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Martin Van Buren: the Greatest American President
SUBSCRIBE NOW AND RECEIVE CRISIS AND LEVIATHAN* FREE! “The Independent Review does not accept “The Independent Review is pronouncements of government officials nor the excellent.” conventional wisdom at face value.” —GARY BECKER, Noble Laureate —JOHN R. MACARTHUR, Publisher, Harper’s in Economic Sciences Subscribe to The Independent Review and receive a free book of your choice* such as the 25th Anniversary Edition of Crisis and Leviathan: Critical Episodes in the Growth of American Government, by Founding Editor Robert Higgs. This quarterly journal, guided by co-editors Christopher J. Coyne, and Michael C. Munger, and Robert M. Whaples offers leading-edge insights on today’s most critical issues in economics, healthcare, education, law, history, political science, philosophy, and sociology. Thought-provoking and educational, The Independent Review is blazing the way toward informed debate! Student? Educator? Journalist? Business or civic leader? Engaged citizen? This journal is for YOU! *Order today for more FREE book options Perfect for students or anyone on the go! The Independent Review is available on mobile devices or tablets: iOS devices, Amazon Kindle Fire, or Android through Magzter. INDEPENDENT INSTITUTE, 100 SWAN WAY, OAKLAND, CA 94621 • 800-927-8733 • [email protected] PROMO CODE IRA1703 Martin Van Buren The Greatest American President —————— ✦ —————— JEFFREY ROGERS HUMMEL resident Martin Van Buren does not usually receive high marks from histori- ans. Born of humble Dutch ancestry in December 1782 in the small, upstate PNew York village of Kinderhook, Van Buren gained admittance to the bar in 1803 without benefit of higher education. Building on a successful country legal practice, he became one of the Empire State’s most influential and prominent politi- cians while the state was surging ahead as the country’s wealthiest and most populous. -
The Banking System and War Finance
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: The Banking System and War Finance Volume Author/Editor: Charles R. Whittlesey Volume Publisher: NBER Volume ISBN: 0-87014-323-9 Volume URL: http://www.nber.org/books/whit43-1 Publication Date: February 1943 Chapter Title: The Banking System and War Finance Chapter Author: Charles R. Whittlesey Chapter URL: http://www.nber.org/chapters/c9925 Chapter pages in book: (p. 1 - 62) The Banking System and War Finance CHARLES R. WHITTLESEY OUR ECONOMY IN WAR Occasional Paper 8: February ig FINANCIAL RESEARCH PROGRAM NATIONAL BUREAU OF ECONOMIC RESEARCH t8ig Broadway. New York S Preface THE PRESENT PAPER 15 the first of several that are being developed by the Financial Research Program on the general subject of the effect of war on banking. These studies, which have been made possible by grants from the Association of Reserve City Bankers and the Rockefeller Foundation, are to be published as National Bureau Occasional Papers in a special series entitled "Our Economy in War." Subsequent papers will consider the effects of war on the moneysupply, central banking, bank loans and investments, the structure of interest rates, and the solvency and liquidity of banks; the Canadian and British war credit organization will also be examined, as will the effects of war on the financial structure of business. I The broad questions of fiscal policy and war finance were analyzed in a recent National Bureau volume sponsored by the Conference on Research in Fiscal Policy, entitled Fiscal Planning for Total War, in the preparation of which William Leonard Crum, John F. -
History of Banking in the U.S. (9/30/2010) Econ 310-004
History of Banking in the U.S. (9/30/2010) Econ 310‐004 Definitions • independent treasury – separation of bank and state • laissez faire – transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs and enforced monopolies • mercantilism – alliance between government and certain privileged merchants • interstate branch banking – the ability of a bank to have branches in more than one state • intrastate branch banking – the ability of a bank to have multiple branches in the same state • unit banking – no interstate or intrastate branching • fractional currency – currency in denominations less than a dollar (e.g., 5¢, 10¢, 25¢, etc.) • bond collateral requirement – dollar for dollar banknote to state bond ratio • wildcat banking – fraudulent banks setup in wilderness that made it very hard to redeem notes • inelastic currency – inability of the system to convert deposits into banknotes Principles • Banking has always been one of the most regulated industries. • Branching allows diversification. o Assets: Without branching banks only loan locally, so when the local economy goes bad, many loans default at once. o Liabilities: Without branching banks only get deposits locally, so when the local economy goes bad, many customers withdraw at once. • The stability of the bank system effects the reserve rate, not the other way around. • Bond collateral requirement led to more bank panics due to inelastic currency. Alexander Hamilton early state banks • Secretary of the Treasury (Washington) • 1776‐1837 • formed United States Mint • regulation at state level • got Morris to form Bank of North America • no general incorporation for banks • started Bank of New York • 9/31 states outlawed banking • architect of 1st bank of the United States • some states setup monopoly banks • killed by Aaron Burr (VP) in a duel • some still chartered banks • 6 states tried deposit/note insurance Andrew Jackson • President of U.S. -
