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Title: Heft VI (1878). II. Exzerpte aus Mann über Papiergeld, Kap. I-V
Description: Marx’ Exzerpte im Heft VI (Oktober/November 1878) aus Charles A. Mann, „Paper Money. The Root of Evil“ (New York 1872), Kap. I–V: Edelmetalle als Umlaufsmittel, Sorten des Papiergelds, Kreditinstrumente als Umlaufsmittel, konvertible Banknoten über die natürliche Zirkulation hinaus, Spekulation und Paniken; mit Marx’ Bemerkungen.
Author: Karl Marx
Date: 1878-10
URL: https://marxismo.school/archivo/marx-engels/originales/1878%20Heft%20VI.%20II.%20Exzerpte%20aus%20Mann%20%C3%BCber%20Papiergeld%2C%20Kap.%20I-V
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*Nach der Handschrift, MEGAdigital (MEGA² IV/25).[^lic] [Traducción al español](https://marxismo.school/archivo/marx-engels/1878%20Cuaderno%20VI.%20II.%20Extractos%20de%20Mann%20sobre%20el%20papel%20moneda.%20Caps.%20I-V)*

## Charles A. Mann: Paper Money. The Root of Evil. New York. 1872.

### ch. I) On the precious metals as a circulating medium etc.

»the cheapness and abundance of fertile land … enable us to endure the most barbarous system of finance in Christendom, without sinking the mass of the people in pauperism.« (*Preface* V) »The science of political economy has been fully elaborated in Great Britain … Political economy, as a science, has as yet been but feebly developed in the U. St.; partly because self-government and abundant land have saved us from those disastrous social phenomena which lead to the investigation of social science, and partly because we *never had any class that could spare time from money-grubbing to devote to study* … the chief attempt to pursue the subject originally – *that of H. C. Carey* – contains little that is reliable, being disfigured at every step by the vain endeavour to prove the absurd theory, that the *way to* diversify home industry is to put a duty on pig iron.« (l. c. *Preface* V, VI)

⦗Er räth zu lesen: *„Revenue Reports“ von Wells* ; Walker’s: *„Science of Wealth“* u. *Grosvenor*: *„Does Protection protect?“* as to facts and figures with reference to the financial condition of the country.⦘

*The amount of gold*, gesetzlich to be stamped as *a dollar* (in the U. St.) = *23.22 grains* of pure gold, or *25.8 grains of gold*, * 9/10 fine*. (4) Coin nur unterschieden von bullion durch die *cost of coining*, z. B. = ½%; if coin is worth more than bullion by at least that percentage, the holders of the bullion send it to the mint to be coined. If, on the other hand, coin is not worth more than bullion by a fraction equal to the expense of coinage, it goes to the melting pot. (5, 6)

*The saving of labor* which the use of machinery affects, is the chief source of the *accumulated wealth of the highly civilized nations*, and the means by which they *attract to themselves the necessary supplies of the precious metals*. (15)

A commodity which, produced by direct labour, would require the time of a workman for weeks, or months, can be produced by the aid of machinery in a few days. But to those who have no machinery such a commodity represents as much labor as it would cost them to produce it without machinery. Z. B. piece of cloth, which in England would require labor equivalent to that of one workman for 2 days, would require, if made in the mining states of South America, or in the wheat districts of Russia, the labor of one workman for a month, and the homespun article produced would be a sorry substitute. *The South American*, and the *Russian accordingly*, are glad *to unite* their *rude labor directly with the gifts of Nature*, and to exchange the *gold and wheat* for the cloth of the Englishman, the product of skilled labor aided by machinery. *Commodities*, then, *may be said to attract the precious metals according to the amount of labor they represent*. *Raw produce attracts them the least*, *manufactured articles the most*. (15)

Andrer Grund influencing die circulation more and more mit progress of civilization, particularly potent in our own country at the present time … *the movement of capital from one country to another for purposes of investment*. (15, 16.)

