The fiscal problem in Missouri

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Monograph

Identifikator:: 1833271335

URN:: urn:nbn:de:zbw-retromon-230042

Document type:: Monograph

Title:: The fiscal problem in Missouri

Place of publication:: New York

Publisher:: National Industrial Conference Board, Inc.

Year of publication:: 1930

Scope:: xvi, 359 S.

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter V. Tax administration

Collection:: Economics Books

TRIBUTE AS EXAMPLE 115 the United States, on the other hand, the amount of linen bought shrinks greatly in consequence of the rise in linen price (from $0.68 to $0.763) ; and the total amount which she spends on linen falls substantially, from $8,500,000 to $7,200,000. If the German conditions of demand were the opposite from these — elastic for wheat — there would be a mitigation of the American loss in the barter terms. The United States would still find that she ex- changed wheat for linen on terms less favorable than before, but not so much less favorable as in these illustrative figures. It need hardly be pointed out that in all such cases the figures of relative money wages are in the last analysis the results of the prices of the goods. They have been stated, for convenience of exposition, as if the wages determined the prices; the wages being the “supply prices.” But it is the goods, of course, which first feel the impact of the play of international demand, and it is the prices of the goods which determine the money incomes. Wheat and linen rise or fall in price as changes take place in international payments; thence are derived the rates of wages; these wages then appear as the money costs, the supply prices, of the goods. The reader who is not wearied by the details of such figures may follow them as they can be worked out for still one other sort of case, illustrative of a situation in which the play of demand is more favorable to the United States — that is, one in which the German demand for wheat is elastic (greater than unity) and the American demand for linen is also elastic.! Reverting to the figures with which we started (p. 110), suppose once more an initial flow of specie, caused by a payment for tribute, and the consequent changes in prices and money incomes. Assume the following stage to have been reached : In the U. S. 1) »» J: S. ” Germany 10 " Germanv 10 er JA ToraL «10.50 $10.50 PRODUCE 2 wheat ) linen 10 wheat 15 linen Domestic SuppPLY PRICE 80.825 $0.82; $1.05 20.70 ! The following pages deal with some refinements which the reader may skip without break in continuity, passing to page 117.

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