PhD thesis: 'Bank assets and banking theory', Harvard University, January 1931 Chapter Ⅰ: History of theory of bank assets

摘要

In recent discussions of the growth of long-term capital loans in banking assets it is often assumed that theory sanctioned and practice conformed to the principle that short-term real commercial loans constitute the ideal type of asset. As a matter of fact, there has never been unanimity in theory or in practice on this subject. As is well known, the first asset of the Bank of England and, indeed, its raison d'etre was a loan to the government of such permanence that it has not as yet been extinguished, and the establishment of the First Bank of the United States was largely due to the aid, in the shape of loans, it was expected to render the national government.