Modern monetary systems

Bibliographic data

Monograph

Identifikator:: 1753210836

URN:: urn:nbn:de:zbw-retromon-128414

Document type:: Monograph

Author:: Nogaro, Bertrand http://d-nb.info/gnd/117039713

Title:: Modern monetary systems

Place of publication:: London

Publisher:: King

Year of publication:: 1927

Scope:: XII, 236 S.

Digitisation:: 2021

Collection:: Economics Books

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

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. Modern monetary systems and their operation

Collection:: Economics Books

4 MODERN MONETARY SYSTEMS In our times—in France since the Revolution—this custom has ceased. The State extends a different treatment to precious metals, or at least to that metal which it has de- cided to use as the basis of its monetary system and to adopt as its standard. It is true that this metal is minted by the State and by the State alone ; but it is no longer bought, it 1s accepted in unlimited quantities by the mints from in- dividuals who wish to have it coined. They bring their bar metal and it is given back to them in the form of minted money weight for weight except that in certain countries a small amount is deducted for expenses of minting. This is the system of free coinage or of free money. Thus the State no longer claims either to restrict the entry of precious metals admitted under this sytem and the issue of the coins of which they are made or to tariff the coins. It therefore appears to limit itself to putting into circulation metal ingots brought by individuals, after hav- ing transformed them into smaller pieces of more con- venient size, of which it certifies the weight and fineness. Nevertheless, the law has thenceforward and once for all de- fined the monetary unit in terms of a certain weight of fine metal and every coin bears the number of units which it represents. Thus, as a result of the mere definition of a monetary unit, a bar of a given weight of fine metal represents a given number of monetary units in all those countries to which gold is admitted for free coinage. The true theoretical significance of this provision will be defined later, and we will only add here that nothing is easier than to determine the ratio between the monetary units of two countries, e.g., the franc and the pound, if the same metal is admitted to free coinage in both countries ; for each of these monetary units corresponds to a given weight of fine metal. Hence there is a constant ratio be- tween them, viz., the ratio between the respective weights of fine metal which they contain. The ratio between them, called mint par, is based on their material content, and— once given the definition of each monetary unit—it is not arbitrary. In virtue of this ratio of weight, which corre- sponds by the mere definition of the monetary units to a

Access restriction

Copyright

fullscreen: Modern monetary systems

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation