,P>T #b1 ,*APT] #cc 
,/ATE ,BANK+ ,V]SUS ,MUTUAL ,BANK+ 

#ahigahig 

,PEOPLE 3 

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

,TEXT 3 

,/ATE ,BANK+ V]SUS ,MUTUAL ,BANK+4 

.<,LIB]TY1 ,FEBRU>Y #a#e1 #a#h#i4.> 

,TO ! ,$ITOR ( ,LIB]TY37#h#d 8 #a7  

,9 VIEW ( ! FAVORABLE CRITICISM :I* ,9VOLUNT>Y ,IDL5ESS RECEIV$ AT Y\R H&S1 ,I GLADLY ACCEPT ! 9VITATION TO /ATE MY REASONS = ADVOCAT+ GOV]NM5TAL MANAGEM5T ( ! CIRCULAT+ M$IUM1 RA!R ?AN FREE BANK+47#h#d 8 #b7  

,MY /UDIES HAVE L$ ME TO ! CONVICTION ?AT MUTUAL BANK+ CANNOT DEPRIVE CAPITAL ( ITS P[] TO BR+ UNE>N$ RETURNS TO ITS [N]4 ,REF]R+ TO MY EXPOSITION ( ! MONET>Y CIRCULATION BETWE5 ! F9ANCIAL & ! 9DU/RIAL GR\P1 & ! 9EVITABLE EFFECTS FL[+ FROM ! P[] ( MONEY TO BR+ A P]SI/5T REV5UE1 IT FOLL[S ?AT A NORMAL CONDITION CAN ONLY BE ATTA9$ IF 9T]E/ ON MONEY LOANS IS R$UC$ TO ! RATE ( RISK1 SO ?AT1 9 ! AGGREGATE1 9T]E/ WILL JU/ PAY = ! LOSSES 9CURR$ BY BAD DEBTS2 & ?IS DESID]ATUM WILL NOT RESULT FROM MUTUAL BANK+47#h#d 8 #c7  

,! MEMB]S ( SU* BANKS MU/ NO D\BT BE 9 SOME WAY ASSESS$ TO DEFRAY ! EXP5SES & LOSSES 9CURR$ BY ! BANK+ ASSOCIATIONS1 & !SE ASSESSM5TS >E VIRTUALLY 9T]E/ PAYABLE = ! LOAN ( MUTUAL MONEY4 ,:ILE !SE RATES >E L[] ?AN ! CURR5T RATES ( MONEY-L5D]S1 ! MUTUAL BANKS WILL BE MORE & MORE PATRONIZ$1 :I* WILL HAVE A DEPRESS+ EFFECT ON ! CURR5T RATE ( 9T]E/4 ,BUT ! 9CREASE ( MEMB]%IP WILL CEASE AS SOON AS ! CURR5T RATE HAS ADAPT$ ITSELF TO ! RATE PAYABLE TO ! MUTUAL BANKS47#h#d 8 #d7  

,WE MU/ N[ ASSUME ?AT ! ASSESSM5TS ( ! MUTUAL BANKS >E 9 SUB/ANCE EQUITABLY DI/RIBUT$ AMONG !IR MEMB]S2 O!RWISE1 SU* BANKS CANNOT COMPETE AGA9/ O!RS :O HAVE ADOPT$ ! MORE EQUITABLE RULES4 ,!SE ASSESSM5TS MU/ OBVI\SLY COV] NOT ONLY ! EXP5SES ( ! BANKS1 BUT ALSO OCCASIONAL LOSSES2 & ?AT SU* LOSSES %\LD BE ASSESS$ 9 PROPORTION TO ! RATE ( RISK ATTA*$ TO ! SECURITY EA* BORR[] (F]S = ! FAI?FUL R$EMPTION ( HIS OBLIGATION REQUIRES H]E NO EXPLICATION4 ,BUT O!R \TLAYS1 SU* AS ! MAK+ ( ! NOTES1 TOGE!R ) ALL ! ATT5D+ EXP5SES1 MU/ ALSO BE PAID BY ! MEMB]S ( ! MUTUAL BANKS1 & ?IS 9CREASES ! 9T]E/ VIRTUALLY PAYABLE BY ! BORR[]S BEYOND ! RATE ( RISK4 ,CONSEQU5TLY COMPETITION WILL BE 9COMPET5T TO L[] ! CURR5T RATE ( 9T]E/ TO ?IS DESIRABLE PO9T4 ,MONEY-L5D]S WILL !RE=E /ILL BE ABLE TO OBTA9 AN 9COME FROM ! M]E LOAN ( MONEY1 & CAPITAL WILL CONT9UE TO RETURN 9T]E/ TO ! WEAL?Y4 ,! G]M ( ! 9EQUITABLE CONGE/ION ( WEAL? WILL /ILL L+] AFT] ! 9TRODUCTION ( MUTUAL BANK+47#h#d 8 #e7  

