[OPE-L:2105] Re: State theory of money

From: clyder (wpc@dcs.gla.ac.uk)
Date: Wed Jan 12 2000 - 04:57:48 EST


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----- Original Message -----
From: <P.J.Wells@OPEN.AC.UK>
To: <ope-l@galaxy.csuchico.edu>
Sent: Tuesday, January 11, 2000 9:21 PM
Subject: [OPE-L:2092] State theory of money

> Paul C will not need reminding that in Scotland some private banks still
> retain the privilege of issuing legal tender bank notes. How does this fit
> in?
>
> Julian Wells
>
Such notes have to be backed by deposits with the bank of England.
Such deposits can only be obtained by people/companies who have
directly or indirectly supplied commodities to the state.

The privately issued banknotes in Scotland and also Northern Ireland,
are second order tokens of state credit.



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