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.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. General principles

Collection:: Economics Books

’5 < MONEY any case fall below that of the gold in the sovereign where the possibility existed of turning the coin into uncoined gold by the simple process of melting. So the effect of seignorage is to keep the value of the coin always between the metallic value and that value plus the seignorage, and in progressive and even in stationary periods to keep it at the higher end of this limited space. We must be careful not to be confused by changes in the mere form of the transaction. For a person to take raw material to a manufacturer to be made up for himself, and remunerate the manufacturer either by letting him keep a part of the product or by paying him money for the service rendered, was once a common method, but is now obsolete, surviving even at Government mints, if at all, only in name. Gold producers do not now bring or send their gold to a mint and receive back the same gold less seignorage and other charges, if any, but sell their gold to the mint (or a bank which acts as its agent) for money paid to them, and they regard themselves, like other producers, as receiving a price for their product. So there are ““ mint prices,” prices given by the mint for gold, and when a seignorage is exacted, it appears in the form of a difference between the mint price of an ounce of gold and the amount of coin made out of an ounce. When, for example, the mint price of an ounce of ‘““standard” (i.e. 4} pure) gold is £3 17s. 103d. or £3-894, and that ounce is coined into £3:894 sovereigns, this shows an absence of seignorage : a seignorage would be introduced by the interposition of a gap between the mint price and the amount of coin made out of the ounce, e.g. a lowering of the mint price to £375 per oz., while the ounce continued to be made into 3-894 sovereigns, would yield the Government a gross seignorage of £o0-144, or 2s. 103d. per oz.

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