49Francis Neilson, The Tragedy of Europe (Appleton, Wis.: C.C. Nelson, 1946), 5, p. 289. For a brief but illuminating study of German-American trade and currency hostility in the 1930s leading to World War II, see Thomas H. Etzold, Why America Fought Germany in World War II (St. Louis: Forums in History, Forum Press, 1973).
50Cordell Hull, Memoirs of Cordell Hull (New York, 1948), 1, p. 81.
51Richard N. Gardner, Sterling-Dollar Diplomacy (Oxford: Clarendon Press, 1956), p. 141.
52The Times (London), October 11, 1940; quoted in Neilson, Tragedy of Europe, 5, p. 286.
53Richard Gardner, Sterling-Dollar Diplomacy, p. 76.
54Smith, “American Foreign Relations, 1920–1942,” p. 252; Gabriel Kolko, The Politics of War: The World and United States Foreign Policy, 1943–1945 (New York: Random House, 1968), pp. 243–44.
55Kolko, The Politics of War, pp. 264, 485ff.; Lloyd C. Gardner, Architects of Illusion: Men and Ideas in American Foreign Policy, 1941–1949 (Chicago: Quadrangle Books, 1970), pp. 113–38.
56Lloyd Gardner, “New Deal, New Frontiers,” p. 120.
57Richard Gardner, Sterling-Dollar Diplomacy, pp. 42ff.; Lloyd Gardner, New Deal Diplomacy, pp. 275-80.
58Smith, “American Foreign Relations, 1920–1942,” p. 252; Kolko, The Politics of War, pp. 248-49.
59Ibid., pp. 249–51.
60Richard Gardner, Sterling-Dollar Diplomacy, pp. 71ff., 95–99.
61We do not deal here with the other institution established at Bretton Woods—the International Bank for Reconstruction and Development— which, in contrast to the International Monetary Fund, comes under commercial and financial, rather than monetary, policy.
62John G. Winant to Hull, April 12, 1944; in Richard Gardner, Sterling-Dollar Diplomacy, p. 123. See also ibid., pp. 110–21.
63An elaboration of the banker-oriented criticisms of the International Monetary Fund may be found in Anderson, Economics and the Public Welfare, pp. 578–89.
64Henry W. Berger, “Senator Robert A. Taft Dissents from Military Escalation,” in Cold War Critics: Alternatives to American Foreign Policy in the Truman Years, Thomas G. Paterson, ed. (Chicago: Quadrangle Books, 1971), pp. 174–75, 198. Taft also strongly opposed the government’s guaranteeing of private foreign investments, such as were involved in the International Bank program. Ibid. See also Kolko, Politics of War, pp. 256–57; Lloyd Gardner, New Deal Diplomacy, p. 287; and Mikesell, United States Economic Policy, pp. 199f.
65Richard Gardner, Sterling-Dollar Diplomacy, pp. 136–37; Mikesell, United States Economic Policy, pp. 134ff.
66On the American debate over Bretton Woods, see Richard Gardner, Sterling-Dollar Diplomacy, pp. 129–43; on Bretton Woods, see also Mikesell, United States Economic Policy, pp. 129–35, 138ff., 142ff., 149–52, 155-58, 163–70.
67Kolko, Politics of War, p. 294.
68The removal of such classical pro-gold-standard economists as Henry Hazlitt from his post as editorial writer for the New York Times and Dr. Benjamin M. Anderson from the Chase National Bank, coincided with the accommodation of the financial community to the new system.
69We might mention the influence of such economists as Ludwig Erhard, Alfred Müller-Armack, and Wilhelm Röpke in Germany; President Luigi Einaudi in Italy; and Jacques Rueff in France, who had played a similar hard-money role in the 1920s and early 1930s.
