 453

inflationary paper money schemes,

50, 51, 58

branches and cartelization, 205

American Academy of Political Science

central reserve city banks, 136–41, 154

(AAPSS), 241, 243, 249

collapse of, 453

491

492

A History of Money and Banking in the United States:
The Colonial Era to World War II

commercial paper, 163–64, 238, 250

state banking system

compulsory par law of 1819, 81

replaced by national banking sys-

country banks, 116–18, 121–22,

tem, 135, 137, 143

137–41, 197, 206, 242, 247

time deposits, 418

decentralized banking, 77, 112–14,

wildcat banking, 78–79, 114

136n, 135, 137, 204–05, 238–39,

See also
Banks; Glass-Steagall Act; 242–43, 247, 253

Credit expansion

demand deposits, 69–71, 71n, 137,

Bank(s)

144, 147n, 186–87, 418

Bank for International Settlements

paying interest on, 139–41

(BIS), 276–77, 398, 426–27

practice prohibited, 139n, 315, 318

Bank for Mutual Redemption,

failures

121–22

cotton speculation and, 101

Bank of England, 62, 99, 204, 245,

easy money cause of, 277

270–72, 286, 319, 360, 364–77,

effect money supply, 276

382–86, 399, 406, 410, 421, 427–31,

give other banks pause, 294

442–47, 483

fractional reserve, 97, 295, 354–55

Committee on Currency and

beginnings of, 57, 60

Bank of England Note Issue,

364

distrust of, 168

Bank of North America, 62–64, 63n,

opposition to, 90–92, 112

68, 72

post–Civil War, 168

Boden-Kredit-Anstalt of Vienna, 450

pre–Civil War, 112–13

central banks, 64, 234, 241, 252–53

free, 77, 77n–78n

abolish, 92, 104

pre–Civil War era, 112–13, 135–37,

142, 152

academic organizations and, 249

transformation to centralized,

acquiring legitimacy for, 236

134–37, 142

drive for, 234

national banking system, 120–22,

lender of last resort, 40, 187, 240,

129, 132–47, 136n, 153, 246

246, 368

change in structure, 141–42

legislative activity for, 243–44

creation of three national bank

restraint, on inflation, myth of,

types, 136–37

71–75, 78, 93–94, 96

Gold Standard Era and 159–60

secret conclave to draft plans for,

inner contradictions of, 135

252–53

inverted pyramiding scheme of,

crisis of 1933, 293, 297

137–39, 141

Federal Reserve Bank of Chicago,

unhappiness with, 185–88, 186n,

445

204

Federal Reserve Bank of New York,

National Banking Acts, 134–35, 145,

318, 399, 443–45, 484

163, 167, 186–87

First Bank of the U. S. 1791–1811,

National Banking System Act of

68–72, 71n, 72n

1863, 122

First National Bank of Chicago, 201,

notes, expansion of, 56, 73

237, 246, 256, 302, 309, 456

Peel’s Bank Act of 1844, 204n

First National Bank of Philadelphia,

“pet banks,” 93, 104, 208

146

private notes, 56–58

First National Bank of Washington,

problems, 249

D.C., 146

pyramiding, 62, 69, 71, 75, 90,

Fourth National Bank of New York,

137–39, 140–42, 154, 160

146

Index

493

International Bank for Reconstruc-

Bingham, William, 92

tion and Development, 482n

Bird, Kai, 347

Kuhn, Loeb, 188, 192, 195, 230, 235,

Birmingham, Stephen, 215

235n, 292, 299, 310, 432

Black, Eugene R., 301, 336

among financial elites, 263, 266

Blackett, Sir Basil, 391–92, 447

central bank proponent, 188, 234

Bland-Allison Silver Purchase Act of

Massachusetts Land Bank, 51–53, 55,

1878, 160

57–58, 58n

Blumenthal, George, 279

Mellon National Bank, 267, 378

Board of Economic Warfare, 339

National City Bank of New York, 298

New England Bank of Boston, 115

Bombshell message, 307, 465–66

Rockefeller–Harriman–Kuhn, Loeb,

Bonn, Moritz J., 431

192, 262, 263

Boom-bust cycle, 54, 95, 355

Second Bank of U.S. 1816–1833,

Currency School cycle, theory of, 91

82–96

national, first, 89–91, 94–95, 101

demise of, 92, 101

full scale inflationary, 88

fraud abounded at, 86–88

Boothby, G.R., 481

launched inflation of money from

Bovenizer, George W., 320

inception, 86–87

Boyle, Andrew, 374

Suffolk Bank, 114–22

Boxer Rebellion, 228–29

demise of, 116, 121–22

Bradbury, Sir John, 365, 367

