A History of Money and Banking in the United States: The Colonial Era to World War II (73 page)

442

encouraged inflation, 75

over-valued pound, 360

expenditures increase, 123

price stabilizationists, 452

leadership in mobilizing eco-

recapture financial predominance,

comic resources, 273

358

monetizing public debt, 113–14

scolds U.S. for abandoning gold,

monopoly of money, 153

459

paper money and, 51, 351

secret central-bank conference, 444

securities used for Fed notes infla-

Strong and Morgan, 444, 447

tion, 293

trade with Balkan nations evapo-

state, 60, 64–65, 83, 100, 113–14

rates, 470

debt during boom, 101–03

union strikes and, 430

Government-bank-press complex cre-

U.S. offer of debt relief, 452

ated, 248–49

violation of gold standard rules,

Grant, Ulysses S., 134, 151–53, 153n, 161

429–31

Great Britain

Great Depression, 209, 271–78, 290–313,

against tight money, 419, 421

331–33, 332n, 423–26, 427n, , 440–41,

betrayal of France and Fed, 429–30

450–57

cheap loans and, 442

Green, William, 275, 448

continued inflation policy, 451

Greenbacks, 122–32, 147–50

domination, 439–44

as wartime “necessity,” 131–32

downward wage rigidity, 361

bank reserves, used as, 136–37

experiment ends in disaster, 452

depreciation of, 123–27

export industries slump, 400–02,

first and “only” issue, 124

441

Legal Tender Act of 1862, 123

export industries, over-valued

portraits on, 126n

pound and, 362

refused by banks, merchants,

faces the postwar world, 356

127–29, 132

Fed cooperation with, 443–45

state bank enthusiasism for, 129–30

500

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

Greenback Party, 177–78

Hentz, Henry, 195

Greenspan, Alan, 20

Hepburn, A. Barton, 201, 205, 238,

Grenfell, Teddy, 369, 374, 378

242–43, 258, 449

St. Just, Lord, 369

Hepburn v. Griswold
, 152–53

Gresham’s Law, 47, 50, 52–53, 64–68,

Herrick, Myron T., 237–38

67n, 76, 81, 104, 107, 110n, 111, 127,

Hertz, John D., 301n

222, 228

High Lutherans, 174, 174n, 176

Grew, Joseph C., 268, 380

Hill, James J., 195, 268n, 380n

Grigg, Sir Percy James, 367n

Himmelberg, Robert F., 281

Griswold, John A., 148

Hinckley, Robert, 335

Grundy, Felix, 81n

Hitler, Adolph, 33, 344n, 479

Gulf Oil, 267, 378

Hoarding, 240, 296, 383, 462

Guthridge, Jules, 196

Hobson, John A., 210n

Hollander, Jacob H., 220–21, 229–30,

Hadley, Arthur Twining, 199, 215–17

233, 389n

Hall, Perry, 330n

Homans, I. Smith, Jr., 148

Hamilton, Alexander, 62, 64–66, 72

Homer, Sidney, 163

First Bank of the United States and,

68–70, 70n

Homo economicus,
34

financial program of, 68–72

Hoover, Herbert Clark, 269–333, 415,

422–23

Hamlin, Charles S., 217, 265, 372n

Boulder Dam and, 333

Hammond, John Henry, 454

evils of hoarding, 296

Hand, James H., 454

Fed and, 271, 275

Hanna, Hugh Henry, 190–91, 196,

201–02, 226

“Hoover Plan,” 273

inflationary policy of, 271–78, 294

Hanna, Mark, 175, 189, 192, 201, 237

intervention in recessions, 272

Harding, William P.G., 265–66, 372

recession intervention, 273

Harding, Warren G., 238, 266, 283–84,

378–79

Reconstruction Finance Corporation

and, 288–94, 288n

Harjes, Morgan, 370n

support for international monetary

Harriman, W. Averell, 299–300,

system, 452, 459

300n–01n, 302, 307, 309

Wall Street investigation, 312–13

power in New Deal and Democratic

Hopkins, Harry, 300n–01n

Party, 300

Horne, Sir Robert, 392

Harris, Seymour E., 295

House, Edward Mandell, 310

Harrison, Charles Custis, 191

Houston, David F., 282

Harrison, George L., 269, 274, 277–78,

287, 305, 335, 337, 417, 425, 427,

Howard, George, 330n–31n

