Modern monetary systems

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Monograph

Identifikator:: 1753210836

URN:: urn:nbn:de:zbw-retromon-128414

Document type:: Monograph

Author:: Nogaro, Bertrand http://d-nb.info/gnd/117039713

Title:: Modern monetary systems

Place of publication:: London

Publisher:: King

Year of publication:: 1927

Scope:: XII, 236 S.

Digitisation:: 2021

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. The explanation of contemporary monetary phenomena and currency theory

Collection:: Economics Books

THE NOTION OF MONEY 167 whose exchange ratio was strictly defined by law and guaran- teed by the inscription on the coins themselves. The indirect result in monometallist countries was that individuals could have metal coined externally which was not admitted to free coinage in their own country and in exchange take out of the circulation of neighbouring countries the metal which could be transformed into legal currency in their own country—z the extent at least to which this circulation was sufficient to meet the demand. It must, however, be recognised that the working of the bimetallist system which cannot be explained on the sup- position that precious metals, freely coined, have independent exchange values determined like those of any other two commodities can only be understood if it be recognised that the system of free coinage as applied to two metals both of which are convertible into monetary units at a constant rate has created for these two metals a very special market so that they are exempt from the laws which govern exchange value in ordinary markets. But in order to grasp the fundamental importance of this piece of monetary experience it is not enough merely to lay down the possibility of maintaining an approximately stable exchange ratio between gold and silver. For, in making this observation, writers generally confine them- selves to admitting that the possibility of converting one metal into the other establishes a connection between the rates of the two metals, but continue to state that the rate of one of the metals is determined “naturally” and inde- pendently of any legal prescription. We must still inquire whether this experience has not shown, contrary to opinions based on a rather superficial observation of previous currencies and adopted by the authors of bi- metallist legislation, that the law may have a decisive influence, not only on the ratio of value between the two precious metals, but also in determining the -alue of any monetary metal. Although contemporary thinkers, chiefly in Germany and in France! are inclined to 1 See Gide, “Principles d’Economie Politique,” 11th edition, p. 261. “We now have numerous proofs of the influence exercised by legislation

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