Tag: Mints

“Lloyd Mints, though less brilliant and exciting than Viner, served the same function for us in monetary theory that Viner did in price theory. His Economics 330 and 331 introduced us to the organic core of monetary theory. Like Viner, Mints concentrated on the fundamentals, not on institutional arrangements. He was thorough and meticulous in his presentations and, again, like Viner, assigned us readings ranging over a wide variety of views.”
Rose Friedman in Milton and Rose D. Friedman, Two Lucky People: Memoirs (1998), p. 38.

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E: MONEY, BANKING, AND BUSINESS CYCLES

330. Money.—An examination of various theories of the factors which determine the value of money in the short and in the long run. Prerequisite: Economics 230 [Mints’ course, Introduction to Money and Banking] or equivalent. Summer, 1:30; Autumn, 2:30; Mints.

331. Banking Theory and Monetary Policy.—Theories upon which the Federal Reserve Act is based; the validity of these theories; and the possible objectives and techniques of central-bank and monetary management. Prerequisite: Same as for Economics 330. Summer, Winter, 2:30, Mints.

Source: Announcements, The University of Chicago, Vol. XLI, No. 10 (April 25, 1941). The College and the Divisions for the Sessions of 1941-42, p. 310.

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NOTE: The following reading list for Lloyd Wynn Mints’ course “Banking and Monetary Policy” (Winter Quarter of 1942) was hand-marked by Norman Kaplan with sufficient detail to warrant including his notes with the original reading list. Everything in italics and within square brackets, [], are Kaplan’s additions. A few non-italicized corrections/comments of mine are inside parentheses within the square brackets [()].

The identical printed reading list can be found at the Hoover Institution Archives, Milton Friedman’s papers (Box 5, Folder 12: Student years), together with other course reading lists. Since Milton Friedman himself never took this course according to his own course records and his copy of the reading list for Economics 331 definitely looks to be of a later vintage (at least less worn) from that of his reading list for Economics 330, we cannot conclude with any certainty that the reading list remained completely unchanged for the entire decade 1932-42.

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ECONOMICS 331
BANKING AND MONETARY POLICY

[Lloyd Mints, University of Chicago, Winter Quarter 1942]

1. Theoretical and historical foundations of the Federal Reserve Act
   1. Theoretical
      1. Smith, The Wealth of Nations, part of Book II, chapter 2; in Everyman’s edition, pages 266-286 [in Vol I; for sake of completeness, Vol II]; in Cannan’s edition, pages 285-304
         [Read]
      2. Ricardo, Reply to Mr. Bosanquet’s Practical Observations on the Report of the Bullion Committee, chapter 5; in Gonner’s edition of Ricardo’s essays, pages 113-119
      3. Mill, Principles of Political Economy, Book III, chapter 24
      4. Scott, Money and Banking; in the second edition, pages 147-176
      5. Willis, The Federal Reserve, pages 46-84, 176-191
      6. Warburg, The Discount System in Europe (The National Monetary Commission)
      7. Dunbar, The Theory and History of Banking, chapters 3, 5, and 6
      8. Agger, Organized Banking, pages 31-33, 37-63, 140-174
         [Read pp. 31-33]
      9. Conant, The Principles of Money and Banking, Vol. II, pages 17-110, 143-163
      10. Moulton, Commercial Banking and Capital Formation, in the Journal of Political Economy, Vol. 26 (1918), pages 705-731
      11. Cannan, The Meaning of Bank Deposits, in Economica for January, 1921, pages 28-36
      12. Phillips, Bank Credit, chapter 3
          [Read]
      13. Angell and Ficek, The Expansion of Bank Credit, in the Journal of Political Economy, Vol. 41 (1933), pages 1-32, 152-193
          [Read Viner, Trade, pp. 218-288]
   2. Historical: The development of the Bank of England and the London money market
      1. Dunbar, The Theory and History of Banking, the chapter on the Bank of England
         [Read]
      2. Feavearyear, The Pound Sterling, A History of English Money
      3. Andreades, A History of the Bank of England
      4. Bagehot, Lombard Street, chapters 3, 7, 9-12
      5. Whitaker, Foreign Exchange, the chapter on “Foreign Money Market Factors”; in the first edition, chapter 8
         [Read]
      6. Leaf, Banking, chapters 3, 7 and 8
      7. Willis and Beckhart, Foreign Banking Systems, chapter 17
      8. Report of the Committee on Finance and Industry (The Macmillan Report), chapter 4
      9. The Report of the Bullion Committee; to be found in “The Paper Pound of 1797-1821,” edited by Cannan
         [Read]
      10. Gregory, the introduction to the reprint of the “History of Prices,” by Tooke and Newmarch; especially pages 69-91
   3. Historical: the development of banking in the United States before 1913
      1. Dewey, State Banking before the Civil War; and Chaddock, the Safety Fund Banking System in New York, 1829-1866 (The National Monetary Commission)
      2. Hepburn, History of Currency in the United States
      3. Noyes, The War Period of American Finance
      4. Sprague, Crises Under the National Banking System, chapter 1
         [*Read]
      5. Davis, Origin of the National Banking System
      6. The appropriate chapters in any good economic history of the United States
         [Read]
      7. Miller, Banking Theories in the United States before 1860

