188 
POLITICAL ECONOMY 
in gold-using countries is based, are bound 
to raise prices, other things being equal. 
Now changes on the side of demand and 
supply with reference to gold are not likely 
to occur together in such a way that the 
purchasing-power of money is unaffected ; and 
we actually find on studying the figures which 
indicate the level of prices that great altera 
tions have taken place from one period to 
another in the purchasing-power of money. 
Roughly speaking, prices fell, largely in 
consequence of the effects of the industrial 
revolution, throughout the first part of the 
nineteenth century. Afterwards for a few 
years they kept moderately stationary as 
the new productive forces slackened off and 
banking developed so that substitutes for 
coins were largely introduced. A rise in 
prices was brought about by the gold dis 
coveries in the “ ’fifties ” ; and from the 
early “ ’seventies ” until nearly the close of 
the nineteenth century prices fell materially, 
partly in consequence of the progress of the 
community in the matter of productive 
methods, and partly in consequence of the 
adoption of a gold currency by many 
countries which had previously used silver. 
Of late years there has been another change 
in the value of money : since about