Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Book Nook -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (68)	3/27/2001 1:33:10 AM
From: JF Quinnelly	Respond to of 443

I suspect that the origins of credit-as-money may be with bills of exchange issued between the large trade houses in medieval Europe. These houses went on for generations. Their paper would have been more convenient than gold, and probably regarded as just as sound. Instead of quickly redeeming this debt paper, I think merchants began circulating them amongst themselves to pay bills. When the bill of exchange was returned to the issuing house it could be tendered for gold, or for some other good that the house traded. Some of these houses, the Fuggers and so forth, evolved into early and powerful banking houses. Get a copy of Capital and Finance in the Age of the Renaissance by Ehrenburg for some background. He doesn't quite make the argument I did, but it's something I've been kicking around since reading him and some other histories of the origins of banking and money.

To: Ilaine who wrote (68)	3/27/2001 2:03:15 AM
From: Don Lloyd	Respond to of 443

CB - ...Your promise to pay is probably worth less than Bill Gate's promise to pay but probably worth more than the promise of some alcoholic living in a trailer park.... Nothing was said about my issuing gold certificates. In fact, I specifically included governments as possible issuers. The gold certificate is in essence the same thing as a 100% gold backed dollar at a given ratio. The dollar used to be convertible at the rate of $35 to 1 ounce of gold. The exact equivalent gold certificate would simply contain the value 1/35th oz. gold on its face. You are correct about trust being involved, whoever the issuer. I also suspect that calling something money should require that no discount be required. Regards, Don