free-market success, 115

Bradley, Justice Joseph P., 153

stabilizing effects of, 118–19

Braeman, John, 291

See also
Federal Reseve Bank

Brandeis, Louis D., 299, 322

Barrows, David P., 225n

Bremner, Robert H., 291

Barter, 90, 352

Bretton Woods Agreement, 43, 208–09,

Baruch, Bernard M., 279–81, 299, 306,

232, 306, 345–46, 432–33, 475, 482–86

313, 464, 466, 474

Brimhall, Dean, 335

Beaverbrook, Lord, 405–06, 482

Bechtel, Stephen, 334n–34n

Britain.
See
Great Britain

W.A. Bechtel Company, 333n–34n

British Royal Dutch Shell Oil, 308

Beckers, Dr. William, 279n

Bronson, Isaac, 79

Belmont, August, 169

Bruere, Henry, 301n

Bendix, Vincent, 298, 454

Bryan, William Jennings, 169–70,

176–77, 188

Benston, George J., 315

Benton, Thomas Hart, 91–92

Bryanism, 169, 177–78, 189–90, 197

Bernstein Plan, 490

Buchanan, James A., 87n

Bestor, Paul, 289

Bullitt, William C., 459

Bethlehem Steel, 370

Bureau of Budget, 304, 335

Bevan, Aneurin “Nye,” 404

Bureau of Insular Affairs (BIA), 221–22

Bicester, Lord, 369

Burgess, W. Randolph, 287, 483

Biddle, Nicholas, 92–94, 96

Burnett, Cody, 59

Billias, George Athan, 58

Burton, Theodore, 245, 257

Bimetallism, 47, 104–06, 109–11, 167,

Bush, Irving T., 246

219, 222, 231, 353

Bush, Thomas G., 194

coinage, 65–68

Business Advisory Council (BAC),

end of, 108

300–01

fallacies of, 220

Business Week
, 278, 426

494

A History of Money and Banking in the United States:
The Colonial Era to World War II

Business Men’s Monetary Reform

Collamer, Jacob, 126n

League, 254

Collet, Mark W., 373

Butler, Nicholas Murray, 241

Colt, S. Sloan, 331

Cannan, Edwin, 366n

Colwell, Stephen, 148

Capeadores
, 415, 420

Commercial and Financial Chronicle,
278, Capital formation, 165–69

278n, 426

Carey, Henry C., 148–49, 149n

Commission on International Exchange

Cartelization

(CIE), 296

of agriculture, 285, 334–34

Committee for Constitutional Govern-

of banking industry, 36, 186, 318,

ment, 454

322, 368, 372

Committee for the Nation to Rebuild

of industry, 264, 277, 281, 299

Prices and Purchasing Power, 298,

of Wall Street, 296, 306, 318, 320,

303, 305, 307–08, 454–56

327–28

Committee on Currency and Foreign

Carver, Thomas Nixon, 236, 246

Exchanges, 359

Catchings, Waddill, 273, 303

See also
Cunliffe Committee

Central banks. See Banks

Committee on Legislative Programs,

Census of 1890, 166

338

Chamberlain, Austen, 364n, 365, 367n

Conant, Charles A., 196–97, 199–200n,

Chapman, Sidney, 211, 391

201, 204, 208–14, 218, 221, 235, 243,

246, 248, 251, 389

Charles I, 56–57

Conant plan, 222–26

Chase, Salmon P., 123–26, 126n, 133–37,

143, 152

“conants,” 224

Chase, Stuart, 335

currency reforms, 232–33

Cheves, Langdon, 94

failure in Cuba and China, 226–29

Chicago School, 31

surplus capital, theory of, 210–16,

222–23, 230–32

Chicago Times-Herald
, 191

Conference of Governors, 273

Chicago Tribune
, 204, 414, 445

Committee for Constitutional Govern-

Churchill, Winston, 365–67, 367n

ment, 454

Citizens’ Reconstruction Organization

Commonwealth and Southern Corpora-

(CRO), 296

tion, 330

Claflin, John, 235–36

Consolidated Gas Company of New

Clark, John Bates, 214, 243, 416, 416n,

York, 207

447

Continental Congress, 59, 61

Clark, Spencer, 126n

Continentals, 59–60, 72

Clayton, William L. (Will), 346–47, 478,

not worth a, 60

485–86

Converse, Edmund C., 192

Cleveland, Grover, 168–69, 175–76, 178

Cooke, Henry, 133–35, 145

Cline, Virgil P., 198

Cooke, Jay

Cochran, Thomas, 267, 267n, 379

beginnings, 132–35

Cockayne, Brien, 360

House of Cooke, 133–35, 145–47,

Code of Fair Competition, 328–29n

147n, 156

Cohen, Benjamin V., 322, 330

crash of, 156

Coinage Act

enormous political influence of,

of 1792, 65, 65n, 104

134, 145–47, 156

of 1834, 104–06, 106n, 110–11

expansion of, 156

Index

495

master of public relations and mass

Dawes, Charles G., 269, 289, 296, 422n,

propaganda, 134, 145–47

456