Sozialismus und Regierung

Bibliographic data

Monograph

Identifikator:: 1008917265

URN:: urn:nbn:de:zbw-retromon-19129

Document type:: Monograph

Author:: Flückiger, Otto http://d-nb.info/gnd/117736708

Title:: Die Schweiz

Edition:: Zweite Auflage

Place of publication:: Zürich

Publisher:: Druck und Verlag von Schultheß & Co.

Year of publication:: 1914

Scope:: 1 Online-Ressource (VI, 243 Seiten)

Digitisation:: 2017

Collection:: Economics Books

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

VALUE OF NOTES considerable influence upon the value of money, reckoned as it is in this restricted coin. For example, if at the time the Indian Government was bringing the rupee up to 1s. 44. by restriction of coinage, either it or banks had been successful in issuing and keeping outstanding a large issue of notes (convertible or inconvertible) of small denomination, the rise of the rupee would have been greatlv obstructed in conse- quence of the reduction in the demand for silver rupees. When the scheme had attained success such an issue might obviously have sent the rupee down again to the value of its metallic contents. But that is not all. An issue, convertible or inconvertible, although circulating at par with the coin tends to reduce the value of the coin and raise prices even when that coin is like the English sover- reign before the War, always on a level with its metallic contents, or like the Indian rupee in the case just imagined has already been driven down to a level with its metallic contents. It does so even when the coin may be melted down and exported because it tends to reduce the value of its metallic contents: the demand for coinage being reduced, the demand for and therefore the value of un- coined bullion will be reduced, so that the melt- ability of the coin will not altogether save it from being pulled down by the diminution of demand for it caused by the competition of the notes. This, how- ever, though important in any large view of the subject, is negligible when the effect of a note issue confined to any one country is concerned : the bullion of which the value is depressed is a mundane commo- dity not likely to be very appreciably affected by any probable single change in the demand for the coin of any one coun*-r- At tlis point the power of a convertible issue to depress the value of money and raise prices stops,

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