MONEY AND CREDIT
by Ray V. Leffler. Harper and Brothers, 1935. 515 pp.
When a member of the faculty brings out a carefully prepared and genuinely useful textbook he has made a distinct contribution to the College. Not only has he added to its standing in the realm of higher education but he has been instrumental in raising the calibre of instruction at Dartmouth and elsewhere. Such a book is Professor Ray V. Leffler's Money andCredit, recently published by Harper and Brothers.
The author states his purpose in the preface as follows: "To combine the theoretical and practical aspects of monetary issues; .... to apply the analytical method to recent monetary facts and problems; .... and to inform and educate without any great desire to convert or to convince." .... "This book has been written particularly for the student in American colleges. It does not pretend to provide new ideas and solutions for the advanced or professional scholar." These purposes have been steadfastly pursued throughout the volume. The style of writing is terse, simple, and clear. Generous use is made of headings and subheadings to aid the reader in keeping his bearings. Theoretical discussions are supported by numerous examples. And the teaching device repetition—is employed, perhaps too freely, both in the style of writing and in the organization.
The scope of the book is in keeping with what the title conventionally suggests. In general, it treats of the principles governing the monetary system and describes present monetary arrangements and practices. It deals with the commercial banks as creators of deposit currency; and it treats of the Federal Reserve System from the viewpoint of holding bank reserves, issuing Federal Reserve notes, and controlling credit conditions. Certain topics receive more emphasis than is given by most texts on the subject. This is true of monetary elasticity, money and the business cycle, and money speculation. Emphasis throughout is placed on the value of money.
Certain other distinctive characteristics of the book should be mentioned. The need of bridging the transition from a first course in economic principles to a specialized subject has been recognized and effectively met by the writer. The subject of money is not treated in a separate compartment but is explained in its broader relationships to the whole economic system. Secondly, the book is in no sense dogmatic. The method followed is that of setting forth the leading points of view on controversial matters without expression of the author's opinion. The reader is thus left to make up his own mind. Incidentally, such views as the author sees fit to express usually belong to the philosophy of the orthodox economist. He is not afraid, however, to test the gold standard by its works and to retain it "only as long as it is a satisfactory device and does not create serious disturbances in our economic life." Lastly, the writer's emphasis is constantly placed upon the complicated nature of monetary problems, upon the numerous forces at work determining the level of prices and business. Monetary factors are viewed as but one set of causes of the business cycle and the price level. Hence, neither should the depression be attributed entirely to monetary ailments nor should too much be expected of monetary control as a means of securing business recovery and stability. In all, the book stands as a credit to the author and should take its place with the useful literature of the field.
