The Role Of Money

OU_160343>5THE ROLE OF MONEY WHAT IT SHOULD BE, CONTRASTED WITH WHAT IT HAS BECOME By FREDERICK SODDY M.A. LL.D. F.R.S. Nobel Laureate(Oxon) ; (Glasgow) ; ; " " " Author Science andin ; ;Chemistry, 1921 of Life Wealth, " " " Virtual Wealth and Debt ; versus Man etc., Money ; LONDON GEORGE ROUTLEDGE AND LTD.SONS, CARTER E.C.BROADWAY HOUSE: LANE,68-74 J934PRINTED IN GREAT BYBRITAIN STEPHEN AUSTIN AND HERTFORDSONS, LIMITED,CONTENTS CHAP. PAGE I. THE PHILOSOPHIC BACKGROUND ERGOSOPHY i The The ObsoleteObjective Monetary System The SocialCommunity Standpoint Importance of of WealthEnergetics Energy Theory Wealth and Calories MarxismErgosophy Obsolete Relation between and Govern-Peoples ofments Physical Interpretation History " "The Truth about Materialism The Physical " " of The Doctrine ofOrigin Progress Modern Wars and National DebtsStruggle TabooThe Real The on ScientificStruggle Economics Wars and Revolutions result from Wealth The theMonetary System impedes Flow. II. THE THEORY OF MONEY VIRTUAL *WEALTH . . . . V 24~ **+ *- . . ""What is ? Barter and Barter-CurrenciesMoney v Bank-Credit The Private IssuePaper of What ValueMoney Monetary Policy gives to ? Two Fundamental Monetary Virtual Wealth ThePrinciples Community's '* " Credit a Tax BackedCredit money a Claim towhat does not ExistMoney Money The Price-Level from the Issuer'sMoney a TokennotnowStandpoint Money Tangible tofrom Barter CreditChangeover Money The False was it False ? TheStep Why ,,of Issue of In-Profit^ Money Money*tfye,. destructible without! Expropriation. III. THE EVOLUTION OF MODERN MONEY . 56 The of the GovernmentOrigin RegulationCheque of books GenuineBanking-VLending Cheque and Fictitious Loans Current AccountVI CONTENTS CHAP. PAGB^ is toDeposits Why Cheque Money preferred The Gold-StandardTokens The Correct The Credit orProcedure Trade CycleHow theLosses are Distributed FraudulentMonetary The Gold Drain The Govern-Terminology ments Connivance The Cunliffe Committee Deflation The Abortive Return to Gold True- blue Treason The Act What is Genuine1928 ?Money To-day IV. MONEY AS IT Now Is . .86 Illusions A Distinction without aMonetary Difference The Vested Interest in Creating Market Cash IMoney Open Operations Banks now Create for Themselves toMoney Banker as TheSpeHa^The Tax-gatherer Sprat to catch a Mackerel Banks nogive Security Whatever The Time-element of TheMoney Circulation of The Value of orMoney Money Price-level Some Factors A GrainMonetary in the Use ofCurrency Economizing Money now Fallacious Tokens or BookMoney Credit ? Should now beMoney-lending Permitted ? of Short-termPhysical Absurdity Current Accounts and Time-Lending How the Banker avoids His Owndeposits Trap. V. INTERNATIONAL ECONOMIC RELA- TIONS 116 Embroils the NationsBad InternationalMoney at Call and Short NoticeBanking Money How the International Banker rules the World is National not International DebtMoney of their Own NationImporters pay Exporters The Balance of of Loans and Trader-Effect The Gold-Repayments Foreign Exchanges Standard all Nations down to Level ofdrags Lowest Effect of freeing Foreign Exchanges Correct Use of Gold. OF AVI. PHYSICAL REQUIREMENTS . . .MONEY SYSTEM .135/ in the New Economics There is now noMoney of Wealth Motive The ExistingShortageVllCONTENTS CHAP. PAGE Wealth for Production and forConsumption Leisure Consumable and WealthCapital Debts not Con-Capital Repayable Energy siderations Productive not Distribut-Capital able under Communism and In-Capital dividualism All Costs of Production are Distributed to Consumers for Con- sumers Production for Producers The Accumulation of Debts Solution of the Un- Problem Cost of Pro-employment Increasing duction not The ofRepayable Quantity Money cannot be Calculated The Price Index- determines the of TheQuantity Money Wasteful Costs of Distribution The Role of summarized.Money VII. DEBTS AND DEBT REDEMPTION . 161 An of Power rather than of MachinesAge Money National Debt DebtsUnrepayable Capital " " Conventional Saving of Constant Price index How theNecessity Workers Would Benefit ofRegulation Money Price index A Price index Theby -simple Statistical Bureau A Reconstituted Mint Criticism of to NationalizeProposals Banking Prevention Better than Cure Interest on Debts If Increment thenlooking Forward, Decrement Backward Paterson's Interestlooking Law the Gesell's Ideas ofDiscounting Principal ItselfMaking Money Depreciate Objections The of InterestPossibility Arbitrarily Lowering Rates The Probable Effect in Increasing Capital Indebtedness DebtStraightforward Redemp- tion Taxation.by VIII. THE PRACTICAL .SITUATION .189 Is the New or the Old Economics ?Upside-down Abundance Second TheFirst, Apportionment Attitude of the Public towards Costs Govern- ment Interference in Economics not Helpful A Evolution ofProgressive Industry Monetary Reform First The on theExisting System Horns ofaDilemma TheEconomic ofNecessity Frontiers Free mean Free TradeExchanges Feasible.hardlyCompromiseVlll CONTENTS CHAP. PAGE IX. HONESTY is THE BEST MONETARY 204 POLICY ..... The of a New Truth ReformSigns Monetary atHome The U.S.A. Plan ofBegins Synopsis the ofReform Free thePrinciples Exchanges The Real Universal ReculerDictatorship Createmieux sauter Which is topour Lawful, Theor Wealth? The BritishMoney Way Real Envoi.Antagonist BIBLIOGRAPHY . . . .221