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The decision of this, the most serious problem arising within the limits of our scheme,Consists, as it seems to me, in the following. Though private emitters should
To suffer occurrence of the "parasitic" reference of deposits and banknotes of the same
Names, they should to promote it, and is faster, to limit this
Process, having let know clearly from the very beginning that they will not provide with the
Banknotes "parasitic" issues differently, than by means of an exchange on, so to say,
"A sonorous cash" (hard cash), that is any other reliable currency. Strictly adhering to this rule, they will force the secondary emitter To operate by a principle very close to a principle "100 percent maintenance Bank operations ". Thus, though"parasitizing"issues with the incomplete Maintenance can continue to exist, they can be kept in The reference only at such policy at whom their value never will be To be called into question. Though such policy can limit scales References, and, hence, and profit of the initial emitter, it should not Seriously to be reflected on its ability to support constant value of the Currencies. To supervise a situation, the initial emitter of currency of the defined Names should expect consequences of excessive release such
"Parasitizing" currencies (or other currency applying for maintenance by the equal
Values with its currency) and ruthlessly to refuse to buy them face value still
Before expected depreciation will appear in increase of some commodity
The prices, expressed in these "parasitizing" currencies. For this reason of operation
Bank of issue with other currencies should be never pure Mechanical business (purchase and sale for stable prices), based Only on observable changes of purchasing capacity of other currencies.
The bank of issue should not buy any other currency at the rate, being guided
Only on its purchasing capacity in relation to a standard set
The goods. It will be necessary for it to lean against the detailed analysis and common sense,
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