Banking and the Business Cycle
Index
Adams, A. B., 72, 219
Agriculture, 172
Åkermann, Johan, 64, 72, 124, 147, 219, 231
Anderson, B. M., 82, 95, 171
Anticipated profits, 131
Ayres, Leonard P., 35, 36, 158, 199, 234
Bank credit, extent of use, 21, relation to use of gold, 47, credit expansion and direct saving contrasted, 98–100, affected by rising reserve ratio of Federal Reserve Banks, 101–102, relation to stock market advance, 158, factor of velocity changes, 208, 210, order of business and credit expansion, 240
Bank crisis, 78
Bank failures, 168–170
Bank liquidity, 107–110
“Bank money,” and natural-market interest rate disparity, 132, and recovery, 214
Bankers’ banking, credit creation, 17
Banking policy, disturbing to saving, 77, and stable price level, 191–193
Banks, commercial, 25, member and non-member credit expansion, 29–33, purchase of government securities, 33, entanglement with depression, 167
Beveridge, W. H., 221, 232, 242, 245
Bickerdike, C. F., 75
Booms, 81, instability of, 112
Bradford, F. A., 79, 161
Brand, R. H., 243
Burgess, W. Randolph, 98, 181
Burns, A. R., 123
Business activity, swings, 128, origin of cycle, 173
Business cycle, theories of, 37–39, 57–58, 147, 151, 170–174
Capital funds and market rate of interest, 134
Capital goods, 73–76, oscillation, 120–122, indications of activity in, 122–126, shaken confidence in, 162, lower prices and wage rates, 236–240
Capital saving, absolute, 75, banking policy, 76–77, expansion and contraction, 79
Cassel, Gustav, 2, 3, 39, 51, 53, 63, 102, 121, 123, 128, 197
Catchings, W., 60, 206
Central banking, 25, relation to gold, 43, 46, explanation of cycle, 117–118, intensity of cycle, 139–140
Chapman, J. M., 82, 95
“Cheap credit,” 113
Clark, J. M., 1, 3, 12, 117, 121, 126, 134, 138, 157, 177
Clay, Henry, 171
Cole, G. D. H., 116
“Coming boom,” 211
Commercial loans, 105
Commons, J. R., 178, 193, 196
Conclusion, 244
Construction, pre-depression, 124–125, financing, 236
Consumption goods, 73–76, production of, 126–127
Corporate earnings and stock prices, 155–158
Cost reduction, 220–222
Credit control, rediscount rate and open market operations, 182–184, suggested guide, 202, means of, 210
Credit creation, purchase of investments, 17, 85, 133, “slack,” 22–23, member bank expansion, 32
Credit expansion, relation to misapplication of capital, 67–68, factors underlying, 79–81, indirection of, 111, cessation of, 142–146
Credit growth, stabilized rate, 203–204, equilibration of investment and saving by, 207
Currency management, 181–182
Currie, Lauchlin, 189
Cycle theory and control policy, 195
Davenport, H. J., 63, 69
Debt level, 244
Deflation, 167
Demand loans, 167
Deposit expansion, 15–16
Deposits, time, 29, increase of, 47, 49, 82, 95–96, interest payments on, 100
Depression, causes, ultimate, 4, 35, immediate, 4, 35, 142, inevitability of, 35, popular and erroneous explanations of, 37–40, effects of stable price level, 177–178
Distribution of national dividend, 233–234
Dollar management, 179–181
Durbin, E. F. M., 116
Eade, W. F., 195
“Easy money,” international effects, 197
Economic dislocation, by World War, 11–12, technological advances, 66, inherent forces, 119, frictions, 135
Economic equilibrium, 171, cost-price relationship, 219
Edie, L. D., 88, 181
Federal Reserve Board, cognizance of time deposit developments, 100–101, price level management, 176–177
