A technical term for the decision taken in England in 1797 by Parliament to exempt the Bank of England from the obligation to redeem its bills at any time for coins made of precious metal. – The reason for the decision was the fear of a landing of the French revolutionary army in England. The result was a sharp rise in the price of gold relative to banknotes. This prompted a law in 1811 that no more than the nominal price of gold in notes could be demanded in payment; banknotes were thus given a compulsory rate. The Bank of England did not resume redeeming banknotes in gold until 1821. – See premium, banking theory, money, private.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/