Index

Accepting Houses Committee 181 Admiralty 158, 161 Addis, Sir Charles 182, 187, 190 aggregate demand 259, 271 agricultural products 204 agriculture 66, 137, 149 Agriculture and Industrial Union 191 Agriculture, Minister of 205, 206 Agriculture, Secretary of (US) 208 Alliance Bank 46, 55 Allied Powers 157, 159,221 Amalgamated Anthracite 178 amalgamation movement 181 Amery, Leo 192 Amsterdam Exchange 63 Anderson, Sir John 258 Anglo-American rivalry 199-200 Anglo-American Trade Agreement

(1938) 199, 208, 209 Anglo-Canadian Trade Agreement

(1937) 203, 214 Anglo-French Loan Mission (1915) 162 anthracite 214 Anti-Comintern Pact (1937) 209 apples 204, 210, 213

American 215-16 Argentina 140, 199, 201 aristocracy 181 arms manufacture 176 Armstrong, Colonel O. C. 179 Ashton-under-Lyme 54 Asquith 158, 164 assets, long-term financial 15 Association of British Chambers of

Commerce 190, 191 Association of Chambers of

Commerce 176 Astor, Major J. J. 185 Assyria 133 Australia 22, 44, 213, 214

banking crisis (1893) 140

Babylon 133 bacon 216 Bagehot, W. 42,49,54 balance of payments 110, 111, 120, 132 Baldwin, Stanley 165, 183, 205, 207 Balfour, A. J. 107 Baltic pine 217,219,221

Baltic States 199,201,218 bank accounts 12 bank advances 1,2,7, 19,20,22,24,

26,30,31,49,244,245,251,271, 274, 276, 278

control of 260, 270, 271, 272, 276 bank assets 2, 7, 13, 20, 24, 30, 81,86,

278 'more-liquid' 7 quantitative control of 270 and liabilities, and general business

cycle 1, 2, 7 bank borrowers 19-20 Bank Charter Act (1844) 13,28,29,53,

58,64, 183 bank credit 15,17,26,49

rescheduling of 20 bank deposits 2, 3, 13, 14, 16, 44, 45,

66,78, 86, 116, 118, 119, 139, 140, 229, 244, 245, 253, 270, 271, 274

with discount houses 16 bank failures 15, 16,23, 50

American 23, 28 English 23 European 28 Scottish 23, 28

Bank for International Settlements 187

bank lending 15, 30, 33, 33, 66, 244, 273,276

bank liabilities 278 quantitative control of 270

bank liquidity 15, 30 bank notes 3, 12-13, 16,22, 110, 118,

140 Bank of England 23, 28, 58, 65, 103,

104, 162, 163, 167, 174, 178, 179, 182,186,187,191,228,229,237, 240,241,242,243,244,245,246, 247, 248, 249,251, 252, 253, 258, 262,266,267,269,271,272,274, 275, 278

and bank mergers 77 and financial crisis 31, 58 and the Clearing House 96 and the gold standard III and the money market 17 as a commercial bank 115, 116 assets 31

291

292 Index

Bank of England cant. bankers' balances with 2, 3, 13, 27,

30,65, 113, 115, 116, 118, 229, 239, 241

Banking Department, holdings of gold coin 104; reserve of notes 113-15, 229, 278

bullion reserve 106 cash holdings 31 Chief Cashier 275 Chief Cashier's Office 248 Committee on Postwar Domestic

Finance (1943) 257 control of the money market 270,273 control over monetary conditions 242 convertibility of notes 23 Court of directors 182, 183 Deputy Governor 240,241,244,265,

267, 271, 273 discounting 65 gold flows 106, 107, 109, 111, 119 gold holdings 139 gold reserves 23, 110, 111, 115 gold transactions 115 Governor 164, 166, 167, 174, 182,

183,187,190,241,243,244,247, 248, 249, 251, 258, 262, 265, 268, 270, 271, 273, 274, 277

Issue Department: holdings of gold coin 104; holdings of National Debt 241,243,244,247,248, 252,253,258,267,268,272,275

gold reserve 114, 249 lender of last resort 16, 31, 77 liabilities 2, 29, 31 'moral suasion' 77,241,251,271 nationalisation 180, 259 note reserve 57, 65 notes 2, 3, 13, 29, 54, 109, 112, 116,

118, 189 open market operations 270 other deposits 110, 115, 116, 118 postwar monetary policy 257 public balances with 29 public liabilities 110, III reserve 50, 139 reserve of coin 31. 57

Banko/England Statistical Summary 106 Bank of England-Treasury Working

Party on Bank Deposits and Advances 270

bank promoters 46 Bank Rate 23,31,49,50,51,52,65,

139,189,191,227,228,239,247, 249,251,258,262,270-1,273,276,277

bank reserves 140, 268, 270, 277-8 bankers 42, 175, 176, 193

and government 164-5, 166-7, 168 Banker's Almanac 44 bankers' drafts 24 Bankers'Magazine, The 46,47,48,50,

54, 186 Bankes-Amery 206, 218 banking, commercial,

professionalisation of 13 nineteenth century, structure of 2

banking, English, stability of 28 banking school 41 banknotes, Scottish 107, 109 bankruptcies 15, 64 banks

acceptances 7, 16, 42 accountancy practice 3 amalgamations 66,74,75-7,79,86,

93, 120, 143 American 163 and politicians 164, 166-7, 168 and speculative financial

restructuring 182 bad debts 20, 26 balance sheets 2, 17, 20, 33, 76, 81;

publication of 13-14, 143 balances with the Bank of England 2,

3, 13,27,30,65, 113, 115, 116, 118, 229, 239, 241

balances with the London money market 7

'Big Five' 73, 93 bill discounting by 1,7,19,27,30,42 bill holdings 13,16,17,18,22,26,27,

30,31,33 bills/advances ratio 7, 17, 18,20;

seasonal fluctuations in 21 branches 66,94, 96, 143 business 10, 24 cartel 77 cash balances 15, 16, 20, 278 cash/ deposit ratio 270 cash holdings 3, 7, 13, 14, 15, 24, 26,

