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

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XIV. The standard of value

Collection:: Economics Books

284 VALUATION, DEPRECIATION AND THE RATE-BASE was first written (February, 1920), would have been equivalent in value to about $2.30. It would now (May, 1926) be equiva- lent to about $1.70. To the foregoing a brief historical reference may be of interest to show the quick response of prices of commodities to changes in the amount of currency in circulation. That currency in- flation increases the cost of living has already been noted. It will now be of interest to compare the volume of currency in circulation in the United States from time to time, with the cost of living as shown by the index numbers based on the wholesale prices of commodities. Thus, for example, in the five years preceding the civil war, roo coms would have been equivalent to $103. At the same time there were about $14 of currency per capita in circulation. At the close of the civil war in 1865 the per capita currency circulation had been increased to nearly $21 and the equivalent of roo commodity units had gone to $185. The 50 per cent inflation of currency was accompanied by an 8o per cent increase in the cost of living. (See diagram, Fig. 11.) In the five years, 1910 to 1914, preceding the recent war, the currency circulation was about $34 per capita; it had reached $51 in 1918. The money equivalent of 100 coms had in the same period gone from 114 to 225. A 50 per cent increase in the per capita amount of currency in circulation has been accompanied by a 97 per cent increase in the cost of living which is, however, probably considerably more than can reasonably be ascribed to inflation of currency. In the years following the civil war the per capita currency circulation gradually fell from $20.57 to a minimum of about $15.32 in 1878. During this decline of 25 per cent in the per capita circulation prices fell 46 per cent, from $185 per 100 coms to about $100 in 1878. These facts are not offered to establish any definite relation between the amount of money in circulation and the cost of living, but they do show what seems to be axiomatic, that the per capita increase or decrease in the amount of money in circulation must be reflected in the shifting prices of commodities and that,

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