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,! ,R$EMPTION ( ,PAP] ,MONEY 

#aihaih 

,PEOPLE 3 

,AU?OR 3 ,B5JAM9 ,R4 ,TUCK] 

,TEXT 3 

,! ,R$EMPTION ( ,PAP] ,MONEY 

,EXC]PT$ FROM ! BOOK2  

 ,9DIVIDUAL ,LIB]TY3 ,SELECTIONS ,FROM ! ,WRIT+S ( ,B5JAM9 ,R4 ,TUCK]  

 ,VANGU>D ,PRESS1 ,NEW ,YORK1 #aibf  

 ,KRAUS ,REPR9T ,CO41 ,MILLWOOD1 ,N,Y1 #a#i#g#c4 

 ,9 A PAP] 5TITL$ 0,BANK+ & ! ,/ATE10 READ BE=E ! ,S+LE ,TAX ,CLUB ( ,*ICAGO1 ,MR4 ,A4 ,W4 ,WRI<T TOOK ! POSITION1 :I* HE CONSID]$ ( ! GREATE/ IMPORTANCE1 ?AT PAP] MONEY MU/ ALWAYS BE SUBJECT TO IMM$IATE R$EMPTION1 ! SOLE REASON ASSIGN$ = ?AT CONT5TION BE+ ?AT NO?+ BUT PUBLIC CONFID5CE CAN MAKE PAP] MONEY POSSIBLE4 ,! $ITOR (  
,LIB]TY TOOK ISSUE ) HIM ON ?AT PO9T3  

,IT REMA9S TO BE PROV$ ?AT IMM$IATE R$EMPTION IS ESS5TIAL TO PUBLIC CONFID5CE4 ,IT IS1 ( C\RSE1 TRUE ?AT C]TA9TY ( ULTIMATE R$EMPTION IS SU* AN ESS5TIAL4 ,BUT ?IS IS ! MO/ ?AT CAN BE CLAIM$4 ,A RUN ON A BANK ( ISSUE IS CAUS$ BY ! FE> ( ! NOTE-HOLD]S ?AT ! NOTES WILL NEV] BE R$EEM$1 & NOT BECAUSE !Y DESIRE !M R$EEM$ AT ONCE4 ,ON ! CONTR>Y1 IF !Y FELT SURE ( ULTIMATE R$EMPTION1 & FELT SURE ?AT O!R PEOPLE FELT EQUALLY SURE1 !Y W\LD GO PRECISELY CONTR>Y TO !IR DESIRE 9 PRES5T+ ! NOTES = IMM$IATE R$EMPTION1 = !Y >E 9 NE$ ( ! MONEY = ACTUAL MONET>Y USE & 9 ?IS RESPECT F9D SOLV5T PAP] PREF]ABLE TO GOLD4 ,! PL$GE ( IMM$IATE R$EMPTION1 F> FROM BE+ ESS5TIAL TO ! USEFULNESS ( PAP] MONEY1 IS ONE ( ! TWO ?+S ?AT 9 ! PA/ HAVE DONE MO/ TO CRIPPLE IT 7! O!R BE+ ! RE/RICTION ( ITS BASIS TO ONE OR TWO =MS ( WEAL?74 ,PAP] MONEY1 TO ATTA9 ITS HI<E/ USEFULNESS1 MU/ BE ISSU$ 9 ! =M ( NOTES EI!R MATUR+ AT A DEF9ITE DATE OR ELSE R$EEMABLE )9 A C]TA9 P]IOD FOLL[+ DEM&4 ,!RE W\LD BE NO LACK ( CONFID5CE 9 SU* MONEY1 IF ISSU$ AGA9/ SPECIFIC & GOOD SECURITY & UND] A SY/EM ( BANK+ FURNI%+ ALL KN[N MEANS ( SAFEGU>D+ & 9=M+ ! PUBLIC4 ,MR4 ,WRI<T'S MI/AKE PROBABLY >ISES FROM ADH]5CE TO ! OLD NOTION ?AT A BANK ( ISSUE NE$S CAPITAL ( ITS [N1 & ?AT ?IS CAPITAL CON/ITUTES ! SECURITY ( ! NOTE-HOLD]S4 ,! REAL FACT IS ?AT ! SECURITY & ALL ! NE$FUL CAPITAL IS ?AT :I* ! BORR[]S !MSELVES FURNI%4 ,!RE IS NO SPECIAL REASON :Y ! ,/ATE %\LD NOT DO A BANK+ BUS9ESS1 BUT ONLY ?OSE G5]AL REASONS :I* MAKE IT IMPROP] = ! ,/ATE TO UND]TAKE ANY BUS9ESS4 ,! FACT ?AT IT HAS NO?+ ( ITS [N IS NO B>1 = IT IS 9 ! V]Y ESS5CE ( MONEY-ISSU+ ?AT IT IS DONE ON O!R PEOPLE'S PROP]TY4 

,:5 BANKS CEASE PROMIS+ TO PAY ON DEM&1 IT WILL NO LONG] BE POSSIBLE TO PRECIPITATE A PANIC BY CORN]+ GOLD4 ,BUT AS LONG AS DEM& NOTES ALONE >E ISSU$1 BANKS WILL HAVE TO KEEP L>GE QUANTITIES ( CO9 9 !IR VAULTS1 & !RE WILL BE A CON/ANT EF=T ON ! P>T ( SPECULATORS TO GA9 CONTROL ( SPECIE1 SUCCESS 9 :I* WILL CAUSE A RUN ON ! BANKS & A G5]AL LACK ( CONFID5CE4 ,! TRUE WAY TO MA9TA9 CONFID5CE IS TO REFRA9 FROM MAK+ PROMISES ?AT CANNOT BE KEPT4 ,! FACT ?AT LESS ?AN HALF ! GOLD IS CO9$ PROVES NO?+4 ,GOLD HAS O!R ?AN MONET>Y USES4 ,IT IS NE$$ 9 ! >TS2 & 9 ! WOR/ PANICS1 :5 MONEY IS SO SC>CE ?AT BUS9ESS M5 WILL PAY 5ORM\S PRICES = IT1 BUT LITTLE ( ! UNCO9$ GOLD F9DS ITS WAY 9TO ! M>KET4 ,! PRESSURE UPON ! RI* 9 TIMES ( PANIC IS NEV] GREAT 5\< TO CAUSE !M TO MELT !IR JEWELRY1 C>RY !IR WAT*-CASES TO ! M9T1 OR HAVE ! FILL+S EXTRACT$ FROM !IR [N TEE? & ?OSE ( !IR DEAD ANCE/ORS TO BE TURN$ 9TO CO94 ,TO 9DUCE SU* A RESULT MONEY W\LD HAVE TO COMM& A MU* HI<] PRICE ?AN IT EV] DOES4 ,& YET ! HI< PRICE ( MONEY PROVES ITS SC>CITY4 

