Other People's Money: How Banking Worked in the Early American Republic (How Things Worked)

We tend to take for granted the use of money as a means of exchange, but with the rise of crypto currency and the like, the question of why we accept certain things, like dollar bills, as having value, i.e., we are willing to work to get them and others will accept them in exchange for goods and services, does not have an obvious answer. This book explores the fact that it was not so long ago that there were a plethora of bank notes issued by banks around the country, tied more or less loosely, to "specie," i.e. silver and gold coins. It is very helpful in setting this issue in context, and understanding the importance of the federal reserve system and the clearing house system for maintaining an orderly and reliable mechanism for commerce. Read Opium and Empire by Prof. Murphy's colleague Richard Grace to see how Britain was led into the opium wars by the need to sell products for specie, and the rise of negotiable bills of lading in international trade. Nicely done, Professor Murphy!

This is by far the best book Ive ever read on American economic history. The clarity of her written thought and explanation of our evolved complex financial structure is perfectly explained by Professor Murphy. I've never seen her on CNBC nor any writings in the WSJ. Slicing through all this modern era "Fed Speak" and data driven side shows helps a small investor understand how we got here; and where we are going. This author / Professor helps one create a so called world view - financial view of our current financial debt situation and formulate one's own investment strategy.I sleep better at night having read this book now at least twice.

Other People's Money is a short (176 pp. of text) explanation of how currency and banking worked from the Revolutionary War Era to the Civil War. It gets technical in spots, but overall it is a good fit for its intended audience, undergraduates in U.S. History courses. Murphy writes in a very engaging style, incorporating helpful maps and a fair bit of human interest into the story of how banking developed. I confess that I was not quite able to follow some of the financial explanations, such as the one of how building and loan associations functioned in the 1830s. On the other hand, I found the book excellent on big-picture issues, such as governments' various options for financing wars. The epilogue, "Why is Andrew Jackson [X-ed out] Harriet Tubman on the $20 bill?," is a great read.

This book is an excellent, short history of banking and money in the US until after the Civil War. The subject is not nearly as dry as one might assume, and the author is a very clear and good writer. The pictures bolster the main text.

An excellent overview of an often-confusing topic.

A good book for someone with a general interest in the subject. The information is written clearly, with a good historical background, and without submerging the subject with an overabundance of details.And we are still struggling with some of the same issues with banking that were around in the early 1800s...Recommended.