Content
Points remaining in this second half of the commentary:
4 ) Current
Gold production and the total gold supply
5 ) Some
Notes on the Total Gold Supply
6 ) An Estimate
of Gold Coin Denominations which Might Be Required
7 ) Clearing
and the Requirement of a 100% Gold Cover
8 ) Some
Suggestions for a Rightful Currency Reform
9 ) Further
Remarks on Price Adaption to an Exclusive Currency
10 ) Unequal Distribution
of Gold Currency Liquidity.
11 ) Gold Production
and Inflation
12 ) Rigidity of an Exclusive
Metallic Currency
13 ) What is the Meaning
of a "Gold Price" Provided that Gold is no longer Outlawed as a Standard
of Value?
14 ) A Gold Subsidy to
American Miners?
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(280)
are increased - due to the
often observed but more often ignored tendency of faliling rices to deter
and only of fallen prices to attract purchasers, (See p. 285ff, The presently
so prevailing internal price and wage fixing policy, other restrictions
on internal trade, producti on and capital combined with the obstacles
to international trede make matters much worse than they are inevitably
under an exclusive currency system, The repeal of all such restrictions
is repuired. (F.A. Harper makes this point very welf in "Jobs for All"
(who want to work)
Institute
for Humane Studies, Inc, Box 727, Menlo Park 94025, California)
Only then could a system of monetary freedom work perfectly- a n
d v i c e v e r s a.
4) Current Gold
Production and Currency Shortages
The current gold production
cen hardly serve to relieve an acute currency shortage as it proceeds at
a regulir'pace requires considerable time and investments for expans,on
and amounts presently to almost 3¢ p,a. of the total stock of gold
accumulated so far.
5) Some Notes on the Total
Gold
Supply
For a long period in history
gold was so short suppLied that the total stock amounted in 1492 to only
about 3.000 tons. What did this mean in terms of its availability as a
currency metal? See the considerations on gold coin denominations on the
next page. Since then about 73,000 tons were added to the total stock,
giving a total of about 77 000 tons in 1965, The small gold supply up to
the time of Columbus partly expLains why subsistence and barter economy,
slavery and serfdom still existed, There was not sufficient money metal
available to make a wider market and all desired exchange acts possible
and to pay wages to relatively independent workers, Those living close
to the subsistence level were often only too willing to buy their "social
security" through serfdom or could with relative ease be turned into serfs
when they owed some money. Price adaption did not go far enough to generally
introduce a monetary economy. Even now, after a twentyfold increase in
the gold supply and a much lesser increase of the population the total
amounts onLy to a cube of about 44 ft. or about 1 ounce or approximately
1 gold sovereigns per head of the population. One third of this may be
considered as lost, buried or fixed in jewelry etc. or industrially used
up. This would leave us with about 3 sovereigns per head, equal distribution
assumed. Judging by recent production figures up to one half of the total
world stock may have been produced in the last 30 years since von Beckerath
wrote the essays reprinted in P.P. 9-11. The per head amount of gold reckoned
in Australian currency accordinq to the official purchase price of the
government (there is no sales price to private
buyers except to a few with a special permit)
amounts to g 22,50 according to the black marketprice to about $ b4 Under
free market conditions the purchasing power of gold would most likely be
considerably less than the latter figure but let us, for simplicity's sake
assume it to be 350. This amounts to much more than I thought it to be
before making this simple estimate yet it is not impressive compared with
the ready cash (in government paper money and coins) plus current cheque
accounts per head of the Australian population. Coins and notes amount
to about $ 76, cheque accounts to about$ 273, together about 350
per head. As these 350 find oxpression in the current price level the available
gold per head would, if it were made the exclusive currency, permit only
a price level 1/7th as high as the present. Then each of the new gold dollars
would buy about 7 times as much as the paper dollar buys now - and would
be about 7 times as hard to get. Von Beckerath mentions on p. 13 the turnover
of 2 German institutions, the Federal State Railway and the State Mail-
as being far in excess of 500.000 million Reichs-mark and asserts that
not even the turnover of a single country Like Germany could beachieved
through all the worldis gold. This seems a strong exaggeration - until
onetransforms the present gold stock (possibly
twice as high as when von Beckerath madethis estimate)
into the old type Reichsmark It would amount to no more than approxi-mately
220,000 million RM, Nevertheless, things do not look quite as bleak for
an ex-clusive qold currency for two reasons: 281
1.) These 220,000 million
RH total gold supply may be turned over 50 times a year, allowing a yearly
turnover of 11 000 000 million marks, that is 22 times the turnover of
the mere two larae enterprises of a single country 2. The reduction of
the general price level due to the introduction of gold as the exclusive
means of payment would reduce the turnover of these 2 enterprises to 7100
(million RM reckoned in the new gold currency, thus allowing a total turnover
of aboul 155 times their turnover. Furthermore the quantity of gold used
as 100% cover for cheque and giro accounts (objectively
this cover is not necessary at all) would
be likely to lead to more than 50 turnovers a year, thus allowing a higher
total turnover. On the other hand, the German State Railway and the monopoly
Post Office are likely to have increased their turnover considerably, reckoned
in stable currency units. For comparison: Total international trade in
the mid-fifties and reckoned in parity prices as about US i 190,000 million
or about 800.000 million DM and it constitutes naturally only a small fraction
of the total turnover, including all internal transactions. When the above
indicated turnover limits are reached further turnover would be possible
through further lowering of the price level, but this is likely to bring
about -under an exclusive currency system- deflationary developments for
a considerable period of transition. According to the above estimates gold
is neither as scarce as some think it is nor a abundant as others assert.
I would like to be informed by my readers of any exact, comprehensive and
more recent surveys of these relationships.
6) An Estimate of Gold
Coin Denominations which Might Be Required
Let us assume that gold
would have been proclaimed the exclusive currency. To wha extent would
it have to be coined out and wouLd the coins still be of an acceptabl size?
The per head amount we will divide is as you remember 1 of one oz or 50
gold dollars We would then require something like the following denominations:....table
omitted
Do you still think that
gold coins could never become too small to be usab te? Murray N Rothbard
himself (ibid p 32) mentions that - after many currency debasements the
gold diner in the 13th, century and later the silver maravedi in the 15th
century became too light for circulation, likewise the lack of sufficient
weight and substance to put your fingers on would be the main defect of
most of the above estimate gold coins. If such a system were ever practised
you might have to hold your breat when collecting your salary - in order
not to breathe in or blow away part of it an it might be advisable to transact
all monetary exchange acts with the help of a micrscope. If one would insist
on gold physically circulating then it might have to be rolle out into
a thin film, comparable to the gold leaf used by siamese? writers. Such
coins of film-thickness could be glued on cardboard and encased in plastic
for protection. Admittedly this would make forging easier and discovery
of forgeries more difficult. Another solution would be to use base metals
for all but 10 or 20 dollar coins and have these base metal coins fully
covered by gold-weight corresponding to their nominal value. Likewise gold
deposit notes could be used for small denominations and it would then require
a certain quantity of these notes to achieve redemption by 282
smallest
gold coin.
The most sensible approach, within the sphere of an exclusive metal currency,
would be a parallel currency with silver for small denominations smaller
than 10 or 20 dollars. Thus, an exclusive metal currency while perhaps
difficult in some respects, seems at least to be technicaly feasible.
7) Clearing and the Requirement
of a 100% Gold Cover account.
