Money, Bank Credit, and Economic Cycles - The Ludwig von Mises ...

148 Money, Bank Credit, and Economic Cyclesof demand deposits, could ultimately guarantee the bank’sability to return deposits whenever requested by a depositor.Thus, to Garrigues the obligation to maintain depositsavailable to depositors “becomes a duty to work diligently, tomake prudent and sensible use of deposits, so the bank isalways capable of returning them on demand.” 33 FollowingLalumia’s example, Garrigues adds that the depositary is not“obliged to keep the tantundem, but only to invest it wiselyand keep it liquid so he is always in a position to return it ifnecessary.” 34 The bank would only have to keep in its vaultsenough money to satisfy the “probable” demands of itsclients. Garrigues therefore concludes thatin bank deposits, the element of custody is replaced by thetechnical element of calculating the probability of depositwithdrawals. In turn, this calculation depends on the factthat bank deposits are made on a large-scale. 3533 Garrigues, Contratos bancarios, p. 375.34 Ibid., p. 365.35 Ibid., p. 367. García-Pita y Lastres defends the same theory in hispaper “Los depósitos bancarios de dinero y su documentación,” wherehe concludes thatunder the circumstances, instead of regarding “availability”as the simple right to claim immediate repayment, we shouldconsider it a combination of behaviors and economic andfinancial activities aimed at making repayment possible. (p.990)He continues in the same vein in his paper “Depósitos bancarios y proteccióndel depositante,” pp. 119–226. Also espousing this view,Eduardo María Valpuesta Gastaminza argues thatthe bank is under no obligation to hold the deposited good,but rather custody becomes a responsibility to prudentlymanage both the customers’ and the bank’s resources, and tokeep these available, which is also ensured by legitimate governmentalregulations (which set the reserve requirement,limits to risk-taking, etc.). (pp. 122–23)See “Depósitos bancarios de dinero: libretas de ahorro” in Contratosbancarios, Enrique de la Torre Saavedra, Rafael García Villaverde, andRafael Bonardell Lenzano, eds. (Madrid: Editorial Civitas, 1992). Thesame doctrine has been endorsed in Italy by Angela Principe in her