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----- Original Message -----
Sent: Tuesday, January 11, 2000 9:21 PM
Subject: [OPE-L:2092] State theory of money
> Paul C will not need reminding that in Scotland some private banks still
> retain the privilege of issuing legal tender bank notes. How does this fit
> Julian Wells
Such notes have to be backed by deposits with the bank of England.
Such deposits can only be obtained by people/companies who have
directly or indirectly supplied commodities to the state.
The privately issued banknotes in Scotland and also Northern Ireland,
are second order tokens of state credit.
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