The Harvard course, Economics 41 “Money, Banking, and Commercial Crises,” was a full-year course that James Tobin took as an undergraduate in 1937-38. Professor John H. Williams lectured during the first term and the vast bulk of lectures for the second term were held by Dr. Richard Vincent Gilbert (A.B., Harvard, 1923; Ph.D., Harvard, 1930. Dissertation: The theory of international payments). Associate Professor Seymour Harris does not appear anywhere in Tobin’s notes, so we can presume for now that Harris was substituted for by Williams and Gilbert and that the official enrollment report (see below) was the victim of a copy-paste error.
It appears from Tobin’s notes that Gilbert had been the section leader during the first term and was succeeded in the second term by the economics graduate student Kenyon Edward Poole (A.B., Harvard, 1929; A.M., Fletcher School of Law and Diplomacy 1934) whose doctoral dissertation “German recovery policies, 1932-1937” was accepted in 1938., A.B., Harvard 1929. Tobin wrote in a marginal note to his own student notes (dated 1992) that the section that met February 16, 1938 “was Gilbert’s last section.” Thus presumably, the earlier sections must have been Gilbert’s doing.
Course enrollment, 1937-38
Course readings, first term
January Reading Period list
Mid-year examination
Course readings, second term
May Reading Period list
Final exam
Research tip
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Official Course Announcement
for Economics 41, 1937-38
For Undergraduates and Graduates.
Economics 41 (formerly 3). Money, Banking, and Commercial Crises
Mon., Wed., and (at the pleasure of the instructor) Fri., at 2. Professor Williams and Associate Professor Harris.
Source: Official Register of Harvard University, Vol. XXXIV, No. 44. Announcement of the Courses of Instruction offered by the Faculty of Arts and Sciences during 1937-38. Second edition. October 1, 1937.
Copy in Harvard University Archives. HUC 8500.16. Box 5 “Courses of Instruction”, Folder “1937-38”, p. 149.
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Enrollment in Economics 41,
1937-38 by class
[Economics] 41. (formerly 3). Professor Williams and Associate Professor Harris.—Money, Banking, and Commercial Crises.
Registered total: 205, of which 3 Graduates, 49 Seniors, 121 Juniors, 30 Sophomores, 2 “Candidates for the Bachelor’s Degree out-of-course”.
Source: Report of the President of Harvard College and reports of departments for 1937-38, p. 85.
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Economics 41, 1937-38:
First Term Reading List
Economics 41
Readings: First Term [Handwritten note: “Excluding Reading Period”]
- The nature and function of banking
Dunbar: Theory and History of Banking, Chs. 1,2,3,4. [pp. 1-60]
White, Money and Banking, Ch. 16 [pp. 349-372] - Creation of Deposits
Phillips, Bank Credit, Ch. 3. [pp. 32-77]
Currie, Supply and Control of Money, Chs. 5-7. [pp. pp. 46-83] - Note Issue
Dunbar, Ch. 5. [pp. 50-81]
Currie, Ch. 10 [pp. 110-115] - Commercial Loan Theory
Robertson, Money, Ch. 5 [pp. 92-117|; Currie, Ch. 4. [pp. 34-46] - U.S. Banking history
White, Chs. 18-23 [pp. 387-529] - The Federal Reserve System
Dunbar, Ch. 6 [pp. 81-110]
Burgess, Federal Reserve Banks and the Money Market [pp. 1-327],
entire Federal Reserve Bulletin, July 1935, Supply and Use of Member Bank Reserve Funds. [pp. 419-428]
Currie, Chs. 8,9. [pp. 83-110]
Hardy, Credit Policies of the Federal Reserve System, Chs. 3-11. [pp. 34-243] - Recent Banking Changes
White, Chs. 29, 30. [pp. 670-738] - Foreign Banking Systems
Dunbar, Chs. 8-10 [pp. 139-235]
Source: Harvard University Archives. HUC 8522.2.1. Box 10, Folder “Syllabi, course outlines and reading lists in Economics, 1937-1938”.
Note: The page numbers were added to the 1937-38 readings in pencil for many items. In 1938-39, the identical titles plus pages were given for the same list of readings. The same information was copied by James Tobin into his course notes for 1937-38 (apparently correcting the page numbers listed for White under VII. to 679-738.)
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Economics 41, 1937-38:
Reading Period, January 1938
Economics 41: Read one of the following:
Hardy, Federal Reserve Policy.
Hawtrey, Art of Central Banking, pp. 116-303.
Keynes, Treatise on Money, Vol. II, Book VII.
Note: The Midyear Reading Period list for January 1938 was not found in the Course material folder archives, however for January 1936 and January 1939 the same three books were listed which we can presume constituted the choice of readings for January 1938. From Tobin’s notes for the course, he apparently chose the Hawtrey book.
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1937-38
HARVARD UNIVERSITY
ECONOMICS 41
MONEY AND BANKING
Mid-year Examination 1938.
Answer questions 1, 2 and three others.
- (One hour.) Supply and Use of Member Bank Reserve Funds.
|
(in millions of dollars.) |
|||
|
From |
From |
||
| Bills discounted |
-430 |
+224 |
|
| Bills bought |
-332 |
+184 |
|
| U.S. government securities |
+389 |
-194 |
|
| Other Reserve Bank credit |
+9 |
+4 |
|
| Monetary gold stock |
+267 |
-144 |
|
| Treasury and national bank currency |
+9 |
-28 |
|
| Money in circulation |
-288 |
+36 |
|
| Treasury cash and deposits with Federal Reserve banks |
+18 |
-43 |
|
| Non-member bank deposits |
+9 |
-8 |
|
| Other Federal Reserve accounts |
-20 |
+7 |
|
| Member bank reserve balances |
+193 |
+54 |
|
-
- What is the meaning of each of the above items?
