Valuation, depreciation and the rate base

Bibliographic data

Monograph

Identifikator:: 174667931X

URN:: urn:nbn:de:zbw-retromon-119897

Document type:: Monograph

Author:: Grunsky, Carl Ewald http://d-nb.info/gnd/10180959X

Title:: Valuation, depreciation and the rate base

Edition:: 2. ed., revised and extended

Place of publication:: New York

Publisher:: Wiley

Year of publication:: 1927

Scope:: X, 500 Seiten

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIV. The standard of value

Collection:: Economics Books

280 VALUATION, DEPRECIATION AND THE RATE-BASE in coms, other items in dollars. That increment of cost which is expressed in coms would be converted into dollars according to the prevailing money equivalent of the com which would be ascertained at intervals of a month or more, and the sale price would be modified from time to time to the extent that the vari- able money equivalent of the com affects the cost of production. The retail merchant would have no greater difficulty than at present in marking his goods. He would pay his clerks in coms, perhaps his rent also, and based on the proportion of the cost which is incurred in coms and the fluctuating number of dollars in a com he would, from time to time, add to or take from his listed prices. Ordinarily the change in the value of the dollar would be so slight that within the time that goods are on his shelves no re-marking would be necessary. The capitalist, too, would soon learn how to take advantage of the protection which a commodity unit would afford him. Why should he not, in making a loan, express the amount thereof in terms of coms instead of in terms of gold coin. He would have loaned rooo coms instead of $1130 in 1910 and when his capital was returned he would have gotten back 1000 coms which in terms of money might then have been equivalent to more or less than $1130 according to whether the value of the dollar had gone down or up. Under our present system as al- ready stated every promise to pay a definite number of dollars at a future date involves a speculation in the rise and fall of the value of the dollar. Thus, for example, the bond holder, no matter how dependable his securities, finds that during the five years 1914 to 1919, the bonds which he held shrank to less than one-half of their original real value (from 87 coms per $100 to 43). He may be as well off in dollars as he ever was, but the part of his wealth in credits, measured by the desirable things which his dollars will command, was nevertheless taken from him to the extent of more than one-half. Money in this period was made more abundant, and was made to flow more rapidly. More units thereof are even now required to accomplish any particular purpose than before the war. If such credits, bonds,

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