Contrary to Hülsmann, fractional-reserve banking prevailed over warehouse banking by offering customers a better deal, not by government intervention. No examples of the legal suppression of an explicit money warehouse have ever been discovered, although examples of legally protected money warehousing can be found today, in such services as fully guaranteed gold storage and bank safe-deposit boxes (which U.S. law treats as a bailment).
|Other Independent Review articles by Lawrence H. White
|The Lords of Easy Money: How the Federal Reserve Broke the American Economy
|Central Banking in a Free Society
|The Defining Moment: The Great Depression and the American Economy in the Twentieth Century