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

106 MONEY were not very visible. The Bank, no doubt from intelligent anticipation, had on November 6 raised the bank rate 1 per cent. above the absurdly low rate of 5 per cent. which had been maintained by the help of the output of new currency since April, [gr7. But prices went on rising fast. As for the note issue, Christmas is the time of year at which people arrange to have most cash in their pockets : before Christmas it is drawn out of the banks in large quantities and they meet this drain by drawing from the Bank of England. When the season is over the public has spent the money, and the extra notes trickle back as they are paid in to the banks by shopkeepers, entertainers and others. The banks deposit them with the Bank of England, which at that time paid Currency Notes in to the Currency Note Account, so that there was always a great drop in the amount of Currency Notes outstanding in the course of January. But when the seasonal drop was over, the prospect of the limit stopping the general slope upwards which had been going on for five years began to exercise the influence which the pre- war impossibility of getting unlimited sovereigns without paying full value for them had always exercised. The banks, foreseeing tightness, became chary in making advances, and the Bank of England raised the Bank rate to 7 per cent. in April. The banks did not, as some alleged at the time, * restrict credit ’’ out of mere malice, nor from an unusual access of covetousness, nor out of a patriotic desire to end the rise of prices, but because they ‘“ hadn’t got the money,” and the reason why they had not got it, and did not expect to have it, was the adoption of the Cunliffe limit. Under this damping influence, the post-war boom, which was merely an extension and exaggeration of the war boom rather than an independent boom,

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