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READINGS IN MONEY AND BANKING

       *       *       *       *       *

THE MACMILLAN COMPANY

NEW YORK. BOSTON. CHICAGO. DALLAS

ATLANTA. SAN FRANCISCO

MACMILLAN & CO. LIMITED

LONDON. BOMBAY. CALCUTTA

MELBOURNE

THE MACMILLAN CO. OF CANADA. LTD.

TORONTO

       *       *       *       *       *


READINGS IN MONEY AND BANKING

Selected And Adapted

by

CHESTER ARTHUR PHILLIPS

Assistant Professor of Economics in Dartmouth College
and Assistant Professor of Banking in the Amos
Tuck School of Administration and Finance







New York
The Macmillan Company
1921
All rights reserved

Printed in the United States of America

Copyright 1916
By the Macmillan Company

Set up and electrotyped. Published September, 1916.

Ferris Printing Company
New York City





PREFACE


Designed mainly for class room use in connection with one of the
introductory manuals on the subject of Money and Banking or of Money and
Currency, this volume, _in itself_, lays no claim to completeness. Where
its use is contemplated the problems of emphasis and proportion are,
accordingly, to be solved by the selection of one or another of the
available texts, or by the choice of supplementary lecture topics and
materials. The contents of the introductory manuals are so divergent in
character as to render possible combinations of text and readings that
will include, it is hoped, matter of such range and variety as may be
desired.

Fullness of treatment has been attempted, however, in the chapters
dealing with the important recent developments in the "mechanism of
exchange," and my aim has been throughout to select and, in many
instances, to adapt with a view to meeting the wants of those who are
interested chiefly in the modern phases of the subject.

For valuable suggestions in the preparation of the volume I am greatly
indebted to Professors F. H. Dixon and G. R. Wicker and Mr. J. M.
Shortliffe of Dartmouth, Professor Hastings Lyon of Columbia, Professor
E. E. Day of Harvard, and to my former teacher, Professor F. R.
Fairchild of Yale. I desire also to mention my great obligation to
authors and publishers who alike have generously permitted the
reproduction of copyrighted material.

CHESTER ARTHUR PHILLIPS.

Dartmouth College,
Hanover, N. H., July, 1916.




TABLE OF CONTENTS


   CHAPTER                                                       PAGE

        I THE ORIGIN AND FUNCTIONS OF MONEY                         1

       II THE EARLY HISTORY OF MONEY                               10

      III QUALITIES OF THE MATERIAL OF MONEY                       18

       IV LEGAL TENDER                                             26

        V THE GREENBACK ISSUES                                     33

       VI INTERNATIONAL BIMETALLISM                                71

      VII THE SILVER QUESTION IN THE UNITED STATES                 82

     VIII INDEX NUMBERS                                           115

       IX BANKING OPERATIONS AND ACCOUNTS                         121

        X THE USE OF CREDIT INSTRUMENTS IN PAYMENTS
          IN THE UNITED STATES                                    150

       XI A SYMPOSIUM ON THE RELATION BETWEEN MONEY
          AND GENERAL PRICES                                      159

      XII THE GOLD EXCHANGE STANDARD                              213

     XIII A PLAN FOR A COMPENSATED DOLLAR                         229

      XIV MONETARY SYSTEMS OF FOREIGN COUNTRIES                   246

       XV THE NATURE AND FUNCTIONS OF TRUST COMPANIES             256

      XVI SAVINGS BANKS                                           270

     XVII DOMESTIC EXCHANGE                                       290

    XVIII FOREIGN EXCHANGE                                        305

      XIX CLEARING HOUSES                                         355

       XX STATE BANKS AND TRUST COMPANIES SINCE THE PASSAGE