Harvard. Exams and assigned reading for money, banking, commercial crises. Williams and Harris, 1938-1939

 

In the previous post, Economics 41, 938-39 (Paper topics), historians of modern economics will find a transcription of 31 typed pages of paper topics with suggested references for the Harvard undergraduate course “Money, Banking and Commercial Crises” taught by Professor John H. Williams and Associate Professor Seymour E. Harris in 1938-39.

Today’s post adds enrollment figures, course reading assignments (when found) and the final exams for that course.

_________________________

Course Material from a Few Other Years

1937-38
1940-41
1941-42

_________________________

Course Announcement

Economics 41. Money, Banking, and Commercial Crises

Mon., Wed., and (at the pleasure of the instructor) Fri., at 2. Professor Williams and Associate Professor Harris

Source: Harvard University Faculty of Arts and Sciences. Announcement of the Courses of Instruction during 1938-39 (second edition), p. 148.

_________________________

Course Enrollment

[Economics] 41. Professor Williams and Associate Professor Harris. — Money, Banking, and Commercial Crises.

Total 181: 1 Graduate, 37 Seniors, 106 Juniors, 32 Sophomores, 1 Freshman, 4 Others.

Source: Harvard University. Annual Report of the President of Harvard College, 1938-39, p. 98.

_________________________

First Term Reading List
[Note: First term reading list is identical to that for 1937-38]

ECONOMICS 41
Readings: First Term

1. The Nature and Functions of Banking
   1. Dunbar, “Theory and History of Banking”, Chs. 1, 2, 3, 4, pp. 1-60
   2. White, “Money and Banking”, Ch. 16, pp. 349-372
2. The Creation of Deposits
   1. Phillips, “Bank Credit”, Ch. 3, pp. 32-77
   2. Currie, “Supply and Control of Money in the U.S.” Chs. 5, 6, 7, pp. 46-63.
3.  Note Issue
   1.  Dunbar, “Theory and History of Banking”, Ch. 5, pp. 60-81
   2. Currie, “Supply and Control”, Ch. 10, pp. 110-115

1. Commercial Loan Theory
   1. Robertson, “Money”, Ch. 5, рр. 92-117
   2. Currie, “Supply and Control”, Ch. 4, pp. 34-46
2. U.S. Banking History
   1. White, “Money and Banking”, Chs. 18, 19, 20, 21, 22, 23, pp. 387-529
3. The Federal Reserve System
   1. Dunbar, “Theory and History”, Ch. 6, pp. 81-110
   2. Burgess, “Federal Reserve Banks and the Money Market”, pp. 1-327
   3. Federal Reserve Bulletin, July, 1935: “Supply and Use of Member Bank Reserve Funds”, pp. 419-428
   4. Currie, “Supply and Control”, etc., Chs. 8, 9, pp. 83-110
   5. Hardy, “Credit Policies of the Federal Reserve System”, Chs. 3, 4, 5, 6, 7, 8, 9, 10, 11, рр. 34-243
4.  Recent Banking Changes
   1. White, “Banking”, Chs. 29, 30, pp. 670-738.
5. Foreign Banking Systems
   1. Dunbar, “Theory and History”, Chs, 8, 9, 10, pp. 139-235

Reading Period
January 5-18, 1939

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.

Reading Period
May 8-31, 1939

Economics 41: Read one of the following:

1. a. Robertson and Pigou, Economic Essays and Addresses, pp. 95-138.
   b. Robertson, Banking Policy and Price Level.
2. Durbin, Problems of Credit Policy.
3. Keynes, Tract on Monetary Reform.
4. Keynes, Treatise on Money, Ch. 30 and Book VII.
5. Committee on Finance and Industry (Macmillan Report), Report and Addenda 1 and 3.
6. Wicksell, Interest and Prices.
7. Hawtrey, Capital and Employment, Chs. 7-11 inclusive.
8. Harrod, Trade Cycle.
9. Marget, Theory of Prices, Chs. XI-XVI.

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003.Box 2, Folder “Economics 1938-1939”.

_________________________

1938-39
HARVARD UNIVERSITY
ECONOMICS 41
Money and Banking
[Mid-Year Examination]

1. (One hour.) The Supply and Use of Member Bank Reserve Funds.

	(In millions of dollars)
	From June 1927 to Dec. 1927	From Dec. 1927 to June 1928
Bills discounted	+132	+423
Bills bought	+170	–163
U.S. Government securities	+227	–391
Other Reserve Bank credit	–11	–14
Monetary gold stock	–204	–282
Treasury currency	+3	+1
Money in circulation	+238	–345
Treasury cash and deposits with Federal Reserve banks	–12	–14
Non-member deposits	–6	+1
Other Federal Reserve accounts	+6	+21
Member Bank reserve balances	+91	–89

(a) What is the meaning of each of the above items?

(b) Present, in the form of a balance, a statement indicating the effects of changes in the above items on member bank reserve balances for each of the two periods.

(c) What conclusions do you draw regarding (1) the condition of the money market, (2) member bank policy, (3) Federal Reserve policy?

2. Write on one of the following questions.

(a) What is the “Commercial Loan Theory” of bank assets? Would banking policy, based on this theory, provide the right quality of bank assets? the right quantity of money?

(b) Discuss the functions of reserves in a modern banking system, distinguishing the case of member banks from that of central banks, and give your views on the various solutions that have been proposed for the reserve problem.

(c) What are the attributes of a good bank note? Give your critical opinion of the following: the national bank note, the Bank of England note, the Bank of France note, the Federal Reserve note.

3. Trace

(a) the evolution of Federal Reserve objectives since the establishment of the system and indicate to what extent you think these objectives have been attained;

or

(b) the development of instruments of control of the Federal Reserve system, and evaluate their effectiveness.

4. Discuss the banking weaknesses in the U.S. revealed by crises in the period (a) before the war, or (b) after the war.
5. Write on one of the following: (Reading period.)

(a) Keynes: Compare the effectiveness of central bank control over the supply of money in England and the U.S.

(b) Hardy: Discuss Federal Reserve policy and speculation, 1927 to 1929.

(c) Hawtrey: Using historical illustrations, discuss the effect of the experience of the Bank of England on current central bank theory and practice.

Source: Harvard University Archives. Harvard University, Mid-year Examinations 1852-1943. Box 12.  Papers Printed for Mid-Year Examinations [in] History, History of Religions, … , Government, Economics, … , Naval Science (January-February, 1939) in the bound volume Mid-Year Examinations—1939.

1938-39
HARVARD UNIVERSITY
ECONOMICS 41
[Year-end Examination]

Answer Question 1 and two others.

1. Reading Period
   Present and comment upon the views expressed in the reading period assignment on the relation between (a) money and prices or (b) money and economic fluctuations.
2. Monetary authorities try increasingly to influence the rate of interest. Are they likely to be reasonably successful? If they are successful in controlling the rate of interest, are they likely to attain what you consider the proper objectives of monetary policy?
3. Answer (a) or (b).
   1. Is it your view that the recent breakdown of the gold standard is to be explained by poor management or by fundamental economic factors?
   2. What advantages over the gold standard has a system of free or variable exchanges?
4. Discuss one of the following:
   1. Under-consumption theories of the trade cycle
   2. Investment theories of the trade cycle
   3. Monetary theories of the trade cycle
5. Compare the treatment of velocity in the Fisher and the Cambridge versions of the quantity theory.
6. “Nowhere do conservative notions consider themselves more in place than in currency; yet nowhere is the need of innovation more urgent.” Discuss.

Source: Harvard University Archives. Harvard University. Final Examinations, 1853-2001. Box 4: Papers Printed for Final Examinations [in] History, History of Religions, … , Government, Economics, … , Naval Science (June, 1939).

Image Source: 1935 one U.S. dollar silver certificates.  From the United States Paper Money Currency webpage at the U.S. Paper Money website.