International trade

Bibliographic data

Monograph

Identifikator:: 1758394757

URN:: urn:nbn:de:zbw-retromon-136209

Document type:: Monograph

Author:: Taussig, Frank William http://d-nb.info/gnd/120199459

Title:: International trade

Place of publication:: New York, NY

Publisher:: Macmillan

Year of publication:: 1927

Scope:: XXI, 425 Seiten; graph. Darst.

Digitisation:: 2021

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Problems of verification

Collection:: Economics Books

INTERNATIONAL PAYMENTS 207 somewhat by the operations of the Government Treasury (the “Independent Treasury’), whose policy it was to hold more of cash in its vaults at some times, at other times to push cash into circulation. The gold was held by banks as reserves. A considerable part, nevertheless, was in everyday circulation, chiefly in the form of gold certificates. The total available was steadily swelled by the output of the domestic mines, which found its way regularly to the mints and to the channels of circulation or reserve. As re- gards quick drain or quick replenishment the supply was subject to the international movement only. Here was the one really flexible item. It was mainly from this source that a demand for larger bank reserves could be met; and it was thru this that a drain on bank reserves made itself felt most effectively. The dominating effect which the international movement might be expected to show was merely mitigated and concealed by the con- siderable supplies of gold from the domestic mines and by the heterogeneous character of the rest of the circulating cash. The case thus resembles in some essential features the British and Canadian: deposits swelled as a rule to the maximum ; reserves not far from the minimum; bank discounts and loans, the money market and the tone of trade, easily and quickly affected by the cash holdings of the banks; those cash holdings having as their variable or flexible constituents the monetary supply of gold; this supply of gold swelled with increments from the domestic mines at a fairly steady rate, but subject to variation mainly from the international movement.! In all countries using deposits and checks freely, the looseness of the connection between bank reserves and bank deposits leads not infrequently to a chronological order different from that assumed in the Ricardian reasoning. An inflow of specie may !T say “mainly” from the international movement. It is true that the United States Treasury was at times a factor, endeavoring as it did to influence the banking and business situation by letting cash out from its holdings or impounding it. This endeavor to exercise a stabilizing influence, however, was not steadily maintained ; it proved of varying and often of negligible effect. It was no more than a tentative and wavering precursor of the deliberate and well-equipped procedure for the same purpose which was subsequently incorporated in the Federal Reserve Svstem:.

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