===================== HES POSTING =================== Inspired by the Massy work, From Cantillon's Essay, as found at Anthony Brewer's Web Site: Part 1, Chapter six. "Hoarded money, plate, Church treasures, etc. are wealth which the state turns to service in extremity, but are of no present utility." From Part III, Chapter 6 "This is primarily the idea one can form of the utility of banks." From Part III, Chapter 7 "Further explanations and enquiries as to the utility of a National Bank" And "the utility of this bank to circulation corresponds to an increase of the money of the State by 3 million ounces" And "And I think the utility of this Bank corresponds in general only to about one tenth part of all the money in circulation in England. If the explanations given to me in round figures in 1719 on the receipts of the Bank of Venice are correct it may be said of national banks generally that their utility never corresponds to the tenth part of the current money circulating in a State." AND "It is thus that it has been ascertained that the utility of the Bank of Venice as regards circulation corresponds to about 800,000 ounces of silver: and if it is supposed that all the current money in the States of that Republic amount to 8 million ounces of silver the utility of the Bank corresponds to one tenth of that silver." Interestingly, the first reference appears to be along the lines of value in use, while the second group seems to have a meaning along the lines of the current "capital" of a bank. Mike -- Mike Robison Math and Economics graduate student Michigan State University http://www.msu.edu/user/robiso12/index.htm ============ FOOTER TO HES POSTING ============ For information, send the message "info HES" to [log in to unmask]