Memorandum for: Luuneray Kruus
Chairman of the Economics Council
Subject: Advice re: New Republic Bank

Senator, you indicated to me some time ago (immediately prior to your appointment to the Economics Council) that you would be willing to work with me on a measure to privatize the New Republic Bank. I'm curious to hear your thoughts and your advice on this, before I propose anything. My thinking is that tax revenues and other government accounts currently deposited in the bank should be dispersed to a series of private, Republic banks (I'm reluctant to involve the IGBC in this, understandably). The figures that I'm looking at suggest that if there's any variation in the value of the credit as a result of this measure, it would be minor at best and would not be immediately felt. Does your Council agree with this assessment?

Also, what are your thoughts on the determination of which banks to deposit to? I'm partial to a bidding process, personally, but a lottery has also been suggested to me by representatives of smaller institutions. Also, and finally, I believe that if we move forward with this legislation, the New Republic Bank should still remain in operation as a lender-of-last-resort (such as in disasters, or emergency loans for defense for planets that wouldn't otherwise qualify in the private sector). Should we, then, maintain a certain percentage of tax revenues to be deposited in the bank, and if so what percentage?

Thank you in advance for your counsel, Senator.

Eli Fitzgerald
Chief of State