In Part 8 (of 9), Joe highlights Milton Friedman’s opposition of money creation by private banks by highlighting the following quote:
“A reform of the monetary and banking system to eliminate both the private creation and destruction of money and discretionary control of the quantity of money by the central bank authority. The private creation of money can perhaps best be eliminated by adopting the 100% reserve proposal, thereby separating the depository from the lending function of the banking system
These modifications would leave as the chief monetary functions of the banking system the provision of depositary facilities, the facilitation of check clearance, and the like; and as the chief function of the monetary authorities, the creation of money to meet government deficits or the retirement of money when the government has a surplus.”
From A Monetary and Fiscal Framework for Economic Stability in The American Economic Review, June 1948, p.247. Available on the web at : www.jstor.org/stable/1810624