Index
(Prepared by Richard Perry)
A | B | C | D | E
F | G | H | I | J
K | L | M | N | O
P | Q | R | S | T
U | V | W | Y
A
Academy of Political Science (APS), 239, 241, 249–51
Accountants, 325, 326
Acheson, Dean G., 306, 347, 464, 466, 477
Adams, Brooks, 209–10, 214
Adams, Charles, 270, 311, 422
Adams, Henry, 209
Adams, Thomas S., 221n
Addis, Charles Frances, 365, 391, 447
Agricultural Adjustment Administration, 333, 471
Agricultural Credits Act
of 1921, 284
of 1923, 285
Aldrich, Nelson W., 206, 243–49, 252–57, 302
Aldrich Bill, 206, 244, 253
Aldrich Plan, 254–57
Aldrich-Vreeland Act, 244
Jeckyll Island retreat, 252–53
National Monetary Commission, 245–48
Aldrich, Winthrop W., 302, 302n, 309–12, 315–17, 341–42, 458, 484
Alexander, Magnus W., 454
Allied Supreme Council, 391
Allison, William Boyd, 199
Altschul, Frank, 456
Aluminum Corporation of America (ALCOA), 267, 378
Amalgamated Sugar Company, 332n, 333
America, Colonial
army impressments, 60
commodity money during, 48,
compulsory legal tender in, 52
inflationary paper money schemes, 50, 51, 58
American Academy of Political Science (AAPSS), 241, 243, 249
American Bankers Association (ABA), 205–06, 237, 244, 247, 256–58, 283, 482
American Car and Foundry, 302, 311
American Economic Association (AEA), 199, 215–18, 234, 246
American Federation of Labor, 275, 448
American Locomotive Company, 302
American Smelting and Refining, 370
American Telephone and Telegraph Company (AT&T), 198, 207, 267, 296, 379
Anaconda Copper, 279
Anderson, Benjamin M., 277, 278n, 304, 426n, 445, 449, 458, 486n
Andrew, Abram Piatt, 236, 245–46, 249, 253–54
Articles of Confederation, 62
Astor, John Jacob, 84
Astor, Vincent, 302, 310
Auchincloss, Gordon, 310
Austrian economics, 7, 11n, 25, 40
business cycle theory, 94
Aviation Corporation, 301n
B
Bacon, Robert, 192
Bailey, W. J., 414
Baker, George F., 207, 235, 245
Baker, Newton D., 281
Baldwin, Henry, 148n
Baldwin, Stanley, 367n
Ballantine, Arthur A., 289
“Bancor,” 481, 483
Bankers Magazine, 148, 204, 240
Banking, 87, 113, 143, 168, 295, 428, 448
Act of 1933, 315
Act of 1935, 317, 331, 337, 341–42
bank holiday, 453
branches and cartelization, 205
central reserve city banks, 136–41, 154
collapse of, 453
commercial paper, 163–64, 238, 250
compulsory par law of 1819, 81
country banks, 116–18, 121–22, 137–41, 197, 206, 242, 247
decentralized banking, 77, 112–14, 136n, 135, 137, 204–05, 238–39, 242–43, 247, 253
demand deposits, 69–71, 71n, 137, 144, 147n, 186–87, 418
paying interest on, 139–41
practice prohibited, 139n, 315, 318
failures
cotton speculation and, 101
easy money cause of, 277
effect money supply, 276
give other banks pause, 294
fractional reserve, 97, 295, 354–55
beginnings of, 57, 60
distrust of, 168
opposition to, 90–92, 112
post–Civil War, 168
pre–Civil War, 112–13
free, 77, 77n–78n
pre–Civil War era, 112–13, 135–37, 142, 152
transformation to centralized, 134–37, 142
national banking system, 120–22, 129, 132–47, 136n, 153, 246
change in structure, 141–42
creation of three national bank types, 136–37
Gold Standard Era and 159–60
