The argument has been made that these things will not occur at once, because a long time must elapse before the coinage of anything but the seigniorage can be entered upon.
That which is due to a sovereign, as a seigniorage on gold and silver coined at the mint, metals taken from mines, etc.
As it is, the government makes a seigniorage profit on the fiduciary coinage, as shown in the following table.
The prince, king, or emperor stamped his own device or portrait upon the coin; hence the termseigniorage from seignior (meaning lord or ruler).
A ruler, either by making a higher seigniorage charge or by coining on his own account, debased the quality or reduced the weight of the money of his realm.
Melting or exporting them before that point was reached would cause to the owner the loss of whatever element of seignioragevalue they contained.
In this case no bullion is brought to the mint unless the coined pieces the owners receive have a value equal to the bullion value plus the seigniorage charge.
The gain of seigniorage from paper money is greater and is just as easily secured as that from coinage of metals.
And this holds good of a large seigniorage charge as well as of a small one, even up to the extreme limit of a charge of 100 per cent.
We thus have arrived at the general principle of seigniorage: when the number of coins issued is limited to the saturation point, a seigniorage charge does not reduce their money value; they are worth more as money than as bullion.
Fiduciary money is that on which regularly the issuer makes a seigniorage charge.
The purpose of the issue of political money is usually to gain the profit of seigniorage for the public treasury, and often it has been the desperate expedient of nearly bankrupt governments.
The problem of seigniorage presents itself in its most extreme form when money is made of paper.
Let us consider now the effect of seigniorage on the value of money.
The provision that the gain or seigniorage arising from the coinage should be accounted for and paid into the treasury, as under the existing laws relative to subsidiary coinage, seemed to remove all serious objections to the measure.
Melting or exporting them before that point was reached would cause the loss of whatever element of seigniorage value they contained.
The gain of seigniorage from paper money is greater and is just as easily secured.
The question now is, What is the effect of a seigniorage charge on the value of the coin as compared with the bullion that is in it?
Seigniorage is the right the ruler or state has to charge for coinage, or it is the charge made for coinage.
The limit within which the coinage must be kept is the number of coins that would circulate freely if they were made full weight without a seigniorage charge.
The prince, king, or emperor stamped his own device or portrait upon the coin; hence the term seigniorage from seignior (meaning lord or ruler).
The order in the study of the money question is fromseigniorage to paper money, because paper money embodies the principle of seigniorage in its extremest form.
When the number of coins issued is limited properly, a seigniorage charge does not reduce their money value; they are worth more as money than as bullion.
The small profit made by the government on every penny, nickel, or dime issued, is a seigniorage charge.
But coinage is free without being gratuitous when any citizen may bring metal to the mint, whenever he chooses, to be coined subject to the seigniorage charge.
Government paper money may be defined as money for which a seigniorage of one hundred per cent.
The purpose of the government in thus employing its power over the circulating medium is usually to profit, that is, to secure the value of the seigniorage for public purposes.
A similar seigniorage is always charged on the coinages at the Sydney Mint; and the coinage at the Sydney Mint is now large and increasing--in the last two years probably more than that of the English Mint.
In joining it, a seigniorage would have to be charged on all British gold coinages.
To effect this such a charge or seigniorage would have to be proportionate to the amount of bullion subtracted from each sovereign.
It is not difficult to show that this is the case in France; and if in one country where a seigniorage is charged, it follows, of course, in all of them.
A seigniorage to be charged on all bullion taken to the mint to be coined, is proposed as a method of bridging over this difficulty.
It is clear that the absence of a seigniorage is not the cause which attracts gold to England, as barely the ninth part of the bullion imported finds its way to the Mint.
The absence of seigniorage causes our coinage to be relatively undervalued in proportion to other gold coins.
This was increased by the failure of the House to override the President's veto of the Seigniorage Bill.
It levies a seigniorage which brings in a handsome revenue.
A country using gold money as its sole medium of exchange, under free and gratuitous coinage, makes the following change: it imposes a seigniorage charge of ten per cent.
What are the advantages and disadvantages of a seigniorage tax?
What will be the effect of this seigniorage charge upon (a) prices in that country, (b) the comparative value of the gold in a new coin and the same weight of uncoined gold?
In a country which has hitherto had free and gratuitous coinage of gold, the government institutes a seigniorage charge of five per cent.
French gold and silver monies on a certain footing, and the seigniorage on the coins was reduced.
The old kingly prerogative of altering the coinage was taken away, the unit of the currency was declared definite and unchangeable, and the seigniorage on minting was abolished.
It was again and still further for the protection of gold that the seigniorage was increased to 7.
The decimal system was adopted in place of the old system of livres tournois, seigniorage was abolished, and fixation of value given to the unit money, and billon money discontinued.
By this celebrated edict of Calonne's, which also enacted a recoinage, the right of seignioragewas practically finally relinquished for France.
Now the immediate effect of a seigniorage would be, as Professor Fisher points out, a readjustment of the par of foreign exchange.
After a season or two of declining bank reserves, tight money, and so on, a sudden collapse might be occasioned, and apparently caused, by the announcement of some particular seigniorage adjustment.
The above list will hopefully give you a few useful examples demonstrating the appropriate usage of "seigniorage" in a variety of sentences. We hope that you will now be able to make sentences using this word.
