However, holding prices constant, a bank cannot systematically
overissue credit beyond its customers' willingness to hold deposits and/or banknotes (White 1999, pp.
Helicopter money breaks the ultimate monetary taboo against the wanton
overissue of base money.
We can see in Place's argumentation the same needs of trade doctrine propped by the banking school, according to which the extent of credit that the banking system can expand is limited by the trade level, with any
overissue being limited through reflux.
Switzerland's system ended in a crisis, but Briones and Rockoff doubt that this reflects poorly on lightly regulated banking because, "at least after the federal banking law of 1881, the Swiss experience seems to have been less free than other experiences in many important dimensions, such as the existence of privileged cantonal banks and restrictive collateral requirements for private banks." Moreover, the law diminished "the capacity of the public for differentiating notes," which created a common-pool problem, weakening the effectiveness of the clearing system against
overissue.
They had learned then how easy it is to issue it; how difficult it is to check its
overissue; how seductively it leads to the absorption of the means of the workingmen and men of small fortunes; how heavily it falls on all those living on fixed incomes, salaries or wages; how securely it creates on the ruins of prosperity of all men of meagre means a class of debauched speculators, the most injurious class that a nation can harbour--more injurious, indeed, than professional criminals whom the law recognises and can throttle; how it stimulates overproduction at first and leaves every industry flaccid afterward; how it breaks down thrift and develops political and social immorality.
--Outcome of President Suleiman's consultations show factions still deeply split
overissue of false witnesses; meetings continue, could last until weekend.
''In my opinion, it would be very problematic if the government started to
overissue government bonds for the annual budget,'' Fujii said, adding that the government must keep the new issuance under the record 44 trillion yen planned for fiscal 2009 by the former government led by the Liberal Democratic Party.
But Christiernin always attributed the prior price rise solely to
overissue of paper, whereas Thornton recognized that real shocks also could be a cause.
At the same time, with the newspaper industry still struggling, the supply of
overissue news has declined.
In this and other chapters, Cook devoted 250-odd pages to liabilities of shareholders for corporate debts.(39) He also explained "
overissue," the issuance of more shares than authorized by corporate charters (pp.
A Treatise on the Law of Stock and Stockholders, as Applicable to Railroad, Banking, Insurance, Manufacturing, Commercial, Business, Turnpike, Bridge, Canal, and Other Private Corporations The New York Clearing House Association protested to Sherman that the new rule amounted "to a penalty for forwarding National bank notes for redemption, [impeding] the practical operation of the law" of 1874 and renewing the interior banks' incentives to
overissue.(68) Sherman replied disingenuously that the law "did not contemplate the establishment of a grand clearing house," but aimed merely at removing worn-out notes from circulation.