Conversely the sale of such bonds by the Federal Reserve Banks would directly and correspondingly reduce the volume of circulating medium when that was desired.
22.
By 1900, most of the industrializing nations were on some form of gold standard, with paper notes and silver coins constituting the circulating medium.
23.
The power of the banks either to increase or decrease, that, to inflate or deflate, our circulating medium would thus disappear over night.
24.
In such a case, it would, of course, be imperative for the Monetary Authority to increase the volume of circulating medium still further.
25.
If this is true, a constant-per-capita volume of circulating medium would be substantially the equivalent of a constant per capita money income.
26.
Fractional reserves give our thousands of commercial banks power to increase or decrease the volume of our circulating medium by increasing or decreasing bank loans and investments.
27.
Under the 100 % reserve system, however, such purchases of bonds by the Monetary Authority would directly and correspondingly increase the volume of circulating medium.
28.
Older economies would revert to hard currency and barter when the circulating medium became excessively devalued, generally following a " run " on the store of value.
29.
The Song Dynasty was the first to issue generally circulating paper currency, while the Yuan Dynasty was the first to use notes as the predominant circulating medium.
30.
(d ) Neither the President nor the United States Treasury nor any other agency of the Government should have power to alter the volume of circulating medium.
