> On Sep 12, 2017, at 3:53 PM, Publius Scribonius Scholasticus
> <p.scribonius.scholasti...@googlemail.com> wrote:
>
> Two versions of this proposal are offered. The first is the form to be
> submitted and the second is a git diff.
> {
> Replace in the rule “Assets”, the line:
> “restricted to Agora, persons, and organizations."
> with:
> "restricted to Agora, persons, organizations, and Agoran Institutions.”
>
> Create a rule, called “Banking”, with the following text:
> "A Bank is an Agoran Institution. A Bank shall have a charter, a length, and a
> banker. The Central Bank of Agora is the bank who is responsible for the
> conduct of business and issuance of bonds on behalf of Agora. If at any time,
> a Central Bank of Agora is not declared, then the Secretary CAN and SHALL
> declare a bank to be the Central Bank of Agora.
>
> A Bank shall be able to issue a currency and issue bonds. The charter of a
> bank shall establish the method by which a bond or currency can be issued.
>
> Any player CAN create a Bank without objection by specifying its charter, its
> length and recommending a banker. The Secretary CAN create a bank with Agoran
> Consent by specifying its charter, its length and appointing a banker. The
> charter of a bank SHALL state its purpose, and its governance structure. If at
> any time, a Bank lacks a Banker, the Secretary CAN and SHALL appoint a Banker
> in accordanence with the charter of the Bank.”I would feel more comfortable if the Secretary could opt to destroy the bank, instead, if only because otherwise this binds the Secretary to take official action based on non-rules-governed documents. The consent elements of creating a bank are a rather weak safety net against this compulsion. > Bonds are a type of asset. Bonds CAN be converted according to their issuance > document. Rules to the contrary notwithstanding, bonds may only be issued by > a bank. The Banker of the issuing bank is the recordkeepor for Bonds. Rather than amending the Shinies rule, split this into its own rule. (Separately, the “Economics” rule really ought to be “Shinies”.) > Add to the end of list of Executive Orders in “Executive Orders”: > > - Kickbacks (Secretary): The Prime Minister issues a bond from > the Central Bank of a class or series previously issued for > an amount less than or equal to 50 shinies and specifies a > class of purchasers. A+. > Create a rule, “The First Bank of Agora”, with the below text: > > The First Bank of Agora shall be a Bank. I’m not clear on why this is necessary if the Secretary must create a bank any time there aren’t any, but if we’re going to have it, I’d prefer this read “is a Bank” to declare its permanent existence. The same remark applies throughout the text of this rule. > The banker of The First Bank of Agora > shall be the Secretary. This rule shall be the charter of The First Bank of > Agora. The First Bank of Agora shall have a term of nine months, which shall > be automatically renewed for succeeding intervals of nine months, if The > Second Bank of Agora has not been founded. > > The First Bank of Agora shall have administration over the balance of Agora > in excess of 50 shinies. The First Bank of Agora shall be led by the Board > of Overseers. Their shall be two overseers elected once every two months in > alternating months. The Banker of The First Bank of Agora shall also serve > on the board ex officio. The Board of Overseers shall have authorization to > when Agora has a balance of less than 50 shinies issue bonds, with a total > value of up to 100 shinies. The terms of these bonds shall be determined by > the Board of Overseers. The Board of Overseers SHALL NOT issue any bond with a > with terms precluding their sale on the open market or with any provision > allowing the conversion of the bond to currency before the passage of two > weeks after sale. The Board of Overseers shall also be allowed to offer > consumer banking services, such as money holdings, check clearance, the > keeping of a ledger for fractional shiny banking, escrow, and any other > banking service not costing The First Bank of Agora more than 25 shinies in > capital to initiate or operate. The Board of Overseers shall, when Agora has > in excess of 250 shinies, be allowed to issue loans with a total value not in > excess of 100 shinies. The Board of Overseers MAY sell or purchase loans or > bonds from other Banks without 2 objections. All holdings, bonds, or loans > held or issued are backed and insured by the full sovereignty of Agora. The structure of the FBoA makes sense, though I suspect imposing mandatory elections every two months won’t make this popular. You should define who the vote collector is for the Board positions, though. I’m likely to push for over-unity fractional reserve lending if this actually sticks, or to create a bank whose charter allows over-unity fractional lending and which is insured by the FBoA as far as is possible. At a higher level, I think this needs some framework support defining what a “term” and a “class” are with respect to a Bond, and what it means to “convert” a bond. There’s some good stuff here. -o
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