The Industrial Revolution

Bibliographic data

Monograph

Identifikator:: 1828236004

URN:: urn:nbn:de:zbw-retromon-249926

Document type:: Monograph

Title:: Secretarial practice

Edition:: fourth edition

Place of publication:: Cambridge

Publisher:: W. Heffer & Sons Ltd

Year of publication:: 1930

Scope:: viii, 987 Seiten

Digitisation:: 2022

Collection:: Economics Books

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378 INTERNATIONAL TRADE to have new aspects; but it does not make the final outcome different. “Pegging” of the dislocated exchanges by government action or by the action of powerful private interests, is in one way the opposite from speculation, in another way not unlike it. It is the opposite in that its design is to stop fluctuations, and thus to discourage speculation and what are supposed to be the effects of speculation. It has a similarity to speculation in that it cannot override for an indefinite time the main forces that determine the rates of exchange. For purposes of prestige, a government may wish to prevent the quoted rate on its money unit from sagging or falling. A great bank or group of bankers may wish to support the rate for purposes of profit on loans or on remittance operations. The end can be achieved by simply buying in the market at a given price all the exchange offered. The effect of such purchases is essentially the same as if a new demand arose in the ordinary course of trade. The relation of offerings and takings is affected in the same way, and the exchange rate modified or maintained in the same way. The quoted figure is still the result of the impact of the two forces. The peculiarity of the case is merely that one of the forces, that of demand, is so adjusted as to equalize the impact of the supply at a given point. Not a specific quantity is purchased, but such a quantity as will keep the rate of exchange at a specific point. Whatever supply of exchange is offered will be bought at the set price. The extent to which pegging will influence the exchange rate depends, of course, on the extent to which it is carried, on the amount of money which the pegger is prepared to spend in buying bills at the set price, and on the length of time for which he is pre- pared to keep up the process. With plenty of funds in hand, and a courageous willingness to use them to the full, he can go far in affecting the rates of exchange, and can maintain his rate for a long time. And the conditions may be more favorable to him or less so; more if the ordinary conditions of trade are interrupted or set

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