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.

116 MONEY by greater or less activity in coinage. The metal in the coins was always worth considerably less than their face value, so that there was never any danger of their being melted or exported for the sake of their metallic contents. No change has taken place in regard to this part of the currency except that the silver in the silver coins has been reduced from 92% per cent. to 50 per cent., and that the Treasury has given actual proof of its willingness to withdraw silver coin when necessary. Bank of England notes were printed promises by the Bank to pay sums of pounds on demand. Though legal tender for pounds when tendered by anyone else, they were not so when tendered by the Bank itself, so that holders of the notes could require the Bank to pay in gold coin (silver coin being legal tender only up to £2 and bronze only to 1s). This obviously made itimpossible for the notes to be issued or to continue in circulation in larger total amount than was compatible with their maintaining a value equal to that of a sovereign for each pound expressed on their face, And the sovereigns, in turn, could not be issued and kept in circulation in larger aggregate amount than was compatible with their maintaining a value equal to that of 113 grains of fine gold, since, if they fell appreciably below that level of value, some of them would be melted or exported by holders who would see a profit in the transaction. A sovereign being worth less than 113 grains when passing as £1 would mean in the language of the bullion market that the price of gold was above £3 17s. 104d. standard and £4 4s. 113d. fine, so that full-weight sovereigns would sell for use in the arts or for export for more than a pound each. Thus the aggregate currency of bank- notes and sovereigns was always kept in check by the convertibility of bank-notes into sovereigns and the convertibility of sovereigns into free gold bullion. On the other hand the Bank of England notes could not be so deficient in total amount as to rise in value appreciably above the rate of 113 grains to the pound, because the Bank was bound by law to give notes in exchange for all gold bullion offered to it at £3 17s. 94. per ounce standard. Thus bank-notes were always

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