The Evolution of Fed Independence
FEDERALRESERVE The Evolution of Fed Independence BY STEPHEN SLIVINSKI oday there is a consensus Wars, Depression, and How monetary policy that a central bank can best Dependence T contribute to good economic When the United States entered and central bank performance by pursuing price stabil- World War I in April 1917, the Federal ity — and that it should remain inde- Reserve almost instantly became the autonomy came pendent from political forces. In the primary vehicle for financing the war case of price stability, this understand- effort. The main function of the Fed of age ing evolved over decades of experi- during those war years was to lend ence. The notion of independence of money to banks to purchase “Liberty the central bank was more difficult to Loans” bonds from the U.S. Treasury. fulfill. They loaned the money at a discount- The original conception of the ed rate — not coincidentally lower Federal Reserve System when it was than the interest rate on the war bonds created in 1913 was meant to continue — to entice bond purchasers. After the spirit of the “independent treasury the war, the Federal Reserve Bank of system” that existed in the pre-Fed New York remained the official era. That system assumed that the U.S. fiscal agent of the U.S. Treasury Treasury would store its gold and Department. assets in its own vaults lest it unduly In the post-war years, the Fed influence the markets for credit and busied itself with maintaining the money. Ideally, Treasury meddling in newly reconstructed gold standard. what passed for monetary policy at the Its missteps in the wake of the stock time was to be avoided. -
New York and the Politics of Central Banks, 1781 to the Federal Reserve Act
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Moen, Jon R.; Tallman, Ellis W. Working Paper New York and the politics of central banks, 1781 to the Federal Reserve Act Working Paper, No. 2003-42 Provided in Cooperation with: Federal Reserve Bank of Atlanta Suggested Citation: Moen, Jon R.; Tallman, Ellis W. (2003) : New York and the politics of central banks, 1781 to the Federal Reserve Act, Working Paper, No. 2003-42, Federal Reserve Bank of Atlanta, Atlanta, GA This Version is available at: http://hdl.handle.net/10419/100984 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu New York and the Politics of Central Banks, 1781 to the Federal Reserve Act Jon R. -
Don't Bank On
Don’t Bank On It! Also by Craig R. Smith Rediscovering Gold in the 21st Century: The Complete Guide to the Next Gold Rush Black Gold Stranglehold: The Myth of Scarcity and the Politics of Oil (co-authored with Jerome R. Corsi) The Uses of Inflation: Monetary Policy and Governance in the 21st Century Crashing the Dollar: How to Survive a Global Currency Collapse* Re-Making Money: Ways to Restore America’s Optimistic Golden Age* The Inflation Deception: Six Ways Government Tricks Us...And Seven Ways to Stop It!* The Great Debasement: The 100-Year Dying of the Dollar and How to Get America’s Money Back* The Great Withdrawal: How the Progressives’ 100-Year Debasement of America and the Dollar Ends* Also by Lowell Ponte The Cooling Crashing the Dollar: How to Survive a Global Currency Collapse* Re-Making Money: Ways to Restore America’s Optimistic Golden Age* The Inflation Deception: Six Ways Government Tricks Us...And Seven Ways to Stop It!* The Great Debasement: The 100-Year Dying of the Dollar and How to Get America’s Money Back* The Great Withdrawal: How the Progressives’ 100-Year Debasement of America and the Dollar Ends* *Works co-authored by Craig R. Smith and Lowell Ponte Don’t Bank On It! The Unsafe World of 21st Century Banking By Craig R. Smith and Lowell Ponte Foreword by Pat Boone Idea Factory Press Phoenix, Arizona Don’t Bank On It! The Unsafe World of 21st Century Banking Copyright © 2014 by Idea Factory Press All Rights Reserved, including the right to reproduce this book, or parts thereof, in any form except for the inclusion of brief quotations in a review. -
New York and the Politics of Central Banks, 1781 to the Federal Reserve Act