460–61

Hughes, Charles Evans, 266–67, 266n,

Hawtrey, Sir Ralph G., 366–67, 390n,

379–80, 379n

392, 392n, 397–98, 442, 447

Hull, Cordell, 344, 347, 471–77, 474n,

Genoa Resolutions on Currency,

480

392–96

Hume-Cantillon mechanism, 354

Hazlitt, Henry, 486n

Huntington, Collis P., 150

Hearst, William Randolph, 457

Hutzler, Abraham, 230

Heckscher, Eli, 398

Hyperinflation, 25, 351n, 387, 407,

“Helicopter” model, 55n

410–11, 410n

Index

501

Ickes, Harold, 330

Specie Circular and, 98–99, 107

Imperialism, 212, 219–22, 251

unwarranted blame for 1937 panic,

consent of governed, 211

97–98

dollar, 43, 437, 477

Jacksonians, 41, 90–93, 97, 104–07, 109,

economic benefits of, 213

111–14, 123, 135

financial, 386, 443

movement, 90–104

increased centralization of adminis-

economy, 94–96, 98–99, 103

trative power, 216

Era, 95, 114

sponsors of, 218

favored free markets, 91

surplus capital and, 208

ideology of, 41

Indianapolis Board of Trade, 190

libertarians, 91

Indianapolis Monetary Convention,

Jay, Pierre, 376

188–201, 204–07, 236, 252–53, 256

Jefferson, Thomas, 65n, 92, 178

Inflation, 285

Jeffersonians, 70, 136n

dollar, 487–88

as libertarians, 91

economics of, 272, 424

Jekyll Island

general assets, as base of, 236

Fed bill drafted at, 253–54, 264

nostrums, main sponsors of, 58

Jenks, Jeremiah W., 199, 216, 223–24,

paper money schemes, 50, 58

226, 228–29, 228n, 233, 389

rise in prices and, 69

“Joachimsthaler,” 49n

Treasury notes, to finance war, 75

John Law’s Mississippi Bubble, 354

Insull, Samuel, 329–30

Johnson, Joseph French, 204–05, 204n,

International Clearing Union, 481

236, 249–50

International Harvester, 255, 263

Jones, William, 85, 89, 92n

International Monetary Fund (IMF),

339n, 482–85

Kahn, Otto H., 448

International monetary order, 42, 232,

Kelley, William D., 148, 149n

307, 389, 351, 352, 374, 483–89

Kellogg, Frank B., 268, 380

cheap money, seduced by, 425

Kemmerer, Edwin W., 224, 233–34,

efforts to reconstruct, 356, 368, 437,

234n, 251–52, 389,

439, 465–67, 469, 476, 478

Kendall, Amos, 91

monetary chaos and, 352, 431

Kennedy, Joseph P., 309, 323–24, 324n,

pre–World War I, 437–38

330

restoration of, 356

Kent, Fred I., 246, 249, 251

Interstate Commerce Commission, 184,

Key currency country, 385, 396–97, 476,

186

483–84

Investment Bankers’ Association, 328

Keynes, John Maynard, 356, 362, 366,

Investment Bankers Code Committee,

367n, 368, 388–89, 405, 405, 478

329

Keynes Plan, 481–82

Investment Bankers Conference Com-

Keynesians, 295, 299, 331–32 , 346, 362n, mittee, 329

367n, 487–89

Iron and Steel Association, 148

King, William, 335

King Canute, 271

Jackson, Andrew, 91–92

Kleppner, Paul, 170n, 174n

against central bank, 92–93

Knox, Colonel Frank, 296

coinage legislation and, 104

Knox v. Lee
, 153

established branch mints, 107

Kuhn, Loeb. See Banks

502

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

Laissez-faire, 92, 113n, 174–79, 183,

Maloney Act, 329

273–82, 283n, 304, 321, 331, 438–39,

Manifest destiny, yield to, 477

447, 453

Marburg, Theodore, 218

Lamont, Robert P., 296

Maria Theresa (silver dollar), 49n

Lamont, Thomas W., 251, 264, 269, 269n,

Marshall, Alfred, 39, 360, 389

282n, 309–10, 311n, 313, 321n, 330n,

369, 416, 422n, 467

Marshall, John, 70, 70n

Landis, James McCauley, 322–27, 325n,

Marshall Plan, 24, 30, 347n

327n, 329n

Martin, William McChesney, 327–28

Laughlin, James Laurence, 195, 200, 255,

Marxism, 30, 185, 242

277n

Marxists, 171

League of Nations, 305, 356, 390, 397,

Massachusetts, 50–55, 74, 87, 96, 118

