Zur Erneuerung des deutschen Bankgesetzes

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Monograph

Identifikator:: 834086425

URN:: urn:nbn:de:zbw-retromon-82719

Document type:: Monograph

Author:: Helfferich, Karl http://d-nb.info/gnd/118773828

Title:: Zur Erneuerung des deutschen Bankgesetzes

Edition:: Sonderabdruck

Place of publication:: Leipzig

Publisher:: Duncker & Humblot

Year of publication:: 1899

Scope:: 1 Online-Ressource (XI, 135 S.)

Collection:: Economics Books

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Sec. 10] VALUE OF CAPITAL 223 Tt should be observed that if the rate of interest is raised, the relative advantages of the two uses in the example given might be quite different. In this case it might pay to put up the dwelling rather than wait for the business block ; for the holder of the land, as he expresses it, could not afford to “lose his interest” when it is at so high a rate. § 10 Thus far we have considered the capital-value only of individual articles of wealth. The same reasoning applies to a group of articles of wealth. An important case is that of a merchant’s stock. In this case we may prefer to capitalize the stock as a whole rather than to take the sum of the capitalizations of its separate elements. The net income from the stock is found by subtracting from the gross income all the outgo, including, besides the cost of replenishing the stock, the other costs of the business, — clerk hire, rent, and even an allowance for the work of the merchant himself, unless he is a mere “silent partner.” If the net income is supposed to remain constant forever, the capital value of the stock will, of course, be found by dividing the net income by the rate of interest. In this case the rate of interest must be taken for the proper installment interval. If the goods are supposed to be con- tinuously bought and sold, the rate to be employed is the “rate of interest per annum reckoned continuously.” 5 § 11 We conclude, therefore, that the value of any capital- good, either of wealth or of property-rights, assuming that all future income is foreknown, is the discounted value of that income, and consequently that, as time goes on, the value of that capital will oscillate, rising gradually during intervals between installments along a “discount curve,” 1 For a mathematical statement in this connection, see Appendix to Chap. XIII, § 14.

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