APPENDIX C
Assuming that the plan should be adopted within the year 1913, and taking round but approximate figures, the amount of reserves required to put the plan into operation would be as follows:
This amount is probably about equally divided between the banks and the people.
| Amount of circulation now outside of the U.S. Treasury and the banks and, therefore, in the hands of the people | $1,780,000,000 |
| If we deduct the amount of lawful reserves left for circulation among the people | $304,478,000 |
| ——————— | |
| We have the total amount of bank note circulation | $1,475,522,000 |
| Amount of circulation provided for | 1,250,000,000 |
| ——————— | |
| Additional amount of bank credit currency to be provided | $225,522,000 |
But this increased amount of bank notes, amounting to $225,522,000, will not take any additional reserves because the deposits which will be converted into these notes are now covered by reserves. It is plain that, thereafter, book credits and note credits will be currently interchangeable.
Thus every demand for currency will be met automatically and perfectly, every day, everywhere, throughout the United States, day in and day out; month in and month out; year in and year out.
INDEX
Appendix A, United States circulation, [501]
Appendix B, amount of money held by banks, [502]
Appendix C, reserves required under proposed plan, [503]
Acceptance, what is an, [87]
desirability of, [90]
liability of, same as deposit, [93], [390]
reserves against, should be same as against deposits, [96]
Acceptance should be allowed only on goods in transit, [96]
would develop a general market for commercial paper, [91]
Acceptances, [428]
Agriculture produced its money, [9]
Aldrich, Nelson W, [60], [369]
Aldrich, Wilbur, [30]
American Reserve Bank, formation of, [389]
duties of board of, [415]
fund of, [433]
how reserve is created, [422]
government balance carried with, [434], [435]
shall maintain parity of silver and gold, [439]
Aldrich Plan and Plot, exposed, [459], [484]
cost of currency of, [476]
branches and foreign agencies, [487]
economic objections to, [462]
expansion and inflation of, [469]
inconvenience and uselessness of, [475]
loss of gold by, [469]
800 associations possible, [478]
was central bank, [484]
possible capital and issue, [485]
why public favored at first, [494], [499]
would not effect reforms demanded, [498]
reasons for its rejection, [500]
Aristotle, [29]
Bagehot, [202], [226]
Bank, what is a, [225]
credits of equivalent to gold, [234]
failures of, [198]
deposit, system of, [228]
holding companies in, [237]
at Hamburg, [226]
number of, in United States, [235], [236]
number and resources of, [374]
independence of individual, [474]
penalty for not carrying reserves, [431]
repression in development of, [238]
Bank, description of, by MacLeod, [226]
by Bagehot, [226]
United States, [71]
at Venice, [226]
Banks, no change in National, [239]
increase in business of, [239]
various kinds and business of, [375]
Banker, is what, [224]
Banking is Interstate Commerce, [216]
is kind of insurance, [230]
bank deposits and bank notes identical in, [231]
necessary reforms in, [245]
resources of, in 1860, [370]
amount of, in 1890, [372]
amount of, in 1912, [372]
amount of, in world in 1890, [373]
Bancroft, George, [165], [166]
Bank credit currency, definition of, [67]
first lien on assets, [69]
additional amount permitted, [424]
cost of transmission, how paid, [425]
facility of supplying currency, [360]
identical with check, [376]
increase of, [400]
how described and issued, [421]
less profitable than deposits, [376]
not understood, [378]
tax on, how used, [427]
strength of, [473]
Bankers' Council, formation of, [412]
Bank notes, bond-secured, [36]
are a first lien, [69]
are Government credit, in circulation, [58]
