Modern monetary systems

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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.

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Document type:: Monograph

Structure type:: Chapter

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

Collection:: Economics Books

MODERN MONETARY SYSTEMS 5 numerical ratio between them, the pound sterling may be said to be worth 2 5'221 francs at par. Moreover, as the system of free coinage enables French money to be transformed ad /ibitum into English money and vice versa, as many pounds can in fact be obtained with French gold recoined in London as that gold contains 25221 francs, and vice versa, so long as free coinage is accompanied by its normal concomitant of free export and import. It is also characteristic of our time that fiduciary cur- rencies are more and more finding a place in monetary systems. Banks of issue are growing in importance, and although their notes were originally mere promises to pay in cash a certain number of monetary units, the public has become accustomed to accept them in payment of their nominal value, as though they were themselves true money. The legislation of most countries has sanctioned and ex- tended this practice by making them legal tender. This means that individuals are obliged to accept them from each other but have the right of demand, if so desired, that they should be redeemed by the bank. In general, how- ever, such redemption is only demanded with a view to payments abroad. In this way notes have become a real internal currency convertible either into gold or into silver or into either of these two metals. Once in possession of these data it is easy to define the main types of monetary systems. (a) Systems based on Metallic Currencies. First type: Monometallism; Gold Standard.—Under this system, gold is alone accepted for free coinage and can be freely imported and exported; gold is the only unlimited legal tender, or, in other words, alone has lawful currency for payments up to any amount. Silver, like copper, nickel or any other monetary metal, only provides subsidiary coins the legal tender of which is limited—usually to a very small sum ; iz is not accepted for free coinage, the State reserving the right to mint in such quantities as appear to be convenient for the transaction of business.

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