The small but growing market for asset-backed securities, where institutional investors trade notes backed by consumer loans, is expected to remain steady well into the new year.

Hence, they propose that trade should be facilitated by using notes backed by labor.

Last year, Chicago-based Continental offered $140 million in floating-rate notes backed by its own loans for leveraged buyouts.

One of the most widely anticipated was a $147 million offering of five-year notes backed by automobile loans from the General Electric Credit Corporation.

The new bank would serve as a central bank for Iceland, issuing notes backed by gold, as was the practice in other countries.

The second phase involved issuing 200 million rubles in back notes backed by the allies at a rate of 10 - 1 to the dollar.

"But if there are massive defaults on notes backed by the Government, the Government could be required to come into this crisis again."

Companies have raised billions of dollars on Wall Street by issuing notes backed by everything from mortgages and credit-card receivables to car loans.

The issue of banknotes is the sole function of the issue department, the notes being fiduciary backed by government securities rather than backed by gold.

The basic idea is that companies sell assets to a special-purpose financing affiliate, which in turn sells notes backed by those assets to the public.