bear no relation to business, [58]
cost of, as currency, [50]
not money, [36]
origin of, [57]
objections to, as currency, [59]
penalty for carrying, as reserves, [428]
promise of, to pay money, [36]
Bayard, James A., [179]
Bill, draft of, [407]
Board of Control, compensation of, [413]
Boston, country clearing at, [300], [310]
Bullion report, [441]
California, first use of gold, [14]
Canada, bank system of, [79]
chart showing movement of currency in, [80]
Canada, circulation in 1912, [81]
free from panics, [444]
Cannon, James G., [291]
Capital, what is, [108], [109]
active, passive and fixed, [109], [110]
active, essential to commerce, [110]
conversion of commercial, into fixed, [131], [132]
real estate mortgages tie up, [134]
Central bank, tax on notes of, [486]
Chase, Salmon P., [57], [176]
Check, what is a, [86]
City bank, National, bank stock holdings of, [488]
Boss system established by, [493]
Chicago Clearing House examinations, [316], [318]
Clearing House, [289]
approved practices of, [379], [383]
clearings prior to establishment of, [295], [296]
country Clearing, established in England, [299]
centralizing reserves of, [308]
definition of, [290], [291]
established in London, [291]
first clearing in New York, [298]
free zones, [309]
functions adopted, [339]
for each commercial zone, [419]
Clearing House Certificates, issues of, [329], [330]
Coins, amount of subsidiary, [43]
description of subsidiary, [38]
parity of value of, [37]
total amount of silver, [43]
token, [37]
value of, [37]
Colonial credit money, [144]
depreciation of issues of, [156]
effect of issues of, [155]
issues by Continental Congress, [157]
issue of, in Connecticut, [149]
in Massachusetts, [146]
in New Hampshire, [151]
in New Jersey, [151]
in North Carolina, [153]
in New York, [153]
in Pennsylvania, [152]
in Rhode Island, [151]
in South Carolina, [153]
in Virginia, [152]
price of issues fixed, [158]
succession of events following issue of, [173]
Colwell, Stephen, [290]
Congress, will legislate only after discussion, [369]
Connecticut, bank commissioners report 1841, [357]
Conklin, Roscoe, [180]
Coöperative societies, conditions in Germany, [281]
conditions in Belgium, [283]
extent of business, [279]
in United States, not a subject of banking legislation, [285]
profits of, [279]
main offices described, [281]
started in Rochdale, [279]
success assured in United States, [286]
wholesale houses of, [280]
Conant, Charles A. (Scotch currency), [68]
Credit, definition of, [114], [124], [125]
ample reserves essential to sound, [123]
comparative value of, [124]
contraction of, by an instrument of, [125]
dangers of, [115]
expansion as a result of, [121]
Germany's abuse of, [124]
importance of, [113]
our banks should be ready to prove their, [124]
per cent, of business done by, [112]
production by use of, [119]
proper functions of different forms of, [141], [142]
use of, in Lancashire, [126]
various forms of, [117]
Webster on, [111]
Crédit Foncier, amortization of mortgages, [266]
capital of, [263]
can take deposits, [265]
formed when, [261]
how governed, [262]
Currency, definition of, [46], [441]
cost of bank credit, [49]
definition of bank credit, [67]
deposits identical with bank credit, [64], [65]
economy of bank credit, [51], [66]
consists of, [47]
proper system of, [48]
right kind of, [55]
what it is not, [47]
redemption of, [67]
Deposits, guarantee of, [393]
no difference between currency and, [66]
interchangeability of currency into, [64], [65]
Depositors, insurance of, [395], [435], [437]
cost of insurance of, [395]
Depositors, insurance fund, how created, [435]
losses of, how paid, [436]
Deutsche Bank, [465]
Diagrams, zone, subdivisions, [387]
Canadian currency chart, [80]
Clearing House, [295], [297]
course of check, [311]-313
