Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Don Lloyd who wrote (18801)	5/6/2002 4:13:36 PM
From: Ilaine	Read Replies (1) \| Respond to of 74559

We certainly do not have the same monetary system that we had in 1790, or any of several other more recent periods. I doubt if anyone could draw a sharp line of demarcation between any way of doing things and any other. The system has changed over time, but there's never been a discontinuation of one monetary system and replacement with another. State banks have been on the fractional reserve system since the formation of the Republic. Prior to 1863, they issued bank notes. In 1863, state bank notes were taxed at 10%, and national banks started notes. So state banks gave depositors checkbooks so they could issue their own banknotes. In 1914, each Federal Reserve Bank issued its own banknotes. At various points in time, you could convert paper to gold or silver, or not. But it was always fractional reserve.