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 II. Further elucidations

Collection:: Economics Books

THE DEMAND FOR CURRENCY 75 banking system is the most important agency in this respect. How and in what degree it economizes currency and tends to raise prices must be postponed to the next section. A change in the distribution of wealth may cause a change in the demand for currency. If the rich and banking portion of the people becomes richer, it does not keep appreciably more currency in its pockets, but increases its balance at the bank. But if the poorer non-banking portion becomes richer, it does accumulate currency, not only in its pockets, but also in money-boxes and mugs on the chimney- piece and other strange places. Innumerable are the changes of social circumstances which may lead to greater or less economy of cur- rency and consequently less or greater demand for currency. The calling up of men for military service, and subsequently the large removal of women from their homes for munition-making and other purposes during the recent war, greatly increased for the time the demand for currency, because the members of families, when separated, found it convenient to keep much more currency by them in the aggregate than when they were living at home and together. Like the demand for other things, the demand for currency is liable to be varied by the miscalculations of mankind about the future. If we were all level- headed prophets, fluctuations of prices would be smoothed out. There would still be slowly rising and falling tides, but waves would disappear. But in fact we all foresee wrong, and our individual mistakes do not balance each other—we foresee wrong to some extent in unison. One year we agree in over- estimating .m- ~*ite crop, and the next year in under-estii Joh we ove. estimate it, our willingnzss «© ~sly is .'ss than '{ we {foresaw corre~*'v *t- time demand is "nt below

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