When A owes B $ 10 on a
certain day and B owes A $ 10 on the same day, then both can clear or settle
their accounts without any physical means of payment exchanged between
them, even without either of them possessing any. At most both would have
to write out a receipt for the other or simpler still they could swap their
claim certificates and destroy them or better still, frame them in as permanent
reminders with the by-line: 'Paid without using gold as means of payment'.
When clearing is multilateral this possibility of gold-less payment of
gold-values still remains. When a bank undertakes a wide multilateral clearing
for its customers, using gold for account and as a standard of value, and
when, furthermore, the bank itself is together with other banks, is a customer
of an extensive clearing network, still no gold is required for payments.
Even the balances temporarily remaining are in the long run cleared and
in the meantime payed by "transfer" money,
Such a system becomes only
dangerous when an unnecessary element is introduced: the authority for
every member of the clearing process to demand not only clearing but cash
payments instead, in one or the other rare metal. If he could demand instead
only the payment of clearing-house certificates standardized and fractionized
like money, then his withdrawal claim could not lead to monetary disturbances.
It is quite a different matter when the right to demand money-metal payments
is directed to the very few instances where every
possibility for clearing is exhausted. Still at least some of the debt
remains, either because of incapacity, ack of initiative or bad will of
the debtor or due to bankruptcy because of technological changes. On the
other hand, in such cases further proceedings would mostly be fruitless,
anyhow.
When comparing the possibility of clearing with the demand for a 100% gold
cover for allpaper claims, one has to remember that in principle and in
fact all monetary exchanges amount to clearing of claims arising out of
the sale of goods and or services. Physicial means of exchance -of
all kinds- do only facilitate this process - through standardization and
fractionizing of claims and through the reduction of book-keeping to a
minimum. They do not alter this process in principle. Mere paper certificates,
issued and administered in a way that they remain acceptable at par in
at least the local clearing process, are sufficient. Their nominal value
need not be expressed and accompanied by a commodity of the same value.
It introduces therefore a foreign and unnecessary element in the clearing
process to demand the full backing with physical gold (as
opposed to a gold standard merely used for accounting purposes)
for every clearing transaction. Quite obviously, clearing, like barter,
could not act inflationary. Instead of permitting clearing in all its forms
to transact as many exchange acts as are possible and desired by freely
trading individuals and associations, the gold cover requirement would
limit exchanges to those which could have been paid in gold, though much
less conveniently. All other traders who would not be in this fortunate
position would be excluded from exchanging their goods and services unless
they could manage to do it by barter.
The main objection against the demand for an exclusive and 100% metallic
currency or cover (even in its best form -
gold and silver with a free exchange rate between them and combined in
a parallel currency; Roland Vaubel defends
this sort of thing also; see elsewhere on this site)
is therefore a moral one: why should a man only be allowed to buy with
precious metal or to sell against precious metal - if both he and the seller
or purchaser, are satisfied with substitutes or need no money tokens at
all because they make use of their natural right to clear their debts against
their assets? Why should all people be compelled to use only a privileged
system of payments, e.g. payment with gold coins gold certificates or 100%
covered cheque accounts, when they could easily supply themselves with
as stable substitutes? Compare the Human Rights draft in plan 110, points
31 to 34.) (I would be grateful for better formulations).
An exclusive gold currency and an exclusive parallel currency would still
continue a part of the existing money monopoly (It
must be conceded that it would end centralized mismanagement of currency
affairs). All owners of gold would hold this
monopoy collectively and would thus form a privileged class. Membership
in this class would under normal circumstances strongly fluctuate. Nevertheless,
this particular property would introduce a considerable class distinction
and illustrate the old saying that only a man who can pay his way may be
considered as being free. He are here concerned not only with one of the
numerous minor injustices but with a restriction of that right to life.
It amounts to such a restriction when people, who otherwise would fully
support themselves through freely clearing their output against that of
others, are permitted such clearing to no greater extent than they can
achieve under the condition that they obtain gold in the first place in
order to be licenced for further exchanges or clearing acts. lt is a particular
form of senseless tyranny when people; before being allowed to clear with
willing partners, have to market their goods or services on the rather
limited gold market, have thus to struggle for the possession of a quantity
of one of the scarcest elements, have to sell whatever they have to offer,
possibly only at emergency or forced auction prices. When such an unnatural
and unjust condilion prevails it becomes tragicomic to hear poets
(who? Me?) and writers exclaim against the 'cursed
hunger for gold', There is neither a justification
nor a need for making participation in a market economy in monetary transactions
or clearing exchanges, disficult, but every reason to make them as simple
and unrestricted as possible.
Each trader has the right to judge for himself (within the limits of his
contractual obligations) what kind of monetary or clearing settlement would
satisfy him. Whenever and as long as a free gold market would not supply
him with sufficient exchange media he must remain free to resort to other
money markets or to issue his own non-compulsory and non-fraudulent
means of payment, either alone or in association with others. That
voluntarily chosen substitutes for gold money have frequent ey onlya capacity
for a local circulation at per is not only a disadvantage teut has decided
advantages aLso as von Beckerath points out. Moreover, in some instances
clearing by means of shopfoundation certificates is actually superior to
a gold cover or gold currency. Compare e.g. pages 11,13,30/1 43, 89 95,
220 and 258.
Again I feel urqed to siate that the above remarks ought in no way to be
interpreted as an attack on the free issue, use and possession of gold
coin and bullion or on honest gold certificates. They amount only to a
protest against outlawing or ignoring the possibility of certain types
of non-coercive paper money as good as gold or almost as good and occasionally
even better than gold. Promoters of the 100% gold cover are only right
in not trusting most or all governments to supply such a paper currency.
What references to gold does a gold-less gold-clearing require?
No more than an agreement
between the participants to use as a standard measure the value of a certain
weight of gold on a free market. All other commodities can, under free
market conditions be easily uriced with their equivalent in gold weight
and the sellers would tend to do this in their own interest. Thus all claims
arising out of all sales could easily be cleared by means of using this
common denominator as a reference point. Not a single representative of
this gold weight unit need be in the vaults of the clearing centre. Its
availability on the free market and daily free market quotes - for all
paper currencies - would suffice, if well publicized,to allow gold clearing
and gold accounting of all means of payment which have no other commodity
value than their printed paper has on the paper scrap market. To allow
frequent free market comparisons between the value of various kinds of
paper money and gold, as much gold as possibLe should circulate freely
in coin form - instead of being wasted where it is least of all or not
at all needed - in the bank vaults. Only free competition between various
means of payment systems is likely to bring about this most favourable
condition.
8 ) Some Suggestions for
a Rightful Currency Reform
How could the change-over
from an inflated paper currency to a gold for account currency take place?
A number of different steps are to be taken:
(284)
1) All leqal tender provisions
are to be repealed, likewise
2) the note issue monopoly
of the central bank.
3) The qovernment's note
printing presses are to be stopped.
4) Sound State or municipal
paper money (with tax foundation) and
5) various private means
of payment without legal tender are freely issued.
6) All restrictions on the
possession and transfer of gold and silver and
7) restrictions on free
coinage are to be repealed.
8) Between the new private
and the new State paper money, and both of these and gold on a free market,and
all of these and the old State paper money,free exchange rates would develop.
At these, before the old paper is withdrawn it could still circulate among
those who are temporarily still willing to accept it in spite of its possibly
rather inconvenient bulk and the reckoning difficulties.
