The Constitution of the United States says they must do something about it; for it says that Congress shall have "power to coin (create) money, regulate the value thereof."
How the Depository System Would Function The depository system would eliminate all the fictitious "funds" you find shifting about from bank to bank, from Reserve account to Reserve account. The keeping of the people's deposit credits, cashing and clearing cheques, would be reduced to simple bookkeeping, depositkeeping. It matters not in which depository the cheque was presented for deposit, there would be just the simple crediting deposit account of the receiver of the cheque, and the debiting of the deposit account of the giver of the cheque. There would be no clearing houses nor "central depository" through which cheques drawn on one depository and deposited in another would have to clear. There would be no "funds" shifting from one depository to another-only figures representing deposits would increase in one depository and decrease in another, dollar for dollar. Figures on the books, plus the cash out of the depositories, would be the total and complete representation of our volume of money. Cash in the vaults of the Treasury or in the depositories would never be reckoned as a part of the total volume of money only the cash in the hands of the people would be a part of the total money supply there might be a trillion dollars in total minted coins and printed bills, while the total money supply might never be over $500 billion, yet that would mean nothing, because as long as the cash remained in vaults of the Treasury and the depositories, it would be dead. There would be no shifting of cash from one depository to another to "cash cheques". If a depository ran short of cash to hand out to its depositors, the Treasury would supply it whatever additional amount needed; and should a depository pile up too much cash in its vaults, it would just let it lie there subject to the orders of the Treasury. No depository would keep books against any other depository. It would not be concerned where deposits from its books went, or from which depository deposits came. It would simply total each night, total deposits