Abstract
The hallmark in the development of ‘the Art of Central Banking’ over the last two hundred years has been the evolution of the concept of ‘a lender of last resort’. The expression comes from the French dernier ressort, and centers on the last legal jurisdiction to which a petitioner can take an appeal. The term has become thoroughly anglicized, and now the emphasis is on the responsibilities of the lender rather than the rights of the borrower.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Notes
François Nicholas Mollien, Mémoires d’un Ministre du Trésor Public, 1780–1815 (Paris: Fournier, 1845), vol. 2, pp. 298ff.
Ministère des Finances et al., Enquête sur les principes et les faits généraux qui régissent la circulation monétaire et fiduciaire (Paris: Imprimerie impériale, 1867), vol. 2, pp. 31–2.
Murray N. Rothbard, America’s Great Depression, 3rd edn (Kansas City: Sheed & Ward, 1975), p. 167.
Herbert Spencer, from ‘State Tampering with Money and Banks’, in Essays: Scientific, Political and Speculative (London: Williams & Norgate, 1891), vol. 3, p. 354, quoted by Charles Lipson, Standing Guard: Protecting Foreign Capital in the Nineteenth and Twentieth Centuries (Berkeley: University of California Press, 1985), p. 45.
T. S. Ashton, Economic Fluctuations in England, 1700–1800 (Oxford: Oxford University Press, Clarendon Press, 1959), p. 112.
E. Victor Morgan, The Theory and Practice of Central Banking, 1797–1913 (Cambridge: Cambridge University Press, 1943), p. 240.
Maurice Lévy-Leboyer, Les banques européennes et l’industrialisation internationale dans la première moitié du XIX e siècle (Paris: Presses universitaires de France, 1964), p. 490.
See F. A. Hayek’s introduction to Henry Thornton, An Enquiry into the Nature and Effect of the Paper Credit of Great Britain (1802; London: Allen & Unwin, 1939; reprint, London: Frank Cass, 1962), p. 38.
Thomas Joplin, Case for Parliamentary Inquiry into the Circumstances of the Panic, in a letter to Thomas Gisborne, Esq., M. P. (London: James Ridgeway & Sons, n.d. [after 1832]), p. 29.
Jacob Viner, Studies in the Theory of International Trade (New York: Harper & Bros., 1937), p. 233.
D. P. O’Brien, ‘Overstone’s Thought’, in D. P. O’Brien, ed., The Correspondence of Lord Overstone (Cambridge: Cambridge University Press, 1971), vol. 1, p. 95. (A bodkin is a dagger, stiletto, ornamental hairpin, or a blunt needle with a large eye.)
Milton Friedman and Anna J. Schwartz, A Monetary History of the United States, 1867–1960 (Princeton: Princeton University Press, 1963), pp. 418–19.
Walter Bagehot, Lombard Street: a Description of the Money Market (1873; reprint edn, London: John Murray, 1917), p. 160.
Elmer Wood, English Theories of Central Banking Control, 1819–1858 (Cambridge, MA: Harvard University Press, 1939), p. 147.
J. H. Clapham, The Bank of England: a History (Cambridge: Cambridge University Press, 1945), vol. 2, p. 289.
Bertrand Gille, La banque en France au XIX e siècle: Recherches historiques (Geneva: Librairie Droz, 1970), p. 32.
Bertrand Gille, La Banque et le crédit en France de 1815 à 1848 (Paris: Presses universitaires de France, 1959), p. 367.
Michel Chevalier, Lettres sur l’Amérique du Nord, 3rd edn (Paris: Charles Gosselin, 1838), p. 37, note 1.
Jean Bouvier, Un siècle de banque française (Paris: Hachette Littérature, 1973), pp. 83–4.
See Rondo Cameron, France and the Economic Development of Europe, 1800–1914 (Princeton: Princeton University Press, 1961), pp. 191ff.