*Foreign capital attracted* to a country for *security* of *the principal* od. *in order to realize higher rates of interest*. (16) Z. B. English capitalist, attracted by high rates of interest, wishes to invest in American securities; in London [an] American projector sells him railway bonds; mit diesem Geld kauft er entweder direct railway iron in England u. verschifft selbes nach New York; *hier transfer of capital* without ⦗international⦘ transfer of money; aber der railway contractor mag vorziehn sein Eisen in Pennsylvanien zu verkaufen. Ist wie *meistens* der Fall – der *exchange in favour of England*, so deponirt er das aus sale seiner bonds realisirte Geld in London, u. mit den proceeds *of the sale of his bill on London*, pays for his iron; in diesem Fall wieder transfer of capital *without shipment of Gold*; aber die *bill on London*, sold in *New York*, has been *purchased by some* one, who, without it, would have been compelled to have shipped specie to England to have met his payments there. (16) So in Folge der high rate of interest, *confidence existing*, tends to attract capital to the country which can afford to pay it; zieht entweder Gold in das Land, or keeps at home a portion of that already there, u. this influence may act irrespective von purchasing power of money, as marked by the scale of general prices in the respective countries. (16, 17)

Aber *capital sent abroad for investment* usually takes the *form of a loan*; debt so creirt, must früher od. später be liquidated, u. der interest darauf *paid as it accrues*. Hier (nach Mann) »as the rate of profits« to be »derived from the differences of prices is greater than the interest paid for the use of capital«, folgt, »that the controlling cause in determining the circulation of the precious metals remains the *exchange value of money*. *They seek the country where they buy the most.* Gold flows *from California*, where *interest is 2% per month*, and *commodities are correspondingly high*, to Holland, *where interest is 2%* p. annum; and commodities are low (!) The flow of the precious metals to *India and the East* proceeds from the same source.« (17)

*Prices in each country must bear their proper relation to prices in every other*, and this relation is adjusted by the flow of the precious metals through the channels of commerce, and, as no other commodities possess the same quality of universal circulation, nothing else can ever be substituted for them as money. (19) Gold only is current between nations, and its most important function is to act as a regulator of international prices. (l. c.)

### ch. II) The different sorts of Paper Money.

Nimm an circulation (in gold, liege in einer bank) v. 90 Mill. dollars; 60 würden exported in return for foreign produce; bank giebt nach wie vor f. 90 Mill. Noten aus, wovon für 30 Gold in ihrem Geld gedeckt, aber 60 Noten, die nichts kosten als expense v. paper u. printing. Das Land gewinnt dabei. Hauptgainers aber durch die Operation – die banks; haben gained the use of 60 Mill. $ at a nominal expense; diese notes it loans to its customers u. it adds 60,000,000$ to the *loanable capital* of the country, which is used to increase its production u. wealth. ([24,] 25)

Ob Banknotes für legal tender erklärt od. nicht, ändert nichts; use macht sie zu money. During der Suspension in England war die Banknote nie legal tender; sie wurde nicht mehr money 1834, als die B. o. E. notes legal für legal tender erklärt. In den *U. States* hat kein State »the power to make banknotes a legal tender zwischen individuals«; sehr fraglich ob das general gvt. diese Power (mit Bezug auf banknotes) besitzt. Die *Courts* however haben nullified this provision by holding that a tender of banknotes is good, unless specifically objected to at the time of the tender, and *statutory legal tender* required instead. So mit English country banknotes, good tender, unless objected to. This quality belongs to no other form of credit, nor to any article of merchandise. *Vor 1862* waren banknotes, ausser Gold u. Silber das Einzige in U. St. which could be used in immediate payment of pecuniary obligations, u. were commonly so used to the exclusion of the latter. Banknotes by force of custom had usurped its place (den des Goldes), and all contracts were made with reference to the custom. ([26,] 27, 28)

Aber, gesetzt Bank, die issued die notes, kracht; dann sagt man »banknotes do not finally close the transactions in which they are employed; the receiver of the broken bill would have recourse to the person from whom he received it«; aber auch »in the case of a counterfeit coin, the person paying it out is bound to make it good« … The courts of most of the federate *»States«* hold that the receiver of a bill of an insolvent bank must return it forthwith to the person from whom he received it, and that any delay in so doing discharges the latter. And the courts of some of the States have gone so far as to hold that *banknotes do close transactions* in which they are employed; that giving them for a debt without objection is payment, and that the risk of the solvency of the bank is thrown on the receiver. (28, 29)