,MR4 ,WRI<T FUR!R ]RS1 IT SEEMS TO ME1 9 SAY+ ?AT 0BANKS %\LD BE P]MITT$ TO ISSUE PAP] MONEY EQUAL TO !IR UNIMPAIR$ CAPITAL10 IMPLY+ !REBY ?AT !Y %\LD NOT BE P]MITT$ TO ISSUE MORE ?AN ?IS AM\NT4 ,?IS W\LD BE A VIRTUAL PROHIBITION ( MUTUAL BANKS1 :I* DO NOT PR(ESS TO HAVE ANY CAPITAL & CLAIM TO NE$ NONE4 ,AS ,COLONEL ,GRE5E HAS PO9T$ \T1 BANKS S]VE SIMPLY AS CLE>+-H\SES = !IR CU/OM]S' BUS9ESS PAP] RUNN+ TO MATURITY & NO MORE NE$ CAPITAL ?AN DOES ! C5TRAL CLE>+-H\SE :I* S]VES !M 9 ! SAME WAY4 ,BY :AT RI<T DOES ,MR4 ,WRI<T PRET5D TO SAY H[ MANY NOTES A BANK %ALL ISSUE TO PEOPLE :O >E WILL+ TO RECEIVE !M8 ,I ASK HIM 9 HIS [N WORDS3 ,MU/ ! ,/ATE AF=D HOLD]S ( BANK PAP] PROTECTION ?AT IS D5I$ TO HOLD]S ( 9DIVIDUAL NOTES8 0,CAN A NOTE ( ISSUE JU/LY BE HELD MORE SACR$ ?AN O!R PROMISES TO PAY80 ,9 PUTT+ A LIMIT TO PAP] ISSUES ,MR4 ,WRI<T VIOLATES HIS PR9CIPLE ( LIB]TY 9 F9ANCE4 ,& HE DOES SO AGA9 :5 HE 9SI/S ON UNLIMIT$ LIABILITY4 ,TO D5Y ! RI<T ( TWO P>TIES TO CONTRACT ON A BASIS ( LIMIT$ LIABILITY IS TO ABRIDGE ! FRE$OM ( CONTRACT4 ,IF UNLIMIT$ LIABILITY IS A BETT] >RANGEM5T41 ?OSE BANKS :I* (F] IT WILL SURVIVE1 :ILE ! O!RS WILL GO D[N4 ,TRU/ MORE TO LIB]TY1 ,MR4 ,WRI<T1 & LESS TO LAW4 

,]RONE\S ALSO IS ! /ATEM5T ?AT 0BILLS ( ISSUE %\LD BE A FIR/ LI5 UPON ! ASSETS ( ! BANK40 ,BUT ?IS ,I HAVE NO NE$ TO DISCUSS1 = ,I HAVE RECEIV$ A LETT] FROM ,MR4 ,WRI<T 9 :I* HE SAYS ?AT HE HAS *ANG$ HIS OP9ION4 ,I AM CONV9C$ ?AT FUR!R REFLECTION WILL %[ HIM ?AT PROHIBITION ( O!R ?AN DEM& NOTES1 RE/RICTIONS UPON ! AM\NT ( ISSUE1 & 9VALIDATION ( CONTRACTS SPECIFY+ LIMIT$ LIABILITY >E1 EQUALLY ) HIS 0FIR/-LI50 PRIVILEGE1 UNW>RANTABLE 9VASIONS ( 9DIVIDUAL & ASSOCIATIVE LIB]TY1 &1 AS SU*1 5TIRELY AT V>IANCE ) ! GREAT DOCTR9E ( :I* HIS ESSAY IS1 9 ! MA91 SO EXCELL5T AN EXPOSITION4 

 ,9 A LETT] TO ! $ITOR ( ,LIB]TY ,MR4 ,WRI<T ATTEMPT$ TO DEF5D HIMSELF1 & FROM HIS /ATEM5TS IT BECAME EVID5T ?AT HE HAD NOT CONSID]$ ! USE ( ANY?+ BUT GOLD AS A BASIS = BANK+4 ,MR4 ,TUCK] !N W5T MORE DEEPLY 9TO ?AT PHASE ( ! PROBLEM1 AS WELL AS 9TO O!R RELAT$ ASPECTS ( MUTUAL BANK+3  

,IT N[ APPE>S ?AT ! POSSIBILITY ( ANY?+ ELSE ?AN GOLD AS ADEQUATE SECURITY = PAP] MONEY IS A CONCEPTION :I* ,MR4 ,WRI<T'S M9D NEV] BE=E 5T]TA9$4 ,:5 ,I SPEAK ( PAP] MONEY BAS$ UPON ADEQUATE SECURITY & YET NOT UPON GOLD1 HE OP5S WIDE HIS EYES & ASKS3 ,:AT CAN Y\ MEAN8 ,:Y1 MY DE> ,MR4 ,WRI<T1 ! V]Y KEY/ONE ( ,AN>*I/IC ECONOMICS1 SO F> AS F9ANCE IS CONC]N$1 IS ! PROPOSITION TO EXT5D FROM GOLD TO ALL O!R COMMODITIES ?AT RI<T ( DIRECT REPRES5TATION 9 ! CURR5CY :I* GOLD N[ 5JOYS EXCLUSIVELY4 ,! PROHIBITION1 OR RU9\S TAXATION1 ( MONEY ISSU$ DIRECTLY AGA9/ MISCELLANE\S SECURITIES IS ! *IEF D5IAL ( FRE$OM ( :I* ! BANK+ MONOPOLY IS GUILTY1 & ! RI<T TO SO ISSUE MONEY IS ! *IEF LIB]TY :I* FRE$OM 9 BANK+ WILL BE/[ UPON US4 ,H[ ?IS RI<T MAY BE UTILIZ$ & ! TREM5D\S *ANGES ?AT W\LD FOLL[ ITS EX]CISE >E ?+S NOT EXPLA9$ 9 0,SOCIAL ,/ATICS40 ,TO UND]/& !M ,MR4 ,WRI<T MU/ LAY D[N HIS ,SP5C] & PICK UP ,COLONEL ,GRE5E1 :OSE 0,MUTUAL ,BANK+10 ?\< TEMPOR>ILY \T ( PR9T1 WILL PROBABLY BE REPUBLI%$ SOON4 ,IF ,MR4 ,WRI<T WILL !N READ IT C>EFULLY1 \R DISCUSSION WILL PROCE$ MORE PR(ITABLY4 ,MEAN:ILE ,I WILL BRIEFLY EXAM9E ! FACTS & >GUM5TS :I* HE N[ (F]S4 