9) There are now three main
wavs to withdraw the old inflated paper money,
a )The old type paper money is accepted in tax payments at the market rate
or at the gold value established in the beninning (otherwise
the State might still feel tempted to continue note printing)
and destroyed after reflux. One might make a case for obliging the State
to accept the old paper money at a higher rate should the market rate rise
in case a large scale reflux has already taken placet The State's income
at that time would consist primarily out of the issue of new tax-based
(that is freely quoted paper money which only
the department of taxation has to accept at its face value).
To allow at least a limited circulation for this, certain taxes might have
to be paid exclusively in this new currency (unless
the taxpayer is willing to pay a smart money)
The State's income would be considerably reduced while it would repay its
debts. It might even be reduced to naught, But this is what usually happens
when somebody or some organization has gone bankrupt, isn't it?
b ) The remnant of the government's gold reserve is veld against the old
paper money at the rate determined by the market. (Otherwise
rationing would have tobe introduced or pro-rata sales as indicated under
c).
c) All State enterprises and possessions, including buildings, land, stocks
forests railways, streets, canals, parks, power works etc. are put up for
forced sate like the property of any private bankrupt deblor when all clearing
possibilities are exhausted. It seems self-evident to me that no further
payments to State creditors are to be made out of new State revenue. The
gold value of all the government's real estate, stocks etc. is determined
by free market offers- including internationaL ones. A Large number of
rolatively small shares issued for each of them, corresponding to their
old value. Then all existing creditors' claims against the government,
including all pension claims and all still circulating State paper money
of the old type are to be accepted in payment for these shares at least
at their free market gold value. If necessary a comparison between these
outstanding debts and the real assets of the State is to be made an a percentage
to be determined at which rate all these creditors cen be satisfied. The
government is not to be given a chance to make a profit at these sales
by accepting its own paper money below its nominal value - until all inflated
paper money is withdrawn and then to sell the remnant on the open market
for sound currency, That would amount to a fraudulent treatment of its
creditors. Should the governmentts possessions really exceed the nominal
value of all its debts then other reprivatization steps would have to be
considered.
No government is to be allowed in such cases to completely repudiate its paper money to keep as part of its plunder e g, the State owned enterprises, This ideal opportunity for a reprivatization ought to be used.
As obviously nobody can rightly
be forced to continue business relationships with a debtor who went already
bankrupt once and might again be guilty of mismanagement, the demand for
voluntary Slate membership on an exterritorial basis and for the voluntary
taxation this implies, follows automatically To subject everybody again
to a government which had acted as a looter instead ot as a protector would
be tyranny. 285
9 ) Further Remarks on
Price Adaption to an Exclusive Currency
The price mechanism does
not work quite as frictionless as some of its advocates believe it does
- when it is d i s t u r b e d by one or two commodities (gold
and silver), they alone being allowed to express price relationships and
to pay for all prices so determined. The belief that prices would automatically
and sufficiently adapt has been concisely put by Murray N. Rothbard ( ibid,
p. 13 ):"it doesn't matter what the supply of money is. Any supply will
do as welf as any other supply. The free market will simply adjust by changing
the purchasing power, or effectiveness of its gold unit. The main error
in this opinion is that a market which in this fashion is forced to reduce
all prices is still to be considered as a free market. It must be conceded,
however, that within certain limits this opinion is true, to wit, when
provided that a minimum of gold is available and that there is sufficient
time for the adaption to take place. Are these conditions always fulfilled?
The gold quantity available at the time of Columbus would today not suffice
to turn over the volume of today's trade, not even at greatly reduced prices.
Even at the time of Columbus it was, combined with silver, not able to
dispense with barter and subsistence economy everywhere to spread a monetary
exchange economy generally. As we have seen in the above chapter on denominations
gold cannot be subdivided without limits. Coins can become too small for
circulation. Rothbard himself quotes two such instances on p. 32 of the
same work. (That in these cases the too small
size was due to coin debasements does not matter)
Thus price adaption would find a physical limit Prices might be reduced
to emergency sales prices and goods, because of a shortage of usable coins,
might still remain unsold whereupon goods production is likely to b reduced
tohards subsistence or towards the money supply which still permits turnovers.
When such a physical limit is reached then even centuries are not a long
enough time for the expected price adaption to be completed. Often, as
experience showed, the time available for the necessary adaption is not
centuries teut merely days or weeks. (Compare
here the excellent description, in plan 191, of the currency famine of
1893) When the time factor psychological elements
like hopes, expectations and estimates creep in and spoil the smoothness
of the desired price adaption, Shopowners and wageearners take a considerable
time before they recognize the need for price and wage reductions and overcome
their hesitation only slowly, Their hesitation increases a currency shortage
(the turnover based on not yet reduced prices
requiring a disproportionally large share of the reduced money circulation)
and may even leed to their oankruptcy or unemployment before they really
know what happened to them. Almost like in many car accidents events move
then as rapidly that proper counteraction cannot be taken in time to prevent
disaster. To the extent that people notice what happens: " f a l l i n
g" not " f a l l e n" prices and wages they will be inclined to sharpen
the already existing currency famine by reducing their purchases and hiring
of labour and keeping higher cash reserves- in the expectation of further
price and wage falls. Admittedly even this tendency cannot go on without
limits. It is, nevertheless, one of the major factors ignored by those
who expect automatie price adaptions to any degree- under an exclusive
currency system. The price adaption within this framework functions only
within rather narrow limits, that is in cases when the price and wage charges
are hardly noticed, It certainty does not work in the extreme cases when
its smooth functioning is required most. One might draw a comparison here
with the exclusive authority of present-day States to provide protection
and security. States are helpless and can grant no security or protection
against the vast threats of nuclear, biological and chemical warfare and
are only partly effective against the continuous threat of criminal or
terrorist or subversive activities. They seem to do their jobs only when
the crime rate, the threat to security, is so small that it is hardly noticed
by most. In other words when it is not required anyhow, it "functions",
when it is needed most it reveals inhererent defects (Compare the index-entry
"Prices, falling and low, rising and high").
286
10 ) Unequal Distribution
of Gold Currency Liquidity.
That ready cash has the
tendency not to be equally distributed teut to flow instead,Pleast tem
orarily, in larger quantities or with a higher rapidity in certain channels,
has often been observed. Even ordinary workers can observe as a fact of
life, that under the present system almost always some of them remain unemployed,
without a cash income earned by free exchanges of their labour power, and
this largely regardless of their capacity and willingness to do jobs that
others would like to see done. Likewise, shopowners remain overstocked
with goods which are needed by consumers, which are not over-produced or
over-priced because the prospective customers cannot afford them, being
restricted themselves in their earning capacity through lack of exchange
media. In the international sphere similar observations can be made. Citizens
of poor countries cannot afford to buy from the large stocks of developed
countries because in the system of exclusive currency they do not find
it easy to transform their labour power into purchasing power. The money
which is available tends to go along other channels.
Similar observations are made during inflations and deflations. Some areas
are less, others more severely hit by the monetary crisis. In times of
predominant coin circulation it was often observed that far from the capital
and the centres of commerce coins were relatively rare and this, in spite
of lower prices which should have tended to attract more money payments
(That distances and transport conditions were
contributing factors is not denied).