Das paper money (issued by *Banks*; er spricht nämlich hier noch v. Banknoten) of a country kann at one time be in volume = dem v. ihm displacirten specie, zu andrer Zeit exceed it. In letztrem Fall may people dessen – (der redundancy) – nicht gewahr werden of the change; so lang alles gut geht, banknotes nur presented for coin in small amounts; u. diese nach wie vor »redeemed« durch die banks. Aber wenn aus irgend einer Ursache, z. B. demand for specie to ship abroad, or weil distrust has entered the public mind, notes presented for redemption in large amounts, wird offenbart der fact dass die Banknoten had driven too much gold out of the country and that they were in excess of the natural specie circulation. (?!) Dann specie payment suspended u. wir haben: *»notes, circulating as money, not convertible into coin on demand.«* Such war das Circulating Medium dieses Landes *periodisch*, *nach jeder commerciellen Crise*; aber diese Circulation *inconvertibler Banknoten* stets nur v. temporärer Dauer, u. in violation of law; was result of a panic, belonged to a stage of transition von a period of speculative excitement, to one of ordinary quiet. (30, 31)

*Andre Sorte v. Geldpapier:* *Staatspapiergeld* – a legal tender for the payment of debts, not required to be redeemed in coin. Such the present currency of the U. St., … *paper money proper*. (31)

Natürlich, bei Gelegenheit v. civil commotion, war unter distressed circumstances etc: »to borrow gold will then be difficult, while to *borrow inconvertible bankbills will be to pay the banks heavy interest for the use of printed slips of paper*; *which the Government can print as well as they*. (31) The opportunity of making a *forced loan without interest* will become a temptation too strong to be resisted, and the sinews of war will be obtained by *issuing legal tender notes*.« (l. c.) Based upon kein Princip »but that of the thief«, od. darauf: »money is a mere unit of circulation.« „The dollar is wholly an arbitrary conventional standard.“ (31) First conspicuous advocate … *John Law* . „*Money*,“ says he „is only the *sign which represents riches in circulation*. A crown is a note of which the impress of the prince *is the signature*“ etc (Cit. aus Laws *„Money and Trade considered etc.“* *Edinburgh*, *1705*) *Paper money in these days is made a legal tender only as a revolutionary currency.* (32) The law has given them with us every quality of real money except the fundamental one of *stability in value, which law cannot give*. (35)

*Convertible Banknotes* – paper taken on the credit of the issuers and this credit differs from other forms of credit – ist „coined credit”, constituirt *»a credit currency«*. (36)

### ch. III. Of the Instruments of Credit used as Currency.

Ausser bankbills (bei ihm = banknotes): *Promissory notes*; *bills of exchange*; *bank checks* od. *deposits*. (39)

1) *Promissory Notes*. Say *A*, *a country dealer in dry goods*, kauft a bill of merchandise zum Betrag von $1000 von B, a jobber in benachbarter Stadt. A erhält die gewöhnliche Zeit on his purchase, sage 90 Tage; is put down in the books of B as his debtor für den Preis der Waaren, zahlt Schuld in Verfallszeit. Dieser *purchase on credit*, so far as *concerns the currency used to effect* it, is dasselbe als a *purchase for cash*. Dies case of *bookcredit*. (39, 40) Wenn aber A giebt seine *Note* for *the amount*, *payable to the Order of B*. B kann diese Note bei seiner Bank *discontiren* u. mit dem Geld andre Waaren zum Ersatz seines stock kaufen. Vermittelst der Note so ein purchase mehr gemacht »within the time of the credit« als ohne sie; im übrigen die note nur used »as an evidence of indebtedness« od. »security for the payment of money«. B may aber auch endorsiren die Note over to C, a jobber at the commercial centre of the country, in payment for a bill of goods, dieser zu D, an importer, for merchandise purchased of him u. D erhält das payment of it when due. Hier *zwei neue transactions*, *»within the time of the credit«*; die note has been the instrument for making these exchanges – has been part of the currency of the country for that purpose. The quality, die promissory note von simple credit unterscheidet u. gives it efficacy as currency, is the quality of negotiability under the Law Merchant. Ist Nicht nur transferable v. Person to Person, sondern A, who made it, kann nicht set off gegen die Bank which discounted it, od. gegen any other holders for value, any claim he may have against B, but must pay it when it falls due, without question (40)

