Money

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Monograph

Identifikator:: 1819853969

URN:: urn:nbn:de:zbw-retromon-207464

Document type:: Monograph

Author:: Cannan, Edwin http://d-nb.info/gnd/118666916

Title:: Money

Edition:: 6. ed.

Place of publication:: [London]

Publisher:: King

Year of publication:: 1929

Scope:: XII, 120 Seiten

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part I. General principles

Collection:: Economics Books

VALUE OF GOLD 21 Obviously there would not, and the reason would be that the services and commodities would soon be present in sufficient quantities to equalize matters. When gold mining was carried on in so speculative a manner as it was till quite recent times, people were tempted to think that cost of production had little or nothing to do with the value of gold. But now we hear of mines on the margin which cannot be worked if the prices of commodities and services continue so high. This simply means that they cannot be worked when gold is so cheap. We are sometimes told that gold is unlike other commodities in the fact that the stock is so large in comparison with the annual output, and this is put forward to justify regarding the value of gold as being not affected by the cost of production like that of other commodi- ties. But there are other commodities besides the precious metals, for example, houses, of which the stock is large in proportion to the annual output, and no one thinks of suggesting that cost of production does not play -ts usual part in relation to these. Producers of gold sometimes reap large profits and sometimes small profits, and so do producers of houses. A largely increased demand for gold cannot be satisfied rapidly, neither can a largely increased demand for houses. Double the output of plums in any one year, and you will enormously reduce the value of plums: double the annual output of gold or houses and you will produce nothing like as much etfect. Anticipation, correct and incorrect, plays the same part in regard to the value of gold as in regard to that of other things. The terms on which people exchange things depend not ~n what is, but on what the exchangers believ About the present they are often misinformed, but their mistakes soon appear and mostlv cancel each other ; about the future they

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