tag:blogger.com,1999:blog-2277215496195926573.post3918332960168725128..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: Amazingly unoriginal new theory: “Endogenous Money”.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2277215496195926573.post-243178359924009252013-03-12T14:20:02.266-07:002013-03-12T14:20:02.266-07:00According to Michael Rowbotham (in "Grip of D...According to Michael Rowbotham (in "Grip of Death"), plenty of goldsmiths went bust. We should not be surprised, since they were the forerunners of fractional reserve bankers and as you yourself have pointed out, under fractional reserve, banks go bust!montmorencyhttps://www.blogger.com/profile/12879422255762834319noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-67707257622055960582012-10-04T11:12:15.442-07:002012-10-04T11:12:15.442-07:00If a goldsmith had issued a receipt to someone dep...If a goldsmith had issued a receipt to someone depositing gold, and then failed to deliver the gold when asked to do so by the depositor, then the goldsmith would have been in serious trouble. That’s true.<br /><br />But the point is that goldsmiths knew percetly well that it was highly unlikely that every depositor would turn up at once. It wasn’t even likely that half would turn up at once. Goldsmiths could thus safely issue receipts / money to any creditworthy person wanting to borrow money. As long as they didn’t lend too much in that way, they were safe and made a nice living out of the process.<br /><br />The following sources confirm that that’s what goldsmiths actually did: <br /><br />http://en.wikipedia.org/wiki/History_of_banking#Goldsmiths_of_London <br /><br />http://www.moneyreformparty.org.uk/money/about_money/history_of_money.php<br /><br />P.6 here: http://blog.turgot.org/public/documents/Selgin_Goldsmiths.pdf<br /><br />Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-8580020323552853722012-10-04T07:10:27.603-07:002012-10-04T07:10:27.603-07:00London Goldsmiths who issued receipts for non-exis...London Goldsmiths who issued receipts for non-existent gold were liable to find themselves asked to deliver it to the purchaser of the note and, if they were lucky, end up in gaol. Anonymousnoreply@blogger.com