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.
Michael Perelman wrote: > 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. this is one thing that happens when the government doesn't regulate markets: elements of the private sector try to set themselves up to replace the state, using coercive means. It's part of the centralization of capital. -- Jim Devine / "Nobody told me there'd be days like these / Strange days indeed -- most peculiar, mama." -- JL. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