B may auch die Note als *security* halten until paid; dann ist es wie any other money security, a *mere evidence of indebtedness* u. würde keine Geldfunction vollzogen haben; so für die Bank which discounted it, blosse security wie a government bond. ([40,] 41)

In *U. St.* der use of *promissory notes as currency* ist *comparatively limited*; sind *gewöhnlich held for investment*, od. *discounted by the banks*, od. *bought u. sold like other money securities*. (l. c.)

2) *Bills of Exchange*; häufig current in selber Art als promissory notes, by virtue of their *negotiability*. In *England*, *domestic bills of exchange* largely used in Fällen wo, with us (yankees) *notes have taken their place*. (l. c.) At one time bills of exchange fast die ganze currency of Lancashire, f. sums über 5£. (l. c.)

In den *United States* … *inland bills of exchange u. drafts* generally used für ihren original Zweck; zur *Erleichterung der exchanges zwischen verschiednen Orten*, ohne die expense u. risk attending an actual transfer of money. In making these exchanges they act the part of currency. Z. B. *A*, *Kaufmann in New York*, verkauft dry goods für $[1000] an *B*, Kaufmann in Chicago. *C*, *ein andrer Kaufmann in Chicago* , verkauft breadstuffs f. 1000$ an D, Kaufmann in New York. B, statt Geld selbst an A zu remittiren, kauft von Nachbar C a bill of exchange drawn by him on his debtor D in New York u. remits it to his creditor A, who collects it of D, u. so beide transactions closed by the one payment made in New York, u. ohne 2 transfers v. der einen Stadt zur andern, passing one another on the journey. ([41,] 42) In der Praxis zeigt sich das oft somewhat verschieden. Die *merchants v. Chicago* schulden zusammen grosse Summen den *merchants v. New York* u. die *Kaufleute v. New York* denen v. *Chicago*. Die bills of exchange drawn in New York auf Chicago u. drawn in Chicago auf New York, od. die promissory notes made payable in that city, od. mit exchange on it, sind collected through the banks, direct, or being received on deposit, and the drafts of the bankers substituted. Die banks settle the account unter einander u. make an actual transfer of money only to adjust the balance of exchange. Die bills u. drafts perform *one of the functions of money*, that of being a medium of exchange. It is not simply that they are *an obligation to pay money*, transferable etc, but the *quality of being negotiable*, so that no other claim can be set off against them in the hands of a *bona fide* holder that causes them actually to represent money, and act the *part of currency*; doch letztres nur one of their uses wie bei promissory notes. (42, 43)

*In foreign commerce* spielen bills of exchange noch wichtigere Rolle als in internal trade. Die Waaren verschifft v. einem Land zum andern, sind repräsentirt durch bills of exchange drawn against them, which bills are current from hand to hand; u. das Land das mehr Waaren v. andrem erhält als es sendet, must pay the balance in coin od. bullion.  9/10 des Welthandels durch *bills of exchange* transacted.

3) *Bank deposits u. checks drawn against them* … Banks of deposit increase the amount of loanable capital in a country. (44)

In kleineren places »checks on each bank may be deposited in each of the others.« Dann die »banks, at the close of business, exchange the checks they respectively hold against each other, and each one pays each other in money the balance, if any, over and above the amount of its checks it holds. In large cities, wo clearing houses established, selbst dies payment made ohne den actual use of money. *Checks on one common bank* are *substituted*, od. *securities are deposited in a trust company*, for which *certificates* are given, od. money is *loaned to the government*, for which *certificates* are issued, u. these *are used to settle balances at the clearing house*.« ([46,] 47) In den *U. States* »where capital is scarce in proportion to the uses for it, *bank deposits consist largely of loans made by the bank*, *by crediting the account of its customers with certain sums*, *and taking obligations for the repayment thereof*.« (48)

