✮ A History of Money and Banking in the United States: The Colonial Era to World War II Books ✰ Author Murray N. Rothbard – Saudionline.co.uk

A History of Money and Banking in the United States: The Colonial Era to World War II pdf A History of Money and Banking in the United States: The Colonial Era to World War II, ebook A History of Money and Banking in the United States: The Colonial Era to World War II, epub A History of Money and Banking in the United States: The Colonial Era to World War II, doc A History of Money and Banking in the United States: The Colonial Era to World War II, e-pub A History of Money and Banking in the United States: The Colonial Era to World War II, A History of Money and Banking in the United States: The Colonial Era to World War II f1fe55b0060 In What Is Sure To Become The Standard Account, Rothbard Traces Inflations, Banking Panics, And Money Meltdowns From The Colonial Period Through The Mid Th Century To Show How Government S Systematic War On Sound Money Is The Hidden Force Behind Nearly All Major Economic Calamities In American History Never Has The Story Of Money And Banking Been Told With Such Rhetorical Power And Theoretical Vigor You Will Treasure This Volume From The Introduction By Joseph Salerno Rothbard Employs The Misesian Approach To Economic History Consistently And Dazzlingly Throughout The Volume To Unravel The Causes And Consequences Of Events And Institutions Ranging Over The Course Of US Monetary History, From The Colonial Times Through The New Deal Era One Of The Important Benefits Of Rothbard S Unique Approach Is That It Naturally Leads To An Account Of The Development Of The US Monetary System In Terms Of A Compelling Narrative Linking Human Motives And Plans That Often Times Are Hidden, And Devious, Leading To Outcomes That Sometimes Are Tragic And One Will Learn Much About Monetary History From Reading This Exciting Story Than From Poring Over Reams Of Statistical Analysis Although Its Five Parts Were Written Separately, This Volume Presents A Relative Integrated Narrative, With Very Little Overlap, That Sweeps Across Three Hundreds Years Of US Monetary History


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

  1. says:

    OH BOY I wish I hadn t audiobooked this because parts of it would have warranted a closer reading Namely the technical parts But I ll definitely be revisiting this in the future Highlights were when he talked about the Suffolk system and other early American banking organizations which worked VERY differently from anything that exists in the modern day Also, hearing about how American political history from the 1910s till WW2 was basically a war between the Rockefeller and Morgan houses was great Particularly savory was when he talked about how the New Deal was basically a Rockefeller corporatist coup against the Morgans cloaked in leftist progressive intellectual language And to think that all the anti corporate types have bought into it And of course hearing about the banking monetary motivations for various wars including the good war of WW2 was quite worthy.AAAnd also this just hammers home that the current financial crisis is anything but new or special.Generally written in a really easy to follow manner, aside from a few technical bits which I ll need to go to the text to figure out wtf was going on I simply cant do mental econ quickly enough to keep up with an audiobook.read it here to it here I think


  2. says:

    The title of this book is both facetiously misleading and subtly accurate It is not THE history of money and banking it is A history of money and banking Even so, it is ABOUT the history of money and banking Deeply biased, and overly subjective, the author feeds us little bits and pieces of real life events, and then immediately proceeds to embellish the narrative with highly charged opinions, often to the point of patronization I ve never seen so many adverbs and adjectives in a history book before What precious insight we receive into the world of finance, is overshadowed by the predictably forthcoming specter of the author s next flippant dismissal of objectivity towards the subject I feel less learned about money and banking than I do about the actual author I have lost all trust for what I ve read here, and feel a great dissatisfaction over the time I have invested in this book.That said, Libertarians will LOVE this book It presents a clear agenda Regulation is bad Privatization is good The free market will cure everything from teen pregnancy to hair loss All hail laissez faire economic policy You won t find any dissenting views in this work This practically propagandist narrative won t even entertain the concept of a different worldview or interpretation of history If you re looking for an actual history lesson, you ll be wise to skip this title.


  3. says:

    The most comprehensive history of money and banking in the United States, that I have read You will be hard pressed to find a detailed analysis of the chicanery perpetrated on the American public by the Banksters The three central banks in America s history the First Bank of the United States, the Second Bank of the United States and the current Federal Reserve System it is not federal, and there are no reserves , are all chronicled and discussed.If such an accurate and factual tome were written about the subject of law, this would be referred to in a positive light as a Horn book In my view, the late Murray Rothbard wrote the Horn book on the ever elusive, much misunderstood subject of money and banking.A must read for those concerned about your personal liberty.


