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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Document type:: Monograph

Structure type:: Chapter

Title:: Part III. The recent historical example

Collection:: Economics Books

PAPER PRICES QY been increased, and eventually, when the continuous depreciation became recognized, it became impossible for the State to borrow at all. True that loans were raised at first at lower rates of interest, but if the depreciation was not to be permanent the lower rate was counterbalanced by the larger amount which had to be borrowed. True that to be pinched by high prices rather than by small money incomes and large taxes made the people rage in the first place against the persons who were supposed to profit and often did profit—most of them quite innocently—by the rise of prices instead of against the Government, but in the end the people came to the conclusion that the Government was in league with the hated *“ profiteers,” and political discontent began to boil, and in some instances boiled over. One advantage which was not foreseen or intended was obtained. As the currency fell in value the real burden of national debt contracted in that currency diminished. The pre-war debt of the Austrian government was reduced by the depreciation of the krone caused by the War to one-fourteen thousandth of its original gold value, and that of the German government to the incredibly small fraction of one billionth. In such cases bondholders are congratu- lated if they get a *“ compassionate allowancé *’ of 5 or I0 p.c. Such a reduction of burden is a real advan- tage to the State in its corporate capacity, though we may agree with Adam Smith that the advantage is far more than counterbalanced by disadvantages to the community. To cover up its own real insol- vency the State involves millions of private persons and institutions. Not only the State debts, but the debts of local authorities, companies, and individuals, are lightened to the debtors at the expense of their creditors ; and not onl; cebts but all other obliga- tions to pay fixed sums of money, such as the rents

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