27,30,31,33 cash ratio 2,7,123,14,15,16,17,22,

24,26,27,30,33, 113, 120; seasonal fluctuations in 20

cash reserve 2, 12-13, 116, 118,242 competition between 10, 13,48, 73,

94, 100 concentration 74, 77-9, 93, 94; and

profitability 89-9Q, 93, 94 current accounts 3,20,22,24,25,29,

30

Index 293

banks cont. customers 20, 25, 26, 30, 48 deposit accounts 3,20,24, 25, 29, 30 deposit/currency ratio 118, 142, 229,

236, 239, 249, 268, 278 deposit/reserve ratio 118, 142, 229,

236, 239, 245, 249, 278 direct lending to government 252 directors 48 discounting of bills 7,20,49,245 economies of scale 74, 75, 75-6, 93 English: number of 23; and

mid-nineteenth-century cyclical fluctuations 1-33

expenses 81, 86 fixed-term loans 7 holdings of bills 3, 7, 24; seasonal

fluctuations in 20-1 holdings of Consols 17 holdings of floating debt 271 holdings of government stock 246 holdings of Treasury bills 245, 271 interbank balances 3, 7, 13, 16 interest charges 2, 26 investments 3, 17, 157, 159, 245 Irish 116, 118 issue of notes 13 joint-stock 3,58,77,95,96 limited liability 24, 76, 143 limited share liability 30 liquid assets 244 liquidity ratio 120 loans 14, 20 management 13,47,48 market shares of 95 monopoly power 73 'more-liquid' assets/public liabilities

ratio 7, 16, 18,53 new 10, 44, 45, 46-9, 65, 95-100 note circulation 22, 27, 29 notes 24, 30, 33, 116; and

deposits 1, 3, 16, 33 numbers of 73, 76, 78 offices 3; numbers of 23 overdrafts 1, 7, 19, 20 overseas 24, 44, 48 private 3, 46, 76, 77 profitability 74, 79-89, 94; net 89 profits 258, 274; 1850s 46;

disclosure of 80; gross-trading 81, 83, 86; net 81, 93; rate of 86; real 85-6; true 80-1

promotion of 46-9, 50 public liabilities 3, 10-20,22,24,25,

banks public liabilities cont. 28, 29, 31; short-term fluctuations in 12

rediscounting bills 7, 16, 17,66 reserve accounts 80, 86, 89 reserve assets 2 reserve liability 143 reserve ratios 142-3 reserves 14, 112, 143, 244-5, 278;

hidden 89 Scottish 116, 118 shareholders 47-8, 143 shares 50, 51, 76 size of 75, 76 staff 13 super normal profits 73 till money 229 transmitters of monetary impulses 33 window-dressing 80, 236

Barclays Bank 183 Baring Brothers 77 Barned's Banking Company 53 barter 132 Bathurst, Lady 186 Beach, W. E. 106, 111 Beale, W. T. M. 211 Beaverbrook, Lord 185, 187, 191 Beckett, Gervase 184 Belgium 156, 168 Ben Rhydding, Wharfdale 55 Berlin-Rome-Tokyo Axis 209 Berry, Vaughan 259 Berry, Sir William 185 Bevin, Ernest 179, 180 bills of exchange 7, 13, 16, 17, 18,42,

44, 45, 49, 52, 54, 64, 66, 132 finance 50, 53 inland 19 liquidity of 17 secular decline of 19, 65-6 volume of 64-5

Birch 107 Birmingham 177 Blackett, Sir Basil 158, 183 Board of Trade 201, 205, 206, 208, 210,

212,214,217,218,219 Customs Department 211 President of 202, 215, 216

Boer War 157 boom

company flotation 24, 44, 45, 46-9, 50 credit 44, 60 inflationary, early 1850s 22 post-war restocking 178 speculative 15

294 Index

Borough Bank of Liverpool 23 Bordo, M. D., and Schwartz, A. J. 103,

110,112,117 Bouvoiull, Professor d'Auhuis de 63 Bowley, A. L. 146, 148, 149 Bradbury, Sir John 162, 164, 174 Brailsford, H. N. 180, 188 branch banking 143 Brand, Robert 186 Brazil 201 Bremner, J. A. 178 bricks 57 Bridges, Sir Edward 265, 267 Bright, J. 55 Britain 137, 248

agricultural quotas 199 balance of payments 2, 31, 44, 136,

175, 191, 201, 208; crisis 273 clearing agreements 203 defence expenditure, finance of 250 diplomacy (1937) 205 diplomatic relations with US 159 Expeditionary Force 157 financial policy and Second World

War 249-61 General Election (July, 1945) 257 General Election (1950) 275 government 155-6, 157, 164;

borrowing by 277 (cost of 250); borrowing from banks 260; borrowing from J. P. Morgan & Co. 163, 165, 166-7; borrowing from US government 166; borrowing in US 162ff; Cabinet 157, 164,215,216 (Committee on Trade and Agriculture 205-6, 216; Economic Policy Committee 273); Commercial Agency Agreement 158, 160; debt see National Debt; expenditure 273-4; purchasing in US 158, 159,160,161,162; revenue 278; wartime expenditure 253

most-favoured-nation obligations 217,218,219,220

naval expenditure 192 private borrowing in US 166 rearmament 246,247,248,249,

276 strategy in First World War 157 tariffs 199 timber duties 217-8 trade agreements 199, 201, 203 trade negotiations with US 199-221

Britain cont. War Cabinet Offices, Economic

Section 255-6 War Missions 161

British Association 56, 62, 63 British Bank for Northern

Commerce 95 British Bankers' Association 181, 190 British Columbia 215 British economy and First World

War 180-1 British Engineers Association 178 British Timber Trades Federation 217 Brittain, Sir Herbert 265 brokers 158 Brown, Sir William 206 Brown, W. Adams, Jr 174 Brown Shipley 182 Brussels International Financial

Conference 178 budget 266

September, 1931 240 April, 1932 239 October, 1945 262 1946 266-7 burden of interest payments 239,240,

