General Discussion
In reply to the discussion: I was getting a tattoo today and the young lady giving me my tattoo [View all]A HERETIC I AM
(24,365 posts)Both of the general population, certain DUer's and the likes of the "let's do away with the Federal Reserve" types is this;
Before we had a strong central bank in this country, depressions, particularly localized ones were commonplace. Banks used to fail with remarkable regularity. If the only bank for 200 miles failed in the days of the railroad, and you and everyone you knew banked there, you and everyone you knew were screwed.
In the old days when the bank of Reno produced a $20 silver or gold coin there was no guarantee that the bank of Atlanta would give you twenty for it. Not to mention that many banks issues their own script, as there was no national currency for much of the beginning decades of this republic.
The reason the money vanished is because the idea backing it up wasn't respected by every bank.
Now it is.