Money

Bibliographic data

Monograph

Identifikator:: 1819853969

URN:: urn:nbn:de:zbw-retromon-207464

Document type:: Monograph

Author:: Cannan, Edwin http://d-nb.info/gnd/118666916

Title:: Money

Edition:: 6. ed.

Place of publication:: [London]

Publisher:: King

Year of publication:: 1929

Scope:: XII, 120 Seiten

Digitisation:: 2022

Collection:: Economics Books

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18 MONEY sovereign in circulation, so that the ratio fixed for the rupee was not with a domestic coin but with one circulating in another country, and could therefore only be seen at work in the business transactions between the two countries, commonly called the axchanges. Hence the name “ gold-exchange stan- dard ” applied to the monetary system of India and other countries with silver currencies kept to the standard of gold. But we must beware of imagining any natural pre-eminence of gold over silver. The same system might be applied with equal ease to keeping the value of a gold coin at some fixed ratio with the value of the silver coin of another country or indeed with the value of any other clearly cognizable commodity or even with a collection of commodities such as appears in the formation of an index number of prices. The Swedish Government came near adopting a plan of this kind in 1916, when it put hindrances in the way of the entry of new gold, but the object to be aimed at was not properly understood, and the manufacture of paper substitutes for coin was not adequately limited, so that the experiment proved completely abortive, the value of the Swedish currency eventually falling not only down to but considerably below its original parity with gold. (See Gustav Cassel, Money and Foreign Exchange after 1914, pp. 79-100.) The conclusion of this section is that given demand for a coin, adequate restriction of supply will keep its value up to any required level above that of its metallic contents. It is not, of course, a useful corollary of this to say that adequate additions to supply would keep its value down to any required level below that of its metallic contents: that is perfectly true, but adequate additions cannot be made, because a coin worth less as a coin than the bullion of which it is made will always, law or no law,

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