256 deficit 246, 270 surplus 269, 270, 271, 275, 277, 278

budgetary policy counter-cyclical 259 deflationary 273

building industry 250 bullion (see also gold, silver,

treasure) 2, 22, 50, 115, 138 Burnham, Baron 185 business cycle (see also trade cycle) 1, 7,

42 1850s 22-4,45 1860s 24,45,46-53,58 and banks' cash ratio 15 and banks' liquidity ratio 19

business expectations 41

Cadbury interests 185 Cagan, P. 16, 140, 141, 149 Carines 57 California 44 Cambridge 56 Cambridge Modern History, The 131 Canada 206,207,208,211,214,215,

217 bilateral clearing agreement with

Germany (1936) 203 Cabinet 211, 212, 215, 217

Index 295

Canada cant. reciprocal trade agreement with US

(1935) 202,213 trade negotiations with Britain and

US 199f Canadian-American Trade Agreement

(1935) 199 Capie, F., and Webber, A. 103, 104,

106,107,109,115,116,119,141, 228-9, 278

capital 57, 61 financial 47,48,51 floating 49 loanable 54, 60, 61 short-term flows 111, 119 working 145

capital flows, international 31, 248 capital goods 134 Capital Issues Committee 271, 276 capital movements, control of 256 Carlton Club 184 cars 213 cash, in the hands of the public 229 cash base 271 cash preference by public 2, 12-13 Cassel, Gustav 140 Catto, Lord 258, 262 censorship 161 central bank 31,110,139,182 Central Powers 157, 168 Chalkley, Owen 204,205 Chalmers, Sir Robert 162, 164 Chamberlain-Bradbury

Committee 189-91, 192 Chamberlain, Austen 183,189,190,191 Chamberlain, Neville 206,207,208,

209,241, 244, 246, 247 Chancellor of the Exchequer 157, 158,

162, 176, 182, 183, 184, 187, 189, 191,192,206,216,241,245,247, 248, 258, 259, 261, 266, 268, 269, 271, 274, 275, 276, 277

cheap money 244 1860s 45 introduction (1932) 239, 240 periods of 227

cheap money policy 227-80 wartime 250-61 wartime changes 237

cheaper money policy 261, 267, 268, 269

chemical industry 179 cheques 24, 44, 54, 112

clearing of 75,96, 100 Chinese Indemnity 114

Chisholm, Hugh 189-90 Christmas 20 Churchill, Winston 173, 174, 176, 183,

186,187,191,192,193 Citrine, Walter 179, 180 'City, The' 176, 178, 180-2, 185, 186,

187,189,190,191,192,193, 259

City Bank (London) 26 city editor 185-8, 189 City of Glasgow Bank 23, 29, 30, 64,

76, 142, 143 Clark, Colin 259 Clay, Sir Henry 174,251 Clearing Bankers' Committee 271 clearing banks (see also London clearing

banks) 181, 262, 270, 271, 278 Clearing Union 132 coal 213 Cobbold, C. F. 267,270,273,274,275,

276,277 Cobden Club 186 codes 161 coin 2, 12, 13, 24, 29, 116

gold, British net exports 104; exported 104; held by Bank of England 104, 106; in circulation 110, 111, 229; lost 103, 104, 106; melted 103, 104, 106; UK circulation (1873-1913) 103-9

silver and bronze 106, 112, 115, 116 Cole, G. D. H. 188 Collins, M. 44, 45 commerce 136 Commercial, The 187, 188 Committee for Reciprocity Information

(US) 209, 210 Committee on Control on Savings and

Investment 251 Committee on Economic

Information 250, 251 Committee on Financial Facilities after

the War 175-6 Committee on the Currency and Foreign

Exchanges after the War (Cunliffe Committee) 174-5, 176, 178, 179, 182, 183, 189, 192

communications 19,76 Companies Act (1862) 24, 45, 46 company promoters 46, 50, 52 concentration 74, 77-9 confidence 29 Consolidated Bank 53 construction 42

296 Index

consumers' expenditure 104, 107, 109, 279

consumption 104, 271 Contract Corporation 52 copper 161 cotton, raw 43, 50, 51, 161 Cotton Famine 43, 50 cotton industry 182 cottons 211, 214 Council of the Corporation of Foreign

Bondholders 190 country banks 118 cows 219 Cox, Harold 186, 189 credit 19,25,49,50,53,54,57,58,59,

64,66, 139 commercial 57 supply of 41

Credit Mobilier 44, 47 credit cycle 41,42,59,60-1,62

psychological 42, 63 Cripps, Sir Stafford 269, 270, 274, 275,

276 anti-inflationary policy 270

crises (see also financial crises, panics), decennial 57,60,62,63

Cunliffe, Lord 164, 167, 174 Cunliffe-Lister, Sir Philip 192 currency 229,237,244,277,278

devaluation 173 overvaluation 173 revaluation 181

Currency and Bank Notes Act (1939) 249

'currency cranks' 174 currency school 4, 64 currency standards, ancient 131-2,

132-3 Customs HM 213-14

Daily Chronicle 185 Daily Express 187 Daily Herald 188, 191 Daily Mail 186 Daily Mirror 186 Daily News 185 Daily Telegraph 185 Dalton, Hugh 259, 260, 261, 262, 265,

266,267,269,276 Darling, 1. F. 186 Davenport, Nicholas 259 Davison, H. P. 156, 158, 163, 165, 166 Dawes Committee 189, 191 Dawes Plan 168, 191 Dawkins, Clinton 157

Dawson, Geoffrey 186 deals 213 Deane, P. 7,22,23,25,30 debasements 137 debt management 228,238,239,247,

249, 251 debt operations 237,261 Defence Loans Act 247 deficit budgeting (see also budget) 261 deflation 33, 138-44, 174, 175, 182,

183, 244, 248, 273 commodity 144 income 139, 146 profit 139, 145

deflationary policy 179 demand, real 61 Denmark 201 Department of External Affairs

(Canada) 207,211 Department of Trade and Commerce

(Canada) 211 Deputy Director-General of War

Supplies 167 Determinants and Effects of Changes in

the Stock of Money, 1875-1960 (1965) 141

devaluation 273-4, 276, 277 Diamond Match Co. 160 discount houses 13, 16, 18,23,27,47,

