HOW THE MONEY SYSTEM WORKS

Dominion, Volume 34, Issue 157, 29 March 1941, Page 15

HOW THE MONEY SYSTEM WORKS

"An Outline of Money,” by Geoffrey Crowther (London: Nelson). i The author (Editor of “The Economist”) whose name in already familiar to a wide public by his previous writings and broadcast talks, is a recognized authority on economic problems. He writes for the general reader, not for the specialist, and has the rare faculty of presenting intricate subjects with masterly lucidity and logical skill. He exposes the fallacies of many theoretical attempts to create the millennium by juggling with monetary standards, and indicates the great part played by a sound money , policy on the economic health of the world. This latest contribution from Mr. Crowther’s pen has only one object—neither to propound new refinements, on the theory of inoney nor to advocate any particular monetary policy—but quite simply to explain the “how it works” of our existing monetary system, and to provide for the layman a comprehensive view of the main contours of an extensive field of knowledge. There can be no doubt that the author achieves his purpose admirably, for it is probably that no other work dealing with this subject can be found which is so easily understandable, up-to-date, and yet so remarkably wide in its scope and informative character. Mr. Crowther traces the history of money from its first crude invention to the use of metals and coins ; through varying fortunes to the creation of banks and a banking system. Following in natural sequence he deals with the advent of central banking, the State bank, the money markets, and their effect on price levels- and trade cycles. In more recent times, the Importance of foreign exchange and national monetary policy as a factor in shaping the course of international affairs; arid "world economic equilibrium. A final chapter is devoted to an analysis and criticism of social credit as expounded by advocates of these systems. The above sectional headings are but a brief outline of the great variety of current problems dealt with in this extremely simply worded and lucid expobition of the money system and how it operates.