Beruflich Dokumente
Kultur Dokumente
Economic Research
Volume Title: The Great Contraction, 1929-33
Volume Author/Editor: Milton Friedman and Anna J. Schwartz
Volume Publisher: Princeton University Press
Volume ISBN: 0-691-00350-5
Volume URL: http://www.nber.org/books/frie65-1
Publication Date: 1965
Chapter Title: Glossary, Sources, Indexes for "The Great Contraction, 1929-33"
Chapter Authors: Milton Friedman, Anna Jacobson Schwartz
Chapter URL: http://www.nber.org/chapters/c9282
Chapter pages in book: (p. 131 - 150)
Glossary
represent bankers' and trade acceptances bought by Federal Reserve Banks from bill (acceptance) dealers and banks. The
Reserve Banks generally buy all prime bills offered at the buying
BILLS BOL'GI{I
the amount of Federal Reserve credit member banks obtain through borrowing from Reserve Banks. In 1929-33,
two principal forms of borrowing, both known as discounting, were
resorted to by member banks in order to maintain adequate reserves:
(i) rediscouflts of short-term commercial, industrial, agricultural, or
other business paper in the member banks' portfolios: (2) advances
DrPOSIT-CURRENCY RATIO
IJE?osIT.REsFRvE
explairicel On pp.
109-110.
bill,
Rusti vt Rank
bong ii r,
FIA1- OFFliF
(I I 5(OU Ii ttd,
.S.
a iid
redit.
assets,
based on their fiat. e.g.. Federal Reserve holdings of government securities for some Federal Reserve notes and hank deposits at Federal
Reserve banks.
il IGH-I'owtRFi) MONF:V is currency held hr the public, plus vault cash
in banks, plus deposit liabilities of the Federal Reserve System to
power os-er the determination of the total amount of money in existence. The principal monetary authorities in the United States
since uqu have been the Federal Reserve System and the Treasury
\JoNF
U) (lcpusit.( uirrncy
,(I
IatI() (,,).
F-I
held 1w commercial
lii
Primary Sources
iN WRrnNc A Monezaiy History, we did not have access to the internal
documents of the Federal Reserve System dealing with monetary pol
icy. We were therefore pleased by the announcement in August 1964.
of the intention of the Board of Governors of the Federal Reserve System to make available to scholars most such documents Covering the
period 1914.60. These will make it unnecessary in future research to
rely as heavily as we did on the following primary sources.
The Goldenwe,ser Papers. For a description of the papers and their
author, see pp Si -52. footnote 407, trot pp. I 21-I 22, tootot
The Diary of Charles S. Hamlin. 1-lamlin was a Boston lawyer who
was
appointed to the Federal Reserve Board in August 1914 for a twoyear term, and reappointed for ten-year terms fl igi6 and 1926, serving until 1936. when he was appointed special counsel. He kept
a
detailed record of his daily round of activities, including proceedings
of the Board.
The George Leslie Harrison Papers on the h'deral Rseri'e System
Harrison was a deputy governor (1920-28). the goernot- (lq28-3tj
and president (1936.41) of the Federal Reservt' Bank of New York
Harrison's personal files, covering the period of his association with
the Bank (1920.40), contain many official memoranda
and other documents. Items are identified by the titles of sections of the Papers,
of con-
versations, with some duplication N1ice1Ianeous Letters and Reports. 1920-40 (Harrison, Miscellaneous), Copies of correspondence
with the Federal Reserve Board and others: Open
Market Investnient Committee, 1928-fo (Harrison, Open Market), minutes of
regular meetings, nleetings of the eccutis'c committee,
memoranda, cotrespondence resolutions: Governors Conference i q2 I - o (Harrison.
Governors), detailed agenda for meetings: Discussion
(Harrison, Notes), minut(s of meetings of thc board Notes, iq'o-o
of directors oi
the Federal Reserve Bank of
c5v \'ork and of the executive cornInittee: Special Memoranda, i 93-10 (Harrison. Speciil). discussions
of polic questions prepared by the Bank's
research stat-I
(ill) p cii
price deflator). A Mo'rrla,r History, ahk A
}. 7o.7 3. col. H (iiifliSCV stock),
I
Oil.
(selouty
of
WOi5V).
Hiiior,i-iiI
SlatIstir-s
TbIe A-s, P. 774
of the Urijfrcj
States. 178019.1 . Bureau of the (.CIISIIS. 1949, p. 344 (wholesale price i Ildex) in.
dias(rut( Pvoductro, 1Q') Rx'ision, Board of (ovCri]ors of the Federal Rcscrs
Stenr, 960. p. S I 't (rttdtiirial prodisclioii(. ih National ltire' Research on
indicators of Cyclical Revivals arid Recessuini NRER. ICC. iqfio ))
reference
nun).