53, 253 discount market (see also Lombard

Street, money market) 262 dividends, limitation of 250, 251 dollar (Canadian) 220 dollar (US) 140, 161, 162, 189, 190,

199,220,236,240,243,248,249,273 domestic borrowing requirement 277 Dominions 204,205,206,207,215,

217 Dominions Office 206, 218 Dominions Secretary 206 Douglas fir 217,218 Dover House 159 Dowie, 1. 148 Drama and Society in the Age of

Jonson 135 Drexel & Co. 156 Drexel Morgan & Co. 156 Dublin 63 dumping 215 Durbin, Evan 259

Eady, Sir Wilfred 265, 271, 272, 273, 274

economic activity 15, 29, 31, 33

Index 297

Economic Affairs, Minister of State for 276

economic appeasement 206-7,209 Economic Journal 131 economic recovery 15 economics 56, 131, 184

commercial 55 Economist, The 31,42,47,48,49,50,

54, 106, 187, 188 economists 174, 175 Eden, Anthony 205 Edinburgh 61 Edinburgh Review 186 'efficiency earnings' 134 Eichengreen, B. 42 Eire 229 Electricity Board 272 emigrants 104, 106, 107 employment 139, 145, 255 Employment Policy 255 engineering employers 177 England 135,136,137,141,149 Eton 131 Evening News 186 exchange controls 220-1, 249-50, 257,

259, 261 Exchange Equalisation Account 239,

240, 242, 243, 248, 259 gold holdings 249 purchases of gold (1935) 245 sales of gold 248 Treasury bill holdings 245, 248

exchange rates (see also currency) 119, 120, 173, 174, 190,236,274

fixed 110 policy 164

Export Credit Act 140 export industries 177 exports 42, 43, 44, 45, 120, 144, 205,

208 share of, in national income 143

external financing 277

failures, commercial, American 23 farmers 177,216

American 208, 213 Federal Reserve 236 Federal Reserve - Treasury Accord

(1951) 236 Federal Reserve Bank of New

York 187, 191 Federal Reserve Board 163-4, 165 Federation of British Industries 175,

176,177-9,182,189,190,191,192, 193,208

Feinstein, C. 104, 109, 112, 115, 143 finance companies 50, 52, 55 financial controls 250, 251, 259, 270, 276 financial crisis (see also liquidity pressure,

panic) 10, 15, 16, 41, 62 financial crises

1836 18,57 1838 18 1847 18,31,57 1857 15, 17, 18,22,23,31,48,56,57 1866 14,15,17,18,19,23,25-7,31,

33, 41, 42, 53, 54, 58, 65, 143 1878 14,15,26,29-31,33,64,76,

142, 143 1890 77, 140, 142, 143 1931 168,240,241,259 American 16,64, 159

financial instability 15 Financial News 188 financial policy (1919-24) 146 Financial Times 185 financiers 158, 175, 181, 187, 193

and return to gold (1925) 181-2 Finland 217,220 firms, new 60

small 177 First World War 145, 155, 157, 158,

159, 163-4, 173, 175, 176, 180, 18l, 182, 183, 251

British strategy 157 entry of US 159

fiscal policy (1919-24) 146 revolution in 253

Fleet Street 187 flour, American 214 foodstuffs 137, 157 foreign competition 61 foreign exchange market 200

intervention 240 Foreign Office 157,161,165,200,205

American Department 205 Foreign Secretary 205, 209 foreign trade 155 Fortnightly Review 41 Forward 180 Fowler 54 France 31,135,136,137,156,168

government 157, 160, 162 free trade 177 Friedman, Milton, and Schwartz,

Anna 1, 16, 140, 141 full employment 132, 261

Gaitskell, Hugh 259, 275, 276 General Strike (1926) 180

298 Index

Gentleman's Magazine 63 Germany 189,201, 209, 213

bilateral clearing agreement with Canada (1936) 203

General Agreement on Tariffs and Trade 210, 221

Gibson paradox 134, 139 gilt-edged government securities (see also

National debt) 228, 236, 245, 249, 250, 253, 267, 268, 269, 273, 274

gilt-edged market 247,252,267,268 Gladstone, W. E. 65 gold 161,200

discoveries 22, 44, 138 flows, cyclical 111 in circulation 139 international flows of 2, 31, 44, 50,

66,106,110,111,119,245,249 price of 56 supplies 138, 139 supply of 138, 139, 140, 141, 143 used in the arts 106, 107 world production 141 world supply and demand 173

Gold and Silver Commission (1887-8) 107

gold standard 138,141,173,178,239 classical 2, 1 10, III, 113

gold stock 141 'good banking practice' 13 Goodenough, F. C. 183 Goodhart, C. 103, 113 Goschen 143 Goschen & Cunliffe 164 Gould 138 government, and bankers 164-5, 166-

7, 168 government borrowing 140 Government Broker 241, 246, 248, 267,

272 government expenditure 143 Granatstein, Professor 211 'Great Depression' 138-44 Greece, ancient 133 Gregg, Cornelius 251 Gregory, Sir T. E. 29, 174 Grenfell, E. C. 156,157,161,162,164,

167 Grenfell, H. R. 62 Grigg, P. J. 174 gross domestic capital formation 43 gross domestic product, real 253 gross domestic product deflator 253,

277 gross national product 7, 19, 22, 24, 25,

gross national product cont. 28, 30, 33, 104, 112, 115

Gwatkin, Frank Ashton 200, 205 Gwynne, H. A. 186-7

Halifax, Lord 209 Hall, Robert 270, 272 ham 216 Hamilton, Earl 135, 136, 137, 149 Hancock, W. K. 199, 220 Hankey, Thompson 42 harvests 43, 66 Harvey, Sir Ernest 240, 244, 246 Hawkins, Harry 212, 218 Hawley-Smoot tariff (1930) 202 Hawtrey, Ralph 184 Hay, Sir Hector 107 Henderson, H. D. 188 Hickerson, Jack 212, 218 Herfindahl-Hirschman index 77 Herschel, Sir William 62 high-powered-money 2, 110, 111, 112,

113, 115, 117, 119,268 Higonnet 141 Hill, Octavia 55 Hilton, Edward 187-8 hire purchase 271 Hobson, Oscar 187 Hodgson 55,61,63 Holden, Sir Edward 75, 182-3 Holden, Isaac 55 Holland-Martin, Edward 182 Hong Kong and Shanghai Banking

Corporation 182 Hopkins, Sir Richard 241, 244, 255,

256,261,265,267,268,269 House of Commons 208 house building 43-4 housing 260, 261 Howson, S. 146 Hughes, J. R. T. 29, 64 Hull, Cordell 199, 200, 201, 202, 203,

206,208, 209, 212, 213, 214, 215, 216,220

Hyde Park 220

Imperial Conference (1937) 203,207,208 Imperial Mercantile Credit

Association 53 Imperial preference (see also Ottawa

Agreements) 177,202,213,214, 215, 221

Import Duties Advisory Committee 211 imports 43, 52, 200

grain 66

Index 299

imports cont. timber 217

income, real 248, 277 income growth 12 incomes 144

money 139 rentier 260

Independent Labour Party 180 India 50 industrial revolution 66 industrialists 176, 181

attitudes towards return to gold (1925) 174, 178

inflation 65,250,255,258,261,270,276 capital 134 commodity 134 in sixteenth and seventeenth

centuries 134-8 income 134, 145 profit 134, 135, 136, 137, 138, 145,

148,149 Inland Revenue 251, 256 Innes, James 53, 54 innovation 141 Institute School (Liverpool) 55 insurance companies 63 interbank balances 3, 7, 13, 16 interest

market rate of 139 natural rate of 139

interest-rate flexibility 256 interest-rate policy (see also cheap

money, cheaper money) fixed 252

interest rates 48, 60, 143 and level of prices 134, 248, 250 changes in 15,23,26,111,119,247 crisis levels 31 domestic 132 international differentials 119, 120 liquidity preference, theory of 250,256 long-term 227, 228, 249, 257, 258,

261,274,276 low 227,228 market 31, 46, 240, 251 nominal 31,46, 228, 250 on call money 262 on government debt 227,241,242 on Treasury bils 227-8, 242, 251,

256,258,261,262,273 permanent lowering of 260 real 31, 65, 228 short-term 239, 242, 249, 257, 270,

275,276; American 236; money market 227,273,274

International Monetary Fund 221 International Trade Organisation 221 inventions 140 investment 58, 134, 139, 256, 271

domestic 43,64, 140, 143; control of 250,255

finance of 250 fixed 42, 57, 145 foreign 139-40 long-term 260 overseas 132, 140, 143, 144 physical control of 250 port 43 public 261

investment companies 44 investment demand 257 investors 60

portfolio diversification 252 Ireland, Alexander 55 iron 57,63

rails 156 Italy 168,213

Jay, Douglas 259,270,271,276 'Jay Working Party' 271 Jebb, Gladwyn 205 Jevons 41,42,53,55,56-7,58,59,61-

4, 103, 106 Johnson, Mathey & Co. 107 Johnston, Tom 180 joint-stock companies 60 Joint Stock Discount Company 52

Kennedy, W. 30 Keynes, J. M. 164, 250, 255, 261, 265,

266, 267, 271 and finance of Second World

War 250-1 and return to gold (1925) 173, 174,

188,191,192,193 as a historian 131 Economic Consequences of the

Peace 148 General Theory 132, 133, 136 How to Pay for the War 133 liquidity preference theory of interest

rates 250, 256 policy advice 145 proposals for debt issues 258 'The Question of High Wages' 148 Tax Reserve Certificate 253 A Treatise on Money 131,132-3,133,

134, 135, 136, 138, 140, 145, 148, 149

Kiddy, Arthur 186-7, 188

300 Index

Kindleberger, C. P. 15,20 King, Mackenzie 199,202,203,207,

208,209, 214 Kitchener, Lord 157, 160 Knights, L. C. 135

labour, supply of 145 Labour government

1924 180 1929-31 168

Labour Leader 188 Labour Party 180, 191, 192,228,238,

275 Currency Banking and Finance

(1932) 259 Full Employment and Financial Policy

(1944) 259,260-1 Labour's Immediate Programme

(1937) 259 manifesto (1945) 260 planning for peace 259-61 revolution in fiscal policy 253 Subcommittee on Postwar

Finance 260 'War Finance Group' 259-60

laces 214, 221 Lamont, Thomas 156-7, 159, 160, 165 Lancashire 43, 211 Lancashire Public School

Association 55 landowners, rural 181 Langton 41,56,57,59 Lansbury, George 188 lard 216, 220, 221 Layton 187 Leeds Bank 50 Lever, Hardman 165 limited liability 45-6, 49, 76 Lindsay, Sir Ronald 202, 203, 216 liquid consumption goods 134 liquidity crisis (see also financial crisis,

panic) 29 liquidity preference 252, 256, 279 'liquidity pressure' 2, 14, 15, 16, 25, 29,

31 Liverpool 55, 57 Lloyd George, David 158, 161, 162,

178, 179, 185 L10yds Banking Company 26, 28, 100 Lombard Street (see also money

market) 66 local authority borrowing 267, 269 Local Loans 268

3% Local Loans 265 conversion 267

Local Loans Fund 266 London 44, 112, 169, 155, 157, 158,

161,177,184-5,201,203204,207, 214,218

centre of international banking 75, 181, 186, 189

London and Brazilian Bank 51 London and Cambridge Economic

Service 148 London and provincial joint-stock

banks 95 London banks 17,23,24,46,96, 119 London Chamber of Commerce 190,

191 London, City and Midland Bank 182,

183 London clearing banks (see also clearing

banks) 3,229,237,245,268 advances/deposits ratio 278

London Clearing House 96, 100 London Joint Stock Bank 75 London joint stock banks 46,48,52,95 London Statistical Society 56 Lucas, Samuel 55 lumber (see also timber, wood) 201,

204, 216-19, 218 American 217 Canadian 217,218 Canadian 217,218,219 planned 219

McAdoo, William Gibbs 166 MacDonald, Malcolm 206 MacDonald, Ramsay 180 Macleod, Dr 55 McCloskey, D. N. 137 McKenna, Reginald 162, 173, 182, 191,

