Chapter 2: Historical Violations of the Legal Principles Legal Principles Governing the Monetary Irregular-Deposit Contract

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HISTORICAL VIOLATIONS OF THE LEGAL PRINCIPLES GOVERNING THE MONETARY IRREGULAR-DEPOSIT CONTRACT

In this chapter we will present various examples to show how bankers have throughout history violated traditional legal principles in the irregular deposit, and we will consider the reasons behind the failure of society's regulatory mechanisms to put a stop to these abuses. We will also contemplate the role of governments in this process. Far from endeavoring to scrupulously defend property rights, they supported bankers' improper activity almost from the beginning and granted exemptions and privileges in order to take advantage of this activity for their own uses. Thus the intimate complicity and solidarity traditionally present (and still existent) in relations between state and bank institutions. To understand why the different attempts to legally justify abuses have failed, we must first properly understand the legally corrupt origin of fractional reserves in monetary bank deposits. We will examine attempts at justification in chapter 3.