Brief biographical information William Oswald Weyforth can be found in the earlier post that has includes the 1930-31 exam questions in money and banking.
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Course Description
for Money and Banking
1937-1938
3 B. Money and Banking. Associate Professor Weyforth. Three hours weekly through the year. M., Tu., W., 9.30. Gilman Hall 311.
In this course an analysis of the functions of money, credit and banking in our modern economic life will be made. There will be a description of various types of monetary systems, of the forms of credit and of banking and financial institutions. Particular attention will be given to the relationship between money, bank credit and prices; to the effects of price fluctuations upon individuals and upon general business conditions; to the problems of stabilizing prices and controlling business fluctuations by means of a deliberately directed monetary and credit policy. The Federal Reserve System will be studied with special emphasis upon its problem of credit control. Some time will also be devoted to the relationship between the money market and the stock market, to the problem of brokers’ loans, and to financial operations involved in our international trade.
Prerequisite: Political Economy 1 C.
Source: The Johns Hopkins University Circular (1937).
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Semester Examinations for Money and Banking
1937-1938
THE JOHNS HOPKINS UNIVERSITY
MID-YEAR EXAMINATION
POLITICAL ECONOMY 3 B
(Money & Banking)
February 1, 1938
- What are the essential features of a gold standard? Distinguish between a gold specie and a gold bullion standard. Is the United States on a gold standard at the present time? Give the reasons for your answer.
- What is bimetallism? What were the forces responsible for the demand for bimetallism after 1873. Criticize the recent silver policy of the United States government.
- Distinguish the international “balance of trade” and the “balance of payments” of any country. What are the more important types of transactions that enter into the balance of payments? Explain the forces through which equilibrium in the international balance of payments of a country is maintained under an international gold standard.
- When two countries are both on a gold standard why do market rates of exchange between the two currencies remain close to the mint par of exchange? Explain fully the circumstances under which bankers will undertake shipments of gold.
- Explain the relation between the quantity of money and the general level of prices. Will an increase in the quantity of money always result in an increase in the general level of prices? Explain fully.
- Explain the type of financing under which large government expenditures might lead to inflation. How might such expenditures be financed without bringing inflation?
- Explain the relationship between the purchasing power and the exchange rates of two currencies. Is the equilibrium rate between two paper currencies necessarily the purchasing power parity? Explain.
- Distinguish between a bill of exchange and a promissory note. Explain the significance of negotiability.
- Show how demand deposits in banks serve as money. Explain how banks create deposits. How is the power of banks limited in this respect? Explain the difference between the power of the banking system as a whole and that of a single bank that is one among a number in the system.
- What is meant when it is said that the pound sterling was overvalued when England returned to the gold standard in 1925; and that the franc was undervalued when France returned to gold in 1928? What are the economic effects of a country’s overvaluation or undervaluation of its gold currency?
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THE JOHNS HOPKINS UNIVERSITY
FINAL EXAMINATION
IN
POLITICAL ECONOMY 3 B
Dr. Weyforth
May 31, 1938
9 a.m.
- What factors have been responsible for the decline of commercial loans in the United States since the end of the world war? What is the nature of the problem that this development has presented to commercial banks?
- In what way has speculation in securities been financed by commercial banks? Explain fully. What specific powers have been conferred upon the Federal Reserve Board by the Banking Act of 1933, and by the Securities and Exchange Act of 1934 so as to give the Board greater control over speculation in securities?
- What factors have been responsible for the large excess reserves of member banks during the depression? Why have these excess reserves not led to a commensurate expansion of loans and investments?
- What justification is there for saying that we have a managed currency in the United States at the present time?
- What methods may be employed by the Federal reserve system at the present time for the purpose of credit control? Distinguish between quantitative control and qualitative control.
- In determining its policy of credit control what consideration should be given by the Federal Reserve officials to the following factors: (a) the state of the gold (gold certificate) reserves of the Federal reserve banks; (b) the general level of commodity prices; (c) the movement of security prices; (d) the volume of employment?
- What are the limits of the effectiveness of easy credit conditions as a means of stimulating business activity during a depression? How effective do you believe that government spending may be for this purpose? Explain fully.
- State the arguments pro and con for branch banking in the United States.
- What is meant by sterilized gold in the United States Treasury? What was the mechanism by means of which this sterilization was accomplished.
Source: Johns Hopkins University, Eisenhower Library. Ferdinand Hamburger, Jr. Archives. Department of Political Economy. Curricular Materials. Series 6. Box 2. Folder “Department of Political Economy — Exams, 1936-1940”.
Image Source: William Oswald Weyforth (ca. 50 years of age). Johns Hopkins University graphic and pictorial collection, Sheridan Libraries. Colorized by Economics in the Rear-view Mirror.