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

Az MONEY are not the identical persons who lost by the first, and vice versa.. Institutions, too, suffer loss, though we can scarcely speak of justice in their case: one of the greatest losers is usually the State in its corporate capacity. The trifling gain made by issuing interest- free notes instead of interest-bearing loans is far more than set off by the higher prices which the State has to pay for everything which it buys during a period when its expenditure would in any case have been abnormally large—higher prices which lead to the contraction of debt far exceeding in magnitude what would have been the whole cost of the commo- dities and services obtained, if they had been paid for at the prices prevailing before and after the period of suspension. Unless a halt is called the end comes with a crash. In saying above that increases of the supply of coal or gold would always find plenty of demand at sufficiently reduced prices “down to a very low limit,” we had in mind that no commodity is wanted in indefinite quantities. However the demand may extend, it will not extend indefinitely, and with every commodity there is a point beyond which no more will be required, however cheap the commodity can be got. It would take a considerable increase in the supply of coal to London to bring its price there down from say 30s. to 10s. a ton, but if a further increase of supply brought it down to 2s., it is quite certain that a very little increase on the top of that would bring it down to almost nothing. Nobody wants indefinite amounts. So, too, with gold, per- haps even more clearly: very cheap gold would be unsuitable for currency and for ostentatious ornament, so two of the principal sources of demand for gold would cease to exist if gold were found in very large quantities. So it is with notes. As long as their increase is sufficiently slow and the total

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