,= PRO( ( ! POSSIBILITY ( A SOLV5T DEM& CURR5CY )\T A DOLL>-=-DOLL> CO9 RES]VE HE ADVANCES ! SOLV5CY ( ! ,SUFFOLK ,BANK & ! ,SCOT* BANKS4 ,I ANSW] ?AT ! CASE ( ! ,SUFFOLK ,BANK MU/ BE CONSID]$ 9 CONNECTION ) ! HI/ORY ( ! :OLE ,/ATE SY/EM !N PREVAIL+4 ,?AT HI/ORY IS ONE LONG SUCCESSION ( FAILURES ( BANKS 9TR9SICALLY SOLV5T BUT UNABLE TO MEET SUDD5 DEM&S = GOLD4 ,DUR+ SU* AN EXP]I5CE EV]Y?+ DOES NOT FALL2 SOME?+ HAS TO /&1 & PEOPLE NATURALLY RES]VE !IR CONFID5CE = ! 9/ITUTION :I* HAS ! GREATE/ REPUTATION4 ,! ,SUFFOLK ,BANK /OOD1 NOT BECAUSE IT WAS SOLV5T :ILE O!R BANKS W]E 9SOLV5T1 BUT BECAUSE ! NOTEHOLD]S KNEW ?AT ! M5 AT ! BACK ( IT W]E M5 ( GREAT REPUTATION & WEAL? :O C\LD & W\LD SUPPLY IT ) CO9 9 CASE ( NE$4 ,! ILLU/RATION IS REALLY AN UN=TUNATE ONE = ,MR4 ,WRI<T1 S9CE BY IT HE CITES AN 5TIRE BANK+ SY/EM 9 :I* 9/ITUTION AFT] 9/ITUTION1 ) ASSETS F> EXCE$+ LIABILITIES1 W]E =C$ TO SUSP5D = LACK ( READY CO94 

,! SOLV5CY ( ! ,SCOT* BANKS IS DUE MA9LY TO ! FOLL[+ FACTS3 FIR/1 ?AT ! /OCKHOLD]S 9 EV]Y BANK EXCEPT ! ?REE OLDE/ ( !SE 9/ITUTIONS >E LIABLE TO ! :OLE EX5T ( !IR P]SONAL =TUNES = ! BANK'S DEBTS2 SECONDLY1 ?AT ,SCOT* LAW 5ABLES PROP]TY1 BO? REAL & P]SONAL1 TO BE ATTA*$ ) EXCEPTIONAL EASE2 ?IRD1 ?AT EV]Y NOTE ISSU$ BY A BANK 9 EXCESS ( ITS AV]AGE CIRCULATION = ! YE> 5D+ ,MAY #a1 #a#h#d#e1 MU/ BE BE REPRES5T$ BY AN EQUAL AM\NT ( CO9 9 ITS C(F]S2 &1 F\R?1 ?AT ALL NEW BANKS ( ISSUE HAVE BE5 =BIDD5 S9CE #a#h#d#e4 ,I DO NOT D5Y ?AT UND] SU* CONDITIONS DEM& NOTES CAN HOLD !IR SOLV5CY )\T A FULL CO9 RES]VE2 BUT C]TA9LY ,MR4 ,WRI<T MU/ )DRAW HIS ASS]TION ?AT FREE BANK+ PREVAILS 9 ,SCOTL&4 ,IT IS SURELY AN 9VASION TO PROHIBIT BANKS RUN ON ! PLAN ( LIMIT$ LIABILITY4 ,BUT :]E !SE >E NOT PROHIBIT$ & :]E !RE IS O!RWISE P]FECT FRE$OM 9 BANK+1 !RE WILL BE NO BANKS ON ! PLAN ( UNLIMIT$ LIABILITY1 = !Y C\LD GET NO BUS9ESS4 ,WEAL?Y M5 WILL NOT JEOP>DIZE !IR 5TIRE =TUNES )\T BE+ R\NDLY REW>D$ 9 ! %APE ( DIVID5DS1 & BORR[]S WILL NOT PAY F\R1 FIVE1 OR SIX P]C5T = ! NOTES ( AN UNLIMIT$ LIABILITY BANK :5 !Y CAN GET ADEQUATELY-SECUR$ NOTES FROM A LIMIT$-LIABILITY BANK = LESS ?AN ONE P]C5T4 

,IT %\LD BE ADD$ H]E ?AT1 H[EV] TRUE ! /ATEM5T MAY HAVE BE5 :5 0,SOCIAL ,/ATICS0 WAS WRITT51 IT IS NOT TRUE N[ ?AT NO ,SCOT* BILL HAS EV] BE5 DISCR$IT$4 ,TWO ( ! L>GE/ ,SCOT* BANKS SUSP5D$ 9 #a#h#e#g1 & ONE ( !M1 ! ,WE/]N ,BANK1 W5T 5TIRELY TO PIECES2 &1 IF MY MEMORY IS CORRECT1 ,SCOTL& HAS KN[N ONE OR TWO S]I\S BANK FAILURES )9 ! LA/ TW5TY YE>S4 

