Business

A Dig into the Question: Whether Money is a form of speech? Why and Why not?

11/05/2016 Dhanur Chauhan 0 Comments

Money can possess varied incarnations that can change over time and use and therefore money is not a speech but actually a form of speech. The study associated with money speech , its evolution, its changing forms and the functioning of various monetary standards is quite appealing. But not giving vent to our temptation we will stay restricted to modern use of Indian currency that includes notes, coins and paper form of currency.



Forms of money and are they interconvertible?

While metallic money consists of coins, their intrinsic value is much less in comparison to the paper form that includes notes. However, the value of paper currency is quite ambiguous if it is not approved by the issuing authority.In fact paper currency does not have any scope of getting converted into any asset that could help in assessing its value this is the reason it is considered inter convertible.The Reserve Bank of India that contains an issuing note on a ten rupee note “I promise to pay the bearer with a sum of ten rupess” is actually a promissory value that makes its not to be converted into any other form.

An insight into money transfer that takes place through banks!

Deposition of Money is a mode of purchasing power but simply a way of ledger entry in banks to the credit of their holders.Cheques are considered as a demand deposit mechanism that can enable a person to draw an amount of money. In fact these cheques are tools that help in transfer of money from payer to the payee. As soon as the money gets transferred, that is when the means of exchange gets completed.

Clearance of an “out of town” cheque

The functioning of “out of town” cheques a different process is operational at banks. It is the local branch of the drawee’s bank that takes over the place of its counterpart located at a different place.

For a cheque that comes from a different bank branch or is an out of town one, an internal clearing mechanism is followed before any transaction is made. In fact these clearing mechanisms play a very significant role behind the successful working of any banking operation.

The mutual transfers of funds in banks get settled with the help of clearing house entries without involving any actual transfer of cash because such transfers require a large amount of subsequent transfers that get executed through money deposition.

The clearing mechanism in banks ensures a hassle free and quick transfer done at a low cost. Such clearings actually promote the use of bank money instead of business money as they influence the daily cash flow and liquidity associated with cheques.

Hence the question whether money is a form of speech is an out of balance question.Spending money is a form of speech just the manner in which throwing a brick out of the window can be considered a speech form. The unfortunate part is that the Supreme Court remains callous to the misuse of enormous wealth in politics acting against the ideal practices of democracy