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Corresponding continuous regulation of quantity of the currency which are in
The reference, doing it expressly or by implication (through the prices of other currencies). Solving
The factor, which the bank should remember to keep big and growing
Weight of the currency in circulation, there will be not a demand for loans, and desire of public
To hold this currency. Therefore, the careless increase in current issue can
To lead to that return inflow of currency to bank will start to advance growth
Demand of the public wishing it to hold.
The press as it was specified, should watch closely results of efforts
Each bank of issue and daily to publish the data about deviations
Various currencies from the standards established by emitters. Issue
- follows, possibly to afford small, in advance declared
The standard of maximum deviations in both directions. In the presence of the such
The admission if the bank shows the force and determination quickly to return
Exchange rates (or the prices for the goods in the currency) back, to the standard, game on
To currency stock exchange will come to the rescue of it and will release it from necessity hasty
To take the measures providing absolute stability.
While the bank successfully supports value of the currency at desirable level, it
Whether it begins to reduce its reference for the sake of this purpose so quickly, what is it will call
Troubles. Usually circumstances were the reason of similar events in the past,
Which increased demand for a cash. But the bank should reduce
Total volume of the currency which are in circulation, it is simple that
To adapt to conditions of decrease in the general demand for its currency in both it
Forms. If loans stood out basically for short terms, their timely
Return quickly enough will restore an exchange rate. All it seems rather
Simple and easy if we suppose that all competing banks try
To supervise the currencies for the purpose of preservation of their value on the constant
Whether the competition will destroy this system?
What, however, will be consequences if one of competitors tries
To win, having offered any other advantages, such, as the low percentage
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