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

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

APPENDIX . CURRENCY NOTES AND THE EXCHEQUER IT is obvious that any person or institution exercising the power of issuing scraps of paper which pass as £1 will benefit to the extent of almost £1 for every scrap issued, except in so far as gold or other idle treasure is kept “ against” or as ‘ cover for” them. There are two simple ways by which a government issuing or allowing the issue of such scraps or ‘‘ notes ” can realize the benefit. (1) It may issue them itself directly in payment for goods and services, Or (2) it may allow a bank to issue them by way of loan to itself and others on such profitable terms as may be agreed between itself and the bank. Under the first of these plans the benefit to the national Exchequer appears in the simple form of a receipt from the issue of paper currency in the year of issue: and if in a subsequent year some of the paper was redeemed by the State, the expense of redemption would appear as payments for redemption of paper currency. Under the second system the benefit from issue and loss from redemption will not appear directly in the Exchequer accounts as receipts from issue and expenses of redemp- tion in the years in which they occur, but will have to be looked for in the relations between the bank and the government, and may be spread over many years. The compensation paid by the bank to the government usually takes the form (as in France) of advances to the State at no rate of interest (or at a very low rate supposed to be sufficient to cover only the expenses of issue), but it also takes many other forms (e.g. the annual amount paid by the Bank of England for the privilege of its fiduciary issue). When this system is adopted 112

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