Federal Reserve policy, war conditioning, 36, expansion of ’twenties, 102, stock market, 159, price stabilization, 196
Federal Reserve System, creation, 11, provisions of act, 27, notes, 28, time deposits, 29, operation of, 31, rising reserve ratio, 101–102
Fisher, A. G. B., 201, 204
Fisher, Irving, 39, 117
“Forced saving,” 208
Forecasters’ error, 149–150
Forecasting, 146
Foreign loans, 197
Foster, W. T., 60, 206
Fraser, H. F., 116, 190
“Freezing” prices, 201
Friday, David, 20, 21
Gold, value of money, 21, reserve function of, 28, crisis explanation, 37–38, Warren-Pearson contentions (analysis, 40–43, fallacy, 44), in central banks, 42–44, production and monetary stock of, 43–45, economizing by Federal Reserve System, 45, maldistribution, 51–53, reserves, 83–84, 87, reserves and liquidity, 110
Gold bullion standard, 49
Gold exchange standard, 48
Goldschmidt, R. W., 82
Gold standard, relation to prices, 38, conditions requisite to, 53–55, breakdown, 54
Gold Standard Act, 39
Governmental finance, borrowing, 15, bond sales to banks, 33, 214–216
Graham, F. D., 221
Gregory, T. E., 1, 38, 129, 204, 218, 234, 240
Haberler, G., 115, 116
Hamlin, C. S., 89
Hansen, A. H., 60, 75, 115, 116, 135
Hardy, C. O., 40, 52, 93, 129, 196
Harris, S. E., 179
Hartzell, Elmer, 98
Harwood, E. C., 79, 116, 195
Hawtrey, R. G., 21, 49, 115, 144, 206
Hayek, F. A., 17, 115, 116, 132, 139, 142, 146, 160, 177, 178, 184, 187, 191, 196, 202, 204
Hobson, J. A., 60
Hollander, Jacob, 16
“Homeless” funds, 54
Hull, G. H., 121
Income, impact of capital goods collapse, 164
Index numbers, 237
Industrial efficiency and falling prices, 206
Industry, 172
Inflation, defined, 13, extent of, 20, 82, forces underlying, 20, cause of, 23, investment credit, 81, initiating source, 84, facilitating factors, 91–92, effect of rediscounting, 95, nature of, 103, effects on bank liquidity, 107, measures of extent, 190, “relative,” 193
Interest rates, oscillation of market and natural rates, 129–132, tendency to equilibrate, 142, restoration of equilibrium, 232–234
Inventory inflation, 189
Investment, relation to bank credit expansion, 135, margins, 143, deflation, 160
Investment and saving disparity, 128
Iron and steel production, 123, “the barometer of trade,” 122–124
Jay, Pierre, 179
Jevons, W. S., 121
Jordan, David F., 236
Kaldor, Nicholas, 65
Kemmerer, E. W., 13
Keynes, J. M., 34, 39, 115, 116, 117, 122, 124, 130, 131, 133, 134, 145, 162, 179, 203, 218
Key to employment and recovery, 234
Kitchin, D. A., 192
Kitchin, Joseph, 39
Knight, F. H., 63, 120, 129
Labor, income expenditure, 138, money wages and real wages, 223–226
Lauderdale, 60
Laughlin, J. L., 108, 109
Lawrence, J. S., 180
Leffingwell, R. C, 16
Lenin, 34
Lippmann, Walter, 237
Liquidity of banks, 107, liquidity and shiftability contrasted, 108, banking system, 109, influence of gold decline, 110
Loans and investments, 1914–1920, 31–33, 1921–1929, 103–105, 1928–1932, 169
McAdoo, William G., 19
Machlup, Fritz, 108
Maldistribution of income, 73
Malthus, 60, 133
Marshall, Alfred, 62, 63, 74, 129, 130, 191, 204, 206
Marx, Karl, 60
Maxwell, Arthur, 54
May, G. O., 166
Mill, John Stuart, 59
Miller, A. C., 86, 89, 90, 104, 180, 183, 184
Mises, Ludwig von, 55, 115, 116, 139
Mitchell, W. C., 21
Mlynarski, F., 48
Moulton, H. G., 64, 116
National Bank Act, reserve requirements, 29