Durch den use of the economizing expedients, the *wholesale business* der *U. St.* effected by handling of comparativ wenig Geld. When the parties residirend an selbem Ort, *checks are given*; wenn their places of business in verschiednen Städten, Zahlungen gemacht durch *bankers’ drafts,* welche nur sind *checks of a bank in one city* upon a bank in another city, u. are credited to the account of the depositor like any other check. In *retail dealings* u. *payment of wages*, meist actually *money used*; in den rural districts, wo banks are far apart, mehr money used in Verhältniss to business done als in den cities, u. der amount of bank deposits proportionell smaller. Der *Kauf v. farm products from first hands* generally made *with money and not checks*. *Large shipments of currency* v. den commercial centres folglich jedes Jahr gemacht *to move the crops*; *which currency* finds its way back *in payment for the goods purchased by the country merchants*. (48, 49) In den *U. St.*, wo man always gewöhnt von banks of deposit, war man nicht conscious of the economy there is in using them. (49)

*Anfang 1860 Circulation der banks* der U. St. = 207 mill. $ in *notes*; hatten *specie* = 83½ mill. Considerable Theil of specie in the hands des people, worüber nur conjuncturale Veranschlagung; aber scheint sicher, dass *Total Circulation der Ver. St. in 1860*, mit Einschluss v. specie in banknotes, nicht viel über 400 Mill. $ (leaving the Pacific States out of the calculation) (50)

The *effective power of money* (eingeschlossen darin banknotes u. specie as measured by the amount of exchanges it effects) ist mindestens 3 × so gross in Great Britain as in France u. 2 × so gross in *U. St. als in France* (52) the amount of bank deposits in Frankreich (wo ausserdem hoarding immer noch habit generally diffused) *nur ⅛ as large as in the U. St*. Frankreich braucht desshalb mindestens 2 × so viel Geld as we do to effect the same amount of exchanges; that country is kept from accumulating wealth by *having so much of its capital invested in them* (53)

Andrerseits: In *Gr. Britain* u. den *reicheren portions of the U. St.*, würde capital hinreichend ökonomisirt werden durch den use of banks of deposit u. der transferable instruments of credit, *ohne any issue of banknotes*. Durch den use der letzteren das *economizing v. Specie* carried so far that it ends in insecurity u. die fluctuations that result produce a waste both of labour and capital. (53) While deposits are currency they are not money. They are used to exchange values, but not to measure them. (l. c.)

In Antwort auf *J. St. Mill* , der sagt (nach Tooke etc): „I apprehend that banknotes, bills or checks, as such do not act on prices at all. What does act on prices *is credit*, *in whatever shape given*, *and whether it gives rise to any transferable instruments* capable of passing into circulating or not.“ Darauf Mann: »1) neither bills of exchange, checks, nor deposits perform *all the functions of money*. They are instruments used in making exchanges, but … not the *standards of value* (!), by reference to which it is ascertained how much of one article ought to exchange for a given quantity of another« (54, 55)

2) *Error … that … credit acts on prices*. The real cause, of which *credit is but the effect* (!), is still more remote. Whatever *affects values*, *affects prices* … But credit has no effect on values. It *is brought into use when some cause that changes values*, *changes prices* (!) So wenn Ausfall in Ernte wächst *value of wheat*; hence *speculative demand* u. *credit is resorted* to. (55) ⦗Der Mann irrt darin: *Whatever affects values, affects prices* (dies ist sogar Cardinalgesetz); aber nicht umgekehrt: *whatever affects prices, affects values* ⦗also credit can affect prices without affecting values; but it can also *affect values* f. i. capital advanced on credit for introduction of inventions etc⦘

»*The use of credit and its transferable instruments*, therefore, has no effect on the values of commodities compared with each other. But it may be said that they might elevate all prices in the same proportion, thus leaving *prices* higher, but *relative values the same*. But here *another limit* is met. *Gold is the regulator of international prices*, and, under *the law of its circulation*, prices in differrent countries are too closely related to permit such an enhancement in any country« (55, 56)

Credit u. transferable instruments haben daher keinen Einfluss auf Prices; d. h. »no such effect *in the long run*; but the *course of prices*, *while they are in the process of adjustment to values*, *is fluctuating and irregular*. … Over the final adjustment of … price … to value, neither credit, nor its transferable instruments, have any control; but over *the intermediate fluctuations of price* they may have a temporary influence. While the adjustment of prices to values is in process, the extent to which purchasers can use credit, and its transferable instruments, may have a certain influence over the fluctuations of prices, without changing this ultimate adjustment. ( 56) ⦗Er sieht hier nur Waarenspeculation; wie credit (als advance of capital) wirkt auf Production, u. by it, auf prices ⦗respective even upon values⦘ er sieht nich. Uebrigens versteht er unter value in fact equation of demand und supply, obgleich er allerdings früher sagt quantity of labor sei ein Hauptmoment in seiner Bestimmung.⦘ Ferner to consider the *»defects in the machinery for effecting exchanges«* ; die value-saving machines which credit supplies are not perfect; ihr Hauptmangel die *»economy of gold«* zu weit zu treiben, so as to produce »scarcity of that article« und »a consequent rise *in its value* « (!) Derangement daher der whole machinery, explosions. (56)

3) Mann geht aus v. der false Theory (die er richtig als bei demselben J. St. Mill vorhanden citirt) dass, wie *Herr Mill sagt*: „that an increase of the quantity of money raises prices, and a diminution lowers them, is the most elementary proposition in the theory of currency.“ Herr Mann sagt: »When the *scale of general prices in any country* in one year is compared with their state in a prior year, the difference is found to depend principally on the amount of money in circulation at the respective periods.« Nach ihm aber *sind »banknotes – money«*, daher »mit *coin*« *einzuschliessen im »amount of money by which general prices are determined«*. ([56,] 57) Folgt daher nicht, dass sie diesen effect haben *Preise mehr zu erhöhen als der Fall sein würde*, *wenn blos Gold circulirte*. »Inconvertible banknotes issued in excess of natural circulation haben unleugbar den effect. Dass sie ihn manchmal haben können, *before the stage of inconvertibility is actually reached*, nicht beweisbar, aber wahrscheinlich aus vielen später anführbaren facts.« (57[, 58])

»In the average that constitutes *general prices*, not only the prices at which the commodities sell, enter, but also the quantities of them sold.« Dieselbe Geldmasse circulirt »a small crop at high prices« u. »a large crop at low prices.« (58)

Banknotes are paid out as money. Checks u. notes of hand are given, that the holder may collect money, or transfer the right to collect it, and the money finally collected is usually banknotes. Z. B. Ich zahle in shop mit Banknote. (58) Man kann sagen dasselbe könnte mit checks geschehn; aber der fact, dass es nicht generally practice. »If the time ever arrives that bank checks are used as freely as banknotes, they will become as much money as the latter.« (59)

Banknotes displace specie dollar for dollar, or nearly so, less the reserve to meet them; while the other instruments of credit displace specie to an amount much smaller than their own sum. They economize the use of money by increasing its activity of circulation. They add to the effective power of the money on hand; while banknotes drive coin away, and take its place. The limitation on the amount of the latter that can circulate is imposed by the law of circulation of the precious metals, and until that limit is reached, they can be issued, while used in retail trade, and in payment of wages, without regard to the supply and demand of commodities. But credit and its instruments cannot increase, while the demand for commodities remains the same. They are the effect of such a demand, and not the cause of it. (59) Mit Bezug auf transferable instruments – im Gegensatz zu Banknotes, they increase not the quantity of money but its activity of circulation, and it is only *the special prices* ⦗nicht wie bei money = coin u. notes – general prices⦘, or those towards which speculation runs, that are enhanced, while the *special demand* resulting from a change in values, and not the credit given, which causes the enhancement. (59, 60)

An increase of banknotes is possible without any increase of the amount of exchanges to be effected. An increase of notes, bills of exchange, and loans by deposit, can only take place on account *of an increased demand for money*, *that is*, *of* the amount of exchanges to be effected. Banknotes perform both of the functions of money. They are used to *measure* (!) *values*, as well as to effect exchanges, *though in measuring values they fill the place of gold partially and imperfectly*; die andern instruments of credit haben nur die eine function of facilitating exchanges. (60)