,AT ?IS PO9T ! QUE/ION >ISES AS TO :O %\LD PAY = ?AT P>T ( ! EXP5SES ( ! F9ANCIAL SY/EM ?AT RELATES TO ! PRODUCTION ( ! MONEY TOK5S4 ,! ANSW] IS NOT DIFFICULT :5 IT IS CONSID]$ ?AT ! B5EFIT ( ! M$IUM ( EX*ANGE ACCRUES TO ?OSE :O USE IT4 ,!Y %\LD CONTRIBUTE1 AS NE> AS POSSIBLE1 9 ! PROPORTION 9 :I* !IR H&L+ WE>S ! TOK5S1 = 9 ! LONG RUN ! CO/ ( PRODUCTION WILL VIRTUALLY RESOLVE ITSELF 9TO ! CO/ ( REPLACEM5T4 ,NOT ! BORR[]S1 !N1 :O AS MEMB]S ( ! MUTUAL BANKS W\LD BE OBLIG$ TO DO SO1 BUT ! PEOPLE AT L>GE1 9 :OSE H&S ! MONEY CIRCULATES1 >E 9 EQUITY UND] ! OBLIGATION ( ?IS EXP5SE4 ,& TO ACCOMPLI% ?IS ,I SEE NO O!R WAY ?AN = ! PEOPLE TO 9/RUCT !IR REPRES5TATIVES TO MAKE ! NOTES AT PUBLIC EXP5SE1 DI/RIBUTE !M ACCORD+ TO ! DEM&1 & *>GE NO CO/ TO ! BORR[]S EXCE$+ ! RATE ( RISK ATTA*$ TO ! SECURITIES (F]$ BY !M47#h#d 8 #f7  

,I %\LD ( C\RSE NEV] ATTEMPT TO D5Y ?AT MUTUAL BANK+ W\LD BE BY F> BETT] ?AN ! PRES5T OPPRESSIVE SY/EM4 ,BUT ! QUE/ION AT ISSUE IS BETWE5 MUTUAL BANK+1 :I* W\LD NOT REMOVE BUT ONLY MITIGATE ! S\RCE ( 9VOLUNT>Y IDL5ESS1 & A SY/EM 9VOLV+ A COMPLETE ]ADICATION ( ! CAUSE ( ! DISCREPANCY ( ! SUPPLY & ! DEM& ( COMMODITIES4 ,MY PREF]5CE = ! LATT] DOES1 H[EV]1 NOT IMPLY ?AT ANY RE/RICTIONS %\LD BE PLAC$ UPON MUTUAL BANK+2 SU* 9/ITUTIONS C\LD = OBVI\S REASONS NOT COMPETE AGA9/ ! GOV]NM5T 9/ITUTION1 & W\LD FAIL TO F9D A SUITABLE SOIL = !IR GR[?47#h#d 8 #g7  

,BE=E CONCLUD+ ,I ALSO WI% TO MEET ! OBJECTION ( ! CRITIC ( ,9VOLUNT>Y ,IDL5ESS TO ! USE ( ! WORD ,CAPITAL 9 ITS CONCRETE S5SE4 ,HAV+ FREQU5T OCCASION TO REF] TO LABOR PRODUCTS US$ = FUR!R PRODUCTION 9 CONTRADI/9CTION TO MONEY1 ,I ELECT$ TO USE ! %ORT] T]M CAPITAL1 ESPECIALLY AS ,I HAD NO NE$ TO REF]1 DUR+ ! DISCUSSION1 TO ITS O!R & P]HAPS MORE APPROPRIATE MEAN+4 ,I ATTEMPT$ TO EXPRESS ?\<TS1 & MADE USE ( WORDS AS TOOLS1 ! SELECTION ( :I* CANNOT COMMIT ME TO ANY OP9ION4 ,9 FACT1 ,I AM CONV9C$ ?AT ,CAPITAL 9 CONTRADI/9CTION TO ,WEAL? MU/ LOSE ITS SIGNIFICANCE 9 EI!R ( ITS CONCEPTS AS SOON AS ! PEOPLE LE>N TO MAKE HONE/ LAWS47#h#d 8 #h7 