Maurice Lévy-Leboyer, Histoire économique et sociale de la France depuis 1848 (Paris: Les Cours de Droit, Institut d’Etudes Politiques, 1951–52), p. 121.
Alfred Pose, La monnaie et ses insitutions (Paris: Presses universitaires de France, 1942), p. 215.
Jean Bouvier, Le krach de l’Union Générale, 1878–1885 (Paris: Presses universitaires de France, 1960), pp. 150, 152–53.
Esther Rogoff Taus, Central Banking Functions of the United States Treasury, 1789–1941 (New York: Columbia University Press, 1943), pp. 22, 23, 29.
C. A. E. Goodhart, The New York Money Market and the Finance of Trade, 1900–1913 (Cambridge, MA: Harvard University Press, 1969), p. 120.
George W. Van Vleck, The Panic of 1857: an Analytical Study (New York: Columbia University Press, 1943), p. 106.
O. M. W. Sprague, History of Crises under the National Banking System (1910; reprint edn, New York: Augustus M. Kelley, 1968).
Myron T. Herrick, ‘The Panic of 1907 and Some of Its Lessons’, Annals of the American Academy of Political and Social Science, vol. 31 (January–June 1908), p. 324.
Franco Bonelli, La crisi del 1907: una tappa dello sviluppo industriale in Italia (Turin: Fondazione Luigi Einaudi, 1971), passim and esp. p. 165.
Leone Levi, History of British Commerce, 1763–1870, 2nd edn (London: John Murray, 1872), pp. 311–12.
Great Britain, Parliamentary Papers, Monetary Policy, Commercial Distress (1857; Shannon: Irish University Press, 1969), vol. 3, p. xxix.
See C. P. Kindleberger, ‘Rules vs. Men: Lessons from a Century of Monetary Policy’, in Christoph Buchheim, Michael Hutter, and Harold James, eds, Zerrissene Zwischenkriegsheit: Wirtschaftshistorische Beiträge: Knut Borchardt zum 65. Geburstag, reprinted in C. P. Kindleberger, The World Economy and National Finance in Historical Perspective (Ann Arbor: University of Michigan Press, 1995), pp. 181–200.
Charles Wilson, Anglo-Dutch Commerce and Finance in the Eighteenth Century (Cambridge: Cambridge University Press, 1941), pp. 176–7.
Peter Temin, Did Monetary Forces Cause the Great Depression? (New York: W. W. Norton, 1976).
Alain Plessis, La Politique de la Banque de France de 1851 à 1870 (Geneva: Droz, 1985), pp. 89, 99, 107.
W. C. T. King, History of the London Discount Market (London: George Routledge & Sons, 1936), p. 36.
D. Morier Evans, The History of the Commercial Crisis, 1857–1858, and the Stock Exchange Panic of 1859 (1859; reprint edn, New York: Augustus M. Kelley, 1969), p. 80.
A. Andréadès, History of the Bank of England (London: P. S. King, 1909), p. 266.
R. C. O. Matthews, A Study in Trade-Cycle History: Economic Fluctuations in Great Britain, 1832–1842 (Cambridge: Cambridge University Press, 1954), p. 173.
See Milton Friedman, ‘Rediscounting’, in A Program for Monetary Stability (New York: Fordham University Press, 1960), pp. 35–6.
Paul Johnson, Modern Times: the World from the Twenties to the Eighties (New York: Harper & Row, 1983), p. 244.
Author information
Authors and Affiliations
Copyright information
© 2015 Charles P. Kindleberger and Robert Z. Aliber
About this chapter
Cite this chapter
Aliber, R.Z., Kindleberger, C.P. (2015). The Domestic Lender of Last Resort. In: Manias, Panics, and Crashes. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-137-52574-1_13
Download citation
DOI: https://doi.org/10.1007/978-1-137-52574-1_13
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-137-52575-8
Online ISBN: 978-1-137-52574-1
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)