Book Reviews : Money in a Theory of Finance. By JOHN G. GURLEY and EDWARD S. SHAW. (Washington: The Bookings Institution, 1960. Pp. 371. $5.00.)

• Author: Joseph S. Peery
• Date: 01 September 1960
• Published date: 01 September 1960
• DOI: 10.1177/106591296001300326
• Subject Matter: Articles

812

behavior.&dquo;

This

is

a

big

order.

By

and

large

he

has

done

a

good

job

on

both

the

descriptive

and

methodological

fronts.

In

the

development

of

his

framework

for

testing

general

theories,

chapters

four

and

five,

&dquo;Role

of

the

Local

Union

Leader:

Determinants

and

Dilemmas&dquo;

and

&dquo;The

Associational

Basis

of

Union

Political

Structure,&dquo;

one

almost

loses

sight

of

the

ethnic

union

member.

At

this

point

a

good

deal

of

middle-range

theory

is

spun

out,

some

of

it

in

textbookish

and

overelaborated

form.

The

search

for

generalization

produces

some

hard

going

here

-

and

introduces

at

least

two

terms

with

much

inherent

confusion,

&dquo;fraction&dquo;

(on

page

88,

followed

by

&dquo;fac-

tion&dquo;

on

89),

and

&dquo;organizational

middle

class.&dquo;

All

of

this

may

be

useful,

al-

though

one

at

times

suspects

that

our

sociologist

friends

lead

us

far

down

the

garden

path

in

the

pursuit

of

&dquo;political

behavior.&dquo;

The

nub

of

the

book

- at

least

the

nub

that

relates

to

&dquo;racial

access

to

union

power&dquo;

- appears

from

page

125

to

the

end.

In

a

fine

summary

chapter

Greer

shows

that,

in

his

sample,

the

international-dominated

craft

locals

have

least

concern,

while

the

membership-dominated

plant-oriented

locals

have

most

concern,

for

racial

participation

or

job

protection,

with

captive

craft-type

locals

and

membership-dominated

hall-oriented

locals

falling

in

between.

And

in

his

last

chapter,

&dquo;Values

and

Social

Action:

Difficulties

of

the

Deviant

Labor

Leader,&dquo;

he

describes

the

plight

of

both

the ethnic

minority

leader

and

the

in-

tellectual

in

their

efforts

for

racial

equality.

Their

career

patterns,

he

says,

&dquo;are

instructive

for,

in

the

locals

of

this

sample,

such

leaders

were

subject

to

the

same

constraints

facing

any

union

leader.

Further,

their

very

differences

from

the

’average guy’

were

penalized;

they

required

more

strength

to

act

upon

their

convictions,

yet

they

possessed

less

strength.&dquo;

BERNARD

HENNESSY

University

of

Arizona

Money

in a

Theory

of

Finance.

By JOHN

G.

GURLEY

and

EDWARD

S.

SHAW.

(Washington:

The

Bookings

Institution,

1960.

Pp.

371.

$5.00.)

The

authors

state

that

the

purpose

of

this

volume

is

to

develop

a

technical,

neo-classical

theoretical

model

within

which

to

discuss

the

role

of

financial

markets

and

institutions

in

a

growing

economy.

A

system

of

hypotheses

explains

the

relations

of

commercial

banking

to

other

non-banking

financial

institutions.

In

this

way

there

is

developed

a

theory

of

finance

of

which

monetary

theory

is

a

part.

The

treatment

is

&dquo;technical

and

is

addressed

more

to

the

professional

economist

than

to

the

general

reader.&dquo;

Unlike

the

earlier

controversial

articles

of

Gurley

and

Shaw

the

present

volume

is

not

directly

concerned

with

policy

questions

involving

financial

inter-

mediaries

and

&dquo;financial

control&dquo;

as

a

successor

to

&dquo;monetary

control.&dquo;

Rather,

it

develops

a

formal

model

investigating

the

implications

of

introducing

the

concept

of

&dquo;primary&dquo;

and

&dquo;indirect&dquo;

securities,

and

the

institution

of

&dquo;non-

monetary

financial

intermediaries&dquo;

into

the

simpler

Walrasian

general

equili-

brium

framework.