The past, present and future of banking
(Business seals; Rishengchang Museum.)
Not long ago I was fortunate enough to visit the Rishengchang in Pingyao – which I tentatively understand to be the oldest “draft” bank in China, allowing merchants to send money across the nation. Pingyao is well worth a visit, if ever happen to be in that part of China. It put me to thinking about some fine histories of money and banking I’ve read in the past few years.
I knew a little about the Chinese system of Feiquan or “flying money” from reading William Goetzmann’s excellent Money Changes Everything (UK) (US), which has a vast trove of material on money and finance in China.
For another magisterial take on money and banking, try Felix Martin’s Money: An Unauthorised Biography (UK) (US). Martin writes deftly and his book, especially the first half of it, is packed with fascinating historical anecdote and colour.
For a take on banking in the great depression, try Lords of Finance (UK) (US) by Liaquat Ahamed. This book won the FT’s Business Book of the Year award a few years back – a riveting account of how the Great Depression could have been prevented, and wasn’t.
And for the present and future of banking, I strong recommend John Kay’s Other People’s Money (UK) (US), which begins with the question: if we were designing a financial system to do what we say a financial system is supposed to do, would it look anything like Wall Street today? (Spoiler: the answer is no.) Kay is an elegant writer, a well-informed historian and a superb economist. This is a terrific book.