A Central Bank (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1909 edition. Excerpt: ...owned and directed by several thousand lesser ones, always ready to man the breach and, by virtue of its leadership and resources, to repulse a threatened assault upon their credit. It would be a safeguard against panic and a positive cure for distrust and uncertainty, owing to the strength of its reserves and the public confidence in its management and ability to cope with any situation, however complicated or dangerous. It would receive and disburse moneys of the Government, and would act as its fiscal agent in redeeming paper money. It would prevent the hoarding of public money in the Treasury by acting as its custodian, and it would terminate the periodic appeals of the money market to the Treasury for relief. It would recognize the excellence of shorttime commercial paper as collateral for note issues, and would lead, in time, to the elimination of our inflexible, bond-secured circulation. Therein is the only step toward true currency reform; and whether we take it now or a hundred years from now, we must take it eventually. It would probably lessen the profits of banks holding large reserve deposits, but in the security and stability of business of all kinds, resulting from the operations of a central bank, and in the greater reliability and mobility of reserves administered by it, the banks would have a protection that would be more than a set-off to any diminution in profits. It would not only regulate the interest rate for loans, but it would tend to estimate the real worth of money, and would raise or lower its interest on deposits accordingly. Under the present system payments of interest on deposits never vary, no matter what the worth of money may be. This should be adjusted and a central bank would be helpful to such an end. It...