- Account for the changes in member bank reserve balances (or in bills discounted) in the two periods.
- What conclusions do you draw regarding the nature and instruments of Federal Reserve policy?
- Outline:
- Keynes’ views on the effectiveness of central banking control in England and the United States.
(or) - Hawtrey’s treatment of the development of central banking in England.
- Keynes’ views on the effectiveness of central banking control in England and the United States.
- “From the first, the banking system in this country has given expression to the American ideal of individuality and freedom.” Discuss
- Discuss the conflicting views of the role of banks in the creation of credit.
- Do banks create capital?
- Discuss the nature, purpose and wisdom of the provisions of the Federal Reserve Act concerning the issue of notes by the Federal Reserve banks.
- Discuss the merits of requiring the holding of reserves equal to a fixed percentage of deposits in the case of (a) central banks and (b) other banks.
- Discuss the relative effectiveness of open market operations and the rediscount rate as central bank instruments of control.
- What should be the central bank’s attitude towards the stock market?
Source: Harvard University Archives. Mid-year examinations, 1852-1943 (HUC 7000.55). Box 13: Mid-year Examinations, 1938. Papers printed for Mid-year Examinations [in] History, History of Religions,…,Economics,…,Military Science, Naval Science, January-February, 1938.
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Economics 41, 1937-38:
Second Term Reading List
[The following list of readings has been put together from Tobin’s class and reading notes for the course.]
Arthur D. Gayer—Monetary Policy and Economic Stabilization: A Study of the Gold Standard. 1935.
Fisher. Purchasing Power of Money, pp. 1-74 and 149-181.
Hawtrey. Currency and Credit, new ed. Chs 3-4.
Keynes. Treatise. Vol I, chs. 4,5,6 (Section 1), 7.
Hawtrey. Trade Depression and the Way Out
Foster and Catchings. Profits, Part 5
Haberler. Prosperity and Depression. Review of Theories.
Optional Keynes, ch 14 and ch on theory of inex numbers.
Taussig: International Trade: ch. 21. Adjustment on inconvertible paper.
Source: Yale University Library. Manuscripts Collections. James Tobin Papers. Group No. 1746, Box No. 6. Notes for Economics 41, 1937-38.
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Economics 41, 1937-38:
Reading Period, May 1938
Economics 41: Read one of the following:
- Royal Institute of International Affairs, The Future of Monetary Policy.
- International Chamber of Commerce, International Economic Reconstruction. Either Volume I or Volume II.
- Robbins, The Great Depression.
- Ohlin, Course and Phases of the World Depression, (League of Nations Study)
- Hansen, Economic Stabilization in an Unbalanced World.
Note: Tobin presumably chose this last item by Hansen since it is the last set of reading notes he included for the course.
Source: Harvard University Archives. HUC 8522.2.1. Box 10, Folder “Syllabi, course outlines and reading lists in Economics, 1937-1938”.
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Economics 41, 1937-38:
Final Exam, June 1938
1937-38
HARVARD UNIVERSITY
ECONOMICS 41
- Discuss either (a) or (b).
- “Freedom of the exchange rates insulates the national economy against cyclical disturbances or monetary instability of foreign origin.”
- “A country which becomes a member of an international currency system, such as the gold standard provides, surrenders a part of its freedom of action, and assumes, along with the right to such benefits as it affords, certain very stern responsibilities.”
- Answer either (a) or (b).
- “Before 1914, changes in the value of gold were largely governed by the accident of gold discoveries or inventions bearing on methods of gold production.” Does the evidence support this view?
- Outline and criticize Fisher’s analysis of the factors determining the value of money.
- Discuss either (a) or (b).
- The underconsumption theories of the business cycle
- The investment theories of the business cycle.
- “One’s evaluation of a policy of flexible public works as an agency of economic stabilization depends upon the theory one holds of the fundamental nature of the business cycle.” Do you favor a policy of flexible public works? If so, on what grounds? If not, why not?
- Answer one of the following questions.
- Robbins’ views on the causes of the great depression.
- The Royal Institute of International Affairs’ analysis of the powers and limitations of the monetary authority.
- Hansen’s analysis of the breakdown of the international system in 1930-35.
- Gregory’s views on the major influences antagonistic to currency stabilization.
- Ohlin’s analysis of the causes of the great depression.
- Write a review of the book you read during the reading period.
Final. 1938.
Source: Yale University Library. Manuscripts Collections. James Tobin Papers. Group No. 1746, Box No. 6. Notes for Economics 41, 1937-38.
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Research Tip:
While at the Harvard Archives I came across Suggested Topics for Theses in Economics 41, 1938-39, HUC 8938.121.2. In it are listed 137 topics, each topic having between one to more than a dozen suggested references, running to 31 pages that includes twelve additional thesis subjects. The entire list of suggested topics with suggested references has been transcribed and posted!
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Image: My photo taken of a box of James Tobin’s notes as a student at Harvard. Not only are they bound, they have been cleanly copied in pen and are legible at the 99.9% confidence level.