  4. says:

    I got this as an audio book, and as a result, I had trouble following some of the technical sections My primary takeaway is this nothing the Fed is currently trying to do is really new in American history Nor has there ever been a golden age of economic and monetary policy in this country money has always been the subject of government manipulation in favor of special interests.


  5. says:

    Quite an intimidating book because of how extensive Rothbard had researched into the American history of money and banking I knew the gist of it to enable me to debate, but this book is like a whole arsenal to debunk fiat money and central banking system I ve learned a lot but it was quite a difficult read because it doesn t really flow that well Many of the quote from some unknown individuals could really be removed as they don t really help with the understanding of the history.


  6. says:

    Now I d probably rate this book a 2, but at the time, I enjoyed his style, or somethingVery elitist pov.This book Austrian School orientation p 7 Rothbard first to use interpretive appr of Austrian monetary theoryp 7 praxeology distinguishes Rothbard In Rothbard s view, economic laws can be relied upon in interpreting these nonrepeatable historical events because the validity of these laws or, better yet, their truth can be established with certainty by praxeology, a science based on the universal experience of human action that is logically anterior to the experience of particular historical events econ science horse hockey P 8 new economic historians view history as a laboratory in which economic theory is continually being tested cites Douglass C North, a Nobel Prize winner in economics as pioneer in this method..chokengtitiktitikchokeng 9 North positivist w 2 problems 1 his method limited to quantifiable vs motivation related issues Who benefits from changes in policies and institutions 2 p 10 2nd flaw claimed rel betw theory historyP 9 says new economic historians methods leave quanti data unexplained, miss purposive actions aimed at goalsp 10 North uses history as empirical data to gather stats to test theory economic history always changing he says this like it s a bad thing Rothbard focuses on motives, dismisses, J K Galbraith, and insists that one must understand other values and goalsP 24 when the steel industry lobbies for higher tariffs or reduced quotas, no sane adult, and certainly no competent historian, believes that it is doing so out of its stated concern for the public interest or national security Despite its avowed motives, everyone clearly perceives that the primary motivation of the industry is economic, Marshall Plan was to promote and subsidize US export strengthP 25 so contextual events don t matter the fact that heavy speculation against the German mark accompanied its sharp plunge on foreignexchange markets is not significant for an Austrian oriented economic historian seeking to explain the stratospheric rise in commodity prices that characterized the German hyperinflation of the early 1920s since he has supply and demand purchasing power parity theory of exchange rates, p 26 instead, looks at German Reichsbank motives hmmm, so he says check the motives of the decision makers, not other factorsP.27 states must be oligarchies because 1 ruling class extorts taxes from productive classes, and if too many become ruling class, system breaks down, and 2 law of comparative advantage not everyone is talented at ruling reminnds me of Sugar Ray Leonard s comment on his talent beating up on ppl p 29 The ruling class, however, confronts one serious and ongoing problem how to persuade the productive majority, whose tribute or taxes it consumes, that its laws, regulations, and policies are beneficial mass tax resistance on large scale bad for ruling class intellectuals convince public to submit claim else anarchy chaos P 47 Great Britain on silver standard colonial America pounds pence shillings shilling defined as equal to 86 pure Troy grains of silver legal tender gold guinea, weighing 129.4 grains equal silver bimetallic standard Gresham s Law said overvalued circulates, undervalued leaves out of the country or into hoards P 48 government does it w privldg of legal tender 17th, 18th century Britain, the government maintained a mint ratio between gold and silver that consistently overvalued gold and undervalued silver in relation to world market prices loss of silver, flood of gold Rural areas north beaver fur, wampum for Indian trade, fish corn money rice in SC, pound of tobacco VA currency via warehouse receipts w full 100 % backing urban foreign trade coins English European French P 49 guinea, the Portuguese joe, the Spanish doubloon, and Brazilian coins, while silver coins included French crowns and livres asserts no need for national gov monopoly on coinage indeed foreign gold and silver coins constituted much of the coinage in the United States until Congress outlawed the use of foreign coins in 1857 free market foreign coin circulate w value proportion to market weights leading specie coin circulating in America was the Spanish silver dollar, defined as consisting of 387 grains of pure silver says was no scarcity of specie despite constant complaints in colonies admits true that England, in a mercantilist attempt to hoard specie, kept minting for its own prerogative and outlawed minting in the colonies it also prohibited the export of English coin to America But this did not keep specie from America, for, as we have seen, Americans were able to import Spanish and other foreign coin, including English, from other countries somehow this strikes me as saying if we couldn t take pounds sterling from England into Bath, that we could get by in Bath via notes from other countries not very likely blames specie shortage on paper money issues via Gresham s law 1642 MA dollar 5 shillings led general colonial debasement to attract span dollars to mk MA exports cheaper in dollar terms inflation end of temporary export stimulus English outlawed it in 1707 P 51 but they already had paper MA first in 1690 in Western wrld w paper not counting card money The governing intendant of Quebec, Monsieur