New Banks Start

To get their new banking ventures going (within The Fantasy Banking System), stockholders contribute a combined total of 100,000 M-oz. of gold and 200,000 M-oz. of securities to their new banks. (I will explain the meaning of M-oz.—and R-oz.—later in this presentation.) The gold and securities become assets of The Banks. In return for these assets shareholders receive an ownership stake in The Banks, reflected as capital in the amount of 300,000 M-oz. They record this initial transaction—depicted in the chart below—as follows:

On each of the pages containing column graphs you will find a button labeled "To View Before Transactions" above and to the right of the charts.

Click that button, if you wish to view the chart before the completion of the transaction described. Then click the "To View After Transactions" button to return the charts to their original condition.

These images symbolize the gold and securities contributed by the founders of these banks.

To View Before Transactions

To View After Transactions

The Banks

Assets	Liabilities & Capital
Increase Gold by 100,000 M-oz.	Increase Capital by 300,000 M-oz.
Increase Securities by 200,000 M-oz.

Assets	Liabilities & Capital
Gold bars. What money used to look like.

The entries above the charts show the transactions that result in the balances reflected in the charts. (See the link at the bottom of this page.) In the following pages you will see similar, descriptive entries above each of the charts.

The Banks are now open for business.

Click for a short course in Bank Accounting (if you want)

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