7. If you were engaged in business as a manufacturer, name all the different dealings that you might have with a bank.
8. Explain what is meant by each of the following terms: demand note; endorser; trustee; commercial paper; rate of discount; rediscounting; collateral; deflation; coupon bond; preferred stock; broker; buying stock on margin.
9. Show how the volume of credit helps to determine prices and how the volume of credit is related to the amount of gold coin in hand. Why does the quantity theory of money not work out with mathematical accuracy in practice?
10. Does the argument in McCulloch vs. Maryland impress you as logical? Does the decision mean that officials of national banks and of federal reserve banks are exempt from state taxes? Does it mean that when a national bank occupies a leased building the landlord pays no taxes to the city?
Topics for Debate
1. All banking institutions should be brought under the supervision of the federal government.
2. A “compensated” dollar (adjusted to the general level of prices) should be established as a measure of deferred payments.
3. The national and state governments should guarantee depositors against loss in all banks chartered by the nation and the states, respectively.
CHAPTER XXIII
TAXATION AND PUBLIC FINANCE
The purpose of this chapter is to explain what taxes are, how they are levied, and how they are spent.