Money and the mechanism of exchange
A standard textbook on the past and present monetary systems of the world, together with an account of the materials used in making money, "the relations under which the coins are struck and issued, the natural laws which govern their circulation, the several modes in which they may be replaced by the use of paper documents, and, finally, the method in which the use of money is immensely economised by the cheque and clearing system."
Excerpt:
In preparing this volume, I have attempted to write a descriptive essay on the past and present monetary systems of the world, the materials employed to make money, the regulations under which the coins are struck and issued, the natural laws which govern their circulation, the several modes in which they may be replaced by the use of paper documents, and finally, the method in which the use of money is immensely economized by the cheque and clearing system now being extended and perfected. This is not a book upon the currency question, as that question is so often discussed in England.
I have only a little to say about the Bank Charter Act, and upon that, and other mysteries of the money market, I refer my readers to the admirable essay of Mr Bagehot. on " Lombard Street," to which this book may perhaps serve as an introduction.
There is much to be learnt about money before entering upon those abstruse questions, which barely admit of decided answers. In studying a language, we begin with grammar before we try to read or write. In mathematics, we practice simple arithmetic before we proceed to the subtleties of algebra and differential calculus. But it is the grave misfortune of the moral and political sciences, as well shown by Mr Herbert Spencer, in his " Study of Sociology," that they are continually discussed by those who have never laboured at the elementary grammar or the simple arithmetic of the subject.
Hence the extraordinary schemes and fallacies every now and then put forth. Currency is to the science of economy what the squaring of the circle is to geometry or perpetual motion to mechanics. If there were a writer on Currency possessing some of the humour and learning of the late Professor De Morgan, he could easily produce a Budget of Currency Paradoxes more than rivalling De Morgan's Circle-Squaring Paradoxes.
There are men who spend their time and fortunes in endeavouring to convince a dull world that poverty can be abolished by the issue printed bits of paper. I know one gentleman who holds that exchequer bills are the panacea for the evils of humanity. Other philanthropists wish to make us all rich by coining the national debt, or coining the lands of the country, or coining everything. Another class of persons have long been indignant that, in this age of free trade, the Mint price of gold should still remain arbitrarily fixed by statute.
A member of Parliament lately discovered a new grievance and made his reputation by agitating against the oppressive restrictions on the coinage of silver at the Mint. No wonder so many people are paupers when there is a deficiency of shillings and sixpences, and when the amount merely of the rates and taxes paid in a year exceeds the whole sum of money circulating in the kingdom.
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