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Private competing currencies. Possibly, it was influenced by the ideas connected
With its management of the dissertation Smith. Lawrence Uajta's books (Lawrence
White, 1984) and George Seldzhina (George Selgin, 1988) contain the review of history and
Theories of free bank activity. In them it is offered to resolve to banks
Along with placing of deposits to be engaged and issue of banknotes, which,
Possibly, would be denominated and would exchange either on gold, or on
Units of the governmental monetary base which size would be
It is frozen. The seventeenth annual conference of Institute Katona (Cato
Institute), passing in Washington in February, 1989, was almost completely
It is devoted questions of radical currency reform with orientation to the private
Bank activity. In the collection of materials of the previous conferences (Dorn and
Schwartz, 1987) to discussion of similar questions the big place is taken away.
For Robert Grinfilda (Robert Greenfield) and for me it is represented
Promising idea about discharge of the government from a currency issue or
Realisation of any special control over monetary and bank system.
Instead of the existing monetary unit blamed today, in which quality
The dollar banknotes declared by the government to the lawful payment act
Means though and not exchanged for gold, the government can establish
New it unit used at the quotation of the prices, a writing of contracts,
Carrying out of calculations, etc. The government would support new unit,
Using it in own operations. This unit can be provided
Certain quantity of gold. However because of probable instability
Gold costs, the monetary unit provided with some extensive basket
The goods and services, would possess steadier purchasing capacity.
In case of discharge of the government from a currency issue, banks freely let out
Banknotes also placed the deposits denominated in this new unit.
Having faced a competition, each bank would be compelled to support
The real goods and the services serving by maintenance of monetary unit, and
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