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Only behind those banks of states which were a part of the national Bank system, already having the branches. As we have already started to speak in the previous chapter, use The deposited bonds instead of commercial actives as maintenance Issues has from the very beginning revealed the inconsistency. Eventually Advantages of this method of maintenance of issue became more and more The doubtful. Necessity to "connect" the capital in actives of certain type as a condition

Issues of banknotes has made issue scales dependent in the long-term plan from

Profitablenesses of these actives. Besides structure of bank actives, to influence of it

The factor have appeared subject and obligations of banks. In that case, when

Issue should not be accompanied by all means by deposition of bonds, bank Possesses the right of a free choice of a proportion, in which its prime

Obligations are distributed on banknotes and credits in the form of deposits.

As both those, and others came back to the creditor under the first requirement in shape

Lawful instrument of payment, at the heart of this choice would lie exclusively

Preferences of public in favour of banknotes or the deposits which are a basis

The check reference. To banks it would be indifferent, what proportion between them

Public will choose.

In a situation when a condition of issue of banknotes is the investment of means in

The state bonds, which besides also did not bring the income, banks

Are interested in that the structure of their promissory notes would switch on as

It is possible more than credit deposits, instead of banknotes. [Sometimes say that, on

Analogies to English bank system, the control over issue in Connected

States meant at the same time and the control over a total sum of bank credits.

However this analogy is not full. Bills of Bank of England served in England As a lawful instrument of payment for other banks. As to banknotes National banks in America they that were not. National bank Has been obliged to pay gold on the banknotes, no less than under deposits.

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