A History of Money and Banking in the United States: The Colonial Era to World War II (72 page)

monopoly underwriter of govern-

De Gaulle, Charles, 489

ment bonds, 134

Dean, William B., 195

national banking system, force

Debevoise, Thomas M., 310, 310n

behind, 134–35, 145, 156

Deflation, 20, 23, 55, 93, 101, 103,

Cooksey, George, 290

160–61, 179, 357–58, 361, 363, 365–66,

Coolidge, Calvin, 266–69, 311, 379–80,

390, 395–96, 424–25, 441, 451

420–22

Democratic Party, 172, 176,

Coolidge, T. Jefferson, 266, 335, 379

party of personal liberty, 174,

Cord, E.L., 298, 454

distinctive ideology clash, 171

Corn Belt Advisory Committee, 285

“choice, not an echo,” 171, 178

Coughlin, Father Charles E., 460

end of laissez-faire libertarian party,

Council of Foreign Relations (CFR),

187

346–47, 432

Delano, Frederic A., 255, 265, 372, 448

Counterfeiting, 130n

Delano, Lyman, 301n

Coup de whiskey
, 413, 445

Depression

Covington, J. Harry, 306

after paper money issue, 54

Cox, James M., 464

in crisis of 1839, 94, 101–03

Crane, W. Murray, 267, 379

in gold standard period, 160

Credit expansion

of 1819–21, 81, 85, 89, 92

controlled by large national banks,

of 1870s, 154–59, 171,

238

See also
Great Depression

increased number of banks and, 70

Dern, George, 335

stock prices and, 418

Deterding, Sir Henri, 308

See also
Inflation; Banks

Dewey, Commodore, 212

Cromwell, James H.R., 457

Dewey, Davis R., 246

Crowley, Leo T., 339

Dewey, John, 246

Cumberland, William W., 233

Dewey, Thomas E., 331n

Cunliffe, Walter, 359, 373

Discount rate, 236, 248, 274–76, 286, 406, Cunliffe Committee, 359–60, 362, 365

409n

Currency. See Money; Dollar

Dodge, William E., 195, 218

Currency Report, 237

Dollar

Currie, Lauchlin, 332, 335–36, 338–39

key currency base of new interna-

Customs-duties scheme, 124

tional monetary order, 476–86

basic currency unit, 65, 65n

Czarist Russia, 212

defined as weight of gold or silver,

66, 104

Dairymen’s League Cooperative Associ-

gold coin standard, only currency

ation, 298, 454

on, 356

Dallas, Alexander J., 84

gold-exchange standard and, 432,

Davis, John W., 268, 330, 331n, 381

486

Davis, Norman H., 311n, 344, 346, 432

imperialism, 43, 345, 437, 477

Davis, Eric G., 390

key currency, only, 476, 483

Davison, Harry, 268, 369–70, 381

manipulations of, 49

Davison, Henry P., 245, 252–53, 264,

nationalism, 43, 437, 448, 450

264n, 311n, 346, 446

origin of word, 49n

496

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

redemption, 489

Exchange controls

run on, 488

German, 344, 469

world shortage of, 487

high postwar price levels, salvage

See also
Inflation

of, 390

Donham, Wallace, 457

in interwar years, 351, 360, 392, 428,

Dowd, Kevin, 42n, 351n

439, 452

Douglas, Lewis W., 304, 307, 335, 347,

possible cause of World War II, 475

458, 464

post–World War II, 479–485

Douglas, William O., 321n, 327–28

Exchange rates, 343–44

Duffield, J.R., 243

DuPont, 313, 370

Fairchild, Charles S., 194, 198

Durant, William Crapo, 420n

Fairchild, Sidney T., 194

Durkee, Hireh, 79n

Fairman, Charles, 152

Falkner, Roland P., 221

Farben, I.G., 344

Eames, Henry F., 198

Farley, James A., 467

Eastman, George, 448

Farm prices

Eastwood, Clint, 18

agitation for higher, 297, 456, 283

Eccles, Marriner S., 319n, 330n, 333n,

331–43

agricultural relief agency, 284

as Federal Reserve Board governor,

boom of 1880s, 166, 283

336–41

farm support for inflation, 287,

297–99, 432

Boulder Dam, 333, 333n–34n

Farrer, Gaspard, 365

business empire of, 332–33, 332n