192, 193 Mackinnon, Hector 211 Machin, Stanley 190 Manchester 43,53,55, 177 Manchester and Liverpool District

Bank 54,183 Manchester Association of Exporters and

Importers 191 Manchester Chamber of Commerce 175 Manchester Examiner, The 55,64 Manchester Guardian, The 187 Manchester Statistical Society 41, 56,

59 manufacturers 177, 192 manufactures 137 manufacturing, profitability 89 mark 164 Martin, Sir James 190

Index 301

Marx, K. 134 Matthews, Feinstein and

Odling-Smee 148 Maxse, Leo 188 Meade, James 256, 259 Mercantile Bank 46 merchant banks 155-69, 181, 182, 183,

186, 190 Anglo-American 155, 156, 157 German 157, 159

merchants 42,156,176,191,192 metal-based industries 177 metals, precious (see also bullion, gold,

silver, treasure) 135, 149 meteorology 56 Metropolitan and Provincial Bank 46 Middle Ages 62 Middle East 50 Midland Bank 75, 173, 183, 186 Mill, Courtney 186, 187, 188, 189 Mill, J. S. 58 Mills, John 41,42,46, 53, 54-5, 56, 58-

61, 61, 62, 63, 64, 65 Milner, Lord 186 mines, South African 135 mining 138 Ministry of Munitions 162, 163 Minsky, Hyman P. 15 Mint 104, 106, 136, 138 Mond Chemicals 178 Mond, Sir Alfred 178, 192 monetary aggregates 228,236,237,238,

248, 249 monetary authorities 44,227,228,236,

241,242,243,245,247,250,251, 252,267,268,269,271,277,278,279

monetary base 42, 44, 141, 142, 143, 229, 236, 239, 241, 242, 244, 248, 249, 251, 276, 277

monetary control 270, 274 monetary deflation 180 monetary expansion 15

1930s 229 1932-3 239

monetary gold 110,111,119,141,142, 143

monetary growth 143, 228, 229, 236 1937 248 1946-51 278-9

Monetary History of the United Kingdom, 1870-1982, A 229

Monetary History of the United States 1867-1960, A 140

monetary independence 240 monetary metals 136

monetary policy 73, 190, 236, 269 1919-24 146, 178 and budgetary considerations 228 instruments of 228 tight 145, 273, 274 planning for post-war 237 post-war 255-9 'revival' (1951) 236

monetary theory 149 Monetary Trends in the United Kingdom

and the United States 141 money 15, 54, 132

cheaper 140 dear 49, 51, 181, 189 quantity theory of 136-7

money market (see also Lombard Street) 7,13,16, 17,18,23,25,47, 49, 64, 66, 270

money multiplier 116, 118 money stock 119,141,143,268 moneysupply 1,44,114,116,117,136,

140, 142, 228, 237, 238, 268, 269-70 1932-8 236 1933-4 245 1939-45 253 1946 261 1947-51 277 1948-9 274 cyclical changes 117-8 M1 229 M3 229, 239, 248, 249, 253, 268, 277

monopoly 73, 74, 89, 94 'moral suasion' 77,241,251,271 Morgan, House of (see also Morgan &

Co., Morgan Grenfell & Co.) 155, 156

and European reconstruction 168 Morgan Grenfell & Co. 155, 156, 158,

161. 162, 167 Morgan, E. V. 29, 146 Morgan, J. P. 156 Morgan, J. P. & Co. 155, 156,158,159,

162, 163, 164-5, 166, 167 and 1931 crisis 168 and Republican party 165, 168 Export Department 160 Financial Agent for British

government 155-6, 159, 161-7, 168

private lending to British government 163, 165, 166-7

Purchasing Agent for British government 155, 158-61, 168-9

Morgan, J. P. Jr 156, 158, 158-9, 165 Morgan, J. S. 156

302 Index

Morgan (Pierpoint) & Co. 156 Morgenthau, Henry C. 220 Morning Post 186 Morrison, W. S. 205, 215 Morrow, Dwight 164 most-favoured-nation principle 201,

211, 213 Mullens & Co. 241 Munich crisis (September 1938) 213,

249 music 55 Mutual Aid 220 Mynors, Humphrey 272

Nantwich 55 Nation, The 188 National Council of Employers'

Organisations 177 National Debt 65,227,239

Consols 17,86; yield on 228 2'/2% Consols 269 3% Consols 239 2% Conversion Loan 1943/45 252 2Y2% Conversion Loan 1944149 243,

244 3% Conversion Loan 269 3% Conversion Loan 1948/53 242,

269 4'12'Yo Conversion Loan 1940144 252 'Daltons' 265, 268, 272 Defence Bonds 251, 257, 266 2'/2% Defence Bonds 247 3% Defence Bonds 265 defence borrowing 247 Exchequer bonds 256-7 1WYo Exchequer Bonds 258,265 r%% Exchequer Bonds 1950 259,

262,269 2Y4% Exchequer Bonds 1955 269 floating debt (see also Treasury bills,

Treasury Deposit Receipts) 242, 243,244,247,252,256,258,266, 269, 270, 271, 274, 275, 278, 279; interest rates on 262, 276

funding 237, 244, 251, 256; 1933-4 245, 277

2'/2% Funding Loan 1951/56 246 2'12'Yo Funding Loan 1956/61 269,275 2'12'Yo Funding Loan 1959/61 246 2Y4% Funding Loan 1952/57 246-7 2'14% Funding Loan 1953/58 246 3% Funding Loan 1949/63 244 3% Funding Loan 1959/69 246 3% Funding Loan 1966168 275 3% Funding Loan 1967/87 247

National Debt cont. 3% Funding Loan 1970/80 246 'Goschen conversion' (1888) 239,252 issues by tender 275 lowering interest rates on 227 maturity composition 228, 246, 249,