New York and the Politics of Central Banks, 1781 to the Federal Reserve Act Jon R. Moen and Ellis W. Tallman Working Paper 2003-42 December 2003 Working Paper Series Federal Reserve Bank of Atlanta Working Paper 2003-42 December 2003 New York and the Politics of Central Banks, 1781 to the Federal Reserve Act Jon R. Moen, University of Mississippi Ellis W. Tallman, Federal Reserve Bank of Atlanta Abstract: The paper provides a brief history of central banking institutions in the United States. Specifically, the authors highlight the role of New York banking interests in the legislations affecting the creation or expiration of central banking institutions. In our previous research we have detected that New York City banking entities usually exert substantial influence on legislation, greater than their large proportion of United States’ banking resources. The authors describe how this influence affected the success or failure of central banking movements in the United States, and the authors use this evidence to support their arguments regarding the influence of New York City bankers on the legislative efforts that culminated in the creation of the Federal Reserve System. The paper argues that successful central banking movements in the United States owed much to the influence of New York City banking interests. JEL classification: N21, N41 Key words: financial crisis, central bank, banking legislation The authors gratefully acknowledge William Roberds for helpful comments and conversations. The views expressed here are the authors’ and not necessarily those of the Federal Reserve Bank of Atlanta or the Federal Reserve System. Any remaining errors are the authors’ responsibility. -
Antebellum Banking Regulation: a Comparative Approach
ANTEBELLUM BANKING REGULATION: A COMPARATIVE APPROACH DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Alka Gandhi, M.A. ***** The Ohio State University 2003 Dissertation Committee: Approved by Professor Richard H. Steckel, Advisor Professor Paul Evans ________________________ Advisor Professor J. Huston McCulloch Economics Graduate Program ABSTRACT Extensive historical and contemporary studies establish important links between financial systems and economic development. Despite the importance of this research area and the extent of prior efforts, numerous interesting questions remain about the consequences of alternative regulatory regimes for the health of the financial sector. As a dynamic period of economic and financial evolution, which was accompanied by diverse banking regulations across states, the antebellum era provides a valuable laboratory for study. This dissertation utilizes a rich data set of balance sheets from antebellum banks in four U.S. states, Massachusetts, Ohio, Louisiana and Tennessee, to examine the relative impacts of preventative banking regulation on bank performance. Conceptual models of financial regulation are used to identify the motivations behind each state’s regulation and how it changed over time. Next, a duration model is employed to model the odds of bank failure and to determine the impact that regulation had on the ability of a bank to remain in operation. Finally, the estimates from the duration model are used to perform a counterfactual that assesses the impact on the odds of bank failure when imposing one state’s regulation on another state, ceteris paribus. The results indicate that states did enact regulation that was superior to alternate contemporaneous banking regulation, with respect to the ability to maintain the banking system. -
Once Bitten, Twice Shy: Rethinking the Federal Reserve’S Independence and Monetary Policy in the U.S
ONCE BITTEN, TWICE SHY: RETHINKING THE FEDERAL RESERVE’S INDEPENDENCE AND MONETARY POLICY IN THE U.S. by Niveditha Prabakaran B.S. Mathematics-Economics, B.A. Politics and Philosophy School of Arts and Sciences 2011 Submitted to the Undergraduate Faculty of School of Arts and Sciences in partial fulfillment of the requirements for the degree of Bachelor of Philosophy University of Pittsburgh 2011 UNIVERSITY OF PITTSBURGH SCHOOL OF ARTS AND SCIENCES This thesis was presented by Niveditha Prabakaran It was defended on April 20, 2011 and approved by Steven Husted, Professor, Economics, University of Pittsburgh Thomas Rawski, Professor, Economics, University of Pittsburgh James Burnham, Professor, School of Business, Duquesne University Thesis Director: Werner Troesken, Professor, Economics, University of Pittsburgh ii ONCE BITTEN, TWICE SHY: RETHINKING THE FEDERAL RESERVE’S INDEPENDENCE AND MONETARY POLICY IN THE U.S. Niveditha Prabakaran, B.Phil University of Pittsburgh, 2011 Copyright © by Niveditha Prabakaran 2011 iii Once Bitten, Twice shy: Rethinking the Federal Reserve’s Independence and Monetary Policy in the U.S. Niveditha Prabakaran, B.Phil University of Pittsburgh, 2011 It is widely believed that the Federal Reserve played a central role in bringing about the biggest catastrophe in American history—the Great Depression. The literature is extensive in seeking to provide an explanation for the Federal Reserve’s policy errors. This paper offers a new interpretation on why such an event occurred by studying a heretofore-unexamined landmark court case. In 1928, a private citizen filed suit against the Federal Reserve Bank of New York for increasing discount rates; he sough a court injunction that would force the Federal Reserve to decrease rates. -
