ANTEBELLUM FINANCIAL CRISES September 22, Antebellum Financial Crises, Bruchey Ch. 6 The chapter imparts enormous knowledge to the reader by providing detailed information concerning several aspects of money and banking before and partly before the civil war. Crucial information about the currency establishment among European countries is well analyzed. Basics of the origin of currencies that was the use of coins is well-discussed making one understand the origin of exchange rates. It came as a result of value of the mixture portion of the material component used to make the coins.
Different nations had varied combinations thus the difference in value and exchange rates among the nations that were mainly done by merchants who were involved in imports and exports of goods that were in demand during those times. Further significance of the chapter is well-portrayed by provision of information on how the banking industry and its growth had an effect on the economy. Introduction of paper money is well-analyzed with the reasons behind the idea of bank notes. Several entrepreneurs are discussed in the chapter and the ideas they came up with which some are still used in the banking industry (Bruchey 189).
For example, the transfer of money, in this case bank notes, from one individual to another was possible by an order from the customer to transfer funds to another person to the other with the amount clearly stated and record kept. The chapter also helps us understand the bank war that took place at around 1830 during the leadership of Jackson who had little concern on the second bank of America. Seldom did he mention it in his campaign and thats how he became president without questions on the same.
The chapter clearly gives answers to critical questions such as the achievements of Nicholas Riddlc at around 1816 where he was trying to enact measures to maintain the value of a currency on the international market. When going through the reading, one can relate the monetary regulatory situation. It is clear that poor regulations and allowing too much liquid cash to the public is more likely to cause inflation.