CHART 27
PP
71 5715. oils. p. a
CHART 28: ijusineir Cycle ir,d,narorc. C. H. Moore, cd., Princton for N8ER. ii6
'd II. p. 9 txi sonal income). liiiloriral Statistics 'sj the (nitrd Stairs, i7X,
,,, Bureau of the (.cnsus. 1q49. p. 344 (wholesale price in(kx). iridisi:rial Pro.
durti'in, 1950 Rei'isio,i, Boa iii of 5,osm-roots of the Federal kecerse Systmsi
I0li-i
A Monetar5' History, Table At, pp. 712.713, to). H. and rahie B1, pp
fl3.flij4 cob. I. 2. 3.
CH.SRT 32 A. Liabilities, .4
powered moons); Tahlc
I
(high.
pp. 73(1-7411. col. a (hank deposits at Fedetal Resetc
Rankst; lttsnkcng and Montmsry .taf:ltici, pp. .411.fI2 }edrI Recerse notes
Tieasiir currency, gold coin tiil gold ten iltcj ics) . plus S2$7 101 Ilioti dcductcij bs
Federal Reserxe added back to gold coin. seaso,talls irljtisied liv tic.
B. Assets. ibid., p.
(Ilionetar'. golil stotki pins 55117 rtiillinmri leilii tc'iI l Fed
eral Reierve added back, seascitialls nljiisred Is tic; 1P ''7!i, Fccln-r.il Rese'
credit otititantling and Sc stem liohltnc iii I S goc 1'! ii!ile'lii 5Cr unties liTre etscli
corrected (or trastnissl tutu r'riieuitc, and the latter- suiliir.ictcml fioiii ntrc fist itici
(Federal Reserve claims on the pitlilic and loOks); high Pols err'nI nioucs titinirs
Iflofletary quit) stock mu ntis F'edcra I Reserve c its irim S oil I lit' pus) Ic and ha msks (oilier
phssncai assets arts) Ii at of the flionc' tars .i u thor itt's).
CHrAt
: Banflnng 'ord .forietiary .Stti)tirr, pp. ''y' ;71u tFrder.iI Reserve credit lint
sianriiiig. L'S gulserilupirot serIirI(lc.s held. huilk limuiritsred; lulls liotigluli. cr45011
all s adjusted hi us ''() i her'' isIs its tied a a rest its I -
w!,_.___ s1_.
Author Index
Adams, Arthur B., ii
Anderson. Benjamin. ioi. 108-109
Angell. James W..
it
67-78, 80-95.
6,
100-102,
05. I04)-I0t.
121, 134
Hoover, Herbert, iS, 24. 29. a.
inS
Bagehot. Walter,
Beasley, Norman. 36
Bopp. Karl,
Burgess, W. Randolph, So
Burns, Arthur F., 28
Burns, James M., ,
James. F. Cyril. i6
Jones, Jesse H., 29
12 I
22
ii
Macesich, George.
Gaibraith. j. Kenneth, it
Salter. Arthur. 66
Schlesinger. Arthur \I.. Jr
Smith. Rixev. 36
Sprague. Oliver 'sI
22
,8
I c7
Subject Index
Page numbers in itaIu's refer to tables and charts)
overstatement of, 34
Acceptances. bankeit
bills).
bought by FR., 92. 131
1930. 71
q..gy
if below market rates, effect on free
gold. to8n
inadequate declines in. after Oci.
Aldrich.Vreelartd Act:
pattern for National Credit Corpora
24
of N.Y.C. banks, to
0 brokers and dealers for account
of others. 9fl, tO, 39-40
decline in value of. and hank sunpemittOflS. 1929.33,
g'6o, pn
imsarket
purchasc
balances,
shot t -
moimi
Bank assets:
if
90
Bank of France:
uncertain of U.S. adherence to gold.
intact,
iOt
1931. 87
liOn.
im,
failure of. 47
Rank suspensions.
ri. if;
SUBJECT TNDEX
iQ'Z(1-33 %5
reported number in
able.
837. (lttest!1)fl-
i6
money,
hankers
Bills discoitnmed us F' R
ing
.r.- Disci,iurit
Bonds, corporale:
ff430. 12
I 930-33:
differences between,
lower-grade. ilunipt'l In
search (or lnttofjis ii'i,
.
32
banks it,
t
on:
Baa, 8
6.
iq
-32,
io'n
1920'2i:
Banking panics:
929-33, 31T
1907:
930, ir,
ui39 f3.
64
distinguished fr,ia
banking criis,
i i3
effects of. 4
SUBJECT INDEX
ol. as orstt hg
eventS, 9
res 5.uI. ssgs:s of.
ph3se
iiO5't .1 r
I (I
U.S
00
06fl
86n.
Canada:
.rid Britain,
qa-.
ug2933. 56
on silver standard:
930 bank-
ing crisis. 4
in
'57.
32.
23
held by public. 6
actual arid hypothetical changes iii.
97.9ff iO3
30
posits. 21
time:
changes in. 6
and currency ar,d postai savings. t.
Deposit-currencY ratio, ;. ii
changes in. q6'gff,
demand, adjusted:
changes in. 6
03
141
SUBJECT I1DEX
toiiiiiiercial batik
changes in, 40
suspension ol
933. 30.31
requirenienis for.
