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Its actives. The bank, of course, should not be legally obliged to redeem the
Banknotes at such cost but to save the business, it should at once
To buy on a current rate all banknotes offered it. While to bank
It will be possible to support real value of the banknotes to it never
It is required to redeem more than their insignificant part. Possibly, nobody will be
To doubt that the dealer engravings owning boards of the well-known artist,
Could, while the artist remains fashionable, to support its market value
Engravings, prudently selling and buying, though he never could redeem all
Existing prints. The bank, similar image, quite could support
Value of the banknotes though never could redeem all of them.> it is impossible
To deny that, being time declared and accepted, the decision on level
Obligations, will cease to depend on issue establishment entirely. That
To reach the declared purpose of maintenance of constant purchasing capacity
The currency, its volume should adapt for any change of demand quickly,
To its increase or fall. Really, while the bank successfully supports
Constant value of the currency, there is nothing to be afraid of the sudden large
Reductions of demand for it (though succeeding competitors quite can make
On it serious attacks). Fast growth can appear the most inconvenient
The demand, overstepping the limits which the private would prefer to adhere
Establishment. But we can be quite assured that in case of such success the new
Competitors will soon release bank from this headache.
The bank of issue could in the beginning, without excessive costs to hold a cash in
The size of a 100 percent reserve of currencies in which exchange should be carried out
Its banknotes. Thus received award could be used and for others
The purposes. But as the currencies used for reservation, as a result
Inflations will depreciate rather it, the bank should be ready to
Under dominating higher exchange rate. It means that bank
Should be really capable to translate quickly in a liquid form
Considerable capitals. Therefore he should choose the investments very much
Carefully, that temporary jump of demand for its currency has not led
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