Modern monetary systems

Bibliographic data

Monograph

Identifikator:: 1023388405

URN:: urn:nbn:de:zbw-retromon-39712

Document type:: Monograph

Author:: Stein, Bruno http://d-nb.info/gnd/1047107112

Title:: Die Kontrolle der Rechnungslegung (in der Privatwirtschaft)

Place of publication:: Borna-Leipzig

Publisher:: Buchdruckerei Robert Noske

Year of publication:: 1914

Scope:: 1 Online-Ressource (110 Seiten)

Digitisation:: 2018

Collection:: Economics Books

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

b MODERN MONETARY SYSTEMS There is, however, a legal ratio between the gold and silver currencies, since the silver as well as the gold coins represent a given constant number of units of account. Lastly, bank notes must of necessity be convertible into gold representing the same number of monetary units. This naturally follows from the fact that gold coin is the only unlimited legal tender. It is evident that this system is based on gold: the other monetary instruments being deemed to be of value only inas- much as they represent gold; indeed, it is because they can all, in fact, be converted into gold coin, which in turn can be ex- ported and thus, by the system of free coinage, converted into the gold coin of some foreign country, that the system has an element in common with the systems in all other countries where gold is accepted for free coinage. It 1s therefore called the gold monometallist system or the system of the gold standard. It is the traditional monetary system of England. Second type: Monometallism— Silver Standard. —Silver is alone accepted for free coinage ! or by weight, and can be freely exported and imported ; it is the only unlimited legal tender. Under this system gold coin does not as a rule circulate side by side with silver, or, if it is in circulation, there is no fixed exchange ratio between it and gold. On the other hand, subsidiary coin of other metals can circulate with a fixed exchange ratio corresponding to fractions of the monetary unit which the silver coin represents. Bank notes are convertible into silver. The basis of this system is therefore silver, and silver thus becomes the common standard of countries where this metal is accepted for free coinage. This is still the mone- tary system of China.2 ! Alternatively, coins already minted are allowed to enter; for example, the Mexican dollar was for a long time admitted to the Far East with the same effect. 2 It has been abandoned by nearly all countries in the Far East. Even French Indo-China is no longer fully a silver standard country; for silver is not accepted for free coinage and foreign silver coin is no longer admitted. The Indo-Chinese piastre is unlimited legal tender, but its minting is controlled by the Government. iz .

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