the crisis prompted the issue of emergency paper money: in Britain, £1 and 10s Treasury notes; in the United States, the emergency currency that banks were authorized to issue under the Aldrich-Vreeland Act of 1908.46 Then, as now, the authorities reacted to a liquidity crisis by printing money.
The crisis led to the introduction of emergency paper currency, highlighting governments' responses to liquidity shortages. In Britain, this took the form of Treasury notes valued at £1 and 10 shillings, while in the United States, the Aldrich-Vreeland Act of 1908 allowed banks to issue emergency funds. Such measures reflect a recurring strategy of managing financial crises by increasing the money supply.
This approach to address financial instability demonstrates the reliance on printing money as a solution during desperate economic times. Similar to past events, authorities today may still resort to similar strategies to alleviate liquidity issues, illustrating a historical pattern in financial governance.
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