Thus, our national circulating medium is now at the mercy…
“Thus, our national circulating medium is now at the mercy of loan transactions of banks, which lend, not money, but promises to supply money they do not possess”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
The quote critiques how banks create money through promises rather than actual cash, highlighting systemic financial risk.
In simple terms: Banks lend promises, not real money, risking stability.
Be wary of financial systems built on credit.
Themes
Mood
Type
When to use this quote
- investment decisions
- policy analysis
- risk management
Key Concepts
Questions to Reflect On
- How does this affect everyday borrowers?
- What safeguards can reduce systemic risk?
Credit‑based money can lead to bubbles and crises.