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 of the National Bank Act 381

XXI The Canadian Banking System 406

XXII The English Banking System 435

XXIII The Scotch Banks 474

XXIV The French Banking System 488

XXV The German Banking System 526

XXVI Banking in South America 559

XXVII Agricultural Credit in the United States 575

XXVIII The Concentration of Control of Money and Credit 606

XXIX Crises 627

XXX The Weaknesses of Our Banking System Prior to
the Establishment of the Federal Reserve System 672

XXXI The Federal Reserve System 723

XXXII The European War in Relation to Money, Banking and Finance 797

Appendices 830