Crime Against Humanity: “National”, “Federal”, “Central” Banking, 21

All in all, without the monopoly of physical money, on one hand it would still be possible for banks to evade central bank control over fractional reserve expansion, and thus cause bank runs demanding them to redeem their promises in deliveries; on the other hand it would be more lileky for the central bank to be called to account and less easy to bail it all out and dump the cost on people via the government, and all this in a scene where more different types of cash circulating would seriously undermine the psychological authority of the central bank and its alleged identification with Mother State.

I’ll borrow from one of my heartily recommended readings to delve for a moment into the practical details of what central banking is, and what it is for.
G. Edward Griffin entitled his fundamental work “The Creature from Jekyll Island”. The creature from Jekyll Island is the Federal Reserve, the United States’ central bank, and both the names “creature” and “Jekyll” are quite to the point. In fact, the handful of Wall Street big fishes that gathered in the most absolute secrecy on Jekyll island in 1910 was the quintessence of a cartel, and the central bank they planned and got passed in 1913 is nothing else than the embodiment of a cartel disguised in the most quintessential way: as its very opposite.
Those big fishes were the emissaries of the biggest banking powers in the world, and at the time their grip on the economy was declining: people increasingly financed themselves without resorting to them. Free competition and money backed by real value were prevailing over monopoly and money backed by nothing. The number of small indepentent banks, thrift institutions, savings and loans associations, etc. was on a steady rise. And businesses were increasingly able to finance themselves out of their profits rather than from money borrowed from their banks. Their banks were losing ground while privately created and held capital, real products and services, real wealth, was growing.