Money

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Monograph

Identifikator:: 1819853969

URN:: urn:nbn:de:zbw-retromon-207464

Document type:: Monograph

Author:: Cannan, Edwin http://d-nb.info/gnd/118666916

Title:: Money

Edition:: 6. ed.

Place of publication:: [London]

Publisher:: King

Year of publication:: 1929

Scope:: XII, 120 Seiten

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Further elucidations

Collection:: Economics Books

THE EFFECT OF “COVER?” 8s of those rises of prices which come from epidemics of optimism rather than of those more serious rises which come from excessive creations of currency, whether these arise from gold mines and minting or from the printing of notes to meet the exigencies of govern- ments which do not care to meet their expenses honestly by means of taxes or even loans. The utmost possible increase of gold held against deposits by banks throughout the world would be a small matter compared with the present decennial output of the gold mines, while to ask the banks of a country, say for instance Germany in 1923, first to print notes to lend to the government and then to absorb in reserves an equal quantity would be simply ludicrous. The remedy for excessive issue of currency is not to be found in regulation of the rate of interest charged by and paid by certain intermediaries (the banks) between lenders and borrowers, but in regulation of the issue of the currencv §4. The eff. curren That banks which issue bits of paper promising to pay coin on demand should, and must to avoid bankruptcy, keep in hand whatever amount of coin is required to enable them to perform their promise is obvious. The amount necessary will vary enor- mously with the circumstances of the time and place, and to make any generalizations about it is made more difficult by the fact that banks of issue always (or almost always, for the Bank of England's Issue Department and the British Government's Currency Note Account might perhaps be reckoned as banks) accept deposits from customers. They undertake to re a, .iese also on demand, and the coin kept in hand for that purpose is not and evidently cannot be separated from what is kept as * cover ”

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