Our Commercial Banking System--Discussion

• Published in: The American economic review Vol. 25; no. 1; pp. 90 - 101
• Main Authors: Bell, James Washington, Phillips, C. A., Lichtenstein, Walter, Tout, Herbert, Curtis, C. A.
• Format: Journal Article
• Language: English
• Published: Nashville The American Economic Association 01.03.1935; American Economic Association
• Subjects: Bank assets; Bank capital; Bank credit; Bank liquidity; Bank loans; Bankers; Banking; Banking regulation; Commercial banking; Commercial banks; Economic theory; Politics; Studies; United States > US
• ISSN: 0002-8282

It is rather refreshing to listen to a sane paper such as that of Dr. Gephart. In this day of reform, when hectic and cataclysmic innovations seem to be popular, it is reassuring to hear an appraisal of our banking situation from one who realizes that much is wrong, but who is still able to keep his sense of proportion. In particular, he has not succumbed to the current temptation of appealing to the government for help. When anything goes wrong it seems to be a characteristic American reaction to say "there ought to be a law against it." If private individuals fail, we appeal to the government; if local laws do not work, we turn to Washington. Dr. Gephart's thesis is really a defense of the banking system as now constituted, with recommendations for improvement.