The Power of Gold: The History of an Obsession
Page 45
1. Brace, 1910, pp. 14-15.
2. Chevalier, 1859, pp. 54-56.
3. Brace, 1910, pp. 39, 53.
4. Vilar, 1976, p. 19.
5. Green, 1993, pp. 24-25.
6. Ibid., pp. 24-25.
7. Martin, 1977, p. 644.
8. Green, 1993, p. 30, and World Gold Council.
9. Gudde, 1936, pp. 184-186.
10. Ibid., p. 186.
11. Ibid., p. 192.
12. Ibid., p. 195.
13. Ibid., p. 198.
14. Ibid., p. 208.
15. Ibid., p. 227.
16. Hughes, 1987, p. 561.
17. Ibid., p. 561.
18. Ibid., p. 562.
19. Friedman, 1992, p. 40.
20. Hughes, 1987, pp. 564-565.
21. Ibid., p. 565.
22. Ibid., p. 564.
23. Ibid., p. 571.
24. King, 1997.
25. Rosenthal, 1970, p. 212.
26. Fivaz, 1988, p. 312.
27. See Fivaz, 1988, p. 311, and Rosenthal, 1970, p. 215.
28. Ibid., p. 311.
29. Barsky and DeLong, 1991, p. 823.
30. Fivaz, 1988, p. 313.
31. Ibid., Table 1, p. 313. 120 metric tons = 3,858,438 oz. @ $20.67/oz. _ $79,753,913 = 016,410,270.
32. Rosenthal, 1970, p. 217.
33. High Court of South Africa, 1896, p. 244.
34. Fivaz, 1988, p. 317.
35. For more complete information on Chevalier, see Kindleberger, 1978, pp. 25-30.
36. Jastram, 1977, Table 2, p. 32. See also Martin, 1977, p. 645.
37. Chevalier, 1859, p. 23. Martin, 1977, p. 650, cites a number of sources supporting the notion that cyclical economic factors and military activities also influenced the rise in commodity prices.
38. Chevalier, 1859, p. 85.
39. Ibid., p. 106.
40. Ibid., p. 94.
41. Ibid., p. 95.
42. Ibid., p. 95.
43. Ibid., p. 96.
44. Ibid., p. 97.
45. Ibid., p. 98.
46. Ibid., p. 106.
47. Ibid., p. 107.
48. Ibid., p. 108.
49. Ibid., p. 109.
50. Ibid., p. 110.
51. Ibid., p. 109.
52. Ibid., pp. 113-114.
53. Jastram, 1977, Table 2, p. 32.
54. Friedman and Schwartz, 1971, pp. 34-35.
55. Bureau of the Census, 1975, Series M76, p. 588.
56. Fay, 1951, p. 30.
57. See Barsky and DeLong, 1991, for an extended discussion of informed opinion and the behavior of prices, the financial markets, and gold production from 1870 to 1914.
