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

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Chapter

Document type:: Monograph

Structure type:: Chapter

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

Collection:: Economics Books

22 MODERN MONETARY SYSTEMS To sum up, whenever white metal from producing countries was barely sufficient to pay off the debts owing to the Far East and it became necessary to call upon the stocks of bimetallist countries, silver went to a premium ; when, on the other hand, shipments of white metal to London could not be immediately deflected to the Far East, and it became necessary to send some of it to bimetallist countries, reserving at least a part for repatria- tion in the form of gold specie convertible into British legal tender currency, gold went to a premium. The co-existence of monometallist gold and silver standard countries on the one hand and of bimetallist countries on the other, accounting as it does for the con- ditions of the London market for silver throughout the bimetallist 7égime, gives a logical, and, it may be added, a psychological explanation of the variations in the ratio between the two metals during the period under con- sideration. Moreover, such facts as we have confirm this view. It has, for instance, been definitely established that the silver premium before 186% coincided with enormous transfers to India to pay for abnormal purchases of cotton and in the form of loans of large capital sums; articles in the Economist bear witness to the necessity of having recourse at the time to the stocks of bimetallist countries, and in particular of France, for this purpose ; at certain times it also became necessary to pay a considerable premium in exchanging gold for silver in the currency of the country. On the other hand, the gold premium, or in other words the fall in silver after this period, coincides with an enor- mous decrease in the amounts transferred, due to the dis- appearance of abnormal purchases and to payments in respect of interest on the capital invested in India.l 1 According to Monsieur de Foville (“La Monnaie,” p. 47) the net imports of silver into India, which had averaged 135 million rupees during the War of Secession, had fallen to 23 millions in 1872. See also Arnauné, ‘La Monnaie,le Crédit et le Change,” 3rd ed., pp.4I and 231. The Customs statistics of India bear out that the silver premium after 1860 coincides with a sudden enormous increase in the import of silver into India, whereas the fall in silver after 1866 coincides with a sudden enormous decrease in

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