If regulated by the price of Bullion, as inconvertible Currency might be safe, but not Expedient.
Another of the fallacies from which the advocates of an inconvertible currency derive support is the notion that an increase of the currency quickens industry.
In a country with an inconvertiblepaper currency, how can it be determined whether the issues are excessive or not, and why?
What determines the value of an inconvertiblepaper money?
But this was a very rare management of inconvertible paper, since the issues were actually limited as the price of gold in paper rose above par.
Examination of the doctrine that an inconvertible Current is safe, if representing actual Property.
It is not so, however, with aninconvertible currency.
It is when the metals have been completely superseded and driven from circulation that the difference between convertible and inconvertible paper begins to be operative.
Trace the effects of large and continuous issues of inconvertible paper currency on the prices of commodities, on importation and exportation, and on the foreign exchanges.
Three systems are therefore in use,--the gold standard, the silver standard, and the inconvertible paper.
Where, for any reason, the promise is not kept, and the amount of coin specified will not be given on demand, the paper is called inconvertible or irredeemable.
During this period, Mexico had a silver standard, while the United States had inconvertible paper for nearly six years of it, and a gold standard for the remaining period.
The consistent advocates of inconvertible paper money in England, therefore, sought refuge in the ideal measure of money.
Inconvertible paper money, has, from this point of view, only that advantage as against convertible paper money, that it may depreciate in a twofold manner.
And in consequence, after nearly ten years of painful experience, they do not now understand how much they have suffered from their inconvertible currency.
Being a new country, she ought in her times of financial want to borrow of old countries; but the old countries were frightened by the probable issue of unlimited inconvertible paper, and they would not lend a shilling.
Berlin when exchange is against that city, and Germany has, when put to the test, an inconvertible and sometimes a debased currency.
The first of these mistakes was a measure making (January 1885) the currency inconvertible for a period of two years.
On the 31st of August of the same year a series of proposals upon the currency question was submitted to congress by the president, whose real object was to counteract the too rapid appreciation of the inconvertible paper money.
Instead of facing the difficulties, the president preferred to put off the day of reckoning by flooding the country with inconvertible notes, with the result that the financial crisis became more and more aggravated.
Typical bank-notes, unlike inconvertible paper money, depend for their value on the credit of the bank, not on their legal-tender quality and on political power.
Finally, additional supplies of gold, secured through imports, were useless for ordinary banking purposes because the business of the country was then carried on by means of an inconvertible and depreciated paper currency.
In short, the value ofinconvertible paper can be but little affected by legal-tender powers.
In February, 1878, when the first purchases were made, those dollars were the inconvertible United States notes, or greenbacks, worth something less than their face in gold.
II In Germany, likewise, every effort has been made to accumulate gold, even though the notes of the Reichsbank were made inconvertible at the beginning of the war.
They say that they are not for inflation, not for inconvertible paper money, and that they never have been.
All of the mischief which commonly follows inflated and inconvertible paper money may be expected from this plan, and in addition it has very dangerous tendencies, which are peculiarly its own.
To all these causes of poverty there was added the hopeless confusion due to an inconvertible paper currency.
It was finally decided, by the vote of nine states against New Jersey and Maryland, that the power to issue inconvertible paper should not be granted to the federal government.
These two propositions seem almost too obvious to require the statement, but they contradict the quantity theory, and they are not, on the surface, reconcilable with certain facts in the history of inconvertible paper money.
This is especially likely to be true of an inconvertible money.
The new notes were therefore for the time being an inconvertible paper currency, and, since they were made legal tender, were really a form of fiat money.
President Montt then took in hand the question of a reform of the currency, the abolition of inconvertible paper money, and the re-establishment of a gold basis as the monetary standard of the republic.
Senor Errazuriz weakly gave way, and a decree was promulgated placing the currency once more on an inconvertible paper money basis until 1902.
The president was advised that the only way of averting the financial ruin of the banking institutions of the republic was to suspend the conversion law and lend from the national treasury inconvertible notes to the banks.
But the suspension of the banks was followed by suspension of the Treasury, and its notes are now inconvertible paper, which it is proposed to sustain artificially by declaring them a tender.
Do you think that that currency would run the risk of ever being depreciated in value,--that is to say, that inconvertiblefive pound notes would not exchange for five sovereigns?
London banker for upwards of fifty years, also testified in favor of an inconvertible note under sanction of Government, and a legal tender.
From its inconvertible character, such a currency, he said, would not be reached by panic, and would therefore contribute to the security of the Bank.
What do you conceive to be the advantage of an inconvertible note of that kind over a convertible note payable to bearer on demand?
But convertible paper is not value itself; it is only the representative of value; while it is doubtful if inconvertible paper can be called the representative of anything in particular.
You are not in favor of what is calledinconvertible paper, in the sense of worthless paper, are you?
But where shall this vast amount be obtained, and at what cost, when it is seen that we have already undertaken to authorize inconvertible paper as a tender?
But among these witnesses are some who were little disturbed by an inconvertible currency, although the weight of testimony was the other way.
But the testimony of Lord Overstone, strong as it was, against an inconvertible currency, still admitted a possible occasion for departure from it; and here his testimony bears directly on the pending proposition.
Power of all kinds is liable to abuse, and experience shows that the power to issue inconvertiblepaper is no exception to this prevailing law.
But inconvertible paper, even when made a tender, has no actual value, and circulates only because Government commands its circulation.
These seventy-five millions are the security of the people against the dangers of a depreciated and inconvertible paper money.
And there was no limit to this conversion of public land into inconvertible paper.
The indirect are also traced to existing taxation, and their witnesses are crippled trade, unsettled values, oppressive prices, and an inconvertible currency, which of itself is a constant sacrifice.
And yet, with these tokens of national resources manifest to the world, our bonds are below par, and our currency is inconvertible paper.
And if inconvertiblepaper money will act on prices, why will not convertible paper money, that is, paper money convertible into coin on demand, also act on prices?
But the directors of the Bank withstood the temptation; they did not issue their inconvertible notes extravagantly.
At first sight it seems difficult to understand how any government, however bad, can deliberately issue flood upon flood of inconvertible paper money, seeing that its printing operations are ruinous to both public and private credit.
Not worth a Continental" is an expression which brings us to the next chapter in American experience of inconvertible paper currencies.
In Austria and in most of the new states of Europe, the inconvertible paper legal tender currency has lost almost the whole of its value, in comparison with the pre-war coin which it pretends to represent.
The above list will hopefully give you a few useful examples demonstrating the appropriate usage of "inconvertible" in a variety of sentences. We hope that you will now be able to make sentences using this word.
