Resumption of Specie Payments; Testimony Before the Committee on Banking and Currency in Relation to the Resumption of Specie Payments
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Resumption of Specie Payments; Testimony Before the Committee on Banking and Currency in Relation to the Resumption of Specie Payments

Resumption of Specie Payments; Testimony Before the Committee on Banking and Currency in Relation to the Resumption of Specie Payments


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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. 1878 Excerpt: ...have at least 50 per cent. of the whole circulation (reserves, hoards, and for other uses) in coin, and not more than 50 per cent. in paper. Mr. Ewing. The proportion of coin to circulation in 1861 and 1857 was about 63 or 64 per cent. Mr. Warner. In 1860 we had just about 60 per cent. coin to 40 per cent. paper. In 1857 it got down as low as 53J or 54 per cent. coin to 46 paper, and then suspension took place. Mr. EwiNG. And you think that suspension took place from the diminution of coin 1 Mr. Warner. Yes, sir. Just before that there was an increase of paper--an increase in the quantity of the currency of the country--and exchange was turned against us, coin went away, and then the suspension took place. That is an important point, I think, in the consideration of the currency. It operates in this way: when banks issue the currency, if there is at the one period an increase in the bank's reserves of, say, $20,000,000 of coin (and the first increase of the metallic currency always goes into the banks, and its first outflow is from the banks and not from the circulation), there will almost certainly be an issue of $60,000,000 to $80,000,000 of paper based on the $20,000,000 increase in the coin. That increases the volume, lessens the value of the entire currency (including the metallic part), raises price, and turns the exchanges against us. Then the banks have to pay out coin, and if $20,000,000 of gold goes away, in order to preserve the same relation between paper and coin, they must contract the paper currency sixty or eighty millions. It is the extreme fluctuation in the volume of currency issued in this way (first by increasing and then by decreasing it) that leads to the-wide fluctuations in prices which we had under that system. Mr. EwiNG. Assuming ...


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Product Details
  • ISBN-13: 9781151218810
  • Publisher: Rarebooksclub.com
  • Publisher Imprint: Rarebooksclub.com
  • Height: 246 mm
  • No of Pages: 158
  • Spine Width: 9 mm
  • Width: 189 mm
  • ISBN-10: 1151218812
  • Publisher Date: 01 May 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 295 gr


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Resumption of Specie Payments; Testimony Before the Committee on Banking and Currency in Relation to the Resumption of Specie Payments
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