The Great Depression As a Credit Boom Gone Wrong by Barry Eichengreen* and Kris Mitchener**
BIS Working Papers No 137 The Great Depression as a credit boom gone wrong by Barry Eichengreen* and Kris Mitchener** Monetary and Economic Department September 2003 * University of California, Berkeley ** Santa Clara University BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for International Settlements, and from time to time by other economists, and are published by the Bank. The views expressed in them are those of their authors and not necessarily the views of the BIS. Copies of publications are available from: Bank for International Settlements Press & Communications CH-4002 Basel, Switzerland E-mail: [email protected] Fax: +41 61 280 9100 and +41 61 280 8100 This publication is available on the BIS website (www.bis.org). © Bank for International Settlements 2003. All rights reserved. Brief excerpts may be reproduced or translated provided the source is cited. ISSN 1020-0959 (print) ISSN 1682-7678 (online) Abstract The experience of the 1990s renewed economists’ interest in the role of credit in macroeconomic fluctuations. The locus classicus of the credit-boom view of economic cycles is the expansion of the 1920s and the Great Depression. In this paper we ask how well quantitative measures of the credit boom phenomenon can explain the uneven expansion of the 1920s and the slump of the 1930s. We complement this macroeconomic analysis with three sectoral studies that shed further light on the explanatory power of the credit boom interpretation: the property market, consumer durables industries, and high-tech sectors. We conclude that the credit boom view provides a useful perspective on both the boom of the 1920s and the subsequent slump. -
OMW Sprague (The Man Who" Wrote the Book" on Financial Crises) And
NBER WORKING PAPER SERIES O.M.W. SPRAGUE (THE MAN WHO “WROTE THE BOOK” ON FINANCIAL CRISES) AND THE FOUNDING OF THE FEDERAL RESERVE Hugh Rockoff Working Paper 19758 http://www.nber.org/papers/w19758 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 December 2013 This paper was prepared for a conference on alternatives to the Federal Reserve held at George Mason University on November 1, 2013. I thank the organizers of the conference George Selgin and Larry H. White; my discussant, David Wheelock; and other participants in the discussion for many helpful comments. Elmus Wicker and Eugene White read an earlier draft and made many helpful suggestions. The opinions expressed here and the remaining errors are mine. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2013 by Hugh Rockoff. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. O.M.W. Sprague (the Man who “Wrote the Book” on Financial Crises) and the Founding of the Federal Reserve Hugh Rockoff NBER Working Paper No. 19758 December 2013 JEL No. B26,N1 ABSTRACT O.M.W. Sprague was America’s leading expert on financial crises when America was debating establishing the Federal Reserve. -
The National Monetary Commission: American Banking’S Debt to Europe
1 The National Monetary Commission: American Banking’s Debt to Europe Zack Saravay Honors Thesis Submitted to the Department of History, Georgetown University Advisor: Professor Katherine Benton-Cohen Honors Program Chairs: Professors Amy Leonard and Katherine Benton-Cohen 8 May 2017 2 Table of Contents ACKNOWLEDGEMENTS ........................................................................................................................ 3 INTRODUCTION ....................................................................................................................................... 4 HISTORIOGRAPHICAL REVIEW .................................................................................................................. 6 Creation of the Federal Reserve ........................................................................................................... 7 Progressive Era Economics ................................................................................................................ 13 BACKGROUND – THE NATIONAL BANKING SYSTEM (1863-1908) ......................................................... 15 CHAPTER I. ORIGINS OF THE NMC (1908) ...................................................................................... 25 THE BATTLE FOR CURRENCY REFORM ................................................................................................... 25 THE ALDRICH-VREELAND ACT ............................................................................................................... 28 COMPOSITION AND SCOPE OF