,MR4 ,WRI<T IS MI/AK5 AS TO ! NECESS>Y CONDITIONS ( A 0CORN]40 ,A COMMODITY MAY BE CORN]$ :E!R !RE >E ANY PROMISES TO DELIV] IT 9 EXI/5CE OR NOT4 ,IT CAN BE CORN]$ TO 9DUCE A SC>CITY & CONSEQU5T RISE 9 PRICE4 ,N[1 ?IS RISE 9 PRICE W\LD SURELY BE MU* GREAT]1 & !RE=E ALSO ! 9C5TIVE TO CREATE A CORN]1 IF ! CORN] W\LD GIVE RISE TO A PANIC & ?US CAUSE A TREM5D\S >TIFICIAL DEM&4 ,& IT IS PRECISELY ?IS ?AT HAPP5S :5 GOLD IS CORN]$ & DEM& NOTES >E 9 CIRCULATION4 ,!RE IS JU/ AS MU* 9C5TIVE = ! SPECULATOR :5 HE KN[S ?AT HE CAN FRI<T5 PEOPLE 9TO CALL+ = T5 MILLIONS ON A C]TA9 DAY AS :5 HE KN[S ?AT SOME ONE HAS PROMIS$ TO PAY T5 MILLIONS ON A C]TA9 DAY4 ,FUR!RMORE1 ! 9C5TIVE 9 ! =M] CASE W\LD BE V]Y MU* GREAT] ?AN 9 ! LATT] IF ! OBLIGATION TO PAY ! T5 MILLIONS W]E 9 ! LATT] CASE CONT+5T UPON ! HAPP5+ ( A V]Y IMPROBABLE ?+4 ,N[ ) MUTUAL BANK+ SU* W\LD BE ! CASE4 ,IF ! BANKS ( ,NEW ,YORK HELD NOTES ( BORR[]S TO ! AM\NT ( A MILLION DOLL>S & ALL MATUR+ ON ! SAME DAY1 & IF ! MILLION DOLL>S 7OR SLI<TLY LESS7 :I* ! BANKS HAD ISSU$ 9 !IR [N NOTES TO !SE BORR[]S W]E R$EEMABLE 9 GOLD AT A LAT] DAY IF NOT PRES5T$ ON ! E>LI] DAY = R$EMPTION BY A RE-EX*ANGE ( NOTES1 ! BORR[]S1 BY TURN+ 9 ! BANK-NOTES 9 FULFILLM5T ( !IR [N OBLIGATIONS TO ! BANKS1 W\LD WIPE \T ! BANKS' 9DEBT$NESS ( A MILLION1 ) ! EXCEPTION ( P]HAPS TWO OR ?REE ?\S& DOLL>S1 ! P]C5TAGE ( BAD DEBTS BE+ V]Y SMALL4 ,?US GOLD W\LD BE NE$$ ONLY TO SETTLE ?IS TRIVIAL BALANCE1 & SO SLI<T A DEM& W\LD FURNI% V]Y LITTLE 9C5TIVE = A CORN]4 

,I HAVE N[ EXAM9$ ALL ! EVID5CE ADDUC$ BY ,MR4 ,WRI<T TO %[ ?AT DEM& NOTES CAN SURELY /& AGA9/ A RUN 7! ONLY QUE/ION ?AT ,I AM N[ DISCUSS+ ) HIM71 & ,I CLAIM1 ON ! /R5G? ( ?IS EXAM9ATION1 ?AT ! EVID5CE LEADS TO PRECISELY ! OPPOSITE CONCLUSION4 

,MR4 ,A4 ,W4 ,WRI<T HAS AN 9T]E/+ >TICLE 9  
,ELECTRICAL ,5G9E]+ ON 0,GOV]NM5TALISM V]SUS ,9DIVIDUALISM 9 ,RELATION TO ,BANK+40 ,IT IS ?OR\<LY & AV[$LY ,AN>*I/IC1 & IS WRITT5 9 ANSW] TO CRITICISM DIRECT$ AGA9/ ,MR4 ,WRI<T'S F9ANCIAL VIEWS BY ! SO-CALL$ ,PR(ESSOR ,GUNTON4 

,MR4 ,WRI<T'S PAP] IS ADMIRABLY BRAVE & E>NE/1 & PRES5TS ! CASE = LIB]TY 9 BANK+ ) GREAT =CE4 ,NEV]!LESS1 !RE >E GRAVE H]ESIES 9 IT1 AMONG !M ! ASS]TIONS ?AT IT IS IMPOSSIBLE TO GET BANK-BILLS 9TO CIRCULATION )\T AGREE+ TO R$EEM !M ON DEM&1 & ?AT AN ,I,U CANNOT BE MADE SECURE )\T TOTALLY DE/ROY+ ! ECONOMIC REASON = ITS EXI/5CE40 ,! REASONS = ! EXI/5CE ( AN ,I,U >E TWO 9 NUMB]3 FIR/1 ! DESIRE ( ! GIV] ( ! ,I,U = AN ADVANCE ( CAPITAL2 SECOND1 ! G5]ALLY-FELT NECESSITY ( A CIRCULAT+ M$IUM4 ,PRACTICALLY !SE TWO REASONS >E BUT ONE1 S9CE ! DESIRE ( ! GIV] ( ! ,I,U = AN ADVANCE ( CAPITAL IS ALMO/ ALWAYS A DEM& = ?AT =M ( CAPITAL :I* WILL MO/ READILY BUY ALL O!R =MS1 - ?AT IS1 CURR5CY4 