4jq
ield.
11-112
tiOns. 71
decline in:
411
monetar
119
1952-33. 104fl
count:
a. ii
i
'935,
defined, 104
Apr. tg. 88
Eligible paper:
Emergency
polici
1930. 77
30.
('lntraciioti li
flexible Illoating):
spread of t9ag.
87. 89
8.
142
SUBJECT INDEX
posttlon of. in SVstc'rn.
arid
relations. 84
leo of leadership
after Strong's
67-70, 72-73
1930.31. 7484
2515
927, I17fl
reductions in 1929-3o. deloys in approVing. 71
risc in. t929. repeatedly vetoed. flq
99-1(W)
powers of:
lapse. 112
additional, after 5929.33 collapse.
use of, 1929.33. 115. 22. 123
over.
920
effect on.
o
if
1951
gold
outflow
sterilized, to's
reserve requirements. suspetssion of.
SI
to8
I SOn
conditions. a8
I4
SUBJECT INDEX
(,old flows, international:
Frztnce:
1931. i8
as result of;
US price decline,
concern
about
gold.
1931, 64
uo8.
on
Coils:
IQTI
mg
no threat to. g6
monetary stability, internal, and. 6
and US. gold-sterilizatioa. policy. 64.
05
tts
1932, 87-88
as result of:
to devaluation, 360
real tids advocate. gun
reactis
policy. 107.110
not a problem. Oct.
inflows:
04
in Svstm sources,
iO3ff.
Government debt:
held by FR., p
marketable bonds:
from FR., i
1931.32. 2
'44
SUBJECT INDEX
siew of ohei gosernoTs Ofl, 70.71
O.M.!.C. and CM. P.C. cornprrd.
73fl
opposed:
91
ness contractiOfli
l-tigh.poweted money:
actual and hypothetical changes. 97-
131
g8
1929.33,
I iSO
1931. 8n
Harrison, George L.. 122
Bank of U.S.. attempt to sase. 1311
hs.
sy money conditions denied
Apr. 1931. fz
rBorts to conciliate System. 73. 78.
.6,
changes in. 37. 40.4!.
opposite in direction to money
stock, 1930-3%. 36
8i. 90-92
defined. 132
73
fasored:
ures. fib
smaller than currefics drain. 1931-
82
50
1q31.
52
85.87
credit, 50
Hoover. Herbert. Si
debt moratorium, anti. t. $.
July 1q31. R
limitcd
8UCnCe on Ssslem.
personal. 7. 8
real:
54fl
changes in. 3.
'43
Can-
SUBJECT INDEX
i93l. flu
Kemnserer, E. W., i tn
Knickerbocker Trust Co., 15
85fl
active, 19205,
I 15
crowd," Sin
opposed to:
gold sterilization. 8j
146
to
of.
103' iO4
restrictive. 99-100
79
ol.
ii 7fl
of restriction si
SUBJECT INDEX
25 U.S. decline. 23
international
aapects
of
1920.21
decline. 64
tight. tg;o. 79
Monetary standard:
uncertainty about:
74-75
31. 64.65
public's
132-133
for gold
In
613.. 132-133
decline in:
1929-33 VS. l87.79. 1920.21.
atypical. in expansion:
Norris. George
1928'2Q. 3
with.
preventable. 1929-;;:
with adequate high-powered
money. 6i
85.
107fl
,6
defIned. 132
26-27
47
SUBJECT INDEX
me.n.
51
drain, Igi, 22
of (0111.
lOOn, 1929.33, 8
Production, industrial.
executive committee. 86
and oppositiors to purchases, 83
Harrison.
84n
composition of. 42
decline in:
stock, 1930, 79
and in money stock, 1030. 78.79
return in coisfitience offset by. 1931.
'7
Prices:
U.S. commodjp,-:
implicit:
changes in. 3,
defined, 132
wholesale, changes In. a.
coUnts, 1930, 79
rise in:
.
.q
50
148
SUBJECT lNEy.
decline III TCcrSCS. jan -
far helc
Feb.. i. q.
Run on fsar,Ls
se!f-jus'ifsiiig 6on
95
reliance or..
I 13
s. discourning. roi-a.
Seas, George.
8n. g. tor,
SiIer siandard:
China's experience with.
Snyder, Carl, 7415, 78
27
commercial banks, o
actual and hypothetical changes
in, 1930-32. 07, 98, 103
Sprague. 0MW.,
Sterling area.
n
Stewart. Walter Vi'., 122fl
Stock market:
90
defined,
drain on:
.nternal i's. CXtCr!laI, 20. Q, 53
not offset hr increase in high-
powered money. 22
niembec banks:
1029. 44
42i
panic. ir6
on purchases for own account by
1933. 42fl
1:
149
SUBJECT IMDEX
efforts 10 %ec1re Chicago patsiupa
Vrlocit
changes in.
iln
Oct.
193
150