The *amount of deposits* is as directly *affected by*, *and dependent on*, *the quantity of money* in circulation, wie die *prices of commodities*. (60, 61)

*Money* is always a commodity, and trade equivalent to barter. (61)

*Money*, like any other tool, is *a form of capital*, but the *accumulations of labor called capital* may exist in almost as many forms as there are objects of human desire. But *when capital is loaned* it is *usually computed in money*. The name dollar, in expressing capital, is more nearly a mere unit of computation than at any other time. *Loan of moneyed capital* geschieht meist durch some of the *transferable instruments* of credit, meist durch check auf eine bank, u. selten the money actually counted out; just as *commodities are paid* for by transferring a credit, ohne counting out any money. In beiden Fällen receiver entitled to demand the dollars in actual specie; Umstand, dass specie selten called for, macht die transaction in dem einen Fall nicht weniger a *payment of money*, als in dem andern *a loan of money*. *Capital* … is the thing *loaned*, aber *capital in the form of money*. Hence popular usage richtig, wenn bezeichnend »the *loanmarket as the moneymarket* «. Ohne Credit müsste das *moneyed capital* stets actually in coin gezahlt werden. Der *Name* wurde gegeben *bevor Credit existirte* – als a *loan of money and the interest of money were paid in specie*, and not by a symbolic transfer … Error daher entsprungen. Weil *das interest paid* for the use of capital is said to mark the *value of money*, wird unterstellt a direct connection between these two things ⦗nämlich der Werth des Gelds (of gold, Silver) als Waare, also auch ihr Effect upon general prices⦘ (61, 62)

Money in itself, is no more *a ticket or order* ⦗so that the one who lends it only transfers the right to receive a certain portion of the produce of the country⦘ than *wheat* or any other commodity. (61, 62) Money itself is as much capital as the wheat, though it is also the instrument of transferring capital, and *paper money*, so long as it remains convertible into coin on demand, is *equivalent to capital*, and *costs every holder of it*, *except the issuer*, *as much capital as if it were coin*. (63)

### ch. IV) Of convertible banknotes in excess of the natural circulation.

Die Frage ob *banknotes* to class mit *credit od. money in their effect* on prices, nur praktisch wichtig, soweit beweisbar, dass, *while retaining their convertibility into coin on demand*, *they can be issued in excess of the specie*, *which*, *without them, would naturally circulate in the country*. (65)

*Mr. Amasa Walker* in *„Science of Wealth“* (*Boston. 1866*) sucht hauptsächlich durch *facts* zu zeigen, dass die banks *haben great power in expanding their issues*, *and thus engendering a rise in prices*. Das Motiv haben sie undoubtedly; »This sort of money costs only the expense of engraving and printing, and yields to those who lend it as high a rate of interest as real money. The more of it they can keep afloat, the greater their profits.« (66)

*Erstes (angebliches) Beispiel* v. excess v. *convertible Banknotes* *A. Smith* (book II, ch. II) über Scotch Banks u. Bk. o. E. (67) (Darüber auch *Ricardo*: Polit. Econ., ch. XXVII.)

*Zweites Beispiel der redundant banknote currency nominally convertible into coin in U. States vor 1862.* (See A. Walker) p. 70 ⦗nachzusehn wieder diese page, wenn die Sache nicht in Walker⦘

Die *mania for paper money* im 18. Jhdt nirgend *more prevalent than in North America*. Die meisten *colonies* emitted *bills of credit made by law a legal tender*. The *Continental money* of the Revolution was but an *extension of the currency used before the war commenced*. (70) the paper money of the U. St. has seldom been truly convertible into coin on demand. (75) Specie payments suspended 8 times in 64 years. (l. c.)