,Y\RS TRULY1 

,HUGO ,BILGRAM4 

,PHILADELPHIA1 ,JANU>Y #a#h1 #a#h#i4 
  

,MR4 ,BILGRAM1 !N1 IF ,I UND]/& HIM1 PREF]S GOV]NM5T BANK+ TO MUTUAL BANK+1 BECAUSE ) ! =M] ! RATE ( DISC\NT W\LD SIMPLY COV] RISK1 ALL BANK+ EXP5SES BE+ PAID \T ( ! PUBLIC TREASURY1 :ILE ) ! LATT] ! RATE ( DISC\NT W\LD COV] BO? RISK & BANK+ EXP5SES1 :I* 9 HIS OP9ION W\LD PLACE ! BURD5 ( BANK+ EXP5SES UPON ! BORR[]S 9/EAD ( UPON ! PEOPLE4 ,! ANSW] TO ?IS IS SIMPLE & DECISIVE3 ! BURD5 ( DISC\NT1 NO MATT] :AT ELEM5TS1 MANY OR FEW1 MAY CON/ITUTE IT1 FALLS ULTIMATELY1 UND] ANY SY/EM1 NOT ON ! BORR[]S1 BUT ON ! PEOPLE4 ,BROADLY SPEAK+1 ALL ! 9T]E/ PAID IS PAID BY ! PEOPLE4 ,UND] MUTUAL BANK+1 ! EXP5SES ( ! BANKS W\LD1 IT IS TRUE1 BE PAID DIRECTLY BY ! BORR[]S1 BUT ! LATT] W\LD RECOV] ?IS FROM ! PEOPLE 9 ! PRICES PLAC$ UPON !IR PRODUCTS4 ,& IT SEEMS TO ME MU* MORE SCI5TIFIC ?AT ! PEOPLE %\LD ?US PAY !SE EXP5SES ?R\< ! BORR[]S 9 ! REGUL> *ANNELS ( EX*ANGE ?AN ?AT !Y %\LD FOLL[ ! COMMUNI/IC ME?OD ( PAY+ !M ?R\< ! PUBLIC TREASURY47#h#d 8 #i7  

,MR4 ,BILGRAM'S /ATEM5T ?AT MONEY-L5D]S :O1 BESIDES BE+ COMP5SAT$ = RISK1 >E COMP5SAT$ = !IR LABOR AS BANK]S & = !IR 9CID5TAL EXP5SES !REBY OBTA9 AN 9COME FROM ! M]E LOAN ( MONEY IS 9COMPREH5SIBLE TO ME4 ,HE MI<T JU/ AS WELL SAY ?AT UND] GOV]NM5T BANK+ ! (FICIALS :O %\LD RECEIVE SAL>IES FROM ! TREASURY = C>RY+ ON ! BUS9ESS W\LD !REBY OBTA9 AN 9COME FROM ! M]E LOAN ( MONEY4 ,UND] A FREE SY/EM ! BANK] IS AS SIMPLY & TRULY PAID ONLY ! NORMAL WAGE ( HIS LABOR AS IS ! (FICIAL UND] A GOV]NM5T SY/EM47#h#d 8 #a7  

,BUT1 S9CE ,MR4 ,BILGRAM DOES NOT PROPOSE TO PLACE ANY RE/RICTION UPON PRIVATE BANK+1 ,I HAVE NO QU>REL ) HIM4 ,HE IS WELCOME TO HIS OP9ION ?AT PRIVATE BANK+ C\LD NOT COMPETE ) ! GOV]NM5TAL 9/ITUTION4 ,I /\TLY MA9TA9 ! CONTR>Y1 & ! V]Y EXI/5CE ( ! F9ANCIAL PROHIBITIONS IS ! BE/ EVID5CE ?AT ,I AM RI<T4 ,?AT :I* CAN SUCCE$ BY 9TR9SIC M]IT NEV] SEEKS A LEGAL BOL/]47#h#d 8 #a#a7  

,I AM AGREEABLY DISAPPO9T$4 ,9 *ALL5G+ ,MR4 ,BILGRAM ON ?IS PO9T1 ,I1 KN[+ HIS 9TELLECTUAL ACUM51 HAD BRAC$ MYSELF TO )/& ! MO/ VIGOR\S ONSLAU<T POSSIBLE AGA9/ ,AN>*ISM 9 F9ANCE1 BUT IT WAS A NE$LESS /RA94 ,MR4 ,BILGRAM HAS /RUCK ME ) A FEA!R47#h#d 8 #a#b7 

,FROM 3 FAIR-USE4ORG4 

,*RONOLOGY 3 
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