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

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. General principles

Collection:: Economics Books

VALUE OF NOTES 55 issuers. The pound sterling, for example, in multiples and fractions of which all prices in this country are reckoned, ceases to be 113 grains of fine gold and becomes simply “ £1’ (or one-fifth of £5 and so on), when printed on a genuine note, and the amount of these symbols printed is determined by what the Treasury thinks fit. When the value of money is thus surrendered to the discretion of Government issuers, it usually goes down and the general level of prices goes up rapidly. The surrender usually takes place at a time of financial difficulty, so that the very object of destroying convertibility is to remove the necessity the Govern- ment or others are under of fulfilling their promises to pay something equivalent to certain definite quantities of bullion. In the present state of economic instruction in all countries there is no Government and no people which is likely to understand what is happening. The issuers find that further issues themselves directly bring in money easily and appar- ently cheaply, and very likely at first greatly assist borrowing in other ways by the feeling of ease and prosperity which ‘“ plenty of money *’ at first creates. Many other persons profit enormously by the rise in the prices of the things they sell. So there is a strong bias in influential quarters in favour of more and more notes, v' °° ' -Js to many arguments in their favour. I. At first when the rise of prices is not yet very perceptible, it is usual to deny that general prices have risen. This contention soon disappears, as the issue goes on and prices rise further. 2. Next comes the contention that though prices have risen, the currency is quite sound because it is still on a level with bullion-~the price of bullion has not risen. This is untrue, but usually difficult to disprove, because the time is probably one of con- -—

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