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

44 MODERN MONETARY SYSTEMS Office in the Argentine received gold and supplied 227-27 paper pesos in exchange for a weight in gold correspond- ing to 100 former pesos, the exchange could obviously not rise above this rate by more than the cost of trans- mitting the gold ; for anyone desiring to obtain Argentine currency, whether a foreign debtor or a national of the country owed money from abroad and wishing to con- vert his credit into home currency, would have no reason for buying a draft on the Argentine at a higher price in gold, or for selling a foreign bill at a lower price in paper pesos.! § 5. Monetary Reform in Austria-Hungary. While a certain number of countries outside Europe had thus attempted more or less consistently to reform their monetary systems by using the gold standard but without having an effective gold currency, other countries, of internal monetary units which is fixed, because it is in terms of gold that the unit is defined. The possibility afforded by an institution like the Con- version Office in the Argentine, of obtaining in exchange for gold a fixed amount of home currency in the form of notes, leads to exactly the same result; it is another way of turning foreign gold into currency on the basis of a par corresponding to the real or hypothetical contents of gold in the home currency. 1'The import gold point ceased, of course, to be effective if foreign countries prohibited the export of their gold; as we shall see later, this is how the working of the Conversion Office in the Argentine has been impeded since the war. But it will be seen (Part III, Ch. II) that this difficulty is not insuperable. The example of the Argentine had been followed in 1906 by Brazil, where a Conversion Office was created. It differed, however, in several respects from the Argentine institution. In the first place, it only converted its own notes, thus leaving inconvertible a part of the currency, but it had a guarantee fund which was of assistance when it began its operations. Secondly, the amoynt of notes to be issued in exchange for the gold received was limited—320,000 contos or 20 million pounds—and in 1910 this prevented the import gold point from being effective, and caused the Office to suspend operations for the first time. For a more detailed account see the above-quoted works by Subercaseaux and Masson-Forestier, which contain a fairly full bibliography, and lastly Souza Reis, “O padrio de cambio ouro como solugao do problema monetario brasilieiro,” Sao Paolo, 1923.

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