58. Chevalier, 1859, p. 104.
59. Ibid., p. 104.
CHAPTER 15 THE BADGE OF HONOR
1. Gallarotti, 1995, p. 143
2. Ibid., p. 144.
3. Ibid., p. 144.
4. Ibid., p. 144.
5. Flandreau, 1996, p. 873.
6. Ibid., p. 886.
7. Gallarotti, 1995, p. 147.
8. Ibid., pp. 31-32.
9. Boyle, 1967, p. 128.
10. Officer, 1996, p. 36, and Table 5.2, pp. 54-55.
11. Wall Street Journal, Op-Ed page, December 10, 1999.
12. Gallarotti, 1995, Table 5.1, p. 135.
13. Ibid., p. 115.
14. Carman, 1919, pp. 11, 21.
15. Jevons, 1875, pp. 231-232.
16. See Friedman, 1992, p. 151n.
17. Redish, 1990, p. 805.
18. Bloch, 1933, p. 3.
19. Friedman, 1992, p. 153.
20. Hawtrey, 1947, p. 79.
21. Hamilton, 1791, p. 576.
22. Ibid., p. 576.
23. Ibid., p. 578.
24. Flandreau, 1996, p. 864.
25. Friedman, 1992, p. 133.
26. Chevalier, 1836, Letter 6, January 5, quoted in Kindleberger, 1978.
27. Friedman, 1992, pp. 55-57.
28. Martin, 1977, p. 650.
29. Ibid., especially pp. 656-657.
30. Holtfrerich, 1999, p. 187.
31. Flandreau, 1996.
32. Gallarotti, 1995, Table 6.3, p. 167.
33. Noyes, 1898, p. 157.
34. Ibid., p. 157.
35. Wirth, 1893, p. 218.
36. Ibid., p. 218.
37. See, especially, Wirth, 1893, pp. 219-229, for a vivid description of the derrings-do.
38. Pressnell, 1968, p. 217; the quoted diary was by Sir Edward Hamilton.
39. Wirth, 1893, p. 232.
40. Eichengreen, 1992, pp. 49-50.
41. Pressnell, 1968, p. 199.
42. Eichengreen, 1992, p. 49.
43. Ibid., pp. 49-50.
44. Pressnell, 1968, p. 203.
45. Kindleberger, 1996a, p. 139.
46. Ibid., p. 139.
47. See Kindleberger, 1993, p. 67; this is a good story.
48. Eichengreen, 1996, p. 33.
49. See Ibid., p. 31.
50. Gallarotti, 1995, p. 145.
CHAPTER 16 THE MOST STUPENDOUS CONSPIRACY AND THE ENDLESS CHAIN
1. Harvey, 1894, p. 215.
2. Bureau of the Census, 1975, Table 433, pp. 994-995.
3. Ibid., Table 424, pp. 994-995.
4. Friedman and Schwartz, 1971, p. 44.
5. Bureau of the Census, 1975, Table 52, p. 201.
6. Ibid., Table 52, p. 201, and Table 495, p. 1004.
7. Friedman, 1992, p. 51.
8. See Rockoff, 1990.
9. Friedman, 1992, pp. 62-63.
10. All the information in this paragraph is from Harvey, 1894, p. 39, who cites many sources.
11. Noyes, 1898, pp. 54-59.
12. Ibid., p. 160.
13. Ibid., p. 173.
14. Ibid., pp. 188-191.
15. Ibid., p. 220.
16. Niedringhaus, 1998, p. 19.
17. Noyes, 1898, p. 232.
18. Ibid., p. 232.
19. Ibid., p. 233.
20. Chernow, 1990, p. 74.
21. Ibid., p. 74.
22. Ibid., p. 75.
23. Ibid., p. 75.
24. Noyes, 1898, p. 237.
25. Chernow, 1990, p. 76.
26. Noyes, 1898, p. 236.
27. Ibid., p. 241.
28. Ibid., p. 253.
29. Friedman, 1992, p. 106.
30. Chernow, 1990, p. 78.
31. Quoted in Michael Kazin, "Where's the Outrage?" New York Times Magazine, June 7, 1998, p. 79.
32. Hicks, 1931, pp. 439-444.
33. Boorstin, 1966, pp. 593-604. This text includes useful background on Bryan by Richard Hofstadter.
34. Noyes, 1898, p. 266.
35. Ibid., pp. 266-267. He cites the New York Financial Chronicle for October 31 and November 7.
36. Ibid., pp. 264-266.
37. Friedman, 1992, pp. 104-125.
38. Ibid., p. 109, citing Henry Steele Commager.
CHAPTER 17 THE NORMAN CONQUEST
1. All quotes except for The Economist from Moggridge, 1972, p. 10.
2. Eichengreen, 1992, p. 104.
3. Kindleberger, 1993, Table 16.4, p. 298.
4. Hawtrey, 1947, Appendix.
5. Jastram, 1977, pp. 32, 146.
6. Mayhew, 1999, p. 202.
7. Moggridge, 1972, p. 28.
8. Boyle, 1967, p. 133.
9. Ibid., p. 128.
10. Moggridge, 1972, pp. 26-27.
11. Ibid., p. 40.
12. Boyle, 1967, p. 185.
13. Ibid., p. 189.
14. Mayhew, 1999, p. 214.
15. Moggridge, 1972, p. 53.
16. Ibid., p. 49.
17. Chernow, 1990, pp. 274-275.
18. Kindleberger, 1993, p. 330.
19. Keynes, 1931, pp. 183-184, from Auri Sacra Fames (Accursed Greed for Gold).
20. Kindleberger, 1993, pp. 327, 331.
21. Moggridge, 1972, p. 81.
22. Keynes, 1931, p. 246, from "The Economic Consequences of Mr. C
hurchill."
