Appendix A, United States circulation,501Appendix B, amount of money held by banks,502Appendix C, reserves required under proposed plan,503Acceptance, what is an,87desirability of,90liability of, same as deposit,93,390reserves against, should be same as against deposits,96Acceptance should be allowed only on goods in transit,96would develop a general market for commercial paper,91Acceptances,428Agriculture produced its money,9Aldrich, Nelson W,60,369Aldrich, Wilbur,30American Reserve Bank, formation of,389duties of board of,415fund of,433how reserve is created,422government balance carried with,434,435shall maintain parity of silver and gold,439Aldrich Plan and Plot, exposed,459,484cost of currency of,476branches and foreign agencies,487economic objections to,462expansion and inflation of,469inconvenience and uselessness of,475loss of gold by,469800 associations possible,478was central bank,484possible capital and issue,485why public favored at first,494,499would not effect reforms demanded,498reasons for its rejection,500Aristotle,29Bagehot,202,226Bank, what is a,225credits of equivalent to gold,234failures of,198deposit, system of,228holding companies in,237at Hamburg,226number of, in United States,235,236number and resources of,374independence of individual,474penalty for not carrying reserves,431repression in development of,238Bank, description of, by MacLeod,226by Bagehot,226United States,71at Venice,226Banks, no change in National,239increase in business of,239various kinds and business of,375Banker, is what,224Banking is Interstate Commerce,216is kind of insurance,230bank deposits and bank notes identical in,231necessary reforms in,245resources of, in 1860,370amount of, in 1890,372amount of, in 1912,372amount of, in world in 1890,373Bancroft, George,165,166Bank credit currency, definition of,67first lien on assets,69additional amount permitted,424cost of transmission, how paid,425facility of supplying currency,360identical with check,376increase of,400how described and issued,421less profitable than deposits,376not understood,378tax on, how used,427strength of,473Bankers' Council, formation of,412Bank notes, bond-secured,36are a first lien,69are Government credit, in circulation,58bear no relation to business,58cost of, as currency,50not money,36origin of,57objections to, as currency,59penalty for carrying, as reserves,428promise of, to pay money,36Bayard, James A.,179Bill, draft of,407Board of Control, compensation of,413Boston, country clearing at,300,310Bullion report,441California, first use of gold,14Canada, bank system of,79chart showing movement of currency in,80Canada, circulation in 1912,81free from panics,444Cannon, James G.,291Capital, what is,108,109active, passive and fixed,109,110active, essential to commerce,110conversion of commercial, into fixed,131,132real estate mortgages tie up,134Central bank, tax on notes of,486Chase, Salmon P.,57,176Check, what is a,86City bank, National, bank stock holdings of,488Boss system established by,493Chicago Clearing House examinations,316,318Clearing House,289approved practices of,379,383clearings prior to establishment of,295,296country Clearing, established in England,299centralizing reserves of,308definition of,290,291established in London,291first clearing in New York,298free zones,309functions adopted,339for each commercial zone,419Clearing House Certificates, issues of,329,330Coins, amount of subsidiary,43description of subsidiary,38parity of value of,37total amount of silver,43token,37value of,37Colonial credit money,144depreciation of issues of,156effect of issues of,155issues by Continental Congress,157issue of, in Connecticut,149in Massachusetts,146in New Hampshire,151in New Jersey,151in North Carolina,153in New York,153in Pennsylvania,152in Rhode Island,151in South Carolina,153in Virginia,152price of issues fixed,158succession of events following issue of,173Colwell, Stephen,290Congress, will legislate only after discussion,369Connecticut, bank commissioners report 1841,357Conklin, Roscoe,180Coöperative societies, conditions in Germany,281conditions in Belgium,283extent of business,279in United States, not a subject of banking legislation,285profits of,279main offices described,281started in Rochdale,279success assured in United States,286wholesale houses of,280Conant, Charles A. (Scotch currency),68Credit, definition of,114,124,125ample reserves essential to sound,123comparative value of,124contraction of, by an instrument of,125dangers of,115expansion as a result of,121Germany's abuse of,124importance of,113our banks should be ready to prove their,124per cent, of business done by,112production by use of,119proper functions of different forms of,141,142use of, in Lancashire,126various forms of,117Webster on,111Crédit Foncier, amortization of mortgages,266capital of,263can take deposits,265formed when,261how governed,262Currency, definition of,46,441cost of bank credit,49definition of bank credit,67deposits identical with bank credit,64,65economy of bank credit,51,66consists of,47proper system of,48right kind of,55what it is not,47redemption of,67Deposits, guarantee of,393no difference between currency and,66interchangeability of currency into,64,65Depositors, insurance of,395,435,437cost of insurance of,395Depositors, insurance fund, how created,435losses of, how paid,436Deutsche Bank,465Diagrams, zone, subdivisions,387Canadian currency chart,80Clearing House,295,297course of check,311-313Egypt, absorption of gold by,20Electricity, importance of,113Ellsworth, Oliver,168England, Bank of,206dissimilarity of, with banks of France and Germany,443failure of bank act,441resources, when established,407not bank of issue,485Exchange, what is,84Bill of,87broad definition of,96difference between draft and bill of,87is equal to gold in all transactions,98Origin, ancient,94Farmers, number of,249Fessenden, William Pitt,181Forgan, James B.,318,319Fowler, Charles N.,336,340,460Fowler, W.J., Deputy Comptroller,395France, Bank