That was the Suffolk bank, which acted like a mini-fed. They blackmailed banks into keeping reserves at their bank, otherwise they would demand gold.
On Mon, Oct 27, 2008 at 07:24:58AM -0700, Eugene Coyle wrote: > I agree it was a good read. I now recall one other aspect of it. Strong > banks used to secretly accumulate the bank notes of rivals. After amassing > a significant amount, they would present them all at once for redemption > into gold. The target wouldn't have enough on hand, having kept only > fractional reserves, and so was either embarrassed or destroyed. > > Gene Coyle > > > On Oct 26, 2008, at 8:44 PM, Laurence Shute wrote: > >> >> >> Perelman, Michael wrote: >>> Bray Hammond was a fed economist. The book is designed as a statement >>> of the importance of the Fed. It was published in 1957. >> >> But it's still a great read; well written. >> Larry Shute >> _______________________________________________ >> pen-l mailing list >> [email protected] >> https://lists.csuchico.edu/mailman/listinfo/pen-l > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu michaelperelman.wordpress.com _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
