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qualities of, 6–8 
return to sound, 261–68 
shortage of, 34–35, 71 
surplus of, 33
money market
equilibrium in, 35–41 
funds, 255–56
money supply, 43–58 
“Angel Gabriel” model of, 45–46 
attention to, 1 
changes in, 36–38 
contraction of, 128, 141–45, 203–04,
212 
data on, 257–59 
definition of, 2, 252–57 
effect of money warehouses on, 86 
elasticity of, 230–31 
elements of, 57–58, 132 
expansion of, 131, 145–46 
optimal, 44–47 
population growth and, 47 
redistribution and, xvii, 46–47 
reserves and, 141–60 
sum of cash balances, 12–13 
See also 
pyramiding
monetary theory, xviii
money unit, 8–13 
as name, 11–13 
unit of weight, 10
money warehouse receipts, 85–89 
bank notes and deposits, 104–10 
as gold certificates, 86
Mongols, paper money of, 65
morality, banking and, xvii
Morgan, House of, 242–43, 246
Morris, Robert, 191–93
Mushet, Robert, 284
National Banking Acts, 222–23
National Banking System, 219–34
Nationalists, 191–93
newspapers, alliance with Cooke brothers,
223–24
Norman, Montagu, 245–46
Northern Pacific Railroad, 229
Nussbaum, Arthur, 94n
open market operations, 153–60
Panic of 1819, 204–06
Panic of 1873, 229, 230
Panic of 1907, 230, 233
paper money. 
Se
e government paper
money
parallel standards, 9n
Parnell, Henry Brooke, 284
Paterson, William, 178–79
Peel, Robert, 186, 287–88
Peel’s Act (1844), 186–89, 286, 290
Peel’s Act (1845), 189–90, 286, 290
Phillips, C.A., 237, 240
portability, criteria for money commodity,
7
pound sterling
debasement of, 11–12 
definition of, 8
PPM. 
See
purchasing power of money
price inflation, 209–10, 242, 287 
causes of, 28, 56, 158
price level. 
See
purchasing power of
money
price-fixing, charge against gold standard,
10
prices
changes in, 22–28 
definition of, 8 
determinants of, 15–41 
dollar/gold, 262–63 
equilibrium, 21–22 
falling, 211–12, 213 
money, 6 
as purchasing power, 29 
rationing function of, 23 
sticky, 213n
profit-loss motive, role in clearing markets,
20–21
public works, 216
purchasing power of money. 
See
money
purchasing power, 29
pyramiding
under the Bank of the United States,
194, 197, 208–10 
under Bretton Woods system, 250 
under the Federal Reserve, 236–37,
260–61 
under the National Banking System,
225–26, 228, 229
See also 
money supply, expansion of
Quebec, government paper money in, 56n
Raguet, Condy, 3, 276n
Randolph, John, of Roanoke, 200–01
rationing, prices and, 23
Raymond, Daniel, 187
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recession, 213 
gold inflow during, 121–22 
inflationary, 249
redeemability
of deposits, 254–55 
of dollars, 261
redistribution
central banking and, xvii 
fractional reserve banking and, 101 
money supply and, 46–47, 49–51, 53
Reichsbank, 72–74
Rentenmark
, 73–74
reserve ratio, 128
reserve requirements, 134, 137–38, 227,
238
reserves
central banking and, 141–60 
definition of, 95 
total bank, 258–59
Ricardo, David, 276n
Richardson & Snyder, xvi
Richardson & Steirman, xvi
Rockoff, Hugh, 215
Roosevelt, Franklin Delano, 248
savings bonds, 256–57
savings deposits, 238–41, 253–54
Scotland, free banking in, 183–86,
189–90, 269–91
Scott, Walter, 283n
scriveners, 84
Scrope, George Poulett, 284–86
Second Bank of the United States,
198–206 
disestablishment, 208 
inflationary record, 208–10
seigniorage, 11n
Sherman, John, 222
shortages, 20–21 
of money, 34–35
silver
inflow of, 210
See also
gold and silver
Sinclair, John, 284–85
Smith, John Benjamin, 281–82
Smith, Vera C., 188–89, 215, 277, 279
Smithsonian Agreement, 251–52
South Sea Bubble, 181
South Sea Company, 181
Spahr, Walter E., 99
specie flow price mechanism
(Hume–Ricardo), 120–22 
implications of, 122
Sprague, Charles E., 76n
state banks. 
See
banking
statistics, origin of term, 285
Strong, Benjamin, 241–42, 245
Suffolk System, 217–18
supply and demand
determinants of prices, 15–41 
equilibration of, 20–21, 23, 24, 25,
26
supply of goods and services, element of
demand for money, 59–60
supply, changes in, 22–24, 26–27
surpluses, 18–20 
of money, 33
suspension of specie payment
in Britain, 180, 272–75
in the United States, 197–98, 205,
211, 219
T–account. 
See
balance sheet
taxation
inflation as, 53 
political feasibility of, 178
Temin, Peter, 213n
thalers
, 9
time deposits, 238–41, 255
Tooke, Thomas, 124
Treasury, central banking and, 170–76
Trotter, Archibald, 274–75
trust. 
See
confidence
underconsumptionists, 286
United States, central banking in, 191–246
Van Buren, Martin, 214
Volcker, Paul, xv
War of 1812, 196–97
Ward, Artemas, Jr., 200
Webster, Daniel, 199–200
Wells, William H., 199
Westminster Review
, 283n
White, Lawrence H., 183, 190n, 269–91
Wilson, James, 289n
World War I, 243–44
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