of, founded by Napoleon,71land used as basis of money in,137Government credit of France used as basis of money,138resources of bank, when established,407note issue of,484Gallatin, Albert,292Garfield, James A.,58Germany, resources of bank, when established,407financial situation of bank, weak,467failure of bank act,443Gold, adopted as standard by United States,18by England,18amount of,19amount in United States in 1860 and 1912,370certificate,28changing value of,31monetary use of,22outlook for supply of,24production of,23United States share of,22universal standard of value,19Gold, total amount used as reserves,32what influences the movement of,440Gold reserves, how created,222Government, demand liability of,42Government issues preceding greenbacks,174Hamilton, Alexander,161,171Herrick, Myron T.,249Hallock, James C.,293,300India, absorption of gold by,20Indiana, Bank of the State of,346State Bank of,73,345statement of bank of,361Interest, rate in United States,249France,254Germany,249Iowa, State Bank of,73,348statement of Bank of,361Japan, Tried Bond-secured Currency,59Jefferson, Thomas,170Jevons, Stanley,203,291Kentucky, Bank of,73,347Land Credit Bank, Directors of,450dividends of,454losses, how borne,455put into operation, how,456outline of provisions,268,269,270Landschaften, business of modern,261modern,260origin of,252old,255spread of,258Law, John,137Lee, Richard Henry,162Legal tender, what is,41Liverpool, Lord, coins of the realm,39Loan Certificates, clearing house,328amount of, issued,336are bank credit currency,336denominations of,329-333lessons of,333London, clearing started in,291,302Los Angeles, Clearing House,316Louisiana, bank act of,343statement of banks of,361Lubbock, Sir John,299MacVeagh, Franklin,240,405Madison, James,164,165Maine, Report of Bank Commissioner 1857,357and 1865,358Marshall, John,58,164Mason, George,163Massachusetts, Report of Bank Commissioner,358Missouri, Bank of the State of,73,351statement of Bank of,361Money, amount held by banks in United States, Appendix Bamount of, in United States, Appendix Acoin and commodity must be of equal value,44credit must not be called money,33description of,29functions of,30gold is our,26how made,26what are the pieces of,27"wild cat," "red dog," etc.,348Morrill, Justin S.,17Mortgages, amount of,249rate of interest on,249Mutual Credit Societies, number of,274in Massachusetts,275resources for short loans,277Ohio, Bank of the state of,73bank act of,344statement of bank of,361Paper, accommodation,128,131commercial,120difference between commercial and accommodation,129Paine, Thomas,162Panic of 1907,471Pinckney, Charles,163Population, shifting of,32Price, what is,104Prices, causes of higher,31Printing, importance of,112Promissory note, what is a,86note and draft identical,87Property, what is,104difference between property and wealth,104Postal Savings Banks,384Raiffeisen, Friedrich Wilhelm,272Real estate, unfit as basis for currency,136Redemption, in coin essential,50Reforms demanded,494,495,496,497Reserves, amount of,200amount held by national and other banks, Appendix B,381amount of central,222,381additional, where obtained,409Bagehot,202bank notes as,204circumstances should control amount of,200character of,201average, in United States,208elasticity of,208,219from what points considered,199how increased,220,221Jevons on,202legal tender quality unnecessary to,188national banks,207promises to pay as,204present, inefficient,218penalty for not maintaining,423,431,432present method of, useless,218are measure of value, therefore must be coin,205state or city debts as,204silver, not used in Bank of England,206should be national,211superimposed,218State bank,207taxation to compel equal,212unfair to permit unequal,209United States notes not actual,206what constitutes proper,203Ricardo,441Root, L. Carroll,334Ruggles, Charles A.,301,310Scotland, description of, currency by Conant,68currency by White,68effect of bank credit in,67Schulze, Francis Frederick,272Shaw, Leslie M.,487Shaw, William A.,17Sherman, John,183Sherman, Roger,150,166Silver certificate, a warehouse receipt,40Silver dollars, amount of, Appendix A,36,43a government debt,40a subsidiary coin,39a demand for gold,38not money,38,40weight of,36Spaulding, E.G.,183Stevens, Thaddeus,183Steam, importance of,113Standard of value,9changes in ratio of gold and silver as,17gold, the natural selection of, as the,24qualities of gold as,17Sub-Treasury, deposits in,243Suffolk Bank system,73,353,354,355,361achievements of,334,335Bank was first clearing house in United States,337,338commissioner's reports on,357,358description of,75destroyed by 10 per cent tax,74Sumner, Charles,179Talbot, Joseph T.,205,231Uap, money of,15United States, bank clearings of,373financial center of world,404foreign trade of,373important interests of,409production of 1912,373size of, compared with Europe,409total business transactions of,373United States Government, nature of,410taxing power, only resource,189,191time obligations only should be incurred,192,410unfit to meet demand debts,189United States notes or greenbacks, additional cost of war due to,185agreement to pay gold,34amount of, Appendix A and35bonds issued for,52constitutionality of,185-187cost of, as currency,50,56cost of, since 1879,53depreciation of,184drive gold out,206how converted into gold certificates,427,438issues of,183lowest value of,35not money,35price of, a quotation of government credit,41resumption of payment of,53suspended payment of,34unfit for currency,55Walsh, John R., failure of,314War, Civil, first loan for,177Washington, George,162,165Wealth, what is,104difference between property and,107Webster, Daniel,111,170White, Horace,30,155Wilson, John W., clearing house examiner, Los Angeles,316Zone, credit bureau of,323organization of,338,411organization, repetition of National Government,483places of, discount limited to,479publicity of organization,476should not stand alone,480state lines do not conform to economic,419