International Implementation Certified

April 9, 2015 in News

International Implementation Certified U.S. Gold In the nineteenth century, many countries had a bimetallic standard. Britain had a pattern since the beginning of the century while the Austro-Hungarian Empire, Russian Empire, Scandinavia and the Far East had silver standard. During the third quarter of the nineteenth century, the bimetallic system came under increasing pressure. Portugal which had strong trade relations with Britain adopted the gold standard in 1854. Furthermore, the European continent had trouble managing the bimetallic standard. The growth of international transactions and reducing transport costs led to the increased circulation of foreign currencies in many countries. Most of them were already financial currencies. Italy began to issue coins of small denomination bills of 0.835. As French coins were more valuable -0.9 law, individuals exchanged Italian coins and kept the French.France reduced the law of their currencies to 0.835. Then Switzerland reduced the law of their currencies to 0.8. Recognizing their interdependence met these countries and Belgium in 1865, agreeing to issue coins of law 0.835. The outbreak of the Franco-Prussian War forced France, Russia, Italy and the Austro-Hungarian Empire to suspend convertibility. At the end of the Franco-Prussian War, Germany became the gold standard, abolishing the unlimited coinage of silver. With the allowance of 5000 million francs that France should pay, Germany minted gold and silver sold for gold in world markets. The liquidation of silver by Germany, together with the discovery of new silver mines in Nevada and elsewhere during the 1850s caused the price reduction of forcing other countries to accept imports of silver inflation or to abandon bimetallism favor the gold standard. By adopting Britain and Germany the gold standard, the network externalities led the other countries to follow its path.Denmark, Netherlands, Norway, Sweden and the countries of the Latin Monetary Union joined the gold standard. In the late nineteenth century Spain was the only European country that continued to inconvertible paper. The existence of pure gold standard does not cause inflation, just relax in the convertible and the permissibility of banks to operate with fractional cash reserve, is produced by increasing the money supply in relation to the assets available-quantity theory of money . In the U.S., where agriculture and silver mine owners lobbied, held a conference in 1878 to return to bimetallism. Given the opposition of Great Britain and Germany did not attend, this attempt was unsuccessful. In the early twentieth century, the entire international system based on gold. However, only Britain, Germany, France and USA. UU. maintained a pure gold standard.Gold coins circulated paper – notes and coins that could be exchanged for gold held by the central banks in their vaults or in their national treasures. Yet in France there was a gold standard ‘lame’, since silver was minted but not free, it remained legal tender. In addition, residents and foreigners could convert the notes of the Bank of France in gold or silver at the discretion of the authorities. In the Netherlands, Belgium and Switzerland convertibility was decided by the authorities. Moreover, there were other mechanisms to foster the inflow of gold and hinder their departure. Central Bank interest-free loans granted to importers of gold. They could reduce the incentive to buy gold only banknotes changing the central office. They could raise the price of bullion trading or exchanging notes for gold coins only wear. In the U.S., the pattern was limited until 1900, because the laws were forcing the central bank to buy silver.Since 1900 he passed the Gold Standard Act, which established the dollar contained 25.8 grains of goldand 0.9 of law and there was no provision or purchase of silver coinage. In other countries, the money was in silver, gold and currencies fiduciary role but the Central Bank agreed to convert their money into gold at a price in sight. Central banks except the Swedish Riksbank, the Bank of Finland and the Russian State Bank were by then private entities, in exchange for the right to issue banknotes, serving the government. The English Bank Charter Act, which were guided most of the laws established the existence of two separate departments and issuing banks. The composition of international reserves varied from country to country. The pound was the main currency of exchange and end the period represented 40 of total foreign exchange reserves.

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