Farwell, John V., 255

cartelization advocate, 333

Fascism, 30

New-Dealer, 332, 335–38, 343n

Faulkner, Roland P., 221n

Eccles, David, 332

Federal Advisory Council (FAC), 338

Economic theory as
a priori
science, 8

Federal Deposit Insurance Corporation

Economic and Financial Committee of

(FDIC), 338–39

League of Nations, 356

Federal Farm Loan Board (FFLB),

Economist, as “social scientist,” 215

285–86, 289

Edison Electric Institute, 330

Federal Intermediate Credit System, 286

Edmunds, George F., 194

Federal Open Market Committee

Ehrich, Jules, 303

(FOMC), 14, 319, 340

Einaudi, Luigi, 487n

Federal Reserve Bank, 209, 250, 254,

Elasticity

257–58, 318–19, 337, 340–42, 371, 425,

426

“elastic,” 187, 197, 202–03, 242–43,

Act of 1913

248

bailout of German Reichsbank,

“inelastic,” 187, 190, 205, 236, 242,

286–87

251

Bank of England and, 368

Eliot, Charles, 245

efforts to help England, 423

Ellis, Richard E., 70

credit policies of, 424

Ely, Robert E., 249

credit restraints removed, 341

Emergency Relief and Construction Act

easy money and bank failures, 426

of 1932, 292

effort to prevent gold inflow, 414

England. See Great Britain

failure to control stock market

Erhard, Ludwig, 487n

boom, 418

Index

497

failure of, 416, 445

Fleming, Lamar, 346, 486

fallacious qualitativist view, 419

Fletcher, Duncan, 314

favors granted to large banks, 247

Flynn, John T., 293

monetary expansion by, 274

Forgan, James B., 237, 246–48, 252, 256

open market operations, complete

Founding Fathers, 65, 211

control of, 340

origins of, 34, 39–40, 42, 190, 208

Fowler Bill, 205–06, 234

purpose of, 37, 368

Fowler, Charles N., 205

spurious veil of regionalism, 247

Fowler, Samuel, 136n

stock market, deliberate stimulation

France, 399, 407, 409–10, 411, 430

of, 417

legend as spoiler, 407

transfer power to political

monetary and fiscal reforms, 407–08

appointees in Washington, 318

Frankfurter, Felix, 293, 322, 322n, 323n

veto power over district bank elec-

tions, 341

Frazier, Frederic H., 298, 454

“Federal trough,” beginnings of, 59

Frederickson, George, 136n

Federalists

French Revolution, 358

criticism of, 69n

Frères, Lazard, 278–79, 456

support for central banks, 70–72, 83,

Frey, John P., 448

92, 101

Friedman, Milton, 34–39, 35n, 55n,

Federation of British Industries, 362–64

134–35, 162, 166, 169

Fels, Samuel S., 298, 454

Fries, J.W., 194

Ferguson, E. James, 60n–61n

Ferguson, Thomas, 266, 308, 379, 433

Gage, Lyman J., 201–04, 207, 235

Ferrell, H., 460

Galbraith, John Kenneth, 347n

Fetter, Frank W., 358

Gannett, Frank E., 454

Fiat money. See Money

Gardner, Lloyd C., 471

Field, Marshall, 198, 255

Financial and Economic Committee

Garner, John Nance, 311

establishment of central banks, 393

Garnett, Louis A., 194

goals of, 391–92

Gavitt, J.P., 249

reconstruction of Central and East-

General Baking Company, 298, 454

ern Europe, 391

General Electric, 193, 195, 287, 296, 330, Financial elites, 263

370, 448

abortive attempts by, 41

General Motors, 296n, 321, 420n, 450

advising governments, science of,

Genoa Conference, 390–98, 392n, 442

231

currency resolutions of, 393–96

establishment agrees more money

needed, 288

George, Lloyd, 391

force behind Fed creation, 258

German Historical School, 30, 214

interrelations of major financial

German Reichsbank, 26, 247, 250, 286,

groupings, 263

412

Financial panic of 1884, 160

Germany, 471

Finland, 398, 398n

barter agreements, 344n, 470–71,

Finney, Charles, 172

473–74

Fish, Stuyvesant, 194

bilateral trade agreements, 469

