Lawrence White – The transition problem (1994)
DOI link for Lawrence White – The transition problem (1994)
Lawrence White – The transition problem (1994) book
The route to a system of competing private inconvertible currencies is less clear. One way might be to do to the Federal Reserve note what Roosevelt did to gold: Have banks issue their own dollar-convertible hand-to-hand currency (these would be just like traveller’s cheques without the signatory bother and refundability) and coins, then suspend convertibility of these and other bank-issued near-monies (Chequing-and savings-account deposits, savings certificates, and so on) into Federal Reserve notes and confiscate the Federal Reserve notes in private hands. In any case some resolution would have to be found to an important problem that troubled American freebanking advocates in the 1830s, that of discovering a means by which the federal government could avoid favouritism among privately issued currencies in its own fiscal dealings.