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Currency which they will receive. Occurrence on currency should be result
To stock exchange of the superfluous offer of excessively emitted currency that quickly
Will lead to falling of its exchange rate. And on this new exchange
To course of the price for the goods which are usually quoted in other currencies, will be translated
In bank-infringer currency; and the prices usually expressed in it, will be immediately
Are thrown upwards. Falling of the market quotation and rise in prices for the goods in
To the given currency will soon force its usual holders to pass to other currency.
The subsequent reduction of demand for it, possibly, will quickly block the temporary
Prize from cheap loans. If the bank of issue follows, nevertheless,
To the politician of cheap loans, flight from its currency becomes the general and continuation
Cheap loans will mean that the increasing and great volumes of this currency
Will be thrown out on a stock exchange. We can conclude with confidence that bank not
Can lower real value of other currencies by means of excessive issue
The currency. It, is unconditional, correct for a case, when emitters of other currencies
Are ready, how much it is necessary, to counteract such attempt, temporarily
Having limited the issue.
Whether parasitizing currencies can to prevent the control over value of currency?
More difficult question, the answer on which, perhaps, is not so clear, consists in that,
In what measure inevitable occurrence of "parasitizing currencies", - that is creation
Superstructures in the form of a pyramid from the current credits given by banks,
Serving bills poste restante, leaders check bills, or even
Issue of the banknotes expressed in currency of the initial emitter, - can
To upset the control of the emitter over value of its own currency? Difficultly
To imagine, that the law could or should forbid such parasitic
Issues if they are accurately fixed as debts which should
To be extinguished in currency of the emitter.
Clearly, what not all banks will wish, and not all can let out the own
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