23. Ibid., pp. 233-235, from "The Speeches of the Bank Chairmen."
24. Smith, 1996.
25. Boyle, 1967, pp. 195-196. My italics.
26. Ibid., p. 196.
27. Ibid., p. 207.
28. Keynes, 1931, pp. 248-249.
29. Moggridge, 1972, pp. 45-46.
30. Kindleberger, 1993, p. 335.
31. See Kindleberger, 1986, p. 18.
32. For an extended and vivid description of these events, see Kindleberger, 1993, pp. 339-340.
33. Ibid., p. 343.
34. Ibid., p. 344.
35. Ibid., p. 332.
36. Eichengreen, 1996, Table 3.1, p. 65.
37. Hawtrey, 1947, Appendix.
38. Eichengreen, 1996, p. 66.
39. Chernow, 1990, p. 313.
40. Kindleberger, 1993, p. 334.
41. Boyle, 1967, pp. 231-232.
42. Ibid., pp. 233-234.
43. Galbraith, 1954, p. 57.
44. Bureau of the Census, 1975, Tables 548-550, p. 1009, and Kindleberger, 1986, Table 9, p. 100.
45. Bureau of the Census, 1975, Tables 445 and 447, p. 1001.
46. Kindleberger, 1986, pp. 100-102.
47. Eichengreen, 1996, p. 71.
48. Kindleberger, 1993, pp. 355, 358.
CHAPTER 18 THE END OF THE EPOCH
1. Hoover, 1952, p. 30.
2. Chernow, 1990, p. 322.
3. See The Merchant of Venice, Act III, Scene 2.
4. Hoover, 1952, p. 31.
5. Ibid., p. 53.
6. See Kindleberger, 1986, Tables 11, 13, and 14, pp. 113, 138, 139.
7. Friedman and Schwartz, 1971, p. 382.
8. Bureau of the Census, 1975, Tables 40, 9, and 588 (pp. 200, 126, and 1021).
9. Chernow, 1990, p. 323.
10. See Kindleberger, 1986, p. 130, and Hawtrey, 1947, p. 161.
11. Ibid., p. 145.
12. Ibid., p. 128.
13. Ibid., p. 165.
14. Boyle, 1967, p. 263.
15. Ibid., pp. 263-264.
16. Ibid., p. 264.
17. Ibid., p. 267.
18. Ibid., p. 266.
19. Ibid., pp. 272-273.
20. The Economist, September 12, 1931.
21. Keynes, 1931, "Saving and Spending," pp. 152-153.
22. Ibid., "The End of the Gold Standard," pp. 288, 294.
23. Moggridge, 1972, p. 9.
24. Boyle, 1967, p. 268.
25. Eichengreen, 1996, p. 48, and Hawtrey, 1947, p. 161.
26. Hawtrey, 1947, Appendix.
27. Kindleberger, 1993, pp. 370-371.
28. Friedman and Schwartz, 1971, p. 333.
29. Hoover, 1952, p. 120.
30. Hawtrey, 1947, p. 188.
31. Bureau of the Census, 1975, Table 493, p. 1117.
32. Hoover, 1952, p. 133.
33. Ibid., Chapters 17 and 18.
34. Ibid., p. 191.
35. Ibid., p. 199.
36. Ibid., p. 202.
37. Ibid., p. 204.
38. Ibid., pp. 201-202, and Eichengreen, 1992, p. 328.
39. Federal Reserve data.
40. Friedman and Schwartz, 1971, p. 333.
41. Ibid., p. 391.
42. Eichengreen, 1992, pp. 329-330.
43. Hoover, 1952, pp. 390-391.
44. Ibid., p. 395.
45. U.S. Supreme Court, Perry v. United States, No. 532, dated February 18, 1935.
46. Eichengreen, 1992, p. 333.
47. Hoover, 1952, p. 367.
48. Ibid., p. 398.
49. Ibid., p. 399.
50. Kindleberger, 1993, p. 385.
51. See Ibid., p. 387.
52. Jastram, 1977, Tables 3 and 8, pp. 34, 147.
53. Graham and Whittlesey, 1939, pp. 6-7.
54. Ibid., p. 9.
