The Business Cycle Explained in 1755 - Richard Cantillon - Mises Daily: It is then evident that a bank, with the complicity of a public administrator, is able to raise and support the price of public stock, and to lower the rate of interest in the state at the pleasure of this administrator. When the steps are taken discreetly, this can pay off the state's debt. But these refinements, which open the door to making large fortunes, are rarely carried out for the sole advantage of the state, and those who take part in them are generally corrupted.
The excess banknotes made and issued on these occasions do not upset the circulation because they are used for the buying and selling of stock. They are not used for household expenses and are not exchanged into silver. But if some panic or unforeseen crisis drove note holders to demand silver from the bank, the bomb would burst and it would be seen that these are dangerous operations.
No, I'm not kidding, 1755. Aren't you a little behind the times in understanding the slime ball racket?
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