Mueles, divided some playing cards into quarters, marked them with various monetary denominations, and then issued them to pay for wages and materials sold to the government He ordered the public to accept the cards as legal tender, and this particular issue was later redeemed in specie sent from France cites medieval China as first w paper printing claims China had boom bust too See GordonTullock, Paper Money Cycle in Cathay MA plunder expeditions against Quebec lost this one, no loan from merchants December 1690 printed lbs 7000 paid mutinous soldiers w pledge 1 redeem in gold or silver from later tax collections 2 no new notes says they lied in both months later dropped issue limit that s inflationary, yes but the bills continued unredeemed for nearly 40 years not a problem,since lack of redemption was due to circulating use as currency w benefits to local economy, imho Feb 1691 issued 40,0000 lbs rapid depreciation vs specie by 40% in 1 year 1692 made paper compulsory legal tender for all debts at par with specie, and by granting a premium of 5 percent on all payment of debts to the government made in paper notes via Gresham s L specie left colony, drove up prices, hampered exports from MA claims thus that paper issue was caused the shortage of specie, except that gee whiz, MA couldn t pay the guys in 1690 due to lack of specie in the first place in 1690, before the orgy of paper issues began, 200,000 of silver money was available in New England by 1711, however, with Connecticut and Rhode Island having followed suit in paper money issue, 240,000 of paper money had been issued in New England but the silver had almost disappeared from circulation But where does he get these figures from the later lack of silver does not mean paper caused the shortage again, MA couldn t pay soldiers, BEFORE paper issue He also neglects MD colony successfull issue thus far seems he may have his own motives and point to make about fiat money P 53 gov benefited from paper which he alleges did not solve shortageThis is only in New England, all accepting each other s notes so what one does all must do P 54 cites MA, CT, NC SC, RI PA depreciations detailed NJ inflationary boom deflationary depression as supply contracted 1748 after war w France parliament pressed to retire paper 1751 New England paper issues prohibited 1764 all new paper issues prohib retirement of notesRI only New England colony not to resume specie payment retire notes rapidly I wonder what he means by a brief adjustment to specie resumption also how is he defining prosperous P 55 claims Rhode Island still on depreciated paper, the result was that Newport, which had been a flourishing center for West Indian imports for western Massachusetts, lost its trade to Boston and languished in the doldrums claims in note 7 that RI exported inflation to MA via paper money a bit like the Western world does via the US Dollar nowadays claims lower deflation via wheat prices for Boston than Philadelphia specie vs paper , stable exchange rates Finally mentions MD 8 If Rhode Island was the most inflationary of the colonies, Maryland s monetary expansion was the most bizarre In 1733, Maryland s public land bank issued 70,000 of paper notes, of which 30,000 was given away in a fixed amount to each inhabitant of the province This was done to universalize the circulation of the new notes, and is probably the closest approximation in history of Milton Friedman s helicopter model, in which a magical helicopter lavishes new paper money in fixed amounts of proportions to each inhabitant The result of the measure, of course, was rapid depreciation of new notes However, the inflationary impact of the notes was greatly lessened by tobacco still being the major money of the new colony Tobacco was legal tender in Maryland and the paper was not receivable for all taxes clearly favors metal specie gold or bimetallic P 56 Private Bank Notes 1st European banks in Venice 14th century calls credit money lenders who lent own savings puts 1st England banks lending other ppls savings to scriveners early 17th c clerks of contracts bonds no deposit banks in England til mid 17th c after P 57 king Charles I confiscated lbs 200,000 in gold 1638 as a loan merchants using goldsmiths warehouses in 1660 s fractional reserve banking via receipts how many times have we heard this story, let us count the ways note 12 cites Tullock Paper Money on China 8th century fractional reserve banking cite MA Land Bank of 1740 alternative to gov paper 1741 Parliament outlawed land bank silver banksP 58 MA land bank backed by wealthy merchants land speculatorsP 59 1775 Rev War Gouverneur Morris of NY landed aristocracy idea fiat paper retire via future state taxes issued 6 million 1775 one year Continental paper total 225 million 5 years dramatic depreciation against specie which specie silver P 60 soldiers paid in Continentals worthless, farmers forced to acceptp 61 by war s end all state paper withdrawn loan certificates also used as currency, depreciated, remained as peacetime federal debt due to Robert Morris Phil agitated for par redeemable debt fed assumption of state debts claims reasons 1 subsidize speculators 2 to gain federal taxing powerP 62 Morris disciple Alexander Hamilton claims Morris wanted strong central government, federal tax power, public debt payable by permanent taxes spring of 1781, Morris introduced a bill to create the first commercial bank, as well as the first central bank, in the history of the new Republic This bank, headed by Morris himself, the Bank of North America, was not only the first fractional reserve commercial bank in the U.S it was to be a privately owned central bank, modeled after the Bank of England money backed by specie, but inflationary opened 1782 w it s notes good for taxes at par with specie claims all other banks forbidden V very interesting note 18 Morris candidly put it, this windfall to the public debt speculators at the expense of the taxpayers would cause wealth to flow into those hands which could render it most productive The Power of the Purse A History of American Public Finance 1776 1790 p 124.P 63 bank lent to government to buy pub debt, reimbursed via taxes