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The Principles of Money and Banking Volume 1

The Principles of Money and Banking Volume 1


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About the Book

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1905 edition. Excerpt: ...when other articles become less exchangeable. The manufacturer who is selling steel rails or cotton goods as fast as he can produce them finds them as good as money. It is only when he finds that he cannot sell them at his usual profit that they cease to be valuable in his hands and he then turns to money as the one article whose value is unquestioned and which is always exchangeable for what he needs. Hence come the great fluctuations in the demand for money, which are much more important in affecting its exchange value than the slight annual changes in the new supply. From these considerations emerges the conclusion that such mathematical relationship as exists between the quantity of gold and prices, or between the quantity of currency and prices, is in actual transactions so obscured by other factors that it cannot be ascertained correctly, or revealed conclusively, by tables of prices of commodities. When additions to the stock of metallic money are large and permanent they act finally, in some degree, upon prices; but this action cannot be exactly measured by any rule of mathematics, and is often less potent than many other influences which affect commodities. It requires, says Leroy-Beaulieu, "a very long time for the increase of the money supply to traverse all the channels of circulation and produce a general and uniform elevation of the level of prices." It has already been shown that this elevation of prices can never become uniform, because the first effects of expanding credit resulting from an increase in bank reserves are felt upon those commodities whose prices are most sensitive, and thereby cause a readjustment of the relations of demand and supply between other commodities, of which gold is only one. The true law governing the...


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Product Details
  • ISBN-13: 9781150394638
  • Publisher: Rarebooksclub.com
  • Publisher Imprint: Rarebooksclub.com
  • Height: 246 mm
  • No of Pages: 136
  • Spine Width: 7 mm
  • Width: 189 mm
  • ISBN-10: 1150394633
  • Publisher Date: 01 Jul 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 254 gr


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