Bank Runs and Social Instabilities

Bank runs are where people try to withdraw money from banks at the same time. The bank has only a small per age of the assets as the actual specie that is trying to be withdrawn, and the rest of the balanceshe assets are actually loans. So both batus and boot leggers pushed for an additional regulation of banking. And with the establishment of the f d i c, i would argue that that was the final abolition of fraction reserve king,. We moved to full reserve banking in a pure fiat system and abandon any pretence of this being backed by any fraction of gold.