National income, 165
Natural rate of interest, 129–130, 144
“Neutral money,” 202
New Deal, 239
New Era, 159
Norris, G. W., 179, 180
Ohlin, Bertil, 198
Open market operations, defined, 26, significance, 88, relation to other policies of control, 89–90, relation to rediscount rate, 93, growth of time deposits, 95–99, effects, chronologically developed, 99
Opportunity profits, 144
Overinvestment, 68
Overproduction, defined, 61, apparent, 63, vs. ill-assorted production, 59
Oversaving, 74–75
Paish, George, 182
Palyi, Melchior, 45, 55
Pearson, F. A., 39, 40, 41, 42, 43, 44, 46, 47, 50
Phillips, C. A., 15, 17, 106
Pigou, A. C, 13, 16, 35, 122, 127, 223, 232
Price, war time rise, 22, 33, abnormality of post-war, 34, decline, 55, “key-log” of production, 61, stabilization, 147 (motivation of, 184)
Price level, post-war behavior, 175, fullness of post-war recession, 184, impact of technical progress, 186, artificial support, 193, collapse of, 200–201, objections to fall of, 204, relation to wage rates, 231, “natural” or forced rise, 241, relation to debt level, 244
Production, relation to demand, 62, structure of, 132, effect of stock market collapse, 160, and bank credit, 188, durable goods, 234
Purchasing power and equilibrium, 219, relation to wage rates, 225
Recovery program, 211–216, management aspects of, 212–214, “royal road,” 216, “saving versus spending,” 218
Rediscount rate, 92–94, member bank borrowing, 93
Reed, H. L., 183
Reserve banking, inherently inflationist, 24–28
Reserves, surplus, 15–16, excess (dissemination through system, 25, and disruption of interest rates, 139), economized, 22, requirements reduced, 23–24, 92, legal, 24, reserve-deposit ratio, 27, exhaustion of, 47
Riefler, W. W., 133
Robbins, Lionel, 8, 37, 72, 116, 246
Roberts, G. E., 43, 171
Robertson, D. H., 5, 116, 117, 121, 145, 179, 186, 187, 192, 206, 242
Robey, R. W., 243
Rogers, J. H., 39
Roosevelt, F. D., 39
Röpke, W., 177
Say, 62, 70
“Second Industrial Revolution,” 65
Security valuation and production activity, 161–162
“Shiftability,” 108
Sismondi, 60
Slichter, Sumner, 71, 72, 224, 228
Snyder, Carl, 63, 64, 191, 197, 198, 204, 208
Spahr, W. E., 40
Sprague, O. M. W., 14, 16, 171, 218
Stamp, Josiah, 12, 14, 36, 117, 205
Standard of living and recovery, 220–222
Steiner, W. H., 133
Stock market, delay of crash, 150, boom and profits, 153, stimulation of boom, 153, effect on methods of financing, 158
Technical progress, 186
Technocracy, 63
Theories of business cycle, monetary, 37–39, underconsumption, 57 (variants of, 58), past cycle theories, 140–141, structural, 147, equilibrium, 151, 170–174
Thornton, Henry, 142
Tout, H., 75, 115, 116, 135
Underconsumption contention, 69, partial validity, 69, refutation, 70–73, recovery program acceptance, 215
Unemployment, 151, technological, 64, 65
Viner, Jacob, 225, 229
Wage rates and purchasing power, 222–226
Wage rates, depression and recovery, 229–232
Warburg, P. M., 106
War finance, banking relationship, 14, taxation, 14, effect on currency management, 199–200
Warren, G. F., 39, 40, 41, 42, 43, 44, 46, 47
Wells, D. A., 60, 61
Wholesale prices, 194
Wicksell, Knut, 115, 134, 202
Williams, John H., 102, 188
Willis, H. P., 82, 95
“Windfall profits,” 203
Withers, Hartley, 14, 16, 17, 54
World War, financial dislocations, 11–12
Young, Allyn, 62, 141
Young, R. A., 54, 82