,N[1 TO SAY ?AT A MAN :O NE$S MORE CAPITAL ?AN HE HAS1 BUT :O ALREADY HAS AN AM\NT ( CAPITAL SUFFICI5T TO 5ABLE HIM TO SECURE HIS ,I,U BY GIV+ A MORTGAGE1 HAS !RE=E NO REASON TO ISSUE AN ,I,U1 OR TO SAY ?AT SU* AN ,I,U1 :5 ISSU$1 WILL NOT BE RECEIV$ BY O!RS 9 EX*ANGE = GOODS BECAUSE IT IS SECUR$1 IS TO GO TO ! EXTREME L5G? ( POSSIBLE ECONOMIC ABSURDITY4 ,YET IT IS PRECISELY :AT ,MR4 ,WRI<T HAS SAID4 ,HE %\LD HAVE SAID1 ON ! CONTR>Y1 ?AT1 UNLESS LIB]TY 9 BANK+ WILL RESULT 9 ! ISSUE ( ,I,U'S AS SECURE AS ! BE/ F9ANCIAL ME*ANISM CAN MAKE !M1 ?IS LIB]TY ITSELF WILL LOSE MU* ! WEI<TI] P>T ( ITS REASON = EXI/5CE1 BECOM+ M]ELY ONE ( MANY PETTY LIB]TIES1 - GOOD 5\< 9 !MSELVES1 BUT NOT SCREAM+ NECESSITIES1 OR PREGNANT ) GREAT RESULTS4 ,IF F9ANCIAL LIB]TY WILL NOT RESULT 9 A SECURE CURR5CY1 IT WILL DO NO?+ TO LESS5 ! EXPLOITATION ( LABOR4 ,BUT 9 ,AN>*I/IC EYES ! DE/RUCTIVE EFFECT ( LIB]TY UPON HUMAN EXPLOITATION CON/ITUTES N9ETY-N9E P]C5T ( ITS VALUE1 &1 IF IT WILL NOT HAVE SU* EFFECT1 ,MR4 ,WRI<T IS WA/+ HIS TIME 9 WRIT+ SIXTE5-PAGE >TICLES 9 ITS FAVOR4 

 ,9 ALL POLEMICAL WRIT+ !RE FREQU5TLY OCCURS ! NECESSITY ( 9T]PRET+ ! LANGUAGE OR /ATEM5TS ( AN AU?OR4 ,SU* AN OCCASION >OSE CONC]N+ A S5T5CE 9 ,COL4 ,WILLIAM ,B4 ,GRE5E'S WORK ON 0,MUTUAL ,BANK+10 :I* MADE NECESS>Y ! FOLL[+ ANALYSIS BY ! $ITOR ( ,LIB]TY3  

,SOME MON?S AGO ,COMRADE ,H5RY ,COH5 WROTE A LETT] TO !  
,CONS]VATOR 9 :I* HE DECL>$ ?AT ! ULTIMATE ( ! MUTUAL BANK NOTE IS NOT R$EMPTION1 BUT CANCELLATION4 ,HE MAY NOT HAVE US$ EXACTLY !SE WORDS1 BUT !Y DO NOT MISREPRES5T ! POSITION ?AT HE TOOK4 ,! OBJECT ( HIS LETT] WAS TO %[ ?AT ! MUTUAL BANK NOTE IS NOT R$EEMABLE 9 SPECIE BY ITS ISSU]4 ,9 A LAT] ISSUE ( !  
,CONS]VATOR ,I UND]TOOK TO CORRECT ,COMRADE ,COH51 %[+ ?AT1 :ILE CANCELLATION BY RE-EX*ANGE = ! BORR[]'S NOTE W\LD BE ! USUAL MODE ( DISPOS+ ( BANK NOTES AT MATURITY1 !IR ULTIMATE1 PROP]LY SPEAK+1 IS R$EMPTION 9 SPECIE BY ! BANK1 S9CE ?AT W\LD BE ! C\RSE ADOPT$ 9 CASE ( A BORR[]'S 9SOLV5CY & CONSEQU5T FAILURE TO TAKE UP HIS [N NOTE GIV5 TO ! BANK2 & ,I 9TIMAT$ ?AT ! AU?OR ( 0,MUTUAL ,BANK+0 W\LD NOT HAVE DI$ A PEACEFUL DEA?1 C\LD HE HAVE =ESE5 ?AT SOME ( HIS DISCIPLES W\LD REPRES5T HIM AS FAVOR+ AN IRR$EEMABLE CURR5CY4 

,:5 ,I SAID ?IS1 ,I WAS UNAW>E ?AT A S+LE S5T5CE C\LD BE QUOT$ FROM 0,MUTUAL ,BANK+0 9 SUPPORT ( ,COMRADE ,COH5'S VIEW4 ,BUT ,HUGO ,BILGRAM1 SEE+ ! LETT]S 9 ! ,CONS]VATOR1 PROMPTLY WROTE TO ME1 CALL+ MY ATT5TION TO ! FACT ?AT1 ( ! SEV5 PROVISIONS CON/ITUT+ ,GRE5E'S PLAN = A MUTUAL BANK1 ! SEV5? IS ?AT 0! BANK %ALL NEV] R$EEM ANY ( ITS NOTES 9 SPECIE40 ,MR4 ,BILGRAM ADD$ ?AT ?IS S5T5CE FROM 0,MUTUAL ,BANK+0 IS OBVI\SLY 9CONSI/5T ) ! RE/ ( ! WORK & S]I\SLY IMPAIRS ITS VALUE1 &1 F9ALLY1 HE 5DORS$ MY POSITION ?AT A CURR5CY1 TO BE RELIABLE1 MU/ BE ULTIMATELY R$EEMABLE 9 A FIX$ AM\NT ( A SPECIFIC COMMODITY4 ,SOON CAME ALSO A LETT] FROM ,COH51 9 :I*1 FRE% FROM HIS $IT+ ( 0,MUTUAL ,BANK+10 HE DESIR$ TO KN[ H[ ,I EXPLA9 ! V]Y S5T5CE CIT$ BY ,MR4 ,BILGRAM4 ,I N[ ANSW] UNEQUIVOCALLY ?AT ,I DO NOT ATTEMPT TO EXPLA9 IT1 & ?AT ,COH5 W\LD HAVE BE5 JU/IFI$ 9 PO9T+ TO IT ) AN AIR ( TRIUMPH1 9/EAD ( ASK+ ME HIS MODE/ QUE/ION4 ,:5 ,I WROTE TO ! ,CONS]VATOR1 ,I HAD =GOTT5 ?AT ?IS S5T5CE OCCURS 9 0,MUTUAL ,BANK+40 ,9 FACT1 ,I NEV] AT ANY TIME C\LD HAVE BE5 ?OR\<LY AW>E ( IT4 ,I FIR/ READ ! PAMPHLET 9 #a#h#g#b4 ,POSSIBLY ,I READ IT AGA9 A YE> OR TWO LAT]4 ,DUR+ ! LA/ TW5TY YE>S OR MORE1 ?\< ,I HAVE (T5 RE-READ S+LE PAGES1 ,I HAVE NOT READ IT FROM 5D TO 5D4 ,9 #ahgb ! SUBJECT WAS NEW TO ME4 ,I WAS GREATLY 9T]E/$ 9 IT1 & ! PAMPHLET MADE A DEEP IMPRESSION ON ME1 SUGGE/+ TO ME A ?\S& ?\<TS2 BUT MY BOYI% UNFAMILI>ITY ) DISCUSSIONS ( F9ANCE MADE IT IMPOSSIBLE = ME TO SUBJECT EA* & EV]Y ONE ( ITS /ATEM5TS TO ?AT SE>*+1 CRITICISM :I* SU* A BOOK W\LD N[ RECEIVE AT MY H&S4 ,! SUBSEQU5T CL>IFICATION ( MY ?\<T WAS EFFECT$ L>GELY BY P]SONAL 9T]C\RSE ) ,COLONEL ,GRE5E HIMSELF4 ,DUR+ ! FIVE YE>S FOLL[+ #ahgb :I* CON/ITUT$ ! CLOS+ P]IOD ( HIS LIFE 7HE DI$ AT ,TUNBRIDGE ,WELLS1 ,5GL&1 9 #ahgg OR #a#h#g#h7 ,I HAD ! PRIVILEGE ( HIS ACQUA9TANCE1 & 5JOY$ MANY A LONG TALK ) HIM ON ! SUBJECTS 9 :I* WE W]E MO/ 9T]E/$4 ,IT %\LD BE REMEMB]$ ?AT EV5 !N 0,MUTUAL ,BANK+0 HAD BE5 PUBLI%$ ALMO/ A QU>T] ( A C5TURY1 & ?AT 9 ! MEANTIME ITS AU?OR'S ?\<T1 :ILE NOT FUNDAM5TALLY *ANG+1 HAD UND\BT$LY MATUR$1 & HIS ME?ODS ( PRES5T+ IT HAD BECOME MORE C>EFUL & PRECISE4 ,N[1 9 ALL \R TALKS ON F9ANCE1 NEV] ONCE DID HE GIVE EXPRESSION TO ! DOCTR9E LAID D[N 9 ! S5T5CE CIT$ BY ,BILGRAM & ,COH52 ON ! CONTR>Y1 ALL \R >GUM5TS PROCE$$ ON ! ASSUMPTION ?AT A MUTUAL BANK NOTE W\LD BE A CLAIM 7?\< NOT A DEM& CLAIM7 ON ITS ISSU] = SPECIE TO ! AM\NT ( ITS FACE4 

