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.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. General principles

Collection:: Economics Books

VALUE OF NOTES 53 notes, than they will fetch as currency, so that they “ disappear,” the heaviest going first, and the others following as the price of bullion rises. Thus the increase <t inconvertible notes when carried, as it can h~ "= f#=~==" causes a rise of the price of bullion. It has not till lately been well understood, even by experts, that when the coin is not convertible into free bullion, convertible notes may be issued in quantities just as great as inconvertible notes and with exactly the same result. Ricardo came near hitting on the fact. He noticed that during the suspension of cash payments by the Bank of England it was a puzzle to many people how the inconvertible note could be of less value than the gold it should (through the gold coin) represent, although as a matter of fact, when they L- 1 a gold coin they found it would only circulate at th same rate as prevailed before the suspension of conv-itibility.! He explained the matter quite correctly is being the result of the legislation which prevented law-abiding people from doing what they liked with the coin: there were penalties against melting and exportation which kept the gold coins, so long as they were in the hands of law-abiding people, from being used for any purpose except currency, while for that particular purpose, as has just been shown, the coin cannot in practice be used at a value higher than that of the unit of account supposed to represent ii. But Ricardo and subse- quent writers regarded the point as of little import- ance, because it did not occur to them that a well- enforced denial of fre Zem to deal with coin would be sufficient br itself © low over-issue to take place without =~ L-l Ce eonverilll notes into ce’ Tiss lc. has chown us to be 1 «Th: High Price of Bullion a pruot Depreciation of Bru" Notes? in Ricardo’s Woe? ire te l=

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