International trade

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Monograph

Identifikator:: 893656046

URN:: urn:nbn:de:zbw-retromon-10254

Document type:: Monograph

Author:: Striemer, Alfred

Title:: Zum Kampf um die wirtschaftliche Selbständigkeit des Klein- und Mittelbetriebes

Place of publication:: Müchen

Publisher:: Verlag von Duncker & Humblot

Year of publication:: 1914

Scope:: 1 Online-Ressource (31 Seiten)

Digitisation:: 2017

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Forschungs-Institute für den industriellen Mittelstand

Collection:: Economics Books

CANADA 225 large expansion of the total circulating medium can result from a relatively small inflow of gold. The inflow that took place was not inconsiderable. Gold steadily dribbled into the country — the movement ceasing occasionally, in one or another year of the period, but soon reviving again — with a total by 1913 of $123,000,000. Almost all of the physical gold went into the government vaults, Dominion notes being issued against the accumulations. Whatever the process, so much of gold was added to the basis on which the circulating medium rested. The effective circulating medium, however, increased by a vastly greater amount, the superstructure being enlarged approximately in the same proportion as was the foundation of specie. The additional Dominion notes (substantially the same thing as additional gold) went chiefly into bank reserves. There they became the basis for a great increase of bank deposits and bank notes. The total demand liabilities of the Canadian banks of issue (deposits and notes together) swelled from 350 millions in 1900 to over 1000 millions in the years 1911-1913. In round numbers, they tripled. [t may be noted that this increase, great tho it was, did not pro- ceed quite in proportion to the enlargement of the base. The ratio of cash reserves to demand liabilities became somewhat greater in the last triennium; it reached 10 per cent, against about 7 per cent in the earlier years.! Deserving of note is the circumstance that the expansion of deposits and notes seems to have preceded rather than followed the enlargement of reserve. The expansion often overstepped the reserve increase. I have already pointed out? that such a chronological sequence, while at first sight appearing to be incon- sistent with the tenor of the Ricardian reasoning, represents merely one of the modifications which must be attached to it in view of the characteristics of deposit banking. In the case of Canada this peculiarity of the situation was accentuated by the 'T have seen no explanation of this change. Possibly it was due to the fact that the expansion took place mainly in a few of the very large banks; and there is a general tendency for very large banks, having heavy demand obligations, to keep 1 larger proportion of actual cash than do banks of moderate size. ' Chapter 17, p. 207.

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