Egypt, absorption of gold by, [20]
Electricity, importance of, [113]
Ellsworth, Oliver, [168]
England, Bank of, [206]
dissimilarity of, with banks of France and Germany, [443]
failure of bank act, [441]
resources, when established, [407]
not bank of issue, [485]
Exchange, what is, [84]
Bill of, [87]
broad definition of, [96]
difference between draft and bill of, [87]
is equal to gold in all transactions, [98]
Origin, ancient, [94]
Farmers, number of, [249]
Fessenden, William Pitt, [181]
Forgan, James B., [318], [319]
Fowler, Charles N., [336], [340], [460]
Fowler, W.J., Deputy Comptroller, [395]
France, Bank of, founded by Napoleon, [71]
land used as basis of money in, [137]
Government credit of France used as basis of money, [138]
resources of bank, when established, [407]
note issue of, [484]
Gallatin, Albert, [292]
Garfield, James A., [58]
Germany, resources of bank, when established, [407]
financial situation of bank, weak, [467]
failure of bank act, [443]
Gold, adopted as standard by United States, [18]
by England, [18]
amount of, [19]
amount in United States in 1860 and 1912, [370]
certificate, [28]
changing value of, [31]
monetary use of, [22]
outlook for supply of, [24]
production of, [23]
United States share of, [22]
universal standard of value, [19]
Gold, total amount used as reserves, [32]
what influences the movement of, [440]
Gold reserves, how created, [222]
Government, demand liability of, [42]
Government issues preceding greenbacks, [174]
Hamilton, Alexander, [161], [171]
Herrick, Myron T., [249]
Hallock, James C., [293], [300]
India, absorption of gold by, [20]
Indiana, Bank of the State of, [346]
State Bank of, [73], [345]
statement of bank of, [361]
Interest, rate in United States, [249]
France, [254]
Germany, [249]
Iowa, State Bank of, [73], [348]
statement of Bank of, [361]
Japan, Tried Bond-secured Currency, [59]
Jefferson, Thomas, [170]
Jevons, Stanley, [203], [291]
Kentucky, Bank of, [73], [347]
Land Credit Bank, Directors of, [450]
dividends of, [454]
losses, how borne, [455]
put into operation, how, [456]
outline of provisions, [268], [269], [270]
Landschaften, business of modern, [261]
modern, [260]
origin of, [252]
old, [255]
spread of, [258]
Law, John, [137]
Lee, Richard Henry, [162]
Legal tender, what is, [41]
Liverpool, Lord, coins of the realm, [39]
Loan Certificates, clearing house, [328]
amount of, issued, [336]
are bank credit currency, [336]
denominations of, [329]-333
lessons of, [333]
London, clearing started in, [291], [302]
Los Angeles, Clearing House, [316]
Louisiana, bank act of, [343]
statement of banks of, [361]
Lubbock, Sir John, [299]
MacVeagh, Franklin, [240], [405]
Madison, James, [164], [165]
Maine, Report of Bank Commissioner 1857, [357]
and 1865, [358]
Marshall, John, [58], [164]
Mason, George, [163]
Massachusetts, Report of Bank Commissioner, [358]
Missouri, Bank of the State of, [73], [351]
statement of Bank of, [361]
Money, amount held by banks in United States, Appendix B
amount of, in United States, Appendix A
coin and commodity must be of equal value, [44]
credit must not be called money, [33]
description of, [29]
functions of, [30]
gold is our, [26]
how made, [26]
what are the pieces of, [27]
"wild cat," "red dog," etc., [348]
Morrill, Justin S., [17]
Mortgages, amount of, [249]
rate of interest on, [249]
Mutual Credit Societies, number of, [274]
in Massachusetts, [275]
resources for short loans, [277]
Ohio, Bank of the state of, [73]
bank act of, [344]
statement of bank of, [361]
Paper, accommodation, [128], [131]
commercial, [120]
difference between commercial and accommodation, [129]
Paine, Thomas, [162]
Panic of 1907, [471]
Pinckney, Charles, [163]
Population, shifting of, [32]
Price, what is, [104]
Prices, causes of higher, [31]
Printing, importance of, [112]
