Money

Bibliographic data

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

Usage license:: Get license information via the feedback formular.

APPENDIX II 11Q the public being able to replace their stock of Currency notes by sovereigns and half-sovereigns. But there was no reason to believe that the public had any desire to do this. The experience of all civilized communities has gone to show that notes are preferred to gold coin even when issued in somewhat lower denominations than for ten shillings at present prices. It should be noted that as the sovereign and half-sovereign remain legal tender, there is nothing to prevent individuals and banks from importing those which are minted in South Africa and Australia and putting them into circulation if they see any advantage in doing so. The Gold Standard Act, 1925, while putting on the Bank of England the obligation of giving gold bars in exchange for Currency Notes, did not take away from the Treasury, alias the Government of the day, the power of withdrawing the Minute which established the Cunliffe limit, and thus recovering its freedom to issue an unlimited amount of notes. This weak point was removed by what was called the ‘‘ amalgamation of the note-issues ’’ effected under the Currency and Bank Notes Act of 1928, which came into operation on Novem- ber 22 of that year. That Act repealed the provisions of the Currency and Bank Notes Act, 1914, which gave the Treasury the power to create the Currency Notes, and it provided that the Bank of England should redeem the existing out- standing issue by itself issuing £1 and 10s Bank Notes in exchange. To balance the liability thus taken over by the Bank, it prescribed that the Bank should receive the whole of the Bank Notes (£56,250,000) and silver coin (£5,250,000) held in the Currency Note Account, together with a portion of the government Securities held in the Account, sufficient (with the Bank Notes and silver coin) to make up a total equal to the amount of Currency Notes outstanding (£286,750,000). The Bank Notes transferred, which had been purely unnecessary and meaningless intermediaries between Currency Notes and the £56,250,000 of gold bullion held against them, were immediately cancelled, and this eliminated a double reckoning in the total of paper currency which had

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