In Great Britain die Praxis – the device of issuing notes in one city, redeemable only in a distant city, wurde in England suppressed durch *Statute of 1826*. (78)

Loans (in U. St.) oft gemacht mit express understanding u. agreement that the notes should receive … a good circulation; i. e. in taking them to a distant place and paying them out for purchases in the rural districts, where envious brokers u. rival bankers would no longer be able to hurry them back forthwith to their issuers. Viele *small banks*, bes. of the *Eastern u. Middle States*, lived wholly by their circulation, thus kept afloat in the Western States at high rates of interest. The *scarcity of loanable capital in those States* rendered it easy to circulate any thing that purported to be money. (78, 79) Hauptmittel in den *U. St.* – issue of notes of small denomination. (*79 sqq*) ⦗»elementary *principle*, that *the poorer currency always supersedes the more valuable*. A person who has in his pocket both gold and doubtful banknotes, naturally prefers to rid himself of the latter.« (80)⦘ ⦗*Sieh p. 80, 81 sq.* über small notes, retail trade prices etc⦘ (81, 82, 83) Die practice established in *many der States* (der Amerikanischen Union) of *requiring the banks to deposit with a public officer collateral securities for the redemption of their circulating notes*; dies giebt dem *quasi* government indorsement; impede their return for redemption; enable the issuers to keep a greater amount afloat with a limited reserve of specie. That banknotes thus secured circulate on *the credit of the securities as much* as *of the banks issuing them*, zeigte sich bei Ausbruch der Rebellion: damals die *Western bank currencies*, *founded on Southern State bonds*, depreciated as these bonds declined in price, with occasional exceptions of solvent issuers, involving in ruin merchants who received such notes in the course of trade, and bankers who took them on deposit. (84) Aber vor der Rebellion die *»periods«* in den U. St. worin »banknotes … in excess of the natural circulation« were »*always limited*. The ultimate regulator of the amount of banknotes that can be kept convertible is the movement of the precious metals. When not redeemable in coin, there is no limit to the amount that can be circulated.« (84) So long als banknotes convertible in coin, haben die banks no power of issuing them so as to *permanently* elevate the prices of commodities. Yet this does not affect the conclusion that they have this power *temporarily*. When prices rise, the gold is exported gradually, and an inflation may continue for a considerable period before the natural check of an exportation of specie brings it to an end. It is natural, also, that the banks should exercise this power, where small notes are issued more frequently than when they are prohibited. For, in the latter case, the enhancement of prices begins in the wholesale markets, and is felt immediately on the international exchanges. (85)

### ch. V. Speculation and Panics, as affected by a mixed currency.

*Speculation* … an effort of those *making exchanges to profit by real or expected variations in the values of commodities or securities*. It is the change of the *immediate value* of a commodity produced either by a diminished supply of it or an increased demand for it, on which most speculations [are] based. (87) In the markets for merchandise, it is *commonly a short supply of any thing that changes its value relative to other commodities*, and thus puts up its price … Stocks laid in in order to gain the increased price. The prospect of realizing an easy fortune by buying at one price to-day, and selling at a higher to-morrow, attracts numerous buyers from those engaged in other pursuits, and a speculation for a rise takes place. Selber effect produced durch *a new demand* for any commodity, wie f. *arms, salpetre, naval stores* in den Amerikanischen Märkten zur Zeit des Ausbruchs of a European war etc (87, 88) ⦗bei Ausbruch v. Krieg etc geliefert Beispiel »of the effect of a *new demand* concurring with an *expectation of a reduced supply* … by the course of bread-stuffs«⦘

Doch der *speculative effect of an increased demand* directer sichtbar *in market for securities* als *in market for commodies*. (88) »banknotes« do not »create speculation«, aber »they foster its excesses.« (90)

⦗»Speculation is a necessity which cannot be escaped, until supply and demand never vary, and capital ceases to accumulate. In its right place it is a benefit. It opens a proper outlet for human activity. It is the excess of it that is an evil.« (90)⦘

*Book credit*, simpelste Form Credit zu geben. In meisten branches of trade, by the custom of merchants, a buyer is allowed a specified term of credit on his purchases; nur am End des term is his account presented u. the payment asked. (p. 90)

(Von diesem u. 2 folgenden chapters sieh cont. p. 83 )

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[^lic]: Text nach MEGAdigital (Berlin-Brandenburgische Akademie der Wissenschaften), MEGA² IV/25, Lizenz CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0/); der editorische Apparat der MEGA ist nicht wiedergegeben.