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Losses the in what not to guilty contenders, the behaviour justifying State intervention.] Before to address to the fourth and fifth arguments in advantage The centralised system, we will distract a little aside and we will consider
Interrelation of the arguments already analysed by us above, with two connected with
Them problems, namely, with prohibition of circulation of banknotes of small face value and with
Correctness of clearing of depositary business from the restrictions imposed on
Those arguments which we have considered concerning issue of banknotes in general, still
Are more actual with reference to banknotes with small face value. First,
Small banknotes with the greatest probability come into the hands poor and
Rather less the population literate, least
Capable to do distinction between emitters. Secondly, they, as a rule, not
So often come back in banks, thereby, doing the control over them
Convertibility the rare. On the contrary, bills of large face value, besides the frequent
Return to the banks, fall mainly into hands those who operates
The considerable sums also uses them for calculations with banks. Seldom
Converted and in quiet conditions, small banknotes become especially
Dangerous at occurrence of the slightest signs of crisis: after all the most subject
To panic there are just poor and people having little education [see, for example,
Horsli Palmer's certificates before the Commission of 1832 (Q. 273), where it
What even Wagner who supported data of restrictions to a minimum, considered
Quite reasonable to forbid circulation of small bills within the limits of free system.
The majority of those who supported introduction of restrictions on freedom of the bank
Issues, at all did not consider necessary their application to depositary business.
The considerable part of these people with the big enthusiasm even struggled for freedom in
To this sphere of a banking.
At various steps of development of the theory of money and the credit were put forward most
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