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High probability of cancellation of obligations of such bank to pay the metal
Money that will invariably lead to release of poor paper money instead of
The banknotes converted in coins. Coming nearer to a situation of insolvency,
The bank being under the state guardianship always counted
Government aid in business of clearing of the obligations to accept to
To banknote payment. It did bankruptcy lawful, thereby, rescuing bank from
Necessities of liquidation with all accompanying penalties and costs.
The history of exclusive banks, without any doubt, is full of bankruptcies. If
To banks of issue it would become obvious that they unequivocally and inevitably bear
Responsibility for all actions and their consequences, a policy of such banks
Would find the same suspension, as well as decisions of any other firm with.
396, in the same place. At last, as underlined still earlier Shevale "Abusing has reached to
Such degree that ease of issue activity of banks has made them simply
The blank canvas for government banknotes that soon led
To inevitable bankruptcy of bank. "It is quoted on Wolowski, with. 199, " La Banque
d'Angleterre ", at the centralised system the government always
Tested temptation to use the power over exclusive bank.
Certainly, any from systems did not exclude bankruptcy approach. However in
Pluralism conditions banknotes of only one burnt through firms, then depreciated
As in a situation of exclusive monopoly the legalised suspension
Monetary payments and, hence, depreciation, concerns all volume of issue.
Moreover, if in the conditions of freedom some banks also suspend
Monetary payments, inability quickly to renew them would lead
To definitive crash of these banks as a result of a competition from outside them
Normally functioning contenders. Suspensions of monetary payments, such
In the image, would be not so long.
Bank freedom in the true sense of the word, that is to what it was declined
- , represented system, at which creation of the companies in the bank
Business, whether it be issue, credit or depositary activity,
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