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Money and Banking (Volume 7); A Discussion of the Principles of Money and Credit, with Descriptions of the World's Leading Banking Systems

Money and Banking (Volume 7); A Discussion of the Principles of Money and Credit, with Descriptions of the World's Leading Banking Systems


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About the Book

This historic book may have numerous typos, missing text or index. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. 1904. Not illustrated. Excerpt: ... While business people who receive notes will deposit them for the sake of receiving interest, this motive is of small force when the amount to be deposited is small. In such a case the paper is just as likely to be kept on hand by numerous small holders, if they feel that there is no danger at all that it will not be redeemed. If there are any notes which are not protected by their equivalent in metallic money, there is some risk. This danger is more or less, according to the amount of metallic reserve held. The amount left unprotected should be large enough to remind holders that it is to their interest constantly to demand redemption. A specie reserve should actually be held somewhere. It is sometimes said that the reserve should be made profitable by investment, for example, in government bonds. But if it is so used, it is no longer a specie reserve. It is idle to try to devise a plan whereby a specie reserve can be kept for the purpose of redeeming notes, and used for profit at the same time. The two things are incompatible. There is no way of making a profit on idle capital, and money kept for reserve is idle capital; or, at any rate, capital which is productive only in an indirect way. It is productive only in the sense that it makes the employment of the rest of the capital safer, or lessens the probability of a loss. 20. Comparative Advantages and Disadvantages of Government and Bank Issues.--We have seen that paper money may be issued either by banks or governments. If the notes issued are generally acceptable, they will serve the purpose of a medium of exchange. Several reasons are advanced, however, against the exercise of the function of issue by governments. In the first place, it is argued that the issue of paper money is not a proper function of t...


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Product Details
  • ISBN-13: 9781150463532
  • Publisher: General Books
  • Publisher Imprint: General Books
  • Height: 246 mm
  • No of Pages: 98
  • Spine Width: 5 mm
  • Width: 189 mm
  • ISBN-10: 1150463538
  • Publisher Date: 01 Jan 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 191 gr


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Money and Banking (Volume 7); A Discussion of the Principles of Money and Credit, with Descriptions of the World's Leading Banking Systems
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