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³ Ibid.

⁴ See Hickman, Bert, “The Postwar Retardation: Another Long Swing in the Rate of Growth?,” American Economic Review, LIII (May, 1963), 490–507.Google Scholar

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¹¹ Commercial and Financial Chronicle, January 20, 1883.

¹² See, for example, Sylla, Richard, “Federal Policy, Banking Market Structure;” Goodhart, C. A. E., The New York Money Market and the Finance of Trade, 1900–1913 (Cambridge, Mass., 1969Google Scholar); and Trescott, Paul, Financing American Enterprise (New York, 1963).Google Scholar

¹³ Noyes, Alexander D., “The Trust Companies: Is There Danger in the System?,” Political Science Quarterly, XVI (June, 1901), 248.CrossRefGoogle Scholar

¹⁴ Ibid., 255.

¹⁵ For a detailed discussion of this point see Pesek, Boris and Saving, Thomas, Money, Wealth, and Economic Theory (New York, 1967).Google Scholar

¹⁶ See Friedman, Milton and Schwartz, Anna J., A Monetary History of the United States, 1869–1960 (Princeton, N.J., 1963), 175.Google Scholar

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¹⁸ Greef, Albert O., The Commercial Paper House in the United States (Cambridge, Mass., 1938).Google Scholar

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²³ Value added from Historical Statistics, 638, and GNP in current prices from Long–Term Economic Growth, 166–67.

²⁴ There is some dispute among economists as to the relative importance of the transactions functions and the liquidity functions of banks and financial intermediaries in general. The major work done to date on measuring the output of commercial banks in the contemporary economy is Gorman, John, “Real Output and Productivity of Commercial Banks” in Fuch, Victor, ed., Production and Productivity in Service Industries (New York, 1969).Google Scholar Gorman uses both concepts and finally opts in favor of the results obtained by the liquidity hypothesis. This decision, however, is strongly criticized by all the discussants. Donald Hodgman, the principal discussant, points out the theoretical error while the perversity of the empirical results is noted by the other discussants.

²⁵ See the testimony of Scudder, Philip, Money Trust Investigation (Washington, D.C., 1913), 990–1001.Google Scholar Scudder counted 158 common directorships in seventy–six companies held by the directors of the Guaranty Trust Co., 113 directorships and fifty–five companies by the directors of Bankers Trust Co., and 144 directorships in sixty–three companies by Astor Trust directors.