Can someone explain in layman's terms to me what this act did? I read about it in Rothbard's History of Money and Banking but I don't quite understand what the benefit/detriment is for state banks to have to keep reserves in national banks and national banks in central national banks. What is the effect of this? And the issuance of notes by central national banks is necessarily tied to the amount of treasury notes they hold right? So in order to issue more notes, they must buy more bonds?
The Anarch is to the Anarchist what the Monarch is to the Monarchist.
Bump. Specifically in reference to the requirement of 'pyramiding' the reserves of banks like so: small banks -> reserve banks -> central reserve banks. It seems like doing this just makes banks weaker during a bank run. What is the expected upside of such a reform?