British Banking School

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The British Banking School was a group of British 19th century economists who wrote on monetary and banking issues. They were created to oppose the British Currency School; they argued that currency issue could be naturally restricted by the desire of bank depositors to redeem their notes for gold. According to Jacob Viner[1] the main members of the Banking School were Thomas Tooke, John Fullarton, James Wilson, and J. W. Gilbart. They believed "The amount of paper notes in circulation was adequately controlled by the ordinary processes of competitive banking, and if the requirement of convertibility was maintained, could not exceed the needs of business for any appreciable length of time". Thus they opposed the requirement in the Bank Act of 1844 for a reserve requirement on banknotes.