,9 DET]M9+1 !N1 :E!R ,COH5'S 9T]PRETATION ( ,GRE5E OR MY [N IS ! CORRECT ONE1 MY TE/IMONY AS TO ! CONCEPTION ( MUTUAL BANK+ :I* ,I D]IV$ FROM ,GRE5E P]SONALLY MU/ BE CONSID]$1 AS WELL AS ! 9CONSI/5CY BETWE5 ! S5T5CE CIT$ & ,GRE5E'S PROPOSAL TO HAVE ! NOTES SECUR$ BY PROP]TY SALABLE UND] ! HAMM]4 ,?IS 9CONSI/5CY IS SE5 AS SOON AS WE ASK \RSELVES 9 :AT =M PAYM5T W\LD BE MADE = PROP]TY SOLD UND] ! HAMM]4 ,IT W\LD HAVE TO BE MADE EI!R 9 SPECIE OR 9 BANK NOTES4 ,N[1 WE CANNOT ASSUME ?AT IT W\LD BE MADE 9 BANK NOTES1 UNLESS WE ALSO ASSUME1 FIR/1 ?AT IT IS POSSIBLE TO FLOAT A L>GE VOLUME ( MUTUAL BANK CURR5CY M]ELY ON ! /R5G? ( MEMB]S' AGREEM5T TO RECEIVE IT 9 TRADE 9 LIEU ( ITS FACE 9 SPECIE1 SO ?AT NO ONE W\LD EV] PRES5T A NOTE TO ! BANK1 EV5 AFT] MATURITY1 = R$EMPTION 9 SPECIE1 &1 SECOND1 ?AT ! 9SOLV5T BORR[] OR HIS ASSIGNEE W\LD ALWAYS CONS5T TO RECEIVE 9 BANK NOTES SO MU* ( ! PROCE$S ( ! SALE AS MI<T REMA9 TO HIS CR$IT AFT] SATISFACTION ( ! BANK'S CLAIM1 - BO? ( :I*1 9 MY VIEW1 >E ASSUMPTIONS ( UNW>RANTABLE VIOL5CE4 ,! PAYM5T1 !N1 W\LD BE MADE 9 SPECIE1 & ?IS SPECIE W\LD HAVE TO BE US$ P>TLY 9 PAY+ ! BALANCE DUE TO ! 9SOLV5T BORR[] & P>TLY 9 CALL+ 9 ! BANK NOTES :I* ! 9SOLV5T BORR[] HAD FAIL$ TO PAY 9 AT ! MATURITY ( HIS OBLIGATION4 ,BUT SU* CALL+ 9 W\LD BE SPECIE R$EMPTION1 :I* IS =BIDD5 9 ! S5T5CE CIT$ BY ,COH54 

,IT SEEMS TO ME1 !N1 ?AT WE >E =C$ TO ! CONCLUSION ?AT ?IS S5T5CE WAS WRITT5 C>ELESSLY BY ,COLONEL ,GRE5E1 & ?AT HE REALLY 9T5D$ TO SAY ONLY ?AT ! BANK %ALL NEV] AGREE TO R$EEM ANY ( ITS NOTES 9 SPECIE  
ON DEM&4 

,?IS CONCLUSION IS FUR!R JU/IFI$ BY ,GRE5E'S PROVISION = ! ACCEPTANCE ( SPECIE BY ! BANK1 AT A SLI<T DISC\NT1 9 PAYM5T ( DEBTS DUE ! BANK1 & HIS FAILURE TO PROVIDE ANY MEANS ( DISPOS+ ( ! SPECIE SO ACCEPT$4 ,! PRESUMPTION IS ?AT HE EXPECT$ IT TO BE US$ 9 R$EMPTION ( NOTES4 7,LET ME SAY1 P>5!TICALLY1 ?AT ,I DISS5T FROM ,GRE5E'S PROPOSAL TO RECEIVE SPECIE AT A DISC\NT4 ,SU* DISCRIM9ATION MI<T PROP]LY BE MADE AGA9/ BANK BILLS R$EEMABLE ON DEM&1 BUT IT W\LD BE ABSURD = A BANK TO DISCRIM9ATE AGA9/1 & ?US DISCR$IT1 ITS [N *OS5 /&>D ( VALUE47 

,ANO!R FACT ( SIGNIFICANCE 9 ?IS CONNECTION IS ?AT1 ( ! SEV5 PROVISIONS LAID D[N 9 ! F\R? *APT] ( 0,MUTUAL ,BANK+0 AS CON/ITUT+ ! AU?OR'S PLAN = A MUTUAL BANK1 EV]Y ONE EXCEPT ?IS QUE/IONABLE SEV5? IS C>EFULLY EMBODI$1 ALMO/ WORD = WORD1 9 ! PETITION = A G5]AL MUTUAL-BANK+ ACT :I* CON/ITUTES ! FIF? *APT]1 :ILE ?IS QUE/IONABLE SEV5?1 ?\< ( ! GREATE/ IMPORTANCE IF IT MEANS :AT ,COH5 ?9KS1 IS OMITT$ ALTOGE!R4 

,I MA9TA91 !N1 = ! V>I\S REASONS URG$1 ?AT ,COLONEL ,GRE5E DID NOT BELIEVE 9 AN IRR$EEMABLE CURR5CY1 & ,I SUGGE/ ?AT1 9 SUBSEQU5T $ITIONS ( 0,MUTUAL ,BANK+10 AN $ITORIAL FOOT-NOTE %\LD ADEQUATELY QUALIFY ! MISLEAD+ S5T5CE ?AT HAS OCCASION$ ?IS DISCUSSION4 ,NEV]!LESS1 IT CLE>LY BECOMES ME TO APOLOGIZE TO ,COMRADE ,COH5 = 0CALL+ HIM D[N0 SO ABRUPTLY1 :5 HE REALLY HAD AT HIS BACK EVID5CE ( SEEM+LY CONSID]ABLE /R5G?4 

 ,! QUE/ION ( ! R$EMPTION ( MUTUAL BANK NOTES 9 SPECIE WAS /ILL 5GAG+ ! ATT5TION ( SOME ( ! /UD5TS ( ! PROBLEM1 ,MR4 ,COH5 /ILL CONT5D+ ?AT ! AU?OR ( 0,MUTUAL ,BANK+0 DID NOT EXPECT ! MUTUAL BANKS TO H&LE SPECIE AT ALL2 & ,MR4 ,FRANCIS ,D4 ,T&Y >GU+ ?AT1 EV5 ) DEF9ITE MATURITY DATES1 A GREAT MANY ( ! NOTES ( ! MUTUAL BANK W\LD BECOME PAYABLE 9 SPECIE ON DEM&1 OR ELSE ! BANK W\LD BE COMPELL$ TO ACCEPT FROM BORR[]S1 9 CANCELLATION ( LOANS1 NO?+ BUT NOTES ?AT HAVE REA*$ MATURITY1 9 :I* CASE ! BORR[] MI<T BE OBLIG$ TO PAY A PREMIUM TO OBTA9 SU* NOTES4 ,MR4 ,TUCK] >GU$ ! MATT] /ILL FUR!R ) BO? HIS CRITICS3  

,AT ! TIME :5 ,COLONEL ,GRE5E WROTE 0,MUTUAL ,BANK+01 ! BANKS ( ISSUE 9 VOGUE W]E ! OLD ,/ATE BANKS PR(ESS+ TO R$EEM !IR NOTES 9 SPECIE ON DEM&4 ,IT WAS ?IS SY/EM :I* HE HAD TO COMBAT1 & ! 5TIRE ASSAULT ( 0,MUTUAL ,BANK+0 IS UPON A DEM&-NOTE CURR5CY4 ,!RE BE+ NO O!R CURR5CY 9 ! PEOPLE'S M9D1 HE HAD NOT TO GU>D AGA9/ O!R IDEAS4 ,CONSEQU5TLY HE DECL>$ ! MUTUAL BANK-NOTES 9DEP5D5CE ( H>D MONEY 9 LANGUAGE SO ABSOLUTE & UNQUALIFI$ AS TO GIVE SOME COLOR TO ! LATT]-DAY CLAIM MADE BY ,H5RY ,COH5 ?AT HIS PLAN EXCLUDES SPECIE-R$EMPTION AT ANY TIME & UND] ALL CIRCUM/ANCES4 ,IF ! PASSAGES :I* ,MR4 ,COH5 QUOTES 9 ANO!R COLUMN >E TO BE CON/RU$ ) ALL ! RIGOR ?AT HE SEEMS TO DESIRE1 !Y ABSOLUTELY EXCLUDE ! USE ( ! SPECIE DOLL>2 BUT ?AT ,COLONEL ,GRE5E CONTEMPLAT$ NO SU* EXCLUSION IS UND\BT$LY %[N BY HIS DECL>ATION ?AT NO PAP] BILL ( LESS ?AN FIVE DOLL>S %\LD BE ISSU$1 9 :I* CASE DISUSE ( ! SPECIE DOLL> W\LD MEAN DISUSE ( ALL DOLL>S1 = ! SPECIE DOLL> W\LD BE ! ONLY DOLL> 9 EXI/5CE4 ,! ALT]NATIVE1 !N1 IS TO CON/RUE !SE PASSAGES LIB]ALLY RA!R ?AN LIT]ALLY1 & 9 ! LI<T ( ! FACT ?AT AN ESS5TIAL FEATURE ( ! ,MUTUAL ,BANK+ PLAN IS ! PROVISION ( A COLLAT]AL TO S]VE = ! R$EMPTION ( NOTES NOT CANCEL$ 9 ! ORD9>Y FA%ION4 ,DESPITE ! KE5 9TELLECTUAL QUALITY %[N 9 0,MUTUAL ,BANK+0 AS A :OLE1 IT CONTA9S H]E & !RE OBVI\SLY 9EXACT /ATEM5TS ?AT WILL NOT BE> ANALYSIS4 ,!RE IS1 = 9/ANCE1 ! DECL>ATION ?AT ! MUTUAL BANK IS BY ITS NATURE 9CAPABLE ( [+ ANY?+1 CLE> ABSURDITY IF VIGOR\SLY 9SI/$ UPON 9/EAD ( BE+ 9T]PRET$ BY ! CONTEXT2 = ,COLONEL ,GRE5E ELSE:]E DEF9ES ! ISSUE ( MUTUAL MONEY AS AN EX*ANGE ( CR$ITS1 AN EX*ANGE 9CONCEIVABLE BETWE5 TWO P>TIES ONE ( :OM IS BY NATURE 9CAPABLE ( 9DEBT$NESS4 ,I MI<T TAKE UP ! CIT$ PASSAGES S]IATIM1 BUT IT IS NE$LESS1 = MY G5]AL ANSW] COV]S ! GR\ND4 

