Classification of money forms on the basis of «cash — non-cash»

Let us go back to the issue of correlation of terms money, currency, cash and non-cash.

Money, i.e. property goods which function as a means of circulation, a measure of cost and a means of accumulation (preservation of cost), in Russian public practice are divided into cash and non-cash. While utilizing such terminology, we must make sure it is clearly defined.

If we define as cash certain forms which have object content to such a measure that a man is able to hold them (Detencio), we can recognize as cash the following objects:

• non-unified goods such as furs, salt, crops, metals by weight;
• unified goods such as metals, orange juice, wood, meat;
• precious metal (inc. gold) ingots of precise weight;
• ordinary bills, quasi-money in cash form, such as State bonds, fund assets, which partially function as money etc.;
• State banknotes (T-Notes) and coins;
• notes emitted by private banks.

Each of the money forms, which constitute the notion of cash money, can be contrasted with its non-cash form, that is created by the placement of the given cash form into a special repository, in order to facilitate its circulation.

It is extremely important to underline this feature. It is the convenience of circulation, inherent to non-cash money forms, that makes a society transfer its cash forms into their non-cash equivalent, and only a crisis of public circulation may force a society to withdraw money from appropriate repositories, but only temporarily (!). At the same time, the non-cash form doesn’t disappear as an entity, simply enough its object component is minimized, becoming a paper bank statement and a data object measuring 10 000 thousand silicon domains on a magnetic bearer in an appropriate repository (bank, depository).

The term money includes the following notions:

• "commodity money";
• "financial money";
• "currency".

The first two notions have a limited circulation function, which is, however, sufficient to recognize its presence.

Each of these notion forms — respectively — has its own subforms, which can be classified on the basis of «cash — non-cash» (see Table 5).

Classification of money forms on the basis of «cash — non-cash»

It follows from Table 5 that, in particular, notes emitted by private banks, with their economic and legal content identical to currency, are mistakenly not referred by the Federal Law of 09.10.1992 № 3615-1 «On currency regulation and currency control» to the national currency of the Russian Federation.

Thus,

• the notion currency is a submultitude of the notion money;
• notions State banknotes, Central Bank coins, notes of private banks are submultitudes of the notion currency, as well as the notion cash money;
• the notion deposit money is a submultitude of the notion currency, as well as the notion non-cash money.