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

Ro MONEY bank-notes in the world at large was very consider- able at the commencement of the twentieth century. Its importance in keeping down the value of gold can be appreciated if we try to estimate how much more gold would have been demanded if the United States, France, and a dozen other of the principal countries using large quantities of bank-notes had suppressed them. But by that time another economy had been introduced which to a great extent took away the need for bank-notes as a substitute for gold. This was the cheque system, under which, instead of each of us encumbering ourselves with a stock of currency in the form of coin or bank-notes, we “put our money in the bank,” and content ourselves with a small pocketful of currency reple- nished from time to time at the bank, knowing that we can make all large payments more conveniently by ordering the bank on a piece of paper to transfer some of what it owes us to the person whom we wish to pay. The device does away with the necessity of an immense aggregate quantity of currency, since the banks do not need, in order to carry out their part in the arrangement, to hold nearly as much as their customers would have been obliged to do in the absence of the system. And the banks’ liberty to hold as little as they find necessary has been less restricted by legislatures than their corr:sponding liberty in regard to bank-notes. The economy of gold and consequent tendency to cheapen gold and raise prices is obvious, and certainly very great. We have, however, no means of estimating it. We may know that we keep an average of f10 a head in currency now, when we have banks, but we cannot possibly form the wildest guess how much we should keep if there were no banks. Some of us would probably never have been born: the whole

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