Bullionism

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Bullionism (from English bullion , 'coin bar', 'uncoined precious metal') is a monetary policy practiced in the age of mercantilism , which provided for currency management, which aimed to keep gold and silver stocks in one's own country in particular.

Under the historical conditions of underdeveloped commodity production, the “monetary system”, of which the “mercantile system” is only one variant, saw in money the exclusive form of socially recognized wealth, specifically as “world money”, especially in the metallic form as gold and silver. In the controversy around 1809 about the English central bank policy, David Ricardo's partisans were called "bullionists" . Ricardo has declared paper money to be the perfect form of money. However, his theoretical argument ends with the fact that the inflow and outflow of precious metals have an absolute influence on the capitalist economy.

mercantilism

This type of mercantilist monetary policy was primarily interested in practical goals and measures to maintain and promote state power and prosperity, since the prevailing conditions of political fragmentation at the time were more or less equivalent to those of a war economy . Long-distance trade was hindered everywhere by tariff fragmentation and staple politics , i. H. the targeted control of through trade via certain stacking locations or stacking ports.

Based on the consideration that an " active trade balance " represents an increase in the power potential of a nation, this was raised to an economic policy goal. A ban on the export of money and precious metal abroad, together with strict foreign exchange control, should make it more difficult for funds to flow abroad.

Thomas Milles (1550-1627), a customs officer from Sandwich, has defended the stacking policy in his work The Custumers Apology: that is to say, A generall Answere to Informers of all Sortes (London 1601), as it defended the monopoly of the merchant Adventurers in London promote the port cities and thus free trade and low prices.

Gerard de Malynes (1586–1641) was, according to Joseph Schumpeter's judgment, one of the few mercantilists who developed a theoretical argument. No 17th century author had surpassed him for a clear and complete understanding of the mechanism of foreign exchange; however, he was more impressed by the shortcomings of this mechanism at the time than by the mechanism itself. He published a pamphlet entitled: A Treatise of the Canker of England's Common Wealth , to which Edward Misselden with his work The Circle of Commerce: Or , countered the Ballance of Trade . This led the outflow of money and precious metals from England not to the disadvantage of the English in the formation of exchange rates, but to the unfavorable structure of the English trade balance.

Another mercantilist instrument was customs policy. The import of raw materials was made easier by cheap tariffs , the export of finished goods and food was made more difficult by high tariffs. The latter should increase the domestic supply of finished products and food and thus lower prices in the expectation that as food costs fall, wages could also fall and ultimately production costs could be reduced. The import of inexpensive raw materials should also encourage domestic production.

In England, the fragmentation of tariffs from 1600 onwards was increasingly replaced at the national level by the royal central power inwardly and by an imperialist colonial policy outwardly. In the navigation file of 1651 it was stipulated that the transport of all export and import goods was to be carried out exclusively by English ships, which should facilitate control and activate the balance of services. The fact that this economic policy also reduced the competition of products and production methods with foreign countries and thus general prosperity was made by the free traders as their main counter-argument.

By Adam Smith and other later representatives of economic liberalism these economists and their have theorems experienced a decline, because their protection policy and monetary policy have been rejected. The "mercantile system" was assumed by A. Smith in particular, the monetary theoretical error that they defined the economic wealth of a nation by the amount of hoarded precious metal.

The bullionists

In another historical sense and meaning, according to Karl Marx, strangely, those who, following David Ricardo's The high price of Bullion, a proof of the depreciation of Banknotes (1809), declared money to be a mere token of value were called "bullionists" (gold bullion men) designated.

Ricardo's corresponding theory later became the “fundamental principle” of Sir Robert Peel's banking files in 1844/1845.

See also

Individual evidence

  1. ^ Bullionism . Britannica.
  2. ↑ Karl Marx: On the Critique of Political Economy. (Franz Duncker, 1859). Marx / Engels Werke, vol. 13, p. 133.
  3. ↑ Karl Marx: On the Critique of Political Economy . Marx / Engels Werke, vol. 13, p. 158.
  4. ↑ Joseph A. Schumpeter, (Elizabeth B. Schumpeter, ed.): History of economic analysis . First part of the volume. Vandenhoeck Ruprecht Göttingen 1965. S. 430ff.
  5. ↑ Eli F. Heckscher: The mercantilism. Authorized translation from Swedish by Gerhard Mackenroth. First volume. Publishing house by Gustav Fischer in Jena 1932. The splintering of customs duties and their fight. Pp. 27-90.
  6. ↑ Eli F. Heckscher: The mercantilism . Authorized translation from Swedish by Gerhard Mackenroth. First volume. Publishing house by Gustav Fischer in Jena 1932. pp. 41–66.
  7. ↑ Joseph A. Schumpeter, (Elizabeth B. Schumpeter, ed.): History of economic analysis . First part of the volume. Vandenhoeck Ruprecht Göttingen 1965. p. 436.
  8. ↑ Milles, Thomas (d.1627?) (DNB00)
  9. ↑ Joseph A. Schumpeter, (Elizabeth B. Schumpeter, ed.): History of economic analysis . First part of the volume. Vandenhoeck Ruprecht Göttingen 1965. S. 434f.
  10. ^ William Cunningham: Adam Smith and the Mercantilists . In: Journal for the Entire Political Science, 1884 / William Cunningham: The Growth of English Industry and Commerce . 4th ed. London 1905.
  11. ↑ The Wealth of Nations , Book Four.
  12. ↑ Joseph A. Schumpeter, (Elizabeth B. Schumpeter, ed.): History of economic analysis . First part of the volume. Vandenhoeck Ruprecht Göttingen 1965. pp. 448f., 453. / Robert E. Eagly: The Structure of Classical Economic Theory . Oxford University Press, New York London Toronto 1974. p. 72.
  13. ↑ Karl Marx: On the Critique of Political Economy . MEW 13, pp. 144f.
  14. ^ Karl Marx: The capital . Volume III. MEW 25, p. 562f.