Promissory note, what is a, [86]
note and draft identical, [87]
Property, what is, [104]
difference between property and wealth, [104]
Postal Savings Banks, [384]
Raiffeisen, Friedrich Wilhelm, [272]
Real estate, unfit as basis for currency, [136]
Redemption, in coin essential, [50]
Reforms demanded, [494], [495], [496], [497]
Reserves, amount of, [200]
amount held by national and other banks, Appendix B, [381]
amount of central, [222], [381]
additional, where obtained, [409]
Bagehot, [202]
bank notes as, [204]
circumstances should control amount of, [200]
character of, [201]
average, in United States, [208]
elasticity of, [208], [219]
from what points considered, [199]
how increased, [220], [221]
Jevons on, [202]
legal tender quality unnecessary to, [188]
national banks, [207]
promises to pay as, [204]
present, inefficient, [218]
penalty for not maintaining, [423], [431], [432]
present method of, useless, [218]
are measure of value, therefore must be coin, [205]
state or city debts as, [204]
silver, not used in Bank of England, [206]
should be national, [211]
superimposed, [218]
State bank, [207]
taxation to compel equal, [212]
unfair to permit unequal, [209]
United States notes not actual, [206]
what constitutes proper, [203]
Ricardo, [441]
Root, L. Carroll, [334]
Ruggles, Charles A., [301], [310]
Scotland, description of, currency by Conant, [68]
currency by White, [68]
effect of bank credit in, [67]
Schulze, Francis Frederick, [272]
Shaw, Leslie M., [487]
Shaw, William A., [17]
Sherman, John, [183]
Sherman, Roger, [150], [166]
Silver certificate, a warehouse receipt, [40]
Silver dollars, amount of, Appendix A, [36], [43]
a government debt, [40]
a subsidiary coin, [39]
a demand for gold, [38]
not money, [38], [40]
weight of, [36]
Spaulding, E.G., [183]
Stevens, Thaddeus, [183]
Steam, importance of, [113]
Standard of value, [9]
changes in ratio of gold and silver as, [17]
gold, the natural selection of, as the, [24]
qualities of gold as, [17]
Sub-Treasury, deposits in, [243]
Suffolk Bank system, [73], [353], [354], [355], [361]
achievements of, [334], [335]
Bank was first clearing house in United States, [337], [338]
commissioner's reports on, [357], [358]
description of, [75]
destroyed by 10 per cent tax, [74]
Sumner, Charles, [179]
Talbot, Joseph T., [205], [231]
Uap, money of, [15]
United States, bank clearings of, [373]
financial center of world, [404]
foreign trade of, [373]
important interests of, [409]
production of 1912, [373]
size of, compared with Europe, [409]
total business transactions of, [373]
United States Government, nature of, [410]
taxing power, only resource, [189], [191]
time obligations only should be incurred, [192], [410]
unfit to meet demand debts, [189]
United States notes or greenbacks, additional cost of war due to, [185]
agreement to pay gold, [34]
amount of, Appendix A and [35]
bonds issued for, [52]
constitutionality of, [185]-187
cost of, as currency, [50], [56]
cost of, since 1879, [53]
depreciation of, [184]
drive gold out, [206]
how converted into gold certificates, [427], [438]
issues of, [183]
lowest value of, [35]
not money, [35]
price of, a quotation of government credit, [41]
resumption of payment of, [53]
suspended payment of, [34]
unfit for currency, [55]
Walsh, John R., failure of, [314]
War, Civil, first loan for, [177]
Washington, George, [162], [165]
Wealth, what is, [104]
difference between property and, [107]
Webster, Daniel, [111], [170]
White, Horace, [30], [155]
Wilson, John W., clearing house examiner, Los Angeles, [316]
Zone, credit bureau of, [323]
organization of, [338], [411]
organization, repetition of National Government, [483]
places of, discount limited to, [479]
publicity of organization, [476]
should not stand alone, [480]
state lines do not conform to economic, [419]