250, 253, 268 3% National Defence Loan 19541

58 247,249 National War Bonds 258, 262, 275 2Y2% National War Bonds 19451

47 250 2Y2% National War Bonds 19461

48 266 2Y2% National War Bonds 19491

51 275 2Y2% National War Bonds 19541

56 259 nationalisation stock 269, 270, 272 post -war reconstruction 227 2'12'Yo Savings Bonds 1964/67 265, 267 3% Savings Bonds 257 3% Savings Bonds 1960170 252, 272 3% Savings Bonds 1975175 252,262,

267, 272 3% Savings Bonds 1985 275 Savings Certificates 251, 257, 269 tap bond issues 260 tap issues 252, 258 terminable annuities 267 2'/2% Terminable Annuities 267 3% Terminable Annuities 253,267,

272 Treasury bonds, issue by tender 243 Treasury Bonds (1920) 241 1% Treasury Bonds 1939/41 246 2% Treasury Bonds 1935/38 242 3% Treasury Bonds 1936/42 245 4% Treasury Bonds 1934/36 243-4 4Y2% Treasury Bonds 1934 243 2Y2% Treasury Stock 268 2Y2% Treasury Stock 1975 265,267 'unfunding' 268 war finance 227 War Loan 228,241,251;

conversion 239-41, 243 3Y2% War Loan 1952 241 5% War Loan 1929/47

conversion 239-42 wartime bond issues 237 yield on 228

National Debt Commissioners 253-4, 258, 265, 267, 268, 272

National Debt Enquiry 255-6, 258, 261,262

Index 303

National Farmers' Union 177 national income (see also Gross National

Product) 43, 112, 143 National Investment Board 259 National Lumber Manufacturers'

Association (US) 210 National Review 188 National Social Science Association 53 National Trust 159 National Union of Manufacturers 177,

191,209 nationalised industries 260, 261 Needham, Sir Christopher 183 net worth 81 New Leader 180, 188 new issue market 46, 50 new issues, control of 250, 251, 257,

261,271 New Statesman 188 New World 136 New York 155,156,157,159,161,165,

167, 189, 191 newspapers 184-8 Nicolson, Harold 164 Niemeyer, Sir Otto 183, 184, 189, 191,

192 Nishimura, S. 19, 44, 45, 64 Norman, Montagu 182-3, 184, 187,

188,189,190,191,192,241,244,246 North American aid 277 North and South Wales Bank 26 Northumberland, Duke of 186 Northumberland and Durham District

Bank 23 note issue, fiduciary 278 Nottingham 211, 221 Nottinghamshire Banking Co. 28 Nova Scotia 215

open-market operations 228, 252, 270, 273

Observer, The 187 oligopoly 2, 76 Ottawa 203,208,211,216,217,218 Ottawa Agreements 199,201,202,203,

204,206, 210, 213, 220 output 43

growth of 144 real 228

Overend, Gurney & Co. 18, 19,25,52 Overend, Gurney & Co. Ltd. 25,27,

52,53 over-production 61 over-saving 140 overseas ban ks 183

overseas trade (see also exports, imports) 43,48, 51

Overton, A. E. 212, 213, 218, 219 Owens College 55, 56 Oxbridge 178

Paish, Sir George 158 Palgrave 61 panic (see also financial crisis) 23, 25,

41,42,47,48,49,53,54,54,58,59, 60,61

Paris 156 Peabody, George 156 peanut butter 213-4 Peel, R. 45, 46 perfect competition 73, 94 Peto & Betts 53 petroleum 161 Phelps Brown, E. and Hopkins, S. 137,

138 Philadelphia 156 Phillips, Sir Frederick 244, 245, 246,

247,249,250,251 Phinney, J. T. 140 Phipps, Mr. 133, 138 Piercy, Bill 259 pig products 206, 210, 216 Pigou, A. C. 146, 148, 174 Pinto, Perez & Co. 25 Playfair, Lyon 55 poetry 55 Political Economy Club 62 politicians, and banks 164, 166-7, 168 population growth 12, 137 Post Office Savings Bank 253, 266 Pressnell, L. S. 100 price control 255, 261 price deflation (1870s and 1880s) 33,

138-44 price level 140

American 174 determination of 134, 149

price movements (see also deflation, inflation) 7, 15,22,24,28,42,57, 60-1,83,134,135-6,137,138,139, 141,228,247,248,253

price stability 140, 190,257 prices (see also GDP deflator) 135, 136,

277 Anglo-American relationship 141 copper 63 corn 57 cotton 43, 57 decline in 138-44 English 138

304 Index

Prices cant. grain 62 iron 63 legume 62 manufacturers' 137 money of account 137 nominal 137 relative 137 share 25,47,49-53 silver 137, 138 wholesale 139, 145 world commodity 276

Prime Minister 158, 179, 185,205,207 privateering 136 productivity 145 profit margins 148 profit rate 143, 144 profitability 143 profits 60, 65, 44, 250

gross 143 real 60

prospectus 50, 187 protection 177 provincial banks 17, 116

joint-stock 95 Public Record Office 228

Quakers 55 quantity theory of money 136-7

railway contractors 52, 53 railway construction 43, 52-3 railways 61,269 recession (1937-8) 248, 249 reconstruction 255 reichsmark 189 retail transactions 104, 109, 112, 116 real wages 137-8 reserves 277 reval uations 137 rice 210 Rice, Sir Cecil Spring 158 rifles 157 Robbins, Lionel 255-6 Robertson, Dennis 250, 251, 279 Robertson, Norman 207,211,212,213,

218, 219 Robinson, Joan 260 Rochdale 54-5 Rogers, Thorold 62 Roosevelt, F. D. 200, 203, 204, 208,

209, 212, 220 Rothermere, Lord 185, 186 Runciman, Walter 202, 205 rupee 140

Russia 114, 156 government 115, 157

Rylands, Sir Peter 178, 179

Sandersons 23 Savin, Thomas 52 savings 134, 139

private 251 'small' 268 'Thanksgiving' campaign 262 wartime 279

savings bank deposits 257, 268 savings bank funds 265,267,268 Sayers, R. 149,228, 253, 279 Sayre, Francis 220, 202, 208 Scandinavia 201 scantlings 213 Schleswig-Holstein war 50 Schuster, Son & Co. 190 Schuster, Sir Felix 190 Scotsman, The 64 Scottish economy 109 seasonal fluctuations 20, 56, 59 Second World War 227

