Marginalia

The past, present and future of banking

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(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.

Fifty Things That Made the Modern Economy (UK) (US) also described the Chinese inventions of paper, paper money, and forms of banking. I just loved the way that paper money blew Marco Polo’s mind.

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.

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16th of April, 2018MarginaliaResources • Comments off