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

pl MONEY perfectly possible. From August, 1914, to April, 1925, the British Treasury’s £1 and 10s. Currency notes were legally convertible at the Bank of England, and as a matter of fact were converted for sufficiently insistent demanders who knew enough not to fail in the vivd voce examination to which they were sub- jected. But during that period exportation had been made impossible, and the using of the coin for any purpose except currency was forbidden, so that the person who went to the Bank and received a sovereign might just as well have got a round disc of cardboard with ‘“ legal tender for £1 >’ on one side and Sir John Bradbury’s head on the other, or better still, he might have stayed at home and spent his £1 note like other people. The Currency note could be converted into a full-weight coin, and was therefore described as convertible, but it was not convertible into free gold of the weight of the sovereign, since the sovereign could not be converted into free gold. Thus convertibility of the note into coin is deprived of all its virtue when laws against melting and exporta- tion of the coin are present and effective. Convertible notes can then be issued without check just like inconvertible notes, and consequently can drag down the value of money below that of the bullion contents of the coin and give rise to the same phenomenon, a rise of general prices including the price of bullion. When the issuers of inconvertible notes or notes which are only convertible into inconvertible coin issue them so freely that they will exchange for less than the par amount of bullion, when, that is, in other words, the price of bullion rises above the par price, so that the note will no longer buy raw material for the coin which the note represents, the unit of account ceases to be a coin or quantity of metal and becomes a printed symbol on a piece of paper the supply of which depends on the moderation of the

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