Partial reserve money and the 100 per cent proposal

The 100 per cent reserve plan raises the question of the location of the right of issue as well as that of the principles which should govern issue - The former only will be here discussed- Principles governing the location of the issue power and historical deviations therefrom- Commercial bank demand deposits as money and the factors affecting their use- Delegation of the power of issue to the banks and the fiscal consequences- Net equity or inequity of the system difficult to determine but the economic result warrant suspicious scrutiny- Frustration of banking functions and the evil effects both on society at large and on the banks themselves- The 100 per cent reserve system as a remedy- Demands for the socialization of banking arise from misconceptions- The real need is for socialization of the supply of money with practical laissez faire for commercial banking operations.