inner contradictions of, 135
inverted pyramiding scheme of, 137–39, 141
unhappiness with, 185–88, 186n, 204
National Banking
Acts, 134–35, 145, 163, 167, 186–87
National Banking System Act of 1863, 122
notes, expansion of, 56, 73
Peel’s Bank Act of 1844, 204n
“pet banks,” 93, 104, 208
private notes, 56–58
problems, 249
pyramiding, 62, 69, 71, 75, 90, 137–39, 140–42, 154, 160
state banking system
replaced by national banking system, 135, 137, 143
time deposits, 418
wildcat banking, 78–79, 114 See also Banks; Glass-Steagall Act; Credit expansion
Bank(s)
Bank for International Settlements (BIS), 276–77, 398, 426–27
Bank for Mutual Redemption, 121–22
Bank of England, 62, 99, 204, 245, 270–72, 286, 319, 360, 364–77, 382–86, 399, 406, 410, 421, 427–31, 442–47, 483
Committee on Currency and Bank of England Note Issue, 364
Bank of North America, 62–64, 63n, 68, 72
Boden-Kredit-Anstalt of Vienna, 450
central banks, 64, 234, 241, 252–53
abolish, 92, 104
academic organizations and, 249
acquiring legitimacy for, 236
drive for, 234
lender of last resort, 40, 187, 240, 246, 368
legislative activity for, 243–44
restraint, on inflation, myth of, 71–75, 78, 93–94, 96
secret conclave to draft plans for, 252–53
crisis of 1933, 293, 297
Federal Reserve Bank of Chicago, 445
Federal Reserve Bank of New York, 318, 399, 443–45, 484
First Bank of the U. S. 1791–1811, 68–72, 71n, 72n
First National Bank of Chicago, 201, 237, 246, 256, 302, 309, 456
First National Bank of Philadelphia, 146
First National Bank of Washington, D.C., 146
Fourth National Bank of New York, 146
International Bank for Reconstruction and Development, 482n
Kuhn, Loeb, 188, 192, 195, 230, 235, 235n, 292, 299, 310, 432
among financial elites, 263, 266
central bank proponent, 188, 234
Massachusetts Land Bank, 51–53, 55, 57–58, 58n
Mellon National Bank, 267, 378
National City Bank of New York, 298
New England Bank of Boston, 115
Rockefeller–Harriman–Kuhn, Loeb, 192, 262, 263
Second Bank of U.S. 1816–1833, 82–96
demise of, 92, 101
fraud abounded at, 86–88
launched inflation of money from inception, 86–87
Suffolk Bank, 114–22
demise of, 116, 121–22
free-market success, 115
stabilizing effects of, 118–19 See also Federal Reseve Bank
Barrows, David P., 225n
Barter, 90, 352
Baruch, Bernard M., 279–81, 299, 306, 313, 464, 466, 474
Beaverbrook, Lord, 405–06, 482
Bechtel, Stephen, 334n–34n
W.A. Bechtel Company, 333n–34n
Beckers, Dr. William, 279n
Belmont, August, 169
Bendix, Vincent, 298, 454
Benston, George J., 315
Benton, Thomas Hart, 91–92
Bernstein Plan, 490
Bestor, Paul, 289
Bethlehem Steel, 370
Bevan, Aneurin “Nye,” 404
Bicester, Lord, 369
Biddle, Nicholas, 92–94, 96
Billias, George Athan, 58
Bimetallism, 47, 104–06, 109–11, 167, 219, 222, 231, 353
coinage, 65–68
end of, 108
fallacies of, 220
Bingham, William, 92
Bird, Kai, 347
Birmingham, Stephen, 215
Black, Eugene R., 301, 336
Blackett, Sir Basil, 391–92, 447
Bland-Allison Silver Purchase Act of 1878, 160
Blumenthal, George, 279
Board of Economic Warfare, 339
Bombshell message, 307, 465–66
Bonn, Moritz J., 431