55. Ibid., p. 14.
56. Ibid., p. 14.
57. Ibid., p. 23.
58. Ibid., p. 20.
59. See Moggridge, 1972, pp. 81-90, for a full discussion of this view.
60. Boyle, 1967, p. 190.
61. Ibid., p. 190.
62. Chernow, 1990, p. 475.
63. Boyle, 1967, pp. 327-328.
CHAPTER 19 THE TRANSCENDING VALUE
1. de Gaulle, 1965.
2. All above quotations are from the New York Times.
3. Moggridge, 1980, p. 229.
4. Ibid., p. 230.
5. From Triffin, 1960, Table 2, p. 5.
6. Personal reminiscence of Robert Roosa.
7. Eichengreen, 1996, p. 131.
8. Weil and Davidson, 1970, p. 62.
9. U.S. Treasury Department, 1982, p. 84.
10. New York Times, October 21, 1967.
11. Ibid., March 21, 1968.
12. Ibid., November 28, 1967.
13. Weil and Davidson, 1970, p. 100.
14. For details, see Ibid., pp. 143-147.
CHAPTER 20 WORLD WAR EIGHT AND THE THIRTY OUNCES OF GOLD
1. Stein, 1984, p. 162.
2. This whole story is from Stein, 1984, pp. 162-180.
3. Ibid., p. 166.
4. Ibid., p. 176.
5. Ibid., p. 177.
6. New York Times, August 16, 1971.
7. All quotations in this paragraph are from the New York Times, August 17, 1971.
8. Ibid., August 16, 1971.
9. Ibid., August 20, 1971.
10. Ibid., August 19, 1971.
11. Ibid., August 17, 1971.
12. Eichengreen, 1996, p. 133.
13. U.S. Treasury Department, 1982, p. 93.
14. New York Times Abstracts, 1978, p. 30, col. 5.
15. New York Times, January 4, 1980.
16. Ibid., January 6, 1980.
17. This entire paragraph is from the New York Times, January 16, 1980.
18. Ibid., January 18, 1980.
19. Ibid., January 22, 1980.
20. Ibbotson and Siegel, 1983, Tables 1 and 3.
21. Pensions & Investments, March 12, 1979, October 13, 1980, and April 18, 1983. For further details about this episode, see Clowes, 2000.
22. U.S. Treasury Department, 1982, pp. 84, 199, 205.
23. New York Times, December 19, 1985.
24. U.S. Treasury Department, 1982, p. 13.
25. International Monetary Fund data.
26. Swiss Expert Group, 1997, p. 2.
27. Ibid., p. 7.
28. Advertisement of the World Gold Council in the New York Times, September 8, 1998.
29. New York Times, September 28, 1999.
30. Bankers Trust Research, Global Economics, Commodity Focus, June 27, 1997.
31. World Gold Council.
32. The Economist, January 16, 1999.
33. Mitsui Global Precious Metals, Presentation at Bank Credit Analyst Conference, February 12, 1999.
EPILOGUE
1. Shaw, 1928, p. 263.
2. Jevons, 1875, pp. 231-232.
3. Wall Street Journal, Op-Ed page, December 10, 1999.
4. From a lecture delivered at Saint Vincent College, Latrobe, Pa., on March 13, 1997.
Andrews, Kenneth, 1978. The Spanish Caribbean: Trade and Plunder, 1530-1630. New Haven, CT: Yale University Press.
Andrews, Kenneth, 1984. Trade, Plunder and Settlement: Maritime Enterprise and the Genesis of the British Empire, 1480-1630. Cambridge: Cambridge University Press.