Any money shortage is unlikely to hit all economic spheres at the same
time and equally hard. Producers and traders of non-essential or secondary
or tertiary priority items are likely to suffer first and most. This tendency
alone will often give the image of certain money channels.
Aside from localized liquidity differences, there are those of certain
spheres of the economy, regardless of locality. Well known are only the
artificially created channels due to government planning and meddling in
favour of this or that industry, for or against agriculture, the channels
due to subsidies and compulsory, often penalizing taxation, etc. Furthermore,
of course, the differences between the liquidity of well organized union
members who have monopolized their job opportunities and that of less organized,
less strongly placed workers, who are, collectively, the victims of the
extortions of the monopoly unionists. The capital market does also reveal
certain circulation channels - expanding industries with rising and other
industries with falling share prices. Comparable channels exist for the
ordinary money supply.
The more centralized and
monopolized a currency becomes the greater these differences seem to be.
Thorough research on the
subject has probably still to be done - or publicized. Every study of this
kind should distinguish between liquidity problems under monetary despotism
(and be it only one which does nothing else
but make gold and silver the exclusive currency)
and the liquidity situation under monetary freedom which would allow everybody
to monetize his immediately available assets. Such research would possibly
reveal that the fantastic growth of cities during some generations was
largely (saying: "partly" instead would
drive the point home much more moderately eh?)
due to money supply channels concentrating there, thus facilitating the
sale of goods and labour, making product and skill honing much easier and
more adaptable.
Prof Galbraith seems to
have done at least one service to economic science by stressing the fact
of different money supplies for two different spheres: the compulsory
and the voluntary
sector of an economy which he likes to call the public
and the private
sector because of the semantic implications, How he could possibly arrive
at the conclusion that the public sector is starved by the private sector
(such is a popular version, I did not bother
reading this apologist for State intervention)
as if the public sector would be the productive and the private sector
would have taxing powers against it, is a riddle to me. Every fact I
have noticed so far -apart from protectionist policies- points in the direction
of the public sector being overfed at the expense of a private sector which
often is almost starved or regulated into a large degree of inactivity
or unused capacity. (John's idea of
a penetrant and pertinent P word line)
Compare e.g. house building in Fran-287ce
and Sweden, Nevertheless, I appreciate Galbraith's well publicized opinion
because he stresses that the money distribution in these two economic spheres
is unequal, it does not matter here which of the two is short and why this
has come about. His assertion should help to stimulate some fundamental
thinking on the subject of liquidity distribution under a centralized and
monopolized or exclusive currency system and might even lead some to study
the alternative: monetary freedom.
Under monetary freedom all economic spheres short supplied with money could
create their own means of payment and clearing. If money channels do exist,
yet a perfect enough price adaption does not occur, then the victims of
this system of payments have the right to resort to self-help. They will
not be satisfied with a declaration of central Banking or 100% gold cover
advocates that according to these theories their "legitimate" requirements
would already be supplied. I would like to know more about this subject.
Can you help?
11 ) Gold Production and
Inflation
In a recent defence of gold
for monetary purposes (Theodore Macklin's
"Gold - Key to Confidence"
published and distributed together with much other relevant matter by:"Economists",
'National Committee on Monetary Policy', 79 Madison Ave., New York, N Y10016,
- a booklet containing many facts and thoughts I found very instructive
but which also contains some errors) it was
said on p. 68 1964 saw world production of 1580 tons. This is a figure
1.775 times as great as for the era before Columbus. Confronted by such
facts the Keynes propaganda is obviously untrue. Compare this with the
3.825 tons produced before 1492 znd the 73.3115 tons produced from then
on until 1965, giving us a total of 77.170 tons - as noted by the above
mentioned author, You will then see that the annual production amounts
to an automatic increase of the monetary volume by more than 2% per annum,
This is an increase which Keynes would not have considered as quite high
enough but as already very welcome according to his monetary manipulation
and slow inflation theory for exclusive paper money. One cannot always
expect population and production increases to be in balance with the gold
production. Indeed, the same author points out in an interesting table
on D9 that since 1600 world population grew only by 755? while the gold
stock grew by 9?727. Alas, in this table the author failed to include estimates
of the extension of the monetary economy and of the turnover per head.
On "confidence" see the index. The 1965 gold production amounted according
to p, 31 of Macklin's booklet to 2,77,1; of the total gold stock. If gold
were ever made the exclusive currency then many defenders of Keynes' theories
would consider this annual increase of the money supply as already sufficient
to "guaranty" a "groith rate" of 2 to 3% If, furthermore there were a free
gold market and no low pegged prices for newly produced gold then the annual
increase of the total stock might amount to 5 or even 6% Do the defenders
of a 100% gold currency still not recognize the shadow of Keynes on the
golden wall? They think they are fighting Keynes' policies by their currency
reforms Instead, they would merely replace one "growth policy" by another
one, admittedly, one less influenced by the human factor. If gold were
used merely as a standerd of value end (sorry
from here on down there may be a few more ends instead of ands)
not as the exclusive currency then this increase would hardly matter. Cash
transactions in gold coin, relatively rare compared with the turnover brought
about by various paper means of payment, would simply tend to become slightly
more frequent,
12 ) Rigidity of an Exclusive
Metallic Currency
An exclusive metallic currency
( which probably never existed during the last few centuries in any of
the more civilized countries ) would probably - in spite of the above mentioned
deflationary and inflationary dangers inherent in it - be one of the most
rigid means of payment, This would render such a currency ideal as a competing
means of payment which at he same time serves as the standerd of value
for almost all other (288)commodities
(by preference) but would render it unsuitable as an exclusive means of
the attempt of 100% gold cover. Any proposal to stop government meddling
with currencies and value measurements is to be welcomed for scrutiny but
any method applied for this purpose should not at the same time stifle
or render difficult free voluntary exchange acts between private people.
The aim can be achieved by repealing the money monopoly & the legal
tender laws.
13 ) What is the
Meaning of a "Gold Price" Provided that Gold is no longer Outlawed as a
Standard of Value?
Henry Meulen's concept of
a gold standard is elaborated in his monumental work "Free Banking" and
in numerous articles in his periodical "The Individualist", (
"Free Banking" is still available from the author: 31 Parkside Gardens
London S,W,- 19 or from Karlis Paucitis the editor of "Free Star" and publisher
of "George Boardman STEPS TO FREEDOM" 6113 Sandy St., Laurel, Maryland,
for 1' 4,50,) I do intend to review his fine
of thought at length but could not do him justice here in a few lines.
I would like to mention a single objection I share with von Beckerath against
his theory concerning the monetary use of gold, He opposes a "fixed price
for gold" and proposes redemption of notes by various weights of gold,
according to the "price of gold" on the market, This would in reality reduce
gold from the position of the standard metal to one commodity among others
and render the abstract banknote unit the ideal standard of value for gold
and all other commodities. Under a gold currency it would not make sense
to speak of a "price of gold. Whenever gold is the general standard of
value all goods and services would be priced out in gold weight units.
This would be still true when it is camouflaged by the selection of different
gold quantities and different national names for these. Even private banknotes
and State paper money could then be "Priced" in these gold weight units.
In such a situation it is misleading to speak of a "gold price". A weight
unit cannot be measured by itself. One cannol measure a meter by a meter
or a gallon by a gallon, What Meulen and others using the term "gold price'
possibly mean is the exchange rate of various paper currencies against
the gold standard unit, the purchasing power of gold toward other means
of exchange. It seems therefore proper to speak -under a gold standard-
only of a price of the various types of money expressed in terms of the
standerd gold unit. If one sticks with the gold standard concept then every
item has a gold price -but gold by definition- none. Gold is weighed in
weight units but not priced in gold terms. Under a gold standard a paper
money subject to a free market rate may either stand at par, above or below
its nominal gold value, The "price" of gold economists would consider -its
equivalent in terms of goods, services or other exchange media- should
for the sake of clarity rather be called the purchasing power of gold.
Murray
N Rothbard has expressed himself so welf on
this subject (ibid pp, 4, 6, 7, 11, 12) that I feel tempted to quote him:"Like
all commodities gold has its ''price" in terms of other goods- which is
determined by the interaction of its total supply, or stock, and the total
demand by people to buy and hold it." "On the free market, then, the various
names that units may have are simply d e f i n i t i o n s
o f u n i t s o f w e i g h t. When we were 'on the gold
standard' before 1933, people liked to say that the 'price of gold' was
'fixed at 20 dollars per ounce of gold 'But this was a dangerously misleading
way of looking at our money. Actually, 'the dollar' was d e f i n e d
as the n a m e f o r (approximately) 1/20th of an ounce of
gold. It was therefore misleading to talk about 'exchange rates' of one
country' s currency for another. The 'pound sterling' did not really 'exchange'
for 5 'dollars'. (Actually, the pound sterling was exchanged for 87, but
we are using 85 for greater convenience of calculation) The dollar was
defined as 1/20 of a gold ounce, and the pound sterling was, at that time
defined as the name for 1/4 of a gold ounce, When a pound sterling is exchanged'
for 5 'dollars', then 1/4 of a gold ounce simply traded for 5/20 of a gold
ounce. Clearly, such exchanges and such a welter of names, were confusing
and misleading. How they arose is shown below 289 in the chapter on government
meddling with money. In a purely free market gold would simply be exchanged
directly as grams, grains, or ounces, and such confusing names as dollars,
francs, etc "would be superfluous,"
"As we have said, money, or gold, is the common denominator of all prices.
But what of money itself? Does it have a 'price?' Since a price is simply
an exchange ratio it clearly does. But, in this case the 'price of money'
is an a r r a y of the infinite number of exchange ratios for
all the various goods on the market. Thus, suppose that a TV set costs
3 gold ounces, an auto 60 ounces, a loaf of bread 1/100 of an ounce, and
an hour of Mr. Jones legal services 1 ounce. The 'price of money' will
then be an array of alternative exchanges. 1 ounce of gold will be 'worth':
either of a TV set, 1/60 of an auto 100 loaves of bread or 1 hour of Jones'
legal service. And so on down the line. The price of money, then is the
'purchasing power' of the monetary unit - in this case, of the gold ounce.
It tells what that ounce can purchase in exchange, just as the money-price
of a TV set tells how much money a TV set can bring in exchange."
One of my latest subscribers,
Mr Milton M, Shapiro, 451 Converse Ave, Claremont, Calif 91711, wrote me
a short note staling:"Yes you may list me among your 'monetary reformers'
- I would classify mvself as essentially a '100% gold standard' man along
the lines outlined by Prof M Rothbard in l,8, Yeager,ed,: In Search of
a Monetary Constitution, involving no fixed value in gold. By the way,
I teach Economics, including Money and Banking, at the local Cal-Poly College
of California State. This note was apparently written in a hurry and I
would like to have explained the half-sentence: "involving no fixed values
in gold". Would he oppose for instance the readiness of a note issuer
to accept his own notes in accordance with their text as the equivalent
to one ounce of gold each, as if he were actually paid with one ounce of
gold instead? Or would he only oppose e.g, official gold values for
national currencies in international transactions? This minor disagreement
or misunderstanding, like the one with Mr. Meulen discussed above, shows
again how insufficient our language still is for communication purposes.
------------------------------------------------------------------------------------------------
This seems to be as good
a place as any other one to mention some more monetary freedom advocates
of whom I heard in the meantime ( Compare notes pp 266 291/2, )Mr; i Mrs,
Brian d. Monahan, Route Two Box 121 Mundelein, Illinois 60b60, U,S,A, Mr,
Monahan stated that Dr, F.A. Harper, President of the Institute for Humane
Studies, Box 127 Menlo Park 94025, Calif" U,S.A,, would likerlise favour
monetary freedom, Mr. Cliff Ellis, 6/ 119 Riversdale Rd,, Hawthorn 3122
Victoria, Australia. Robert E Sagehorn, editor and publisher of WESTERN
WORLD REVIEW (the summer 1967 issue is largely
dedicated to monetary freedom), P.0. Box 2711'
Culver City, California, (This person is
still befriended with Zube, though out of all the people he corresponded
with to the point of filling his whole house with files full of them, suprisingly
few seem to remain in touch; and as a matter of fact Sagehorn seems to
be a permanent recluse and virtually unapproachable) Charles
A, Wiles, 1009 Balfour! Midland, Michigan, U,S,A" editor of "HAIL".
------------------------------------------------------------------------------------------------
14) A Gold
Subsidy to American Miners?
I was recently somewhat
disappointed when I found Mr, Walter E, Spahr editor of Monetary Notes
8, published by the Economistst National Committee
on Monetary Policy", 79 Madison Ave, New York, N,Y, 10016,
"recommending a gold mine subsidy instead of another devaluation of our
standard dollar". Should the fiction of the gold cover of the U,S, Dollar
be preserved, the lie that 35 $ are still worth 1 ounce of gold in spite
of the government not being prepared to sell you or me a single ounce of
gold at this price? Watch this, not often
does one catch John coining rhymes:
Or should the present gold-painted
paper dollar ratifier be left to its fate,
to its proper evaluation
on a free gold market in terms of gold- weight?
How much gold could U,S,
$ 35 buy in a free market for gold and various means of payment?
The fear of the concept of 'devaluation' seems in this case unfounded as
here devaluation might mean nothing but a reduction of the official purchase
price- which over 290
values the inflated paper dollar to its free market price rockoned in gold
weight, and leaving it there. As has been printed out in plan 175 only
devaluations below the savings market rate are objectionable.
On the other hand, according
to the principles of monetary freedom one could rightly demand that at
least the issuer who has inflated the dollar, the tees Government, becompelled
to accept its own promises at their face value no matter how- low their
market rate may be. While the legal tender provisions and the money monopoly
ought to be repealed - last not least to prevent any money shortage which
might otherwise result, the U.S. Government like any bankrupt debtor, ought
to be held responsible with its whole property, must as far as possible
fully redeem all its paper Promises at their face value, or, when this
face value exceeds the total property, then it must redeem all claims according
to a pro-rata system At X 35 per ounce or at the pro rata price the remaining
gold stock and all government property would then be rapidly transferred
again into private hands. The paper dollars which have thus streamed back
ought
to be destroyed. To use
them again would be another fraud. Taxes ought to be fixed in their present
equivalent in gold weight, in a short term, limited reform of the old paper
dollars ought to be accepted in their payment as if each 35 of them were
really worth -as the government asserted so far- 1 ounce of gold. (This,
surely, would be one of the most radical tax reductions ever.)
Legal tender would remain - against the government and against nobody else,
The large reduction of government income due to this reform would force
it to reduce or cut out expenditures How to equalize the value of new private
or public paper money issues to that of Gold according to free market principles
- is the subject of Beckerath's and Dr. Zander's articles.
IV WOULD MONETARY FREEDOM
LEAD TO A RISE OR A FALL IN PRICES?
One basic argument of those
objecting against full monetary freedom is - a misinterpretation of the
quantity theory which finds e.g expression in the above discussed expectation
or automatic price adaptions to the quantity of gold available for monetary
purposes.
Mr. M. N. Rothbard (ibid,
p 13) puts this opinion very clearly when
he says that a new money
only raises prices - i.e., dilutes its own purchasing power."
U. v. Beckerath' on the
contrary, expects in balance and in the long run a
general reduction of
prices through new issues. He states that only emergency sales and
forced auction prices will be abolished and replaced by free market prices
- in most in stances He expects prices to fall for some of the following
reasons (the listing is probably not yet complete):
a) The issue of goods warrants
reduces sales costs - as they invariably return to the issuer in payment
for his goods or services.
b) As all desired exchanges.
Will then become possible (none will fail to take place merely for lack
of exchange media) turnover will increase and permit savings and rationalizations
which would reduce prices. (Coup p 83)
c) International payments
would become easy, Trade would automatically and obviously be balanced
in a free and multilateral exchange using purchasing certificates The resulting
increased turnover and division of Labour would again make for reduced
prices in the average. (Wider markets would lead to the increase of some
prices)
d) Stable value reckoning
will attract additional investments and would thus lead to increased production
and lower prices.
e) Short-term credit could
then be offered almost interest-free, at the cost of administration Savings
would no longer be required for it. This would lastly lead to the repeal
of interest ceilings - which indirectly hold production down and prices
up (though a lowering of prices may have been intended by the legislators)
f) Monetary freedom would
lead to full employment (to the extent desired) and fully productive employment.
This would be a strong factor in reducing prices.
g) Maximizing exchange by
making all desired exchanges possible and easy would indirectly lead to
a rapid increase of savings which, invested, would bring about lower prices.
(This is, by the way, the rapid private enterprise and self-help way.
For developing an underdeveloped
country. first, ordinary exchanges must be made easy and profitable. This
will lead to increased production and savings. Thesavings, freely invested,
and without drawbacks through depressions, will again lead tostill higher
turnovers, these to ... etc.)
h) On p 21 Yen Beckerath
points out how the order-system (which is closely related and partly identical
with monetary freedom) would reduce sales costs. J. Zube,ed.
The floating voluntary society,
freedom through international mobility, libertarian ventureson the high
seas, and new developments in boats and floating structures are among thetopics
in O C E A N F R E E D O M. Six issues: 1 US. I N N O V A T
O R discusseschallenging concepts for the adventurer in reason Articles
have included: Sell theRoads, Postmen Against the State, lndividualism
on the Left.
Banking in a Free Economy,
The Depression of 1929 One-year subscription: ~ 2 U.S.
.................................................................................
Post paid, Order from Preform,
Box 2116, Ocean Park 90405 USA, or send equivalent inAustralian funds cjo
Peace Plans.
The federal government (or
more precisely, those who control it) is indeed operatingwhat is not unlike
a vast legalized counterfeiting ring. In one important respect, however,government
inflation is far more vicious than run_of-the-mill counterfeiting: the
State islegally empowered to compel the victim to accept the counterfeit
notes as legal tender,Moreover, the victim is legally forbidden from attempting
to protect himself by owning gold.As is always the case, the State imposes
itself by legalized physical compulsion.
What monetary reform should be urged, then that is consistent with the
principles of afree society? The l e a s t (stressed
by the editor of P.P,) that should be sought
isareturn to the gold standard with removal of all restrictions on private
use and ownership ofgold. Ideally reform should go sti it further: the
State should be divested of its coercive monopoly over the issuance of
currency, If, for example, the American Express Company chose to issue
its traveler checks as currency and chose to back that currency with goldheld
in its own vaults, it should not be hindered by law from doing so, nor
shouldindividuals be prevented from using such currency if they so desired.
Would such a freemarket in money lead to hopeless confusion among hundreds
of competing currencies. Not at all; the international standard would be
gold, and an ounce of gold is an ounce of gold whether in New York or California
or China or Timbuktu. "Nor would a free market in money lead to general
economic chaos. On the contrary, the free market leads to stability - it
is intervention by the State that has led and is leading today to economic
disaster" - Quoted from p. 226 of Richard W. Grant's "the Incredible Bread
Machine" - a Study of Capitalism, Freedom and the State, 286up 4
DO, publ. by R A.Bray, available from Sandra Jeffries, P.O Box, 14031,
E. Portland Sta Ore 9t214 U.S.A Mr. Grant does not discuss a gold for account
standard of private notes without a goldcover. Nevertheless, his book is
a very valuable contribution in almost all other respects.
_ _ _ ___ _____ _ _ _ ___________
_ __
'The kind of Government
I would like to see would not deny any businessman or party.the right to
sell and buy "paper" (IOU's chits, bills debentures, etc.' etc.) in any
orderly ways oftheir own choosing. provided that tracing in such paper.
is not "disorderly" ways of conducting it is a matter for businesspeople
as business eople, rather than for economists aseconomists or politicians
as politicians. C,C.A Ellis, address above, in a letter, 11/8/67. He is
author of Business, Governmentand All of Us" The Social Sciences Movement
(Australia) 59 Metung St, Baleyn E. 8, Victoria, Australia, 1966. Review
in one of the future issues. '
_______ ___ __ _ _ __ _______
_____________ _ __
292 How
old is the suppression of free enterprise in the supply of exchange media?
Herbert
Franke in "Geld und Wirtschaft in China unter der Mongolenherrschaft"
(Money and Economy in China under the Rule
of the Mongols), Harrassowitz, Leipzig,
1949, quotes on p. 105 an instruction or regulation of the central government,
issued in September, 1314 AD.: Recently the owners of brothels, wine-houses,
cafes and baths have repeatedly produced token money out of bamboo or wood
tablets or paper and have brought them into circulation with a discount
against paper money. This infriniqes the currency law. These certificates
were only accepted in the issuing store for wine and could not generally
circulate in the streets and markets. It has therefore been decided that
all these superfluous bamboo and wood tablets or tickets are prohibited"
Franke continues: "The regulation of 1294 runs similarly. Because of the
shortage of ow Daper money denominations in Kiang-nan the population had
issued purchasing certificates for tea, flour, bamboo and wine and circulated
them. Even then officers and private citizens were prohibited to accept
such certificates or to pass them on. Judge for yourself. If these certificates
would have been superfluous,would they have been issued and accepted? I
believe that the currency shortage must have been great enough to induce
people to accept all localized certificates at less than par. Probably
the state-money was in danger of being competed out of existence locally
and so force was resorted to under the same kind of pretenses and excuses
which e g. the BBC used to get legislation passed against British "pirate'
radio stations run by free enterprises. Compare the Legislation on p. 55/6
and the jurisdiction on p. 755/6,._ _ _ _ _ _ _ _ _ _ _ _
I N D E X TO
PEACE PLAN 9_
( The index for No.s 1-8
end 12 will be included in 12.
Numbers refer to pages,
not plan numbers.
N+l stands for see, C for
''compare", "-" either for "and" or as a hyphen
Completeness was the aim
but sas, naturally, not achieved.
J.M. Zube
A
ARON 140 - 9/1793 92
ABDICATION 171 - Edict of
1C07: 55 h
ABSTRACT STANDARDS OF VALUE
- Admin. Instruction of 5Sff 26 12.1808: 129
ABUSES, economie 129, Many
_ 18i5 . 121other references, e.g. under_ 7.i.1815: 51 121,143 centra L
banking defLation, _ 1 10 1818 93 inflation, meddling, money- _ Order of
1/i.10.1827 .143 monopoly, planning, price- - 1829 N.Y ): 210 controL.
- 1844 PeeL's Act) 95,131
ACCEPTANCE FOUNDATION of
- 15 8. 848: 54 goods iarrants end other - 15 9. 81i8 (Normativ Be- means
of payment 6,10 14ff stimmungen ) 5418ff 23,26/7 32,35,3 79, 395_ 18 9
(Gen Eilis of Exch. 48 50/1 ,57 71 73,75 81 ff - ' -85t6 93ff 97 i20 122
12617,13l,i3k,136,l38/9,152,164,169176,178 187,192 194ff19aff 200,219ff
226ff,23421i3 251'+ clearing+ creditors+ debt foundation+ discount+ goods
warrants+ orders+ readiness to accept+ ref lux+ shop foundation+ tax foundation
ACCESS TO THE MEANS OF PRO-DUCTION+
communism+ Hertzka+ nationalization+ purchase of factories
ACCIDENT FREQUENCY 2512C51
ACCIDENT INSURANCE 208,213,+
fire insurance + insurance
ACT or, CTS dated -1673
Coldert's Bi lL decree i 1691287653.1764 203 ,261 - ]1B4i3933 22952Act
): 187- 1 ,7.181i9: 93_ 9 7 1873 . 52- 30 i 1874: 5k,93_ 14 3 1875: 52,54,90,134_
6 10.1905 95- 1908 (Cheque Act)121,186- 1 6.1909 :54/5 90/1- 22.7 1922
. 117/8_ 15 10.1923: 23 54,91ff,137/8 166,188,221_ 1924 tDawes Acts) 23,5\,91_
16.7 1927: 117/8_ 1930 Russia) 236_ 10 3 930 (Iran) 239 741- Orde; of 6
10 31 :5576- 1934 (China) 209+ civi L law reform+ Code Napoleon+ constitution+
Corpus Juris+ Jefferson+ Legi slation+ medd Ling+ moneraty despotism- monetary
freedom 200+ immed1ate action programme for govis. + monopolies + restrictions/legal
+ right(s) + se lf he lp + Shii tic La' + Statism
ADDRESSES of monetary refor-mers
1,3,63/;,7t,113,268 289- free iarket sponsors 2b4/5
ADMINISTRATION, private
en-terprises 185+ cooperatives, employers, Lease cooperatives, "open"cooneratives
ADMINiSTRATION of State
120+ iinoring the State, muni-cipal paper money, papermoney, statism, tax
foun-dation voLuntary taxation
ADULATIOh 58ADVANCES IN
NOTES 16/7+ discounting, goods soLd,i mmediate ly , Loans,Long-term Loans,
orders,short term cover, time-factor
ADVANCE PAYMENTS OF ORDERSOR
TAXES 14\,146 167,195
ADVANTAGE OF OWNERS OF EX-CLUSIVE
CURRENCY 183+i'money lordsN,
ADVERTISING + sa tos costs
AFFLUENT SOCIETY? 147/8,170,172ff
+ distribution, over-producti on?AFRICA 13 53,59,257 + barser,s leve menia
litv
AGED PERSONS, SELF-HELP
170
AGGRESSION 1
AGHN1DES 21i1 253
AGRARIAH REV6LUTIONS 31,181'1
89ff 261/2
AGRIC0LTURE 32,219'
AIRLINE, international finan-ce
example 194ff
ALADDINiS LAMP (autom.mach.)exampLe
172ff
ALEXANDER II 53AEGLAVE,
P. 210
ALMS + charitv, sacritfices?+
lielfare State
ALPHONSO X of Casti le 238AMERIC
(US 5 23 27 29,31, 33/t 3879,17'52'65'7'4,85ff92,95,9§,1 6,177,269,229,232,94
34 239ff,244,292 civil nar
AMERICAN BARTER ASSOCIATiNS
9-1\,31 41 46ff + barser
AMERICAN FREE BANKING 15,23,
3 48,65-76 12A,141,145 7tff 23,, 254ff + Free Bank
ANARCHY (freedom concept)
hrounh bribes 23 120 NiMhtS 61,251,265
ANNUITIES + bonds
ANTICIPATION OF PAYMENTS
225 bi ls clearing, credit, debt foundation, future goods, futures, tax
foundation time factor
ANTICOMMUNISM 82 154 PT
M , Prof 121
ARABIAN NIGHTS ThLES 58
ARBITRATION COURTS 248,270
ARMED FORCES 58 161 2A2,261ff
ASIA 207ff 21A,218/9i229
236 38 240 244,249,251/2,25`ff, 5879,264 + China,Development ndia, Persia,Underdeveloped
euntries
ASIAN ECGNOblISTS 236,238
economics/modern
ASSASSINATION 18A c tyranniide
ASSETS STANDARDIZATION AND
DIVISION OF - FOR MONETARY PURPOSES 19 112 119ff 131 54,136,159,16§ff
199,219 ibanking principte, banknotes, bills, bonds, cleairing, cover,
denominations ,discounting, free banking, Igoods warrants, means of ipayment
money, rei Iwaymoney {ex foundationiS/GNA|ES 29,156,224ff,237,cover, deflation,
denominations, French Revolution Greenbacks, inflation, legal tender, paper
money, real estate/cover, Rentenbank
ASSOCIATiONS favouring mone,
try freedom 105
ATROLOGERS, ECONOMIC 58
{6/7 + economics/ vulga;, prej udices
ASTROLOGY 252 FATALISTIC
CONCEPTS 59,15kff i9 189 224 + Statism iQ0IC iA^R THREAT 109
AUCTION SALES, forced 52,83,
aard, goods #arrants 225,2?8ff,?53,284 - a loan? 48/9,131,142 + bank fai
lures, bankruptcy, clearing, crises debt le- gislation, deflation, de-
pression, distraints, foreclosures, labour, sa- les cri sis
AURELIUS MARKUS 23,62,175
AUSTRIA 20,25 29 93 97,135
AUSTRIAN NATIONAi BINK 147
AUSTR. SCHOOL OF ECON.276/7
AUTARCHY, national i econo-
mic 5 lr1 203 48,52,Jsl6ESs3 13i1257i6,29,47 + economists, experts, go-
vernments, leaders, prac- tica l men AIfTOMATION + A laddinis lamp + machines
B
BABYLON 62,208 BADEN 93
BALANCE OF TRACK i PAYMENTS
5 28,187,210 + foreign exchange control Free Trade
BALANCES OF WORK SUPPLY
BANKS 40/1
BAlANC!NG + clearing
BALTIMORE RAILROAD Co 86
BANK BONDS + banknotes +
bonds, deposits discounting, long {ermi credit
BANK ENQUETE of 1908 54
BANKERS 5,45,134,185,i87/8 + practica! men
BANK FAlLURES 67/8 90,99,
255 + convertibiliiy
BANKING, RIGHT OF - :136/7,
176ff + free bankinn
BANKING PRINCIPL£
1§,80/1 83,112,131,13A + Assets standardization, bills, d'scountino
