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SEIGNIORAGE , the due levied by the authority that possesses the right of coining on the See also:- METAL
- METAL (through Fr. from Lat. metallum, mine, quarry, adapted from Gr. µATaXAov, in the same sense, probably connected with ,ueraAAdv, to search after, explore, µeTa, after, aAAos, other)
metal that it manufactures into See also:coin. The See also:term " brassage " has been used to describe this due, when confined to the See also:mere cost of the See also:process; the wider term " seigniorage " being employed when the See also:charge is so raised as to become a profit to the imposer. The exercise of the right of seigniorage has been the See also:instrument by which most of the debasements of currency have been carried out. Under See also:feudalism, especially in See also:France, the See also:chief nobles had this See also:prerogative. In the See also:modern See also:state it is reserved for the See also:sovereign authority. Most countries adopt a moderate seigniorage charge. Thus the fundamental currency See also:law of France (1803) provides that " only the expense of coining " shall be charged. At See also:present this due is 6 fr. 70 c. per kilo. of See also:gold 1-90- See also:fine, or 0.24%. The charge by the same law on See also:silver was 3 fr. per kilo. or 1.66%. The See also:limitation on the coinage of silver in practically all countries has made the seigniorage on that metal very heavy. The policy of See also:England in respect to gold has been See also:peculiar. Since 1664 it has been freed from any charge, though the delay in return amounts to a small due. In consequence of this gratuitous coinage, See also:English gold has been regarded as See also:equivalent to See also:bullion, and See also:exchange fluctuations have been reduced. The policy was severely criticized by See also:Adam See also:- SMITH
- SMITH, ADAM (1723–1790)
- SMITH, ALEXANDER (183o-1867)
- SMITH, ANDREW JACKSON (1815-1897)
- SMITH, CHARLES EMORY (1842–1908)
- SMITH, CHARLES FERGUSON (1807–1862)
- SMITH, CHARLOTTE (1749-1806)
- SMITH, COLVIN (1795—1875)
- SMITH, EDMUND KIRBY (1824-1893)
- SMITH, G
- SMITH, GEORGE (1789-1846)
- SMITH, GEORGE (184o-1876)
- SMITH, GEORGE ADAM (1856- )
- SMITH, GERRIT (1797–1874)
- SMITH, GOLDWIN (1823-191o)
- SMITH, HENRY BOYNTON (1815-1877)
- SMITH, HENRY JOHN STEPHEN (1826-1883)
- SMITH, HENRY PRESERVED (1847– )
- SMITH, JAMES (1775–1839)
- SMITH, JOHN (1579-1631)
- SMITH, JOHN RAPHAEL (1752–1812)
- SMITH, JOSEPH, JR
- SMITH, MORGAN LEWIS (1822–1874)
- SMITH, RICHARD BAIRD (1818-1861)
- SMITH, ROBERT (1689-1768)
- SMITH, SIR HENRY GEORGE WAKELYN
- SMITH, SIR THOMAS (1513-1577)
- SMITH, SIR WILLIAM (1813-1893)
- SMITH, SIR WILLIAM SIDNEY (1764-1840)
- SMITH, SYDNEY (1771-1845)
- SMITH, THOMAS SOUTHWOOD (1788-1861)
- SMITH, WILLIAM (1769-1839)
- SMITH, WILLIAM (c. 1730-1819)
- SMITH, WILLIAM (fl. 1596)
- SMITH, WILLIAM FARRAR (1824—1903)
- SMITH, WILLIAM HENRY (1808—1872)
- SMITH, WILLIAM HENRY (1825—1891)
- SMITH, WILLIAM ROBERTSON (1846-'894)
Smith, and it does in fact amount to a See also:bounty on the coinage of gold. The amount is, however, too insignificant to deserve See also:attention, especially as there are compensating gains. The employment of a seigniorage of about 1% on the " sovereign " was suggested by the proceedings of the See also:Paris Monetary See also:Conference of 1867; in See also:- ORDER
- ORDER (through Fr. ordre, for earlier ordene, from Lat. ordo, ordinis, rank, service, arrangement; the ultimate source is generally taken to be the root seen in Lat. oriri, rise, arise, begin; cf. " origin ")
- ORDER, HOLY
order to bring about an assimilation of English and See also:French See also:money. By reducing the amount of gold in the sovereign to that in the proposed 25-See also:franc piece an exact See also:par would have been created, and, so it was hoped, the English currency and accounts need have undergone no See also:change. The See also:- SCHEME (Lat. schema, Gr. oxfjya, figure, form, from the root axe, seen in exeiv, to have, hold, to be of such shape, form, &c.)
scheme was, however, rejected by a Royal See also:Commission on the ground that an See also:adjustment of obligations would be required.
The theory of the effects that a seigniorage produces have been discussed at length. The definitive results obtained may be briefly stated as follows:—(r) A seigniorage charge is the same as a debasement, but its evil effect may be avoided by limiting the amount of coin issued. (2) Seigniorage operates as a tax on the metal subject to it, and this tax tends ultimately to fall on the producers, or rather on the See also:rent obtained through the See also:production. A heavy seigniorage on gold would tend to See also:lower the profits derived from the gold mines of the See also:world, and might even compel the See also:- ABANDONMENT (Fr. abandonnement, from abandonner, to abandon, relinquish; abandonner was originally equivalent to mettred banddn, to leave to the jurisdiction, i.e. of another, bandon being from Low Latin bandum, bannum, order, decree, " ban ")
abandonment of the least productive ones.
See MONEY, MONETARY CONFERENCES, and TOKEN MONEY.
(C. F.
End of Article: SEIGNIORAGE
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