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

RECOVERY OF THE EXCHANGES 4s such as Japan and Russia, had undertaken a radical reform of their monetary systems. They too accepted the mone- tary depreciation which had taken place, but introduced gold into their home currencies or into the holdings of their Banks of Issue in sufficient quantities to enable them to adopt the gold standard, and to stabilise their exchanges, without the help of any special machinery for conversion. Special mention, however, must be made of the case of Austria-Hungary, where monetary reform, although con- ceived on this traditional plan, kad not been carried to a conclusion, and therefore produced a régime which was, in fact, exactly analogous with that of the gold exchange standard. By a law passed in 1892 the gold crown had been made the monetary unit of the Empire, and, in order to withdraw the notes of former issues and restore the monetary system of the dual monarchy, the State had obtained foreign loans the proceeds of which had been imported in the form of gold bullion. The way had thus been opened for inaugurating a reliable gold currency;! but the Bank was not bound by law to reimburse its notes, and the public, accustomed to paper, allowed such little gold as was in circulation to flow back to the Bank. Thus the Bank was in law and in fact exempt from guaranteeing the internal convertibility of the note issue; on the other hand, it could keep nearly the whole of the gold in the country for foreign payments ; and it perfectly fulfilled the task of keeping the exchange within limits approximating closely to the gold points, by supplying without commission either bills previously bought in the open market, or gold for foreign payments. Thus the Bank was pursuing with all its implications the policy of handling foreign exchange, by means of which certain Banks of Issue attempt to control the market. And by pushing this policy to its extreme, the Bank succeeded in 1 Before the reform of 1892 the gold stock of the dual monarchy was estimated at about 200 million gold crowns, of which 160 millions were held by the Bank. In 1910, the gold currency reached 1670 million crowns, of which nearly 1400 millions were held by the Bank. (See “La réforme monétaire en Autriche,” by Dub, Revue Economique Internationale, 1910.)

Access restriction

Copyright

fullscreen: Modern monetary systems

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation