Comment: I said gold standard, not a sound money system

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In reply to comment: So in the era of free banking (see in situ)

I said gold standard, not a sound money system

Banks always issue credit in notes in a fractional reserve system, however in the era of free banking, a bank still needed to back the notes with some sort of collateral.

That's fine. Some banks will fail. When you say free banking by the way, I hope you are referring to the period between the second national bank and the civil war, correct?

For someone who speaks so intelligently on the topic, why do you come off like you have never studied Austrian business cycle theory?

Séamusín