Die deutschen Hypotheken-Aktien-Banken

Bibliographic data

Monograph

Identifikator:: 832363383

URN:: urn:nbn:de:zbw-retromon-68350

Document type:: Monograph

Author:: Steller, Paul

Title:: Die deutschen Hypotheken-Aktien-Banken

Place of publication:: Stuttgart

Publisher:: Aue

Year of publication:: 1877

Scope:: 1 Online-Ressource (69 S.)

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

120 MODERN MONETARY SYSTEMS using different words, speaking sometimes of the expan- sion of credit and sometimes of an increase in the quantity of money, and looking at the question from different angles, it is always the same phenomenon which is under consideration. By accepting deposits and using them to give credit, banks put into circulation money that would not otherwise circulate. They thus increase the demand for goods and incidentally stimulate a rise in prices during a boom which is often followed by a slump. But also—and this is the point which is of essential importance in any description of credit machinery—by supplying manufacturers with the means of purchasing equipment, raw materials and labour, they foster production and there- fore the supply of goods and so ultimately create one of the factors in a fall in prices. Nor does the problem appear in a different light when, setting aside any particular mechanism for increasing the circulation, we come to consider the effects of such an increase. Whether the increase in the amount of money in circulation?! is produced, as described above, by the practice of making bank deposits, or whether a Bank of Issue in a country like France, where the practice of making bank deposits is less common than in England, issues uncovered notes and thus directly increases the number of monetary community where credit is highly developed, they reason as if its effect were continuous and proportional to the factor of money; out of this has grown the theory of purchasing power parities and of the stabilisation of exchanges by contracting and expanding the circulation, which will be discussed later. 1 We say advisedly “in circulation,” for an increase in the amount of money only has an effect in so far as its circulation increases. Contrary to the statements contained in certain official documents, money which is hoarded has no effect on demand and therefore on prices. Possibly hoarding may increase the amount of notes which leave the vaults of banks, since they have to be replaced, but it does not increase the circulation in the exact meaning of the term. Conversely, it is not necessary that the stock of money should rise in order that the circulation should increase; it will be enough if credit is adequate to this increase in the amount of money in circulation. Therefore the French financial administration, in passing strictures on persons who hoard money and in advising the public to use cheques, i.c., bank deposits, to a greater extent “in order to reduce the circulation” are making a double mistake from the theoretical pointof view,

Access restriction

Copyright

fullscreen: Die deutschen Hypotheken-Aktien-Banken

Monograph

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation