Political economic limits to the fed’s goal of a common national bank money: The par clearing controversy revisited

James, John A.; Weiman, David F.

doi:10.1108/s0363-3268(2014)0000030002

Cited by 2 publications

(2 citation statements)

References 23 publications

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“…In 1925, the number of non-par banks (in 42 states) peaked at 3,970, representing 14-15 per cent of all banks in the USA. Many state laws were amended over time, but as recently as 1979, there were 7 non-par banks, all in the state of Louisiana (James and Weiman, 2014). Non-par banking was eventually eliminated by the Monetary Control Act of 1980.…”

Section: Par Clearance and Litigationmentioning

confidence: 99%

“…In mid-1916, the Federal Reserve had introduced fees for check collection, yet volumes rose; suggesting the benefits of par collection would have had to outweigh the fees, as membership was voluntary. James and Weiman (2014) suggest that the USA became a true monetary union only with the elimination on non-par banking in 1980. "True" monetary union involves not just a national currency or a national unit of account, but also a "complete national payment union at par" (James and Weiman, 2014, pp.…”

Section: Did the Federal Reserve Improve Efficiency?mentioning

confidence: 99%

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The Federal Reserve and retail payments: a historical review

Lall

2018

JFRC

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Purpose The purpose of this paper is to provide a comprehensive historical review of the role of the Federal Reserve in retail payments in the USA. Design/methodology/approach It reviews the literature on the role of the Federal Reserve and assessments of its involvement. Findings In addition to its oversight and operational role, the Federal Reserve has conducted R&D and facilitated technology adoption. It has provided effective competition to the private sector without subsidies. Research limitations/implications The Federal Reserve has served the public interest and private networks have benefited from the “visible hand” of government. Practical implications Migration to electronic payments will likely change its role from an operator to setting standards for safety and security. Originality/value The historical review provides context against which the future strategy of the Federal Reserve may be assessed.

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Section: Par Clearance and Litigationmentioning

confidence: 99%

Section: Did the Federal Reserve Improve Efficiency?mentioning

confidence: 99%