Boom-bust cycle, 54, 95, 355
Currency School cycle, theory of, 91
national, first, 89–91, 94–95, 101
full scale inflationary, 88
Boothby, G.R., 481
Bovenizer, George W., 320
Boyle, Andrew, 374
Boxer Rebellion, 228–29
Bradbury, Sir John, 365, 367
Bradley, Justice Joseph P., 153
Braeman, John, 291
Brandeis, Louis D., 299, 322
Bremner, Robert H., 291
Bretton Woods Agreement, 43, 208–09, 232, 306, 345–46, 432–33, 475, 482–86
Brimhall, Dean, 335
Britain. See Great Britain
British Royal Dutch Shell Oil, 308
Bronson, Isaac, 79
Bruere, Henry, 301n
Bryan, William Jennings, 169–70, 176–77, 188
Bryanism, 169, 177–78, 189–90, 197
Buchanan, James A., 87n
Bullitt, William C., 459
Bureau of Budget, 304, 335
Bureau of Insular Affairs (BIA), 221–22
Burgess, W. Randolph, 287, 483
Burnett, Cody, 59
Burton, Theodore, 245, 257
Bush, Irving T., 246
Bush, Thomas G., 194
Business Advisory Council (BAC), 300–01
Business Week, 278, 426
Business Men’s Monetary Reform League, 254
Butler, Nicholas Murray, 241
C
Cannan, Edwin, 366n
Capeadores, 415, 420
Capital formation, 165–69
Carey, Henry C., 148–49, 149n
Cartelization
of agriculture, 285, 334–34
of banking industry, 36, 186, 318, 322, 368, 372
of industry, 264, 277, 281, 299
of Wall Street, 296, 306, 318, 320, 327–28
Carver, Thomas Nixon, 236, 246
Catchings, Waddill, 273, 303
Central banks. See Banks
Census of 1890, 166
Chamberlain, Austen, 364n, 365, 367n
Chapman, Sidney, 211, 391
Charles I, 56–57
Chase, Salmon P., 123–26, 126n, 133–37, 143, 152
Chase, Stuart, 335
Cheves, Langdon, 94
Chicago School, 31
Chicago Times-Herald, 191
Chicago Tribune, 204, 414, 445
Churchill, Winston, 365–67, 367n
Citizens’ Reconstruction Organization (CRO), 296
Claflin, John, 235–36
Clark, John Bates, 214, 243, 416, 416n, 447
Clark, Spencer, 126n
Clayton, William L. (Will), 346–47, 478, 485–86
Cleveland, Grover, 168–69, 175–76, 178
Cline, Virgil P., 198
Cochran, Thomas, 267, 267n, 379
Cockayne, Brien, 360
Code of Fair Competition, 328–29n
Cohen, Benjamin V., 322, 330
Coinage Act
of 1792, 65, 65n, 104
of 1834, 104–06, 106n, 110–11
Collamer, Jacob, 126n
Collet, Mark W., 373
Colt, S. Sloan, 331
Colwell, Stephen, 148
Commercial and Financial Chronicle, 278, 278n, 426
Commission on International Exchange (CIE), 296
Committee for Constitutional Government, 454
Committee for the Nation to Rebuild Prices and Purchasing Power, 298, 303, 305, 307–08, 454–56
Committee on Currency and Foreign Exchanges, 359 See also Cunliffe Committee
Committee on Legislative Programs, 338
Conant, Charles A., 196–97, 199–200n, 201, 204, 208–14, 218, 221, 235, 243, 246, 248, 251, 389
Conant plan, 222–26
“conants,” 224
currency reforms, 23
2–33
failure in Cuba and China, 226–29
surplus capital, theory of, 210–16, 222–23, 230–32
Conference of Governors, 273
Committee for Constitutional Government, 454
Commonwealth and Southern Corporation, 330
Consolidated Gas Company of New York, 207
Continental Congress, 59, 61
Continentals, 59–60, 72
not worth a, 60
A History of Money and Banking in the United States: The Colonial Era to World War II Page 51
