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 I. General principles

Collection:: Economics Books

VALUE OF NOTES 5 separately or in association to make a perfectly new issue of inconvertible notes without the assistance of Government, but such an issue can be made by or with the active help of even a rather weak Government. This is possible partly because the public has been accustomed to regard the note currency as more or less arranged for by the Government, and therefore to look upon anything which is allowed to circulate as being ‘““ good "— it trusts the Government to do with notes what it does with coin, to see that nothing ““ bad ” is in circulation—and partly because the Government assumes the power of interpreting the name of the unit of account. This power is commonly called the power of changing the law of legal tender. At one time, for example, gold coin may be the only legal tender; then a contract to pay “one hundred pounds” can only be fulfilled (unless the other pa~v agrees) by the tender of 100 sovereigns or 200 half-sovereigns. Government may then enact that notes issued by some bank or by its own Treasury shall be legal tender, and forth- with every one who has contracted to pay ‘“ pounds * can pay in these notes. It is true that if the issue is very unpopular, the mere making of it legal tender will not bring it into general circulation, because people will find means for refusing to deal with those who insist on paying in it, but the law certainly does help. The power of the holder of a note to make his creditor accept it in payment is not exactly the same thing as the note being generally acceptable, but it goes far to cre 2 7eneral acceptability, since a person’s reluc*anec~ °° «~~ -* ig largely overcome by the feeline that ~ass the thing on.” Gover~=.nt: have oft 1 "in getting their notes int circu'ation -... that they have fori’? -ivate person: lo icsic convertible notes for 'snominatirne vb we'd have been

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