E-text prepared by Jonathan Ingram, Josephine Paolucci, and the Online Distributed Proofreading Team (http://www.pgdp.net) from page images generously made available by Internet Archive/Canadian Libraries (http://www.archive.org/details/toronto) Note: Project Gutenberg also has an HTML version of this file which includes the original illustrations. See 35120-h.htm or 35120-h.zip: (https://www.gutenberg.org/cache/epub/35120/pg35120-images.html) or (https://www.gutenberg.org/files/35120/35120-h.zip) Images of the original pages are available through Internet Archive/Canadian Libraries. See http://www.archive.org/details/readingsnimoney00philuoft Transcriber's note: Text enclosed by tilde characters is in bold face (~bold~). Text enclosed by underscores is in italics (_italics_). An underscore followed by a letter enclosed in curly braces indicates that the enclosed letter is a subscript. (Example: C_{b} indicates that the "b" is a subscript). READINGS IN MONEY AND BANKING * * * * * THE MACMILLAN COMPANY NEW YORK . BOSTON . CHICAGO . DALLAS ATLANTA . SAN FRANCISCO MACMILLAN & CO. LIMITED LONDON . BOMBAY . CALCUTTA MELBOURNE THE MACMILLAN CO. OF CANADA. LTD. TORONTO * * * * * READINGS IN MONEY AND BANKING Selected And Adapted by CHESTER ARTHUR PHILLIPS Assistant Professor of Economics in Dartmouth College and Assistant Professor of Banking in the Amos Tuck School of Administration and Finance New York The Macmillan Company 1921 All rights reserved Printed in the United States of America Copyright 1916 By the Macmillan Company Set up and electrotyped. Published September, 1916. Ferris Printing Company New York City PREFACE Designed mainly for class room use in connection with one of the introductory manuals on the subject of Money and Banking or of Money and Currency, this volume, _in itself_, lays no claim to completeness. Where its use is contemplated the problems of emphasis and proportion are, accordingly, to be solved by the selection of one or another of the available texts, or by the choice of supplementary lecture topics and materials. The contents of the introductory manuals are so divergent in character as to render possible combinations of text and readings that will include, it is hoped, matter of such range and variety as may be desired. Fullness of treatment has been attempted, however, in the chapters dealing with the important recent developments in the "mechanism of exchange," and my aim has been throughout to select and, in many instances, to adapt with a view to meeting the wants of those who are interested chiefly in the modern phases of the subject.