399, 415, 439, 441–43, 459

paper money issues, 51–53

Leffingwell, Russell, 282n, 287, 303, 372, return to specie, 53, 54–55, 55n

416, 432, 456–57, 467

McAdoo, William Gibbs, 265, 280, 311,

Lehman, Arthur, 303

371

Lehman Brothers, 299, 301n, 302, 314, 324

McAveeny, William J., 298, 454

Lehman, Herbert H., 299, 302

McCain, Charles, 309

Lehman, Philip, 303

McCloy, John J., 347, 472

Lehman, Robert, 301n

McCone, John A., 334n

Lehrman, Lewis, 41, 47, 187

McCraw, Thomas K., 323n, 325, 328

Leighton, George, 195

McCulloch, James W., 87n

Leith-Ross, Frederick W., 403

McCulloch, Hugh, 134, 151

Lend-Lease agreements, 479–80

McCulloch v. Maryland
(1819), 70

Lenin, Vladimir, 209–10

McGarrah, Gates, 276, 412, 427

capitalist imperialism theory, 209

McKenna, Sir Reginald, 362, 382

Leon, Rene, 299, 308

McKinley, William, 175, 191–92, 237

Leviathan state, 259

McKinley Tariff Act of 1890, 167

Libertarian, 91, 175, 177–78

McNary, Charles L., 457

Liberty League, 347n, 478

Mellon, Andrew W., 267, 269, 376–78,

Limantour, Jose, 225, 228

415, 420–21, 423, 450

Lincoln, Abraham, 126n, 133

Merchants’ Association of New York,

Lodge, Henry Cabot, 176, 189, 209

250–51, 254, 449

Loeb, Guta, 215n

Messersmith, George, 471

Loeb, Nina, 235n

Mexican Currency Reform Act of 1905, 228

Loeb, Solomon, 235n

Meyer, Eugene, 278–301

London School of Economics, 366n

appointed Fed governor, 286

Long, Breckenridge, 472

Federal Farm Loan Board chief, 286

Lopez, Robert Sabatino, 109n–10n

head, Reconstruction Finance Cor-

Louisville Courier-Journal
, 150

poration, 289

most powerful financial force, 289

opposition to German bailout, 286

MacDonald, Ramsay, 404, 459

owner,
Washington Post
, 300n,

MacVeagh, Charlton, 331n

339–40

MacVeagh, Franklin, 198

War Finance Corporation and,

Magoon, Charles, 227

280–86, 288

Mahan, Alfred T., 209

Miller, Adolph C., 266, 372n, 450

Index

503

Mills, Ogden L., 269, 274, 287, 289,

supply increases v. productivity, 159

295–96, 422n

See also
Greenbacks

Ministry of Reconstruction, 359

Monopoly

Mises, Ludwig von, 11–19, 21, 34, 110,

government-imposed, 184

344, 355, 471

license to issue paper money, 62–63

method of historical research, 11, 23,

redefined, 184–85

25

Moore, Ernest, 415–16, 416n

method of specific understanding,

Morawetz, Victor, 247, 247n

13–16, 32–33, 39

Mitchell, Charles E., 296n

Moreau, Emile, 399, 407

Mitchell, John J., 191

Morgan, Harry, 311n

Moffat, J. Pierrepont, 472, 479

Morgan, J.P., “Jack,” 169, 183–84,

192–93, 195, 198, 207, 222, 235–36, 243,

Moffett, James A., 308

245, 247, 251–52, 264–65, 268, 270, 276,

Moley, Raymond, 300n, 306, 464, 466

279, 292, 303, 311–12, 314, 316–18,

Monetarist myth of Fed contraction,

321–22, 324, 330–31, 368–71, 377–78,

275, 294

380–81, 422, 427, 446–47, 450, 457, 467

of 1870’s, myth of, 154–55

House of Morgan, 184, 263, 264, 282,

pseudo-gold standard and, 440

287, 297, 347, 368, 370, 386, 446

Monetary imperialism, 218–19, 223, 228

associates and colleagues in Eng-

Monetary reform movement of

land, concern for, 297

1896–1900, 188–204

Bank of England, association

first monetary convention, 190–97

with, 270–72

passage, Gold Standard Act, 202–04

Banking Act of 1933, 316–17

second monetary convention,

CFR and, 432, 346–47

198–202

concordance and conflict, 42

Monetizing debt, 75, 142

economic power destroyed, 315,

Money

321, 330, 340

brokers, as scapegoats, 79–80

influence of, 188–207, 209, 222,

235–38, 243–45, 368–69, 397, 415

debasement, 50, 110n, 220, 222, 229

manipulation of Norman, 378

precedent set for, 105

Mellon and, 267, 378