Money and Paper Currency; A Study for the Times

Money and Paper Currency; A Study for the Times

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This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1880 edition. Excerpt: ...the same number left on his hands. Coin and notes of all kinds are sold just as literally as axes, since they are always issued in exchange for value. The maker and vendor of currency must, therefore, study the market just as any other manufacturer does, knowing that the consequences of an over supply will be equally disastrous to his business. We have seen that anything like a permanent excess, or glut, of gold and convertible notes is impossible. The excess, of gold immediately flows out of the country in exchange for other commodities. The excess of convertible notes is immediately turned into gold and--if there were gold enough without it--passes away as if it had been a direct issue of coin. It is only in the case of inconvertible notes that a permanent excess is possible, and we have seen that the cii'-cumstances attending the issue of these lead inevitably to excess. The sale of these notes is not a business transaction in any sense. It is a forced sale, without reference to demand, and it must be repeated whenever the seller--the govern-v ment--wants funds, no matter how low the price may havefallen. The law of legal tender applied to such a currency has somewhat the effect of screwing down the safety valve of a boiler. The expansive volume of inconvertible notes cannot condense itself any more than so much hot steam, and, having no means of escape, must sooner or later burst something. The question of the relative quantities of coin and paper, where both circulate together as currency, must also be settled by the popular demand for each. It has been held by some authorities that the right quantity for a mixed currency is one equal to the quantity of coin that would circulate if it were alone. How that quantity could be 46...
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Product details

  • Paperback | 36 pages
  • 189 x 246 x 2mm | 82g
  • United States
  • English
  • black & white illustrations
  • 1236771648
  • 9781236771643