Liquidity and Secrets

  Bank credit is an elemental thing consisting of purchasing power which a bank manufactures. This credit manifests itself in two forms, namely, bank notes and bank deposits.                                               Thomas Bruce Robb, The […]

Financial Crisis

  Since 1793 panics have occurred [in the United States] in the following years: 1797, 1811, 1813, 1816, 1819, 1825, 1837, 1847, 1857, 1866, 1873, 1884, 1890, and 1893. The true name fora system with this record is the panic system. -Theodore Gilman, Federal Clearing Houses, 1899   Financial crises in market economies are common, […]

Federal Deposit Insurance

Even after the Federal Reserve System was established in 1914, the United States endured continual panics through the National Banking Era and during the Great Depression until federal deposit insurance legislation was passed in 1934, the second momentous financial legislation in U.S. history. Despite the experience of the extensive bank runs during the Great Depression, […]

Creating the Quiet Period Part 4 (last)

cycles, and tended to occur at or near business cycle peaks. Table  shows the business cycles of the time according to the National Bureau of Economic Research. The two columns in table  following the panic date show the percentage change in the currency deposit ratio and the percentage change in pig iron production. These are […]