also deposited all congressional funds, lent Congress 1.2million depreciated outside Phil bank hq end 1783 Morris had sold fed gov stock note claims, in prev Rothbard book, Morris embezzled lots for him friendsP 64 end of Rev war contraction of paper resumed imports from G Britain he says deflation by half by mid 1780 s states trying to pay war debt w out high taxes again claims paper issues shortage of money cites NC merchants had to accept local paper in NC but couldn t pay foreign creditors w it claims Bank of No America didn t help Banks of NY MA Boston both got regional P 65 monopolies expansion then contraction of credit, making recession worse bimetallic coin quotes Jefferson in J Laurence Laughlin 1901 spanish silver dollar ubiquitousness dollar basic US currency new Constitution Article I section 8 coinage powers Coinage Act of 1792 on the recommendation of Secretary of Treasury Alexander Hamilton s Report on the Establishment of a Mint of the year before.25 fixed 15 1 silver gold, silver dollar 10 gold eagle problem market fluxuations via Mexican silver mines 15.75 to 1 The latter figure was enough of a gap between the market and mint ratios to set Gresham s Law into operation so that by 1810 gold gold leaving US, silver flooding US says 1810 1834 only had silver coin in USp 68 complex left of Gresham s Law, the United States was left, especially after 1820, with no gold coins and only Spanish fractional silver coin in circulation.32 alleges scarcity of specie was made up claims Hamilton allied w Morris, continuation of Bank of No America Bank of the United States in February 1791 The charter of the bank was for 20 years, and it was assured a monopoly of the privilege of having a national charter p 69 Bank of the United States engaged in massive temporary lending to the government, which reached 6.2 million by 1796 inflation cites wholesale prices rose from an index of 85 in 1791 to a peak of 146 in 1796, an increase of 72 percent.34In addition, speculation boomed in government securities and real estate values were driven upward.35 loves to use the word pyramiding as in pyramid scheme claims commercial banks boomed eight new banks were founded shortly thereafter, in 1791 and 1792, and 10 by 1796 18 new banks in 5 years grave constitutional argument, the Jeffersonians arguing that the Constitution gave the federal government no power to establish a bank Hamilton, in turn, paved the way for virtually unlimited expansion of federal power by maintaining that the Constitution implied a grant of power for carrying out vague national goals The Hamiltonian interpretation won out officially in the decision of Supreme Court Justice John Marshall in McCulloch v Maryland 1819.37 says Justice John Marshall repeated Hamilton s args in Dunne 1960 Monetary Decisions of the Supreme Court p 72 merchants favored recharter note 41 says state banks also favored recharter, not restrained terribly by central bankP 73 War of 1812 New England against, few bonds claims fed gov encouraged inflationary banks in rest of country, used those notes to buy goods in New England now he makes heroic assumptions to guess estimate money stock in 1811 note great methodology imho P 74 New England banks asking other banks to redeem in specie blamed for August 1814 suspending of specie payments to stop all redemption of notes and deposits in gold or silver while operating calls a flagrant violation of property rights P 75 says banks increased, reserves dropped, inflation major 1815 claims other historians blame inflation on lack of central bank he blames Federal Government many Treasure notes used as money and reserves accepted for debts taxes so it was quasi legal tender P 76 inflation Gresham s Law drove specie to New England abroad cites wholesale price increase especially w imports set precedent for banks to ignore contracts during crisisP 77 says free banking only when banks just like any other business, but they weren t complains Burdened by he tradition of allowing general suspensions that arose in the United States in 1814, the pre Civil War banking system, despite strong elements of competition when not saddled with a central bank, must rather be termed in the phrase of one economist, as Decentralization without Freedom 46 P 78 bank note detectors monthly journals by money brokers listing note specie ratios of various banks wildcat banks just issued money didn t redeem, located in hard to find placesp 79 says if gov didn t allow banks to suspend specie payment this wouldn t have happened says money brokers often not welcomed in small towns by locals, blamed stranger for bank collapse panic of 1819 MD PA passed laws requiring full redemption, but allowing ignoring of money brokers note 48P 80 note 48 show VT NY cases dubbing money brokers as money grubbers GA banks pennies oaths for specie NC MD not paying charging licensing fees to money brokers Obviously the locals see a problem with large redemptions from out of state but if the point of money is to help the local economy, their POV is right P 81 MD par laws and penalties only helped specie leave KY, TN, Missouri forced debtors to accept bank paper claims all states accepted bank notes for taxes or state debtsP 82 quotes Philadelphia state Senator Condy Raguet, and the eminent English economist David Ricardo letter all USA either own bank stock or in debt to themP 83 1816 Second Bank of US opened January 1817, gave loan to NY, Phil Balti VA banks before they resumed specie payments mutual support agreement he says prop up state banks P 85 paper stayed, specie quotes Bray Hammond better, but not goodP 86 claims inflation, lack of redemption in specie, fraud, esp in Phil Balti branches esp in Balti, he says P 87 says western southern branches inflated notes redeemed in NY Boston blames Second Bank for inflation expansion of state banksP 88 money credit expansion fullscale inflationary boom Prices rose greatly in real estate, land, farm improvement projects, and slaves, much of it fueled by the use of bank credit for speculation real estate interesting shaky state banks were good for locals, but centralizing on a North Eastern model would hurt planters Banks owned the land


