Others can take this thread more seriously and respond competently and in full. I will however respond to James Ahiakpor's question -- "From where do banks get their finance?" with a suggestion that Kindleberger's -Financial History of Western Europe- provides one very good and full explanation. HES doesn't seem to me the appropriate place to lay out the story of the development of fractional reserve banking. Anne Mayhew 1101 McClung Tower University of Tennessee Knoxville, TN 37996-0411 PH: 615-974-1689; FAX: 615-974-3915; E-MAIL: [log in to unmask]