Allied economic cooperation 221 and British financial policy 249-61

Sellon 107 Shakespeare, W. 135 Shannon, H. 44 share prices 25,47,49-53 shares 47 Sharp, Clifford 188 shells 157, 160 shipbuilding 176 shipping lines 183 silver 114

price of 138 Spanish 138 used in the arts 107

Simon, Sir John 248 Skelton, O. D. 211 Smith, Knight & Co. Ltd 52 Snowden, Philip 176, 180, 183, 192 softwood

American 217 Baltic 217

South Sea Bubble 63 South Wales 43, 214 Spain 135, 136 Spectator, The 186, 188 speculation 49, 50, 51, 52, 58,60, 61,

271 Stamp, Sir Josiah 182 Stanley, Oliver 216 State Department (US) 200, 202, 204,

Index 305

State Department (US) cont. 206, 208, 210, 212, 220

British Empire Committee 202 Division of Trade Agreements 212

state intervention 184 Statist, The 188 Statistical Abstract 3 statistics 66, 149 steam ship 43, 48 sterling 31,119,161,178,243

against the dollar (1933-8) 248 against the dollar (1938-9) 249 devaluation (1949) 273-4 exchange with the dollar (1914-

18) 161-7 exchange with the dollar (1937-

8) 219-20 off gold (1931) 239,240 pegged against the dollar 236, 249,

250 return to gold (1925) 148,168,173-93

Stettinius, E. R. 157, 160, 161 Stock Exchange (London) 47,50,52 stock market 25, 47 stocks, merchant 19 Stonehenge 159 Strachey, St Loe 188 Strong, Benjamin 187 Sunday Pictorial 186 Sunday Times 145, 185 'sunk' costs 94, 95-6 sunspots 62, 63 Sweden 217, 220

tariff reform (see also imperial preference, protection) 179, 186

tax burden 175 Tax Reserve Certificate 253,257,266 taxation 251, 257, 262 technology 48, 51, 141 telegraph 48 terms of trade 137, 138 textiles 156, 204, 214 theory of contestable markets 94, 100 Thompson-McCausland, Lucius 272 timber (see also lumber, wood) 57,213

Canadian 201 Times, The 185-6, 187, 189 tobacco 215 trade 139 Trade Agreement Act (US, 1934) 200,

202, 208, 220 trade associations 176, 210 trade cycle (see also business cycle)

gold flows III

trade cycle cont. nineteenth century 42, 43, 45, 56, 57

Trade Facilities Act 140 trade liberalisation 200, 201 Trade Union Congress 179, 191

General Council 179 Trade Union Congress-Labour Party

advisory committee on finance and commerce 192

trade unions, amalgamations 179 treasure, Spanish 134, 136 Treasury 158, 161, 162, 163, 164, 165,

167, 168, 174, 176, 179, 187, 200, 201,217,228,241,242,243,244, 245,246, 247, 248, 256, 258, 259, 261,262, 265, 270, 271, 273, 274, 275,276

and recovery (1931-2) 240 Economic Section 270 effect of First World War 183-4 Finance Division 175, 183, 184 wartime note issue 189

Treasury (US) 166, 167,200 Treasury bills 228, 242, 243, 244, 245,

246,248,249,252,253,258,271,274 funding of 245, 246, 248-9, 277 issue in US (1916) 163-4 issue in US (1917) 167 market 243, 245, 246, 247 rate of interest on 227-8, 242, 251,

256, 258, 260, 261, 262, 273 Treasury Committee on Bank

Amalgamations 75 Treasury Deposit Receipts 252-3, 256,

258,260,261,262,270,271,273, 274, 275, 276

Treasury Secretary (US) 220 'Treasury view' 183 trench warfare 157 Trend, Sir B. 273 Trustee Savings Bank 253 Turner, A. J. 15

underdeveloped countries 155 unemployment 201, 202,259, 276 Unilever 214 Union Bank of Manchester 28 United States of America 22, 23, 66,

141, 155, 156, 157, 158, 173, 186, 206,208,211,215,216,248

agricultural interests 200, 210, 213 balance of payments 201 Civil War 43, 50, 60 Congress 160,218,219 Consulates 210

306 Index

United States of America cont. economic influence 200 government, attitudes towards 165,

166 government lending 155, 166 long-term government bonds 236 lumber interest 219 overseas lending 199 prices and monetary variables 141 protectionism 200 reciprocal trade agreement with

Canada (1935) 202, 213 tariff policy 199-200, 201, 202, 205,

210,216, 218 textile interests 200 trade negotiations with Britain 199-

221 war finance 16

University of Cambridge 131

wage bargaining 177 wage costs per unit of output 134 wage payments 104, 109, 112 wage rates 137, 146

weekly 146 wages 135, 145, 149, 274, 276

efficiency 145, 148 money 136, 139 real 148; per hour 146

Waley, Sigismund 201 Walker, Donald 131 Wall Street 159 Wallace, Henry C. 208 War, Secretary of State for 157 war debts 199 War Office 158, 161, 162

Warrington 178 Washington 159, 161, 163, 165, 202,

203,204, 205, 207, 208, 209, 211, 214, 218

Watson & Overend 52 Ways and Means Advances 252, 272 West Midlands 177 West of England and South Wales

District Bank 29 Western Union Bank of Scotland 23,48 Westminster 48 wheat 161

American 213,214 Whigham,CharlesF. 157,161,162,167 whisky 213 White, H. 41 Whitehall 184,202,205,207,212,217,

218, 250, 269 Wiebe, Georg 136, 137, 138, 149 Willey, Colonel Vernon 193 William the Conqueror 131 Williams, Francis 188 Wilson, Charles 131 Wilson, Woodrow 159, 165 Wolverhampton and Staffordshire

Bank 23 wood (see also lumber, softwood,

timber) 210 woollens 214 working week, changes in (1919-

20) 146-7, 148, 149 world economy 44, 181, 199

yield gap 276 Yorkshire Post 184 Young Plan 168