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POLITICAL  ECONOMY

no  ascent  will  take  place  in  the  value  of
securities  standing  for  loans  of  definite  sums
of  money  which  have  to  be  repaid  at  some
time,  for  example,  in  the  value  of  consols.
Nevertheless,  we  must  not  conclude  offhand
that  for  every  reason  steady  prices  are
theoretically  best  for  the  community.  One
thought  which  should  give  pause  may  be
expressed.  When  prices  are  steady  a  proper
share  of  the  benefits  of  progress  do  not
automatically  accrue  to  the  wage-earning
classes,  and  consequently  repeated  re-adjustments ­
  of  wages  become  needful.  Possibly  the
ideal  would  be  a  fall  in  prices  exactly  corresponding ­
  in  degree  with  productive  progress  ;
but  all  economists  would  not  endorse  this
pronouncement,  owing  to  the  effect  which  they
think  falling  prices  have  upon  the  directors
of  industry  ;  and  in  any  event  it  would  be
impossible  to  bring  about  exactly,  or  even
approximately,  such  a  variation  in  the
purchasing-power  of  money.  From  a  practical
point  of  view,  when  all  advantages  and
disadvantages  are  weighed,  it  is  probable
that  steady  prices  would  be  best  if  they
could  be  secured.  A  suggestion  has  been
made  that  countries,  acting  in  concert,
should  regulate  the  quantity  of  money  with
reference  to  index  numbers  of  prices  so  that