Banking: Recollections of Pine Gulch

Today we will be reading a fictional story about how a "bank" started in California during the Gold Rush (1849).  While it's fictional, it does a good job of explaining how banks work, why our printed money is so complex, how loans work, etc.

The story is located here: http://pinegulch.blogspot.com

After reading the story, answer the following questions:

1. Why was there a demand for Slim's services in Pine Gulch?  
2. How did Slim use this demand to create a monetary system for the town?
3. Why was it important for Slim to go to San Francisco to get the ink and paper to write the receipts?  
4. Why did the people of Pine Gulch accept these receipts as currency?
5. How did Slim increase the money supply in Pine Gulch?  How did he decrease it?  Who benefited from this practice?
6. Why did Slim have to leave town after Big Bart shot him?
7. How did Slim become one of the richest men in Pine Gulch?
8. Did this story change your understanding of how money or banking works?  Explain.

When finished, print and turn in your responses.