Arnon, Arie, 1991. Thomas Tooke: Pioneer of Monetary Theory. Ann Arbor: University of Michigan Press.
Attman, Artur, 1962. American Bullion in the European World Trade, 1600-1800. Goteborg: Kungl. Vetenskaps- och Vitterhets-Samhallet. (I drew on the information in this book as provided in Kindleberger, 1989.)
Austen, Ralph A., 1990. "Marginalization, Stagnation, and Growth: The Trans- Saharan Caravan Trade in the Era of European Expansion, 1500-1900." In Tracy, 1990.
Bainton, Roland, 1952. The Reformation of the Sixteenth Century. Boston: Beacon Press.
Bank for International Settlements. Various a
nnual reports.
Barnes, James A., 1937. "Myths of the Bryan Campaign." Mississippi Valley Historical Review, 34 (Dec.), pp. 367-400.
Barsky, Robert, and Bradford DeLong, 1991. "Forecast Pre-World War I Inflation: The Fisher Effect and the Gold Standard." Quarterly Journal of Economics, 106, pp. 815-836.
Bayoumi, Tamim, Barry Eichengreen, and Mark Taylor, eds., 1996. Modern Perspectives on the Gold Standard. Cambridge: Cambridge University Press.
Becker, Gary S., Edward Glaeser, and Ken Murphy, 1999. "Population and Economic Growth." American Economic Review, 89, no. 2 (May), pp. 145-149.
Bernstein, Peter L., 1968. A Primer on Money, Banking and Gold, 2nd edition. New York: Random House.
Bernstein, Peter L., 1970. Economist on Wall Street. New York: Macmillan.
Bernstein, Peter L., 1996. Against the Gods: The Remarkable Story of Risk. New York: John Wiley & Sons.
Bloch, Mark, 1933. "Le probleme de For au moyen age." Annales d'histoire economique et sociale, no. 19, January 31, pp. 1-33.
Bloomfield, Arthur, 1959. Monetary Policy Under the Gold Standard, 1800-1914. Federal Reserve Bank of New York.
Bonar, J., 1923. "Ricardo's Ingot Plan." Economic Journal, XXXIII, pp. 281-304.
Boorstin, Daniel, ed., 1966. An American Primer. New York: Penguin Books.
Bordo, Michael, 1986. "Money, Deflation and Seigniorage in the Fifteenth Century: A Review Essay." Journal of Monetary Economics, 18, no. 3, pp. 337-346.
Bordo, Michael, and Tamim Bayoumi, 1999. "Getting Pegged: Comparing the 1879 and 1925 Gold Resumptions." Cambridge, MA: National Bureau of Economic Research, Working Paper 5497.
Bordo, Michael, and Forrest Capie, eds., 1993. Monetary Regimes in Transition. Cambridge: Cambridge University Press.
Bordo, Michael, and Barry Eichengreen, 1998. "The Rise and Fall of a Barbarous Relic: The Role of Gold in the International Monetary System." Cambridge, MA: National Bureau of Economic Research, Working Paper 6436.
Bordo, Michael, and Ronald MacDonald, 1997. "Violations of `Rules of the Game' and the Credibility of the Classic Gold Standard, 1890-1914." Cambridge, MA: National Bureau of Economic Research, Working Paper 6115.
Bordo, Michael, and Hugh Rockoff, 1996. "The Gold Standard as the Good Housekeeping Seal of Approval." Cambridge, MA: National Bureau of Economic Research, Working Paper 5340.
Bordo, Michael, and Anna Schwartz, 1984. A Retrospective on the Classical Gold Standard, 1921-1931. Chicago: University of Chicago Press.
Bordo, Michael, and Eugene White, 1991. "A Tale of Two Currencies: British and French Finance During the Napoleonic Wars. "Journal of Economic History, 51, no. 2 (June), pp. 303-316.
Bordo, Michael, Ehsan Choudri, and Anna Schwartz, 1999. "Was Expansionary Monetary Policy Feasible During the Great Contraction?" Cambridge, MA: National Bureau of Economic Research, Working Paper 7125.
Bovill, E. W., 1958. The Golden Trade of the Moors. London: Oxford University Press.