Opis: Relation of Money to Bank Credits - Author Unknown

Excerpt from Relation of Money to Bank Credits: Address of General A J. Warner Before the First Western States Commercial Congress at Kansas City, April 16, 1891

Is there or can there be such a thing as a money standard independently of volume or quantity of money This is a question fundamental to the science of money, and the only answer is No! Locke says silver measures value hy its quantity; and Mill says, Even in the case of metallic currency, the immediate agency in determining its value is its quantity. Value in money of any kind is as inseparable from quantity as gravity from matter or cold from ice. The silver money of the world has the same effect on prices, or on the value of gold even, as would the addition of so much new gold. If the two metals as they come from the mines were melted together and coined as a compound metal sometimes more of the white metal and sometimes more of the yellow their value would depend on the quantity of the compound metal. The fact that the two metals are coined separately makes no difference with the value of the whole as money. For like reasons, the addition of paper, to the extent it becomes an equivalent of, or constitutes an addition to, gold and silver, and is not covered by reserves of the metals, operates precisely as would so much additional gold or silver. McLeod says, To say that money, because it is material and the produce of labor, has intrinsic value, and that a bank note is only the representative of value, is just as absurd as to say that a wooden yard measure is intrinsic distance, and that the space of thirty-six inches between two points is representative distance. Nor can the line between money and not money, between currency and commodity, be drawn here; for gold and silver and paper are not the only kinds of money or currency that act on prices. There is another species of currency, more difficult, perhaps, to define or to understand, but, nevertheless, as potent in determining prices and in effecting exchanges as either of the forms of money named - I mean bank credits, or credits on the books of banks subject to check.

Checks and drafts are often referred to as being themselves a kind of currency, but this is a misconception of the real function of checks and drafts. They are orders for money, and, like notes and bills of exchange, are evidences of rights, but they are in no proper sense money. Mere debts or credits, like notes or bonds, have not the elements of money and are not money. Money is unlike everything else; its function is peculiar, and is performed by nothing else.

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Szczegóły: Relation of Money to Bank Credits - Author Unknown

Nazwa: Relation of Money to Bank Credits Address of General A J. Warner Before the First Western States Commercial Congress at Kansas City, April 16, 1891 (Classic Reprint)
Autor: Author Unknown
Wydawnictwo: FB &c Ltd
Kod paskowy: 9781330238011
Języki: angielski
Ilość stron: 26
Format: 15.2x22.9cm
Oprawa: Miękka

Recenzje: Relation of Money to Bank Credits - Author Unknown