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Organization of Debt into Currency and Other Papers
by Charles Holt Carroll (1799-1890)


Published in 1964 by William Volker Fund and simultaneously in Canada by D. Van Nostrand Company (Canada), Ltd.

From Murray Rothbard's History of Economic Thought: "One of the most unusual — and most advanced — of the American admirers of Fredéric Bastiat was the Boston merchant Charles Holt Carroll (1799— 1890). A staunch adherent of free trade and laissez-faire, Carroll, in articles in mercantile and financial magazines from 1855 until 1879, concentrated on questions of money and banking. In essence, Charles Carroll was the last Jacksonian, continuing to argue the ultra-hard money cause long past the tremendous setback it received during the Civil War, when greenbackism and the national banking act necessarily led sound money men to concentrate on sheer return to the gold standard. Moreover, Carroll was not content to advocate 100 per cent banking; he perceptively and consistently urged 100 per cent banking for demand deposits as well as notes. Carroll, indeed, was particularly clear in demonstrating that bank demand deposits mainly arise from the extension of loans by the banks. He also pointed out the fallacy of the Smithian 'real bills' justification for fractional-reserve banking. Further­more, Carroll realized that central banking, epitomized by the Bank of Eng­land, allows far more room for the expansion of fractional reserve and ‘ficti­tious’ money than would a system of free banking. But in addition, Carroll went beyond most hard-money advocates by calling for the elimination of such potentially dangerous currency names as ‘the dollar’ (which give the illusion that these units are goods-in-themselves), and their replacement as the currency unit by regular, ordinary-language definitions of weight in gold, e.g. in numbers of toy ounces. For international currencies, that is, for currencies not redeemable in a common metal, Carroll worked out the es­sence of the purchasing-power-parity theory for the underlying determination of exchange rates on the world market."

Entire text in PDF

Table of Contents

Introduction by Edward C. Simmons (p.v)
1. The Currency and the Tariff (p. 1)
2. The Gold of California and Paper Money (p. 15)
3. Change of the Banking Principle (p. 36)
4. Money and Banking (p. 49)
5. The Export of Gold (p. 57)
6. Specie Prices and Results (p. 65)
7. Interest and Cheap Currency (p. 74)
8. Organization of Debt into Currency (p. 86)
9. The Banking and Credit Systems, I (p. 95)
10. The Banking and Credit Systems, II (p. 110)
11. On the Nature of Commercial Value (p. 122)
12. New Views of the Currency Question, I (p. 129)
13. New Views of the Currency Question, II (p. 136)
14. Bankruptcy in the Currency (p. 151)
15. Attributes of Money (p. 176)
16. Congressional Movement in the Currency Question (p. 196)
17. Mr. Lowell vs. Mr. Hooper on Banking and Currency (p. 202)
18. Financial Heresies (p. 219)
19. Currency of the United States (p. 226)
20. Financial Economy (p. 242)
21. The Monetary Unit and Financial Economy (p. 250)
22. Congress and the Currency (p. 265)
23. National Finance with Legal Tender (p. 275)
24. Of the Balance of Trade (p. 290)
25. Price With and Without Value (p. 299)
26. On the Tariff and the Principle of Taxation (p. 311)
27. The Currency Question in the Commercial Convention in Boston (p. 321)
28. Specie Payments (p. 340)
29. Bankruptcy and Insolvency (p. 349)
30. The Financial Question (p. 360)
31. The Currency Theories of the Day (p. 371)
32. Tariff and Special Taxation (p. 382)
33. Of the Discount Deposit (p. 392)
34. The Natural Sum of the Nation's Money (p. 402)
35. Of the Balance of Trade and the Course of Exchange (p. 412)
36. Of the True and False in Money and Banking (p. 420)