  7. says:

    4 stars for a much needed reference work that makes for a very dry readThe history presented is excellent Very detailed Rothbard s narrative provides explanation and commentary Quite biased, just like every work of history However I found this book quite difficult to wade through, and would only recommend it to the most serious student.To one concerned with justice this book reads like a horror story, chronicling corrupt practices ad nauseam, the figurative godzilla rampaging around Gory detail, minute and shocking connections after connections between historical power figures.


  8. says:

    Author s writing style is somewhat dry, and he uses far names of historical characters than I cared to read or remember Nevertheless, if I had to choose between reading Confessions of Economic Hitman and this book, I would choose this one Author is a genuine economist, and his analysis and argumentation are sound.I m giving this book 5 5 rating based on pre 1930 s history, which is really good and interesting This is 80% of the book, and I have used this info to correct a lot of my mis conceptions about the gold standard and pre ww1 world However, I feel that events and their interpretation after around 1935 need some work Either that, or he shouldn t have include those events at all Regretfully, by now the point is mute.


  9. says:

    The best book on how banking evolved in the United States from the colonial era to World War II Murray Rothbard also gives a lot of information on the motivation behind inflation The book covers the First and Second bank of United States and the Federal Reserve Lots of information Ideal for someone who wants to learn the history but does not have a lot of knowledge on finance.


  10. says:

    Really, only 4.5 stars, but I rounded up This book is a flawed masterpiece Its flaws are numerous and have been pointed out by others but to summarize 1 The book could easily have been 40 50 pages shorter because common reiterations, some stylistic issues and numerous actual repetitions of facts To be fair, the author died before this book was edited cobbled together and I suspect he was actually working on two separate books independently one on gold, the other on banking and these were cobbled together 2 The author is a rabid hard monetarist I am not and his constant value judgements were annoying HOWEVER, the value of this book is two fold for me First, the scholarship is impeccable The subject is treated exhaustively I learned an enormous amount 2 The author uses sociology and a neo Marxist framework to point out how banking policies really have been made by a select group of a few men, all of whom knew each other very, very well This class of men, while they may have disagreed on policies and on theory, all acted in their own self interests They still do Want to see the future of Bitcoin Read chapter two about how the US centralized banking during the Civil War and why it did so.


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