Modern monetary systems

Bibliographic data

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 I. Modern monetary systems and their operation

Collection:: Economics Books

20 MODERN MONETARY SYSTEMS of silver with which to settle his accounts in a country where silver alone was admitted, had to send gold to France there to be converted into French currency and take in exchange the silver of its currency which was legal tender in the creditor country. 11 is therefore easy to conceive that the London quotation for silver, 1.e., the rate on which all the calculations of the com- mercial ratio between the two metals are based—must have been directly influenced by the possibility either of silver having to be sent, e.g., to France in order to obtain its conversion in English legal tender currency or, on the contrary, of gold having to be sent there in order to obtain silver. Thus silver was bound to rise in value and stand at a premium whenever there was a possibility of gold having to be exported in order to obtain it. On the other hand, it was bound to fall in value and gold was bound to go to a premium whenever the latter could only be obtained at the expense of sending silver to a neighbouring bimetallist country, of exchanging it there into gold coin, and finally of bringing back this gold. England was the chief mono- metallist gold standard country and was also responsible for financing transactions between the greater part of Europe and distant countries. Therefore the necessity of converting gold into silver for settlements in countries which only admitted the latter put silver at a premium whenever England had a surplus of debts payable to countries with a silver currency. Conversely, the actual or potential necessity of converting silver into gold put gold at a premium whenever surplus debts due to Great Britain by silver standard countries had to be collected and there- fore converted into English legal tender currency. Hence we are led to the conclusion that variations in the commercial ratio between gold and silver during the period of bimetallism were closely bound up with the balance of trade as between monometallist gold-standard countries, chiefly represented by England, and monometallist silver- standard countries, chiefly represented by the Far East. And this explanation still leaves room for the factor of production in the determination of the respective prices

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