Comment: Banks would issue notes...

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Banks would issue notes...

against reserved commodities. Third party clearinghouses would pop up to keep track of the various banks issuances -- kind of like a ratings agency. The clearinghouses may also sell some kind of insurance to both the issuers and users of currencies to guarantee their ratings.

All of this happened during the Free Banking era which was the most economically stable period in US history.

Banks could issue currency notes against all kinds of commodities such as other metals, gems, minerals, land, trees, next year's crops, etc. etc.. Certain notes would be trusted for everyday consumer commerce and others more appropriate for transactions between manufacturers and suppliers and retailers.

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~wobbles but doesn't fall down~