By Harry W. Hazard, Norman P. Zacour

A definitive historical past of the Crusades, spanning 5 centuries, encompassing Jewish, Moslem, and Christian views

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Extra info for A History of the Crusades, Vol. 6: The Impact of the Crusades on Europe, Together with a Bibliography of the Crusades

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The central office will have interest-bearing reserves in foreign currencies (dollars, yen or Deutschmarks) which the consortium will obtain by borrowing on the market or from the member banks' treasury departments. The central office will then issue, in the form of claims on itself, a number of 'central ECU' which it will lend in equal shares to the various member banks. These shares will be the banks' 'quotas'. Each member bank, in turn, will then issue bank ECUs, again in the form of claims on itself, which it will put into circulation by making loans or purchasing foreign exchange.

Once the transaction is completed, the ECU must remain on deposit for a few days, as any other currency would. It must then be used for another purchase and, once again, take part in a transaction between a debtor and a creditor, after which, once the creditor has been paid, it must be used once again to settle one of the creditor's debts. This kind of result can only be achieved after a programme of 38 A Stable External Currency for Europe intense commercial promotion, involving constant lobbying on the part of the various local branches of the member banks involved in the transactions.

If, as is usually the case, the customer pays back what is owed by cheque or bank transfer, a new source of central bank money of the kind described above must take the place of the central bank money paid back at maturity by the bank to the central bank. For their part, the bearers of the bank notes (which are central bank money, and therefore represent a claim on the bank of issue) that have been put into circulation receive no interest, whereas the central bank receives the full value of the interest on the assets it received in exchange for the bank notes that it put into circulation.

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