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

I0 MODERN MONETARY SYSTEMS the kind of problem which arises out of their interaction. We shall see below how the power to increase a note issue can itself seriously disturb the working of mone- tary systems. But in general it may be said that it is the relations between different monetary systems which chiefly give rise to obscure phenomena and ticklish prob- lems. In other words, most monetary phenomena arise in con- nection with payments by one country to another and as a result of the necessity of converting one national currency into another. Therefore in order to understand monetary phenomena the reader should have some idea of the mechanism of the exchanges. As is generally known, the mechanism of the exchanges depends on a method of setting off international debts which consists in negotiating bills of exchange or drafts drawn on foreign countries. For instance, I have to pay a thousand pounds in London. A Paris merchant, on the other hand, has a similar sum to recover, also in London ; he draws a bill on his debtor, Mr. Smith, and sells it to his bank ; I purchase this bill and send it to my creditor in London, who collects the amount from Mr. Smith. Thus a double offset has occurred by which the French creditor has been paid in Paris in French money and the English creditor has been paid in London in English money. Two inverse transfers of specie have thus been avoided, to- gether with the various costs of transport and recoinage. The service rendered is naturally paid for by the one who derives most profit ; for this reason the raze of exchange varies according to whether the total claims represented by bills drawn on foreign countries are greater than, equal to, or less than the debts payable. Between two countries which are, as it is said, on ihe same standard, or more accurately which use the same metal and where that metal can be freely exported, imported and coined, this proceeding has for its sole object the saving of transport costs. In any settlement between France and England before the war, it may be said that, thanks to the system of free coinage, it was open to anyone at any time to pay in specie. Moreover, as each of the monetary units

Access restriction

Copyright

fullscreen: Modern monetary systems

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation