Tham khảo tài liệu 'the legalized crime of banking and a constitutional remedy phần 6', ngoại ngữ, anh văn thương mại phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Silas Walter Adams The Legalized Crime of Banking ch 13 Chapter XIII Cash is Not a Part of Our Money Supply All discussions of money stress the importance of the volume of cash giving it an undue influence on the money supply. . . even today we hold to the fallacy that silver and gold have a great influence on the money supply. In its latest edition of the Reserve book The Reserve System Its Purposes and Functions the writers urge the importance of great floods of cash flowing at certain times and assert that the money supply consists of cash and bank deposits. To make the cash a part of the money supply is absurd because that is like saying that you have two men working all of the time when as a matter of fact they never work at the same time. When one is asleep the other is working. If man was like money tireless one man working continuously would accomplish the same thing you might see the fact better. This can be verified with electric engines. They work on endlessly and never tire. It would be foolish to buy two engines to do the work one can easily do. Depository deposits and cash are both used in buying and selling but never at the same time. You either cheque the cash out or use a cheque book to pay seller. When you take cash out of the bank say 50 your deposits will be lowered 50 which will lower total volume of deposits 50 but when you or the seller returns the 50 the deposits will be brought back to normal volume. Cash is exactly like the personal cheque. When in the hands of the buyer it is active real value. Take your own bank account. You cannot have both the amount in cash and on deposit at the same time. Say you have 500 deposits in the bank. When you write a cheque and draw out 75 in cash your account is debited 75 and your new account is 425. In trying to establish the fact that you must add cash to deposits to arrive at the total money supply the Reserve book says When a person has 10 in his pocket and 100 in the bank he is in a position to spend