Fisher, Irving, 95, 246, 337, 390, 448, 466, British trade with Balkan nations

473

evaporates, 470

as inflationist, 303–04, 449, 453–56

domination of Europe by, 472

498

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

economic competition by, 473

England abandons, 428–31

Hull policy and, 472–75

era ends in failure, 431

mark protected by exchange con-

exchange bullion, not coin, 381

trols, 428

imperialism and, 218

trade competition, 469–75

imports rise with, 402

Gerstle, Gary, 308, 433

increase demand for pound as

Giannini, A.P., 334

reserves, 390

Gifford, Walter S., 296

interwar years, 351

Gilbert, James H., 129

reserves used instead of gold, 387

Gilbert, S. Parker, 287, 375n

legacy of Genoa, 398

limits on monetary expansion bro-

Girard, Stephen, 84–85, 92

ken, 385

Glass, Carter, 257, 277n–78n, 293, 304,

monetary imperialism and, 218

316–17, 337, 340, 449, 455, 458

not gold, 384

Glass-Steagall Act

origin of, 208–09

of 1932, 258, 293, 315, 315n, 341–42,

pressure on Europe for, 386

432

prestige of gold, 381

of 1933, 315–17, 315n, 341

series of crises evident, 489

Goff, Frederick H., 448

unsoundness, fear of unchecked

Gold

inflation of, 397

as world money standard, 353

widespread adoption of, 398

avoid outflow of, 359

Gold standard

exports, 168

Act of 1900, 202, 381

fix and raise price levels to avoid

capital formation and, 165

redemption of, 393–94

cartelized banking system and, 167

going off, 297, 304

deflation and, 160

government intervention, groups

discipline of, 438

advocating more, 299

diplomacy, 220, 389

market, attempt to destroy, 125

economic growth and, 161

outflow and massive monetary

era of, 159

inflation in Britain, 406

financial panic and, 160

outflow as signal to contract overin-

fixed relationship between coun-

flation, 406

tries, 225

Gold bullion, 67, 354

flawed and inflationary caricature

end of redemption, 463, 467

of, 43

gold bullion standard, 381–85

French bloc urged restoration of, 305

redemption, purpose of, 383

golden age of, 166

Gold coin, 48–49, 66–68, 107, 228, 382, 384

interest rates and, 163

circulation of, gold and silver coin,

international trade and, 438

105–06, 109–11

laissez-faire and, 438

monetary circulation, weakens gov-

monetary warfare, 439

ernment control, 383

prewar, 352, 440

public use of, 476

productivity and, 164

Gold-exchange standard

pseudo gold standard, instability of

breakdown of, 386, 443

countries on, 440

circulation of gold coin, 382

real wage rates, 162

conference imposes, 390

reformers and, 203

currency reform, 393

U.S. abandons, 458

Index

499

Gold Standard Act

financial committee and, 442

of 1900, 202–05, 381

financiers desire prewar value in

of 1925, 367, 382

terms of gold, 359

Goldenweiser, Emanuel, 338

general strike of 1926, 405

Goldsmith, R.W., 164

gold shortage, 359

great depression myth, 155

Goldsmiths, 57

guilds, resurrection of, 404

Gompers, Samuel, 448

Hawtrey, advocate of central bank

Goodenough, F.C., 364

collaboration, 442

Gouge, William M., 90

hoping for U.S. inflation, 360,

Gould, Jay, 218

364–67, 396

Government

inflation and, 451

benefits from fiat issue, 53

international monetary situation,

big government, 175, 179, 185–86,

451

259

League of Nations, dominated by,

coercion and legal prohibition, 22

305

debt and surplus capital with, 248

lower wage rates in south England,

debt, wartime public, 150

401

new industries fare better, 401–02

federal government, 59, 61

Norman as major financial figure,

debt expansion tied to, 113