,POSSIBLY ,MR4 ,COH5'S SUGGE/ION ?AT ! SECURITY = UNCANCEL$ NOTES W\LD BE CONV]T$ BY SALE P>TLY 9TO BANK-NOTES & P>TLY 9TO GOLD1 ! =M] TO SATISFY ! BANK'S CLAIM & ! LATT] TO SATISFY ! BORR[]'S EQUITY1 MEETS MY >GUM5T ?AT ! COLLAT]AL W\LD HAVE TO BE CONV]T$ 9TO GOLD BECAUSE ( ! RI<TS ( ! BORR[]1 - ?\< ,I HAVE SOME D\BTS AS TO ! PRACTICABILITY ( ! PLAN1 - BUT MY >GUM5T ?AT ! COLLAT]AL C\LD NOT BE CONV]T$ 9TO BANK-NOTES UNLESS !SE BANK-NOTES HAD FIR/ %[N A GREAT] P[] ( G5]AL CIRCULATION ?AN !Y W\LD BE LIKELY TO ACQUIRE BY A M]E AGREEM5T ( MEMB]S TO RECEIVE !M 9 TRADE REG>DLESS ( R$EEMABILITY 9 SPECIE REMA9S UNT\*$4 ,TO BE SURE1 ,MR4 ,COH5 URGES ?AT ! NOTES WILL FLOAT IF 5\< MEMB]S JO9 TO 9SURE !IR IMM$IATE CONV]TIBILITY 9TO ALL M>KETABLE PRODUCTS2 BUT TO ASSUME ?AT A MEMB]%IP ( ?IS SIZE & V>IETY CAN BE OBTA9$1 & ?AT ! NON-5=CIBLE AGREEM5T ( ! MEMB]S TO RECEIVE ! NOTES 9 TRADE W\LD 9SPIRE ! SAME CONFID5CE 9 !M ?AT W\LD BE 9SPIR$ BY AN 5=CIBLE AGREEM5T ( ! ISSU] TO R$EEM !M 9 SPECIE1 IS TO BEG ! QUE/ION4 ,IT IS ?IS CONSID]ATION - ! NECESSITY ( 9SPIR+ CONFID5CE 9 ! NOTES - ?AT MAKES IT DESIRABLE ?AT ! NOTES %\LD MATURE1 - ?AT IS1 BE MADE R$EEMABLE BY ! ISSU] UND] DEF9ITELY-PRESCRIB$ CONDITIONS4 

,:I* BR+S ME TO ,MR4 ,T&Y'S CRITICISM4 ,HIS ]ROR LIES NOT 9 HIS LOGIC1 :I* IS S\ND1 BUT 9 HIS FALSE PREMISE1 - NAMELY1 ?AT ! T5D5CY ( ! MATUR$ NOTE TO FL[ BACK TO ! BANK IS NO GREAT]1 & P]HAPS LESS1 ?AN ! T5D5CY ( ! UNMATUR$ NOTE TO SO FL[ BACK4 ,IF ?IS W]E TRUE1 !N ! CONDITIONS ULTIMATELY RESULT+ W\LD NOT DIFF] MAT]IALLY FROM ?OSE OBTA9+ UND] A DEM&-NOTE CURR5CY4 ,BUT IT IS NOT TRUE4 ,MO/ ( ! MUTUAL BANKS W\LD PROBABLY BE BANKS ( DEPOSIT AS WELL AS ( ISSUE1 & L>GE SUMS ( CIRCULAT+ CURR5CY W\LD BE CON/ANTLY PASS+ ?R\< !IR H&S1 AS A RESULT ( :I* !Y W\LD BE ABLE1 NOT ONLY BY !IR 9DIVIDUAL EF=TS1 BUT BY !IR ASSOCIATIVE EF=TS TAK+ EFFECT ?R\< ! CLE>+-H\SE1 TO CALL 9 MATUR$ NOTES1 PAY+ \T 9 !IR /EAD UNMATUR$ NOTES PREVI\SLY PAID 9 BY BORR[]S 9 CANCELLATION ( LOANS4 ,MR4 ,T&Y H9TS1 TO BE SURE1 ?AT !RE W\LD BE A C\NT]-EF=T ON ! \TSIDE TO CORN] MATUR$ NOTES 9 ! HOPE ( !IR GO+ TO A PREMIUM4 ,I DO NOT ?9K ?IS 9 ! LEA/ LIKELY1 = PEOPLE SELDOM EXECUTE MOVEM5TS :I* MAY BE SO SIMPLY & EASILY ?W>T$4 ,IT W\LD NOT TAKE A V]Y EXP]T F9ANCI] TO KNOCK SU* A CORN] 9 ! HEAD4 ,SUPPOSE ! BANK NOTES W]E PROMISES TO PAY 9 GOLD1 DOLL> = DOLL>1 ?IRTY DAYS AFT] PRES5TATION AT MATURITY OR LAT]1 BUT SUBJECT TO A PROVISO ?AT ALL NOTES PRES5T$ LAT] ?AN1 SAY1 N9ETY DAYS AFT] MATURITY %\LD BE LIABLE1 AT ! OPTION ( ! BANK1 TO A DISC\NT FROM ! FACE VALUE AT A P]C5TAGE RIS+ 9 ! RATIO ( ! P]IOD ( DELAY4 ,H[ LONG1 9 ,MR4 ,T&Y'S OP9ION1 W\LD A CORN] 9 MATUR$ NOTES LA/ UND] SU* CIRCUM/ANCES8 ,HE HAS DISCOV]$ A M>E'S-NE/4 

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