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

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Chapter

Document type:: Monograph

Structure type:: Chapter

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

Collection:: Economics Books

THE REIGN OF BIMETALLISM 25 in the year XI, which was adopted by many other coun- tries, regulated international monetary relations for nearly three-quarters of a century by ensuring stable exchanges between monometallist gold-standard, bimetallist and monometallist silver-standard countries. An inhabitant of India, for instance, who only had silver at his disposal and whose English creditor could only accept gold, was able to have his rupees sent to France, re-coined, and trans- formed into g-franc pieces, take 20-franc pieces out of French currency, and then procure pounds sterling by having them re-coined in London. The possibility of carry- ing out this series of operations, if need arose, was suffi- cient to restrict the exchange rates between India and England within the limits of a go/d point and a silver point. It 1s true that the final abrogation of this system might be considered as a belated confirmation of the fears enter- tained by the legislators of the year XI when they set up the double standard régime in defiance of their principles. Experience does indeed show that the working of Bimetal- lism involves some risk for countries which have adopted it, when they are surrounded by monometallist gold-standard and silver-standard countries, which draw upon their stocks of the metal required for monetary transactions, and sur- render the other metal in exchange. Moreover, this danger may become particularly serious in the event of over- production of white metal or the demonetisation of silver coin in a neighbouring country ; for silver will be sent in enormous quantities to bimetallist countries, and as these shipments are not provoked by the necessity of settling debts, those who use this method of getting rid of their silver will very naturally recoup themselves by obtaining a corresponding amount of gold. This happened in 1873, and it is for this reason that thenceforward bimetallist countries suspended the free coinage of silver in order to protect their stock of gold. Thus Bimetallism, caught between gold- and silver- standard countries, works to the profit of both, by suffer- ing depletion alternately of the metal which is most in demand, and receiving in exchange the one which is

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