2. The organization and operation of the Federal Reserve system
   1. Hardy, Credit Policies of the Federal Reserve System
      [Read]
   2. Burgess, The Reserve Banks and the Money Market
      [Read]
   3. Currie, The Suppply and Control of Money in the United States
      [Read a little if you have time]
   4. Willis and Steiner, Federal Reserve Banking Practice
      [Omit]
   5. Annual Report of the Federal Reserve Board for 1923, pages 3-39
      [*Read. Written by Walter W. Stewart, Mints thinks. Represents position of old Board which was homogeneous & consistent until 1934.]
   6. Woodworth, Supplement to Kilborne’s “Principles of Money and Banking” (1934; on recent developments)
   7. The Federal Reserve Bulletin for September, 1935 (the banking act of 1935)
   8. Huffman, Expansion Possibilities of Our Banking System, in the Journal of Political Economy, Vol. 34 (1926), pages 717-741.
      [Read if you want to]
      [added: Willis, Federal Reserve (not Res. System, a later book cf. A.5 for pages) 1^st 2 or 3 chapters on what it was they were interested in in getting banking reform]

3. The Problem of Monetary Policy
   1. Keynes, The Means to Prosperity
      [Omit]
   2. ________, Monetary Reform, pages 167-222[Read, not so important]
   3. ________, A Treatise on Money, Vol. I, pages 185-220, Vol. II, pages 211-408
      [Omit]
   4. Hawtrey, Trade Depression and the Way Out; in the first edition, pages 68-84
      [Read this or ch. 8 (of The Art of Central Banking by Hawtrey)]
   5. ________, The Art of Central Banking, chapters 5,7, and 8
      [(Read) ch. 8 or pp. 68-84 (of Trade Depression and the Way Out by Hawtrey)]
   6. Whittlesey, Banking and the New Deal (Public Policy Pamphlet No. 16)
      [Read if you want to]
   7. Fisher, 100% Money
      [Read if you don’t understand 100% money]
   8. Gayer, Monetary Policy and Economic Stabilization
      [Read if you want to]
   9. Report of the Committee on Finance and Industry (the Macmillan Report)
      [Read if you want to]
   10. Simons, Currency Systems and Commercial Policy; in the Report of the Commission of Inquiry into National Policy in International Economic Relations, pages 344-349
       [Read]
   11. ________, Rules versus Authorities in Monetary Policy, in the Journal of Political Economy for February, 1936
       [Read Esp.]
   12. ________, A Positive Program for Laissez Faire (Public Policy Pamphlet No. 15)
       [Read]
   13. Gregory, The Gold Standard and its Future
       [Read if you want to]
   14. Hansen, Economic Stabilization in an Unbalanced World, pages 277-323
       [Read]
   15. Robertson, Banking Policy and the Price Level
       [ Written as a reaction against stable price level protagonists.]
   16. ________, Theories of Banking Policy, in “Economic Essays and Addresses,” by Pigou and Robertson, pages 95-115
       [Also in Robertson’s Essays in Monetary Theory]
   17. Harrod, The Expansion of Credit in an Advancing Community, in Economica, New Series, Vol. I (1934), pages 287-299
       [Omit]
   18. Durbin, The Problem of Credit Policy, pages 80-87, 109-241
       [Omit]
   19. Mahr, Monetary Stability (Public Policy Pamphlet No. 9)
       [Omit]
   20. Cassel, A Theory of Social Economy; in the McCabe translation, pages 414-419, 473-481
       [You might read this if you want to]

[Read these:

Henry Villard, “Federal Reserve System’s Monetary Policy in 1931 & 1932.” JPE (To be read in connection with II)

L.V. Chandler, “Monopolistic Elements in Commercial Banking” JPE
G. L. Bach, “Monetary Policy & the Price Level”, typewritten condensation of doctoral dissertation

Optional on gold vs. Paper

C. R. Whittlesy, International Monetary Issues, chs. 4-7 (for paper)
F. A. Hayek, Monetary Nat’lism & Internat’l Stability (for gold)
Gregory, pro-gold standard
Heilperin (a book Mints can’t remember published in last 3 years)

You should read some in:

Hansen, Fiscal Policy & Business Cycles, ch. 15 esp.]

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Source: Kaplan, Norman Maurice. Papers, [Box 3, Folder 6], Special Collections Research Center, University of Chicago Library.

Image Source: From a Japanese webpage that certainly appears to be about the Chicago School(s) of Economics. Here is the link to the picture of Mints.