[OPE-L:2114] Re: RE: Re: State theory of money

From: Allin Cottrell (cottrell@ricardo.ecn.wfu.edu)
Date: Wed Jan 12 2000 - 13:09:59 EST


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On Wed, 12 Jan 2000 P.J.Wells@open.ac.uk wrote:

> Fair enough (I'd rather suspected something of the sort),
> but the obvious next question is "So why do they do it?"
>
> "Advertising" would be my first guess -- what would a US
> commercial bank be willing to pay to get its name on every
> dollar bill, I wonder?

Yes. Also I believe there's a slim economic advantage: a
Scottish bank has to hold backing Bank of England notes only for
those of its own notes that are actually put into circulation,
not for those just sitting in the coffers, thus they are able to
economize on "till money" relative to their English
counterparts.

Allin Cottrell.



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