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.

Chapter

Document type:: Monograph

Structure type:: Chapter

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

Collection:: Economics Books

RECOVERY OF THE EXCHANGES 41 was exposed to the repercussion of the failure of other monetary systems as a result of the Great War.1 § 4. Comparison between the Conversion Office in the Argen- tine and the ‘Gold Exchange Standard’ in the Far East. Identical principles and same essential conditions in the working of new methods as in the traditional system of the gold standard. It is easy enough after this brief analysis of the mone- tary system adopted in the Argentine to grasp the analogy between it and the Indian system of the Gold Exchange Standard,? and also the essential characteristics which it has in common with the traditional gold-standard systems. As in India and in those silver-standard countries which had followed its example, the internal currency had suf- fered no change; but owing to the convertibility of the national currency into gold at a fixed rate and the existence of sufficient available yellow metal, gold was the monetary instrument and standard for foreign payments. Thus the Argentine also had independently discovered and adopted the “gold exchange standard.” Moreover, the fact that the currency, consisting as it did of paper and not of silver, was strictly fiduciary in character, was necessarily favourable to the success of this system ; for there was no longer the risk that, with the appreciation of the metal, silver coin would acquire a greater commercial value than its legal rate, and that it would be exported at a price which would alter the exchange limits. Again, although the conversion of notes into gold was not in theory subject to proof that the gold was required for payments abroad, with the continuous use of paper 1'The causes and effects of subsequent changes in the monetary system of the Argentine will be described in the following chapter. 2 In spite of this analogy, the reform in the Argentine does nor appear to have been inspired by the example of India, then little known; moreover, there was already a direct precedent for it in the exchange office set up in February 1867, which had worked satisfactorily until May 1867. (See esp. Subercaseaux, “Le papier monnaie,” p. 392, and J. H. Williams’ “Argentine International Trade under Inconvertible Paper,” p. 29.)

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