HERBERT SPENCER’S CASE FOR FREE BANKING

Though now almost entirely forgotten, Herbert Spencer was among the most widely read thinkers during the late nineteenth century. As part of his system of synthetic philosophy, Herbert Spencer addressed the topics of money and banking. This philosophic system articulates a concept of justice based o...

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Bibliographic Details
Published in:Journal of the History of Economic Thought 2021-06, Vol.43 (2), p.219-236
Main Author: Bragues, George
Format: Article
Language:English
Subjects:
19th century
Banking
Banking industry
Banks
Debates
Economic history
Economic theory
Enforcement
Government
Mill, John Stuart (1806-1873)
Monetary policy
Money supply
Philosophy
Reserve requirements
Citations: Items that this one cites
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Summary:Though now almost entirely forgotten, Herbert Spencer was among the most widely read thinkers during the late nineteenth century. As part of his system of synthetic philosophy, Herbert Spencer addressed the topics of money and banking. This philosophic system articulates a concept of justice based on the principle of equal freedom. Invoking this principle, Spencer rejected a government-superintended regime of money and banking as unjust. Instead, he morally favored a system of free banking. Spencer also defended this system on economic grounds. His argument was that banks could be self-regulating in their management of the money supply, on the condition that the government limit its activities in the financial sphere to the enforcement of contracts. While Spencer’s case is not beyond questioning on philosophic and political grounds, he offers a distinctive and forceful analysis.
ISSN:1053-8372
0142-7716
1469-9656
DOI:10.1017/S1053837220000103