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

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

BANKS AND PRICES £1 situation of the world would be different. We must beware of any assumption that the amount of the economy is indicated by the magnitude of the aggre- gate of bank deposits. Even if the aggregate of bank deposits excluded all double reckonings by which it may be swelled beyond the net amount due to persons who have credit balances, it would probably be greatly in excess of the amount which those persons would hold in currency if no banking facilities were available. If the facility were not there, each of us would set about devising means for making our incomings coincide more nearly with our outgoings rather than keep in the house sums of currency as large as our present bank balances. A still worse error, which has, unfortunately, been countenanced by many high monetary authorities in recent years, is to suppose that the aggregate of deposits is a kind of money (sometimes it is called ‘“ bank-money *’) which should be added to the actual stock of coin and notes existing at any moment. The individual, no doubt, finds “money in the bank ”” much the same as ‘‘ cash in the house,” but the aggregate of all the individuals’ balances at their banks is only an amount which the bankers are liable to pay, but which they could not possibly pay in cash all at one moment. A liability to pay cash is certainly not cash : both debtors and creditors are painfully aware of the fact. When additional currency is put on the market by some one who has the power of issuing it, prices are raised, because the issuer’s offer of money in exchange for goods and services is additional, the power of nobody else to spend money having been reduced. When, on the other hand, a person increases his balance at his bank he increases the bank’s power to lend only at most by the amount which he forgoes, so that the aggregate money-spending is not increased. = fe f F f r : g ] & 3 T Nn 2 po © > > Put oo < wh ® CC m + mn oO © O ~ < ~~ a ~ oO -— oO oN oo om oO ND o o -— M2) ia = Ls -— -— © = Ny yr [eo] oO oN 's] << 0 )

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