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Will follow expansion or inflations; also there will be no reduction in Case when the banknote is returned in bank for deposition. At the fixed Reserves of money resources the bank can support in circulation defined
Volume of depositary and issue weight. The question on, whether remains the deposit in
Bank as the obligation on which then the check is drawn, or
Leaves it as a circulating banknote, should not excite any more
Bank, someone else, except for the client who chooses between
Two these alternatives. "]
This logic has been used in a number of attempts to correct a current situation.
Organizers of the so-called Baltimorsky Plan (Baltimore Plan) in 1894
It was offered to refuse system of deposition of bonds completely,
Having replaced it with maintenance of paper money with usual actives and having added the insurance
Fund. The offer, however, any enthusiasm has not called it. In 1900 was
A number of the measures directed on increase of profitableness of issue of banknotes is undertaken. In
Particulars, the law has been passed, resolving to banks to let out banknotes for the sum,
Equal 100 % (instead of 90 %, as earlier) a face-value of the deposited
Bonds. Simultaneously with it the tax to issue has been lowered from one to
Half of percent. Besides, interpretation of the legislation by the Secretary
Exchequers (Secretary of Treasury) during the period after 1900 was rather
The liberal: as issue maintenance now it was authorised to use not
Only government securities, but also municipal and other actions.
It has been made in attempt to expand the reference during the autumn period and by that
To satisfy the demand created by realisation of a crop. This measure planned
As time, and has not achieved the object, as the reference not
It was reduced after recession of seasonal demand for cash. Thus, already on
The next year the same shortage of special measures again was felt on
To prevention of autumn leak of a cash. Generally speaking, all these measures served
To only long-term increase in scales of the reference without its increase
Short-term elasticity. As before, the system did not leave any
Indulgences on a case of occurrence of emergency situations. Result became
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