L' Allemagne économique ou histoire du Zollverein Allemand

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Monograph

Identifikator:: 832279064

URN:: urn:nbn:de:zbw-retromon-64432

Document type:: Monograph

Author:: Worms, Émile

Title:: L' Allemagne économique ou histoire du Zollverein Allemand

Place of publication:: Paris

Publisher:: Ainé

Year of publication:: 1874

Scope:: 1 Online-Ressource (VII, 631 S)

Collection:: Economics Books

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THE NOTION OF MONEY 171 practice it could always be turned back into bullion by melting, makes the value of coined and non-coined metal almost identical ; but it is commonly stated that it is the “natural rate,” the “intrinsic value” of the metal, which is at the basis of the value common to the bullion and to coin. Moreover, it is commonly considered that the com- mercial rate of a monetary metal is determined like that of any other commodity and that the value of the coin minted from that metal is nothing but a reflection of it; at most, it may be recognised that the use of a metal for currency purposes increases the market and the demand for it.! Finally, the fact which we have indicated above, that exported coins keep approximately the same value in foreign countries where they are only accepted as bullion, appears to confirm this view. Moreover, it does not seem that by a physical process so insignificant as the transformation of one lump into smaller lumps in the form of discs merely stamped with the weight and fineness, the State could have any effect whatever on the value of the metal. Certainly this was not the intention; and we shall see that this operation has in fact had no fundamental effect. Nevertheless, with the system of free coinage the weight of fine metal received in the form of coin, which is equal? to that of the fine metal contained in the bullion and is therefore constant and known in advance, does really constitute a given sum of money. Hence it is easy to assert that with a system of free coinage the State purchases the metal at a fixed price. This seems all the more obvious as in practice, instead of giving back the same metal which has been brought to the mint in the form of coin, anyone, who brings gold in this way, is immediately paid for it in legal currency. It is still more curious that the producer of gold will not ! In rather a different form, Walras observed that the use of the precious metals for currency correspondingly diminished the volume available for industrial purposes and increased the utility of the commodity money. This is an ingenious observation, but it does not adequately summarise the theory of the value of money. 2 Always subject to a slight fixed deduction in some countries for costs of minting.

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