BANKNOTES 2,25ff,29*,\8ff
68 71 73,80 84/5,89ff 94/5 97 8,128.131 1 1,150, 59 16ll2 235 246 ' + b,
lis lionds, cancellation, cheques, clearingi convertibi lity cover, depositum
irregulare - export 25 - forirard sales 22ff + futu"+ Free Banking, gold
stan-+ money, paperimoney . purcnasing certificate 25 + rei lway money,
reflux Scottish Banks, transfer money, trans,cort notes
BANK OF AUSTRIA 147
BANK OF ENGLAND 51 79,90,93
95 132 139,16k,22112
BANK OF FRANCE 84
BANK OF GERMANY i Reichsbank
BANK OF PERSIA 235 + central
banking forced currency, inf laii on, le" gal tender, monetary des. poti
sm money/monopoly
BANKRUPTCY 198,235,243 255
+ auction sales, bank fai_ lures, clearingi creditorst right, crises currency
famine, debt legi$lation, deflation, distraints, forec losures, sa. les
crises
BANKRUPT ESTATES + lease
cooperatives
BANKS OF ISSUE 10,19 24-A5
48ff,80/1,131 ,137,141,161 , + American free banking British Linen Co centra
l banking, cheque banks Chinese free bankt ng, c learing centres, corporations
- creditors' bank 44 + department stores, emp foyers' banks, English banks,
Free Banking, insurance Co s municipaL pape; money, payment communities,
Pennsylvanian banks Prussian banks, rait#ay money, Rhode Island banks,
Rentenbank Scottish banks, shops small associations, treasury, tax foundation,
tloergl, Vork Supply Banks_ barser 13,16,62 + Amer. barser associations
closure, compulsion 264 _ dependency of retailers - long term loens 167
BARBARISM- value standerd
end currency 58,60
BARTER 7 7, 3 k 8,55 59ff,30A34/5,6596|][3i21
,18t,214,- cLear1ng 9, 6,46/7+ cospensation agreements
BARTH, H. 257
BASIS + cover, foundation
BASKET CURRENCY 60/1+ index
currency
BASTIAT, F. 5 6,12 62 110,
115 117 124 134 154,266
BASTI LLE STORM 260
BECKERATH, HERMAN von, 168
BECKERATH, ULRICH von,+
Plans 190,194 195 esp.1 2,6,63,87,9t,101,108ff 173 203,212 232,247,259,
260'265 268lf
BEGGARS 2b8 212 261
BELGIUM 17i87i9b 100 156
BENDIXEN 18 49,50 132,131'
BERLIN 126 139 222
BERNHARD Dr, ERNST 179
BERNOULLi DANIEL 242U
BESPOKE SYSTEM. 21+ orders
BEST, Ober landesgerichtspraesident
6,101
BIBLIOGRAPHY, monet. freedom
101ff
BIG ESTATES 161Rli POn IFiT;
18?ff
BOLSHEVISH 7,20,\7,8i,188,
+ central bankinq, cosaunism distribution, [enin, Marx, nationalization,
planning, production Russia, socialism Statism
BOHBTHROVERS 15 + terrorism
BONIPARTISM 129 + Nap. I+III
BONDS 159 - lonq ters 40
68 B5 88,93, 13576,166,187 19liff - short term 26/7.1 31 176, 186/7 191',200,235,256
+ bi lis goods earrants
BOOK MONEY + cash, clearing,
+ transfer money
BOOKS 108 BORNU 257,260
BOURDET CLAUOE 142
BOURGOIS 150ff
BOIILEY 179
BRAHMINS 264
BRAIN 58,61 154/5 + ideas
+ slave mentality
BRAZILIAN COFFEE 159 19kff
BREACH OF CONTRACT FINE
36
BRIBERY TO BUY FREEOOM 27,
120, c lease cooperatives
BRETTON WOODS AGREEMENT
99
BRINK Justizrat 6
BRITISH LINEN CO, 33
BRUENING chancellor 19,55/6
BRUENING DIETRICH LEGISLATION
ON EMERGENCY MONEY 23/4, v u .ii"v.i.- . .. 55/6
BILATERAL TRADE 25,28,88/9,
BRUhN Dr. Erich 212,214,248
186
BRUTAL FORCE + force, terrorism52
61,70/1,80ff,84/5,9475
BiLLS OF EXCHANGE 18,28
35,
BUDDHISM 228 26411i/2 131ff,159,168/9,18677
BUILDING IND0STRY FINANCE
i194,232,236 UNEMPLOYMENT 6,4172,\4ff,122+ banknotes clearing + long term
credit- coinmerciat vs. fint 94/5
BUILDING INSURANCE 246 +
discounting + fire insurance - not redeemable in money
BUILDING & LOAN ASSOCIATIONS
23r27/8 70/1,169i187,19l', 33 38/9 46,49 167 193,210 236 + clearing
BUiLDlNGS AS COVER ? + reaL
- several- for the same estate/ cover ? aeods 192 BLILLION CERTlFlCATES
66
BIRETALLISM 66 220 21i1
BULLION REPORT 91,134
BIOGENETIC BASIC LAW 1k,109
BULLOCK 176/7 225
BISMARCK 52/3,82 12k,150/1
BUREAUCRACY 2t 58,118,120
BLANK SALES + fuiures
BUREN van 27 210
BlESSlNGs, religious 252
-
BURGStALLER 1i617
BLOCKADES 63
BUSINESS AREA 33,35
BLOOD CIRCULATtON _ money
BLOOD DEBT 63,106,158,266
ruiotcies, torec osures + mes exec revol.
BUSINESS FAILURES + auction
14/5 ti sales bank fai ures bank_
BUSSINESS MEN 47 8295
BUSINESS MEANS VS. GOYERNMENT
HElNS 6819, 73 + erivate enterpri se, selfhele Stati sm
BUSINE§S PROVISIONS,
privati banks of issue 35ff 191ff
BUSINESS SECRETS 3178+ DUDiiCity
BUYING i SELLING OF MONEY
8 + capitaL market, futures, money market BY2ANTINE EMPIRE 160/1 + Roman
Empire
CCAESAR 12,172/3CALL + futures
premi um
CALONNE 262CAMBON 262,264
CAMERON, V L 257
CAMMIN Pomeiania 214
CANAL DOES 81. + tax found.
CANCELLATION of used goodsearrants
30 36,39 42 Ik,77,79 132,136,145,16`,223,225,231
CANTON 27,210
CAPITAL+ Alladdin's lamp_
banks of issue 48/9,131ff+ bondsl long tere- capital qoods production 6,41ff,122ff,1Z5_
creation through note is sue? 48/9.131 112- discounting of bills 133_ insurance
210ff 266+ interest, i nvestments liquidity, loens, long term credit, cach,
nes- market 1i1,47/8 66,88,153 19\ff,197 233,274 i meen of payment, money
market- nroduction means of 31, i8kff 189ft,198/9+ profii, properity- raising,
ne' 0e hod 153, 19kff, see beLo' under «un0arketabLe stocks"+ reserves,
savings- scarcity during depressi. ons? 125,139/40,149,153- share, total
income 182f- shortage or shortage of means of payment? 125, 129/30+ Stock
exchange+ transferabiLityi,.i: `i