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

THE STANDARD OF VALUE z future obligation. Whenever the time element enters into a transaction as in making a loan, or in entering into a lease, or in agreeing upon a salary or wage, which is expected to continue for an indefinite time, the money unit would be supplanted by the commodity unit, by the com, because of the undoubted greater stability of the value of the latter; but, ultimately, payment would still be made in money. Having thus attempted to show that a value unit is conven- iently at hand, and that its general adoption is practical, it remains to show that its introduction and use in ordinary trans- actions and particularly where compensation for services is in question need not be deferred until Congress has acted, nor even until further studies have been made by the Department of Labor or any other branch of the government on which the definition and description of the commodity unit is to be based. The data at hand are quite sufficient to serve in the interim. The general commodity index numbers as ascertained and com- puted by the Department of Labor would afford a sufficiently close approximation for immediate purposes. It may safely be assumed that any index number based on the prices of numerous commodities, preferably always including food and clothing, will show the general trend of prices, and, also, this being the main point, that even though the price change for the individual articles may not always have been weighted in the exact proportion of the nation’s consumption of each, the final result as expressed in the index number will be a sufficiently close index of the cost of living. It will, therefore, be safe to say that the index number based on all commodities (over 300 as used by the Department of Labor) gives a sufficiently close approxi- mation for all practical purposes to the changing value of the dollar when this value is measured by the ‘“ com ” as herein defined and suggested. If the commodity unit as defined be adopted and the ““ com ” be accepted as a measure of value, the average purchasing power and therefore the average value of $100 and of 100 coms in the ten-year period goo to 1909 would have been identical and the com at the time that this chapter 283

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