Edmund Ezra Day was awarded his Harvard economics Ph.D. in 1909 and he was subsequently appointed assistant professor of economics in 1910-11. This was a transition year for monetary economics at Harvard. In 1911-12 Day consolidated the three half-courses Econ 8a (Money), Econ 8b (Banking and Foreign Exchange), and Econ 12 (Commerical Crises and Cycles of Trade)into the full course “Money, Banking, and Commercial Crises.”
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Exams from earlier years
1906-07. Banking and Foreign Exchange (A.P. Andrew)
1907-08. Banking and Foreign Exchange (A.P. Andrew)
1908-09. Banking and Foreign Exchange (W.C. Mitchell)
1909-10. Banking and Foreign Exchange (O.M.W. Sprague)
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Economics 8b
Course Description
1910-11
8b 2hf. Banking and Foreign Exchange. Half-course (second half-year). Mon., Wed., Fri., at 1.30. Dr. [Edmund Ezra] Day.
In Course 8b, after a summary view of early forms of the development, legislation, and present practice of banking in leading countries, — such as England, Scotland, France, Germany, and Canada, — are reviewed and contrasted. Particular attention is given to banking history and experience in this country: the two United States banks; the more important features of banking in the separate states before 1860; the beginnings, growth, operation, and proposed modification of the national banking system; and credit institutions outside that system, such as state banks and trust companies; and the growth and influence of the independent government treasury.
The peculiarities of the money markets of London, Paris, Berlin, and New York are examined, and the various factors, such as stock exchange dealings, and international exchange payments, which bring about fluctuations in the demand for loans, and the rate of discount in these markets will be considered.
Written work, in the preparation of short papers on assigned topics, and a regular course of prescribed reading will be required of all students.
The course is open to those who have taken Economics 1.
Source: History and Political Science, Comprising the Departments of History and Government, and Economics, 1910-11. Published in the Official Register of Harvard University. Vol. VI,I No. 23 (June 21, 1910), p. 58.
Economics 8b
Course Enrollment
1910-11
Economics 8b 2hf. Dr. E. E. Day. — Banking and Foreign Exchange.
Total 123: 1 Graduate, 26 Seniors, 55 Juniors, 27 Sophomores, 5 Freshmen, 9 Others.
Source: Harvard University. Report of the President of Harvard College, 1910-1911, p. 49.
Economics 8b
Year-end Examination, 1910-11
- Carefully distinguish the clearing house certificate from the clearing house loan certificate. Describe the manner in which the loan certificate has been customarily issued.
What is the primary function of the loan certificate? Explain Professor Sprague’s statement: “The result (from failure to equalize or pool reserves) has been to convert the clearing house loan certificate into an instrument which inevitably and immediately leads to the suspension of payments by the banks.”
To what new uses was the loan certificate put in 1907? To what extent would you expect this practice of 1907 to be followed were another crisis to occur under our present banking laws? - Describe the manner in which commercial banking in England arose from the business of the “new fashioned” goldsmiths.
- Contrast the banking systems prevailing in 1860 in New England and New York.
- In the English banking system, what are the functions of (1) the accepting house, (2) the bill-broker, (3) the discount house? What is the size and form of the English banking reserves? Are these reserves adequate? If so, why? If not, why not?
- Describe the following features of bank note issue in Canada: (1) number of issuing banks; (2) limitations upon issue; (3) security of notes; (4) current redemption of notes; (5) elasticity of issue.
- Describe the elasticity, from year to year, season to season, and during crises, of’ (1) gold coin, (2) bank notes, and (3) deposit currency, in the United States.
- Contrast Professor Sprague’s proposed central bank with the Reserve Association advocated by Senator Aldrich. Which, in your opinion, the better assures the banking reform needed in the United States? Why?
Source: Papers set for Final Examinations in History, Government, Economics, …, Landscape Architecture, Music in Harvard College. June 1911, p. 44. In Harvard University Archives, Examination papers, 1873-1915 (HUC 7000.25). Box 9. Examination Papers, 1910-11, p. 47.
Image Source: Edmund Ezra Day in Harvard Class Album 1915. Colorized by Economics in the Rear-view Mirror.