1. Fundamentals of Banking
Rothbard on banking types
ECO Money & Banking Dr. D. Foster

2. Rothbard – Loan Banking
Banks as intermediaries for lending
Funds come from investors (savers/owners).
How does this bank’s activities affect the money supply?
Give some examples of these kinds of “banks.”
Rothbard – Deposit Banking
Banks as warehouses
Stored gold is a “bailment” not a loan.
Receipts issued, redeemable “on demand” & tradable.
How is a bank warehouse different from a wheat silo?

3. Rothbard – Fractional Reserve Banking
Modern banks serve both functions
Collect deposits & issue loans.
With fractional reserves come trouble ...
ABCT: Contraction of credit  recession
Bank notes gave way to Demand Deposits.
Who owns your deposit?
Why are banks inherently insolvent?

4. Fundamentals of Banking
Rothbard on banking types
ECO Money & Banking Dr. D. Foster