Harvard. Exams for Money and Banking. Andrew, 1906-1907

A two course sequence covering money, banking and foreign exchange became an established specialty field at the beginning of the twentieth century. Assistant Professor A. Piatt Andrew covered that field at Harvard.

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Previous course materials for
Money and Banking 

1900-01 (Meyer and Sprague)
1901-02 (Andrew, Sprague, Meyer)
1902-03 (Andrew’s money exam, Sprague’s banking exam)
1903-04 (Andrew and Sprague)
1904-05 (Andrew’s money exam, Sprague’s banking exam)
1905-06 (Andrew’s money and banking exams)

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Course Enrollment 1906-07
Money, first semester

Economics 8a ¹hf. Asst. Professor Andrew. — Money. A general survey of currency legislation, experience, and theory in recent times.

Total 50: 4 Graduates, 12 Seniors, 22 Juniors, 10 Sophomores, 2 Others.

Source: Harvard University. Report of the President of Harvard College, 1906-1907, p. 71.

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ECONOMICS 8a
Mid-year Examination, 1906-07

1. Why was the Latin Monetary Union instituted? Why does it continue to exist? What conclusions of general significance can be drawn from its history?
2. When may the levying of a seignorage be expected to result in rising prices? Falling prices? Stationary prices?
3. “It is possible to introduce either a system of bi-metallism which will make prices fall, or one which will make them rise.” Explain these two systems, and show why they would affect prices in such ways.
4. How is the increasing gold supply likely to affect —
   1. the interests of the working classes?
   2. the prosperity of business?
   3. the income of persons living upon a salary?
   4. the price of real estate?
   5. the price of bonds?
      Explain the reasons in each case.
5. Explain the character, merits, and defects of —
   (a) the mathematical mean, (b) the geometrical mean, (c) the median, (d) the mode, (e) weighted averages, as methods of measuring changes in the value of money.

6. “If an ounce of gold, which would be coined into the equivalent of £3 17s 10½ d, is sold for £4 or £5 in paper, the value of the currency has sunk just that much below what the value of a metallic currency would be.” — Mill, II, p. 92. What is your opinion of this statement?
7. What does Darwin mean by the labor standard? By the commodity standard? Explain the merits claimed for each, and show the exemplification of the two standards in the history of the precious metals between 1873 and 1896. Has either been exemplified in the history of gold or silver since 1896?
8. Enumerate the different kinds of money now current in the United States, and explain the circumstances and conditions of their issue.

Source: Harvard University Archives. Harvard University. Mid-year Examinations, 1852-1943. Box 7, Bound Volume: Examination Papers, Mid-Years 1906-07. A copy is also found in Harvard University, Examination Papers, 1873-1915. Box 8, Bound vol. Examination Papers 1906-07 (HUC 7000.25), pp. 30-31.

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Course Enrollment, 1906-07
Banking, second semester

Economics 8b ²hf. Asst. Professor Andrew. — Banking and Foreign Exchange.

Total 82: 3 Graduates, 10 Seniors, 32 Juniors, 30 Sophomores, 2 Freshmen, 5 Others.

Source: Harvard University. Report of the President of Harvard College, 1906-1907, p. 71.

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ECONOMICS 8b
Year-end Examination, 1906-7

Omit one question

1. Name and characterize briefly the various classes of banks existing in (a) the United States, (b) England, (c) Scotland, (d) France, and (e) Germany.
   Name when possible a few leading examples of each class.
2. What is meant in England by the official Bank rate, the actual Bank rate, the deposit rate, the market rates?
   Suppose that the official rate is raised from 4% to 5%, to what extent will the other rates probably be affected? and why?
   Would the answer have been different thirty years ago?
3. In what manner and to what extent does the government derive especial advantage in the way of revenue and of services from the banks in the United States? in England? in Germany?
4. It has been said that “any amount of credit may be created … so long as the claims held by the bank are based upon actual and salable property.”
   Mention any person or persons to whom one might attribute this opinion. Would you accept it?
5. Express and illustrate the various circumstances under which American quotations of exchange upon France may (1) exceed, and (2) fall short of the nominal gold points.
6. In your opinion did Andrew Jackson’s policy work permanent benefit or permanent harm to the banking interests of the country? State reasons.
7. Explain briefly the innovations made by Secretary Shaw in the relations of the Treasury with the banks, and state your opinion of the general policy involved therein.
8. What contributions to the development of banking in England were made by the authors of (a) “The Bullion Report,” (b) “Lombard Street”?
   In what ways and how far are the principles there presented applicable to the United States?

Source: Harvard University Archives. Harvard University, Examination Papers, 1873-1915. Box 8, Bound vol. Examination Papers 1906-07 (HUC 7000.25), pp. 31-32.

Image Source: A. Piatt Andrew’s The Red Roof Guestbook, 1914-1930. Available at the Historic New England Website. Henry Davis Sleeper (Andrew’s neighbor on the left) and A. Piatt Andrew Jr. (right).

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