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Wednesday, June 15, 2011

Free Banking Blog Comes on the Scene

I’m happy to report that a new and badly needed blog has appeared: Free Banking, featuring the biggest names in the field, including Lawrence H. White, George, Selgin,  Gerald O’Driscoll, Steven Horwitz, and Kurt Schuler.

I especially recommend Selgin’s “The State and 100 Percent Reserve Banking,” where you’ll find this:

[E]very significant 100-percent bank known to history was a government-sponsored enterprise, which depended for its existence on some combination of direct government subsidies, compulsory patronage, or laws suppressing rival (fractional reserve) institutions. Yet despite the special support they enjoyed, and their solemn commitments to refrain from lending coin deposited with them, they all eventually came a cropper. What’s more, it was these government-sponsored full-reserve banks, rather than their private-market fractional reserve counterparts, that were the progenitors of later central banks, starting with the Bank of England.

Check it out!

  • Sheldon Richman is the former editor of The Freeman and a contributor to The Concise Encyclopedia of Economics. He is the author of Separating School and State: How to Liberate America's Families and thousands of articles.