For valuable suggestions in the preparation of the volume I am greatly indebted to Professors F. H. Dixon and G. R. Wicker and Mr. J. M. Shortliffe of Dartmouth, Professor Hastings Lyon of Columbia, Professor E. E. Day of Harvard, and to my former teacher, Professor F. R. Fairchild of Yale. I desire also to mention my great obligation to authors and publishers who alike have generously permitted the reproduction of copyrighted material. CHESTER ARTHUR PHILLIPS. Dartmouth College, Hanover, N. H., July, 1916. TABLE OF CONTENTS CHAPTER PAGE I THE ORIGIN AND FUNCTIONS OF MONEY 1 II THE EARLY HISTORY OF MONEY 10 III QUALITIES OF THE MATERIAL OF MONEY 18 IV LEGAL TENDER 26 V THE GREENBACK ISSUES 33 VI INTERNATIONAL BIMETALLISM 71 VII THE SILVER QUESTION IN THE UNITED STATES 82 VIII INDEX NUMBERS 115 IX BANKING OPERATIONS AND ACCOUNTS 121 X THE USE OF CREDIT INSTRUMENTS IN PAYMENTS IN THE UNITED STATES 150 XI A SYMPOSIUM ON THE RELATION BETWEEN MONEY AND GENERAL PRICES 159 XII THE GOLD EXCHANGE STANDARD 213 XIII A PLAN FOR A COMPENSATED DOLLAR 229 XIV MONETARY SYSTEMS OF FOREIGN COUNTRIES 246 XV THE NATURE AND FUNCTIONS OF TRUST COMPANIES 256 XVI SAVINGS BANKS 270 XVII DOMESTIC EXCHANGE 290 XVIII FOREIGN EXCHANGE 305 XIX CLEARING HOUSES 355 XX STATE BANKS AND TRUST COMPANIES SINCE THE PASSAGE OF THE NATIONAL BANK ACT 381 XXI THE CANADIAN BANKING SYSTEM 406 XXII THE ENGLISH BANKING SYSTEM 435 XXIII THE SCOTCH BANKS 474 XXIV THE FRENCH BANKING SYSTEM 488 XXV THE GERMAN BANKING SYSTEM 526 XXVI BANKING IN SOUTH AMERICA 559 XXVII AGRICULTURAL CREDIT IN THE UNITED STATES 575 XXVIII THE CONCENTRATION OF CONTROL OF MONEY AND CREDIT 606 XXIX CRISES 627 XXX THE WEAKNESSES OF OUR BANKING SYSTEM PRIOR TO THE ESTABLISHMENT OF THE FEDERAL RESERVE SYSTEM 672