The result was a depreciation in the price of tobacco, the circulating medium, to such a degree as to impoverish many planters and almost to bring about insurrection.
32.
The result of these predatory expeditions was a terrible blow to Virginia, her tobacco being her circulating medium, and, indirectly, to the cause of America.
33.
Under the present fractional reserve system, the only way to provide the nation with circulating medium for its growing needs is to add continually to our Government s huge bonded debt.
34.
(a ) There should be constituted a Monetary Authority clothed with carefully defined powers over the monetary system of the country, including the determination of the volume of circulating medium.
35.
In this view, the increase in the circulating medium is the result of the government attempting to buy time without coming to terms with the root cause of the lack of confidence itself.
36.
The question has been raised, whether, under the 100 % system, the banks would not, through their loan policies, continue to exercise control over the volume of circulating medium.
37.
In 1844, Sir Robert could scarcely be expected to foresee that demand deposits would in time supplant bank notes as the dominant circulating medium and so require similar treatment a 100 % reserve.
38.
The point is sometimes made, however, that, even under the 100 % system, the availability of an increased volume of circulating medium would not necessarily assure a correspondingly increased use of money.
39.
The profit to the Government from the creation of new circulating medium would be a fitting reward for supplying us with such increased means of payment as might become necessary to care for an increased volume of business.
40.
The Bank, issued a charter by the Continental Congress and the State of Pennsylvania, made loans from its capital and supplied the need for a circulating medium by issuing notes on the credit of its stock.
