The San Francisco call., 1896-08-09
THE HISTORY OF BHNKING
Most Complete and Comprehensive
Work Of It's Kind That Has
Appoared-~The Finan-
.ciaI Question

A HISTORY OF BANKING IN ALL OF THE
LEADING NATIONS. Compiled by thirteen
authors; edited by the editor lof the New York
Journal of Commerce and Commercial Bulletin
Four volumes New York: Journal OF Com
merce and Commercial Bulletin publishers;
price complete, $24.
AS contribution toward the elueidation of
the currency and banking questions, now oc-
cupying the earnest attention of the American
Nation in particular, the work before us seems
to be of inestimable value. 1t includes twenty
separate histories, written by thirteen authors
eminent as economists, literati or practical
bankers, and the idea has been to treat the
history of banking in each country from the
earliest periods up to the most recent dates.
The work has involved an enormous amount
of labor and large peeuniary expense, and it
stands out admittedly as the most complete
and comprehensive history of banking that
has ever appeared. 1t presents the banking
experience and the banking lessons OF the
United States, Great Britain, Russia, France,
Italy, Belgium and the other Latin nations;
the Scandinavian nations, Germany and Aus
tria-Hungary, Holland, Canada, Alsace-Lor-
raine, China and Japan, in a connected series,
and all treated by the highest authorities and
most careful students of the subject in their
respective countries. In a predatory note
the editor, William Dodsworth, says:
The aspects of our times seem TO appeal to our
statesmen, our economists bankers and our
intelligent citizens at large for a candid and thor
Ough examination into the instrumentalties
through which the exchanges of our seventy mil
lions of active population are transacted. The
publishers of this work conceive that one of the
best aids TO such investigation must lie in an
unbiased study Of the banking and monetary sys-
TENS of all nations as developed by continually
progressive experience. These volumes de-
signed TO encourage and assist such education.
william Graham Sumner, professor of po-
litical economy at Yale College, is the author
OF the "History OF Banking in the United
States" which takes up the first volume. 1t is
interesting to learn that the money question
in this country has been struggled with con-
tinuously for nearly three centuries, Begin
ming with the first settlement at jamestown,
Va, and going on with variations ever since.
Gan the doctrines of currency" says Pro-
fessor Sumner 'shave to be learned over again
apparently every ten or fifteen years, if, in
deed, they are ever learned at all. From the
landing of the first settlers at Massachusetts
Bay until to-day the country has never en-
joyed ten years OF peace, rest and security
with an established and satisfactory system of
currency"
In his history, Professor Sumner has adopted
the composite method. Periods of about
twenty years have been taken in which the
facts have reen arranged under each State
falling within two OF these periods and being
carried along simultaneously. Thus the
reader after learning what was done in Massa-
ehusetts in q given period learns what was
done in each of the other States in the same
period. Then he comes back to Massachusetts
for the next period, and then to each OF the
other States for the corresponding period.
This arrangement has its advantages in that
it gives us continuous social history of the
Cd Cfot o1o4a tl,o
question, and the reader viii be surprised to
find how large part of our social history is
embraced in that question. Yet il has one
marked disadvantage, that the readers atten-
ton is frequently interrupted, and he becomes
overburdened with facts which he cannot
assimilate unless he is an expert in monetary
science.
An idea of the amount of labor embodied in
this book may be formed from the fact that
the session laws of all the State Legislatures
south and west of Maryland have been exam
ined, and not only the features of all the gem
eral banking laws in the Union, but the dis
tinctive features of all separate bank charters,
noted In addition to this compilation all
court decisions of any Importance touching
the banking laws are referred to and quoted
SO far as needtul. All secondary authorities
of Importance, such as State histories, diaries,
hiographies, Niles Register, the works of Gal
hates in Congress, records of lawsuits, besides
many newspaper files, have been brought
under contribution.
The distinguished Yale economist is an ad-
berent of the "currency principle" as distin.
puished from the "banking principle" i. e.,
be believes that bank notes should be issued
against deposited securities, and that the
greater or less amount needed at particular
times and seasons should be supplied by gold.
This is the Bank of England system. 1t is also
the National banking system. He acknowl-
edges that such system can never be elastic,
hut he does not consider that elasticity of a
bank note is desirable. The reason is that
bankers would initiate and contract at their
own pleasure. In the second volume of the
present series by Henry Dunning Macleod the
contrary view is maintained.
Professor Summers views of the present
financial situation, which appear in the clos
ing paragraph of the initial volume, are here
quoted in full:
Al the moment of this writing the turmoil and
confusion, the conflict of opinions and projects,
the clash of political schemes in and around the
currency are as great and mischievous as they
ever we're. The banks have but very subordinate
share in it and are TO blame for any part OF It,
Eight or nine hundred millions OF paper rest on a
specie reserve which was originally planned Tor
three hundred and forty-six millions, and
that upon a faIlacious plan. The stability
of this currency has been maintained for
two years by arbitrary purchases OF gold, invoiv-
ing a manipulation OF the foreign exchanges
Such man. .pulation may be excusaD Die under great
stress o. other dangers but it IS perilous to some
Of the greatest and most delicate interests OF the
country Theoretical and practical financiers
must agree that this manipulation is subject OF
grave apprehension, all the more because IL is De-
ycnd the power of any man to foresee or estimate
the consequences in their remoter reactions and