Money

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Monograph

Identifikator:: 1819853969

URN:: urn:nbn:de:zbw-retromon-207464

Document type:: Monograph

Author:: Cannan, Edwin http://d-nb.info/gnd/118666916

Title:: Money

Edition:: 6. ed.

Place of publication:: [London]

Publisher:: King

Year of publication:: 1929

Scope:: XII, 120 Seiten

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. General principles

Collection:: Economics Books

0 MONEY Lane and sometimes starve in Soho or on unproduc- tive and unhealthy diggings, but all that they do get is got in the same way—by exchange of gold for money which is immediately paid away for other commodities and services—these being the real thing ultimately got in exchange. Every ounce of gold coming into the commercial world is exchanged for— “sold,” if we may turn the word round to signify its converse—for commodities and services other than gold, and when plentiful in relation to them, it will tend to be of smaller value—will be cheaper—than when it is less plentiful. The truth of this is illus- trated by the high prices of commodities and services in newly discovered or inaccessible gold-producing areas. In an area in which gold has only just been discovered gold will be of small value (general prices will be high) because it is plentiful therein compari- son with commodities which have to be brought there, and with services which have to be performed by persons brought there: if the area is easily accessible, this will only be temporary, for the high prices and earnings will speedily attract commodities and workers. But if the area is and continues to be difficult of access from the rest of the world, like the Australian goldfield of the eighteen-fifties, and the Transvaal and the Yukon later, the value of gold will remain lower (general prices will remain higher) there than in the old-settled thickly peopled parts of the world because the supply of commodities and workers to the area will remain restricted by the cost of getting them there. If any one doubts this explan- ation he has only to ask himself whether he believes that if goldfields like those of Australia and the Yukon had been discovered in Yorkshire or on the banks of the Rhine or the Hudson, there would have been any long continuance of much higher prices in the imme- diate neighbourhood than in the rest of the world.

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