That is the money that they have banks money?
made.
A. In effect. They put money
Q. Out of the customers?
into their accounts, so it is really
lent to the banks.
A. I suppose so.
Q. And what do the banks do
Q. They also mention Assets of with it?
$500,000,000 or thereabouts. A. Lend it to other customers.
Have they made that too?
Q. But you said that money they
A. Not exactly. That is the lent to other people was Assets?
money they use to make money. A. Yes.
Q. I see. And they keep it in a
safe somewhere?
Q. Then Assets and Liabilities
must be the same thing?
A. Not at all. They lend it to
customers.
A. You can't really say that.
Q. Then they haven't got it?
Q. But you've just said it. If I put
$100 into my account the bank is
A. No.
liable to have to pay it back, so
Q. Then how is it Assets?
it's Liabilities. But they go and
lend it to someone else, and he is
A. They maintain that it would liable to have to pay it back, so be if they got it back.
it's Assets. It's the same $100,
Q. But they must have some isn't it?
money in a safe somewhere?
A. Yes. But...
v
Q. Then it cancels out. It means, A. They wouldn't like you to doesn't it, that banks haven't draw it out again.
really any money at all?
Q. Why not? If I keep it there
A. Theoretically....
you say it's a Liability. Wouldn't
Q. Never mind theoretically. they be glad if I reduced their And if they haven't any money, Liabilities by removing it?
where do they get their A. No. Because if you remove it
Reserves of $249,000,000 or they can't lend it to anyone else.
thereabouts?
Q. But if I wanted to remove it
A. I told you. That is the money they'd have to let me?
they have made.
A. Certainly.
Q. How?
