Weltporto-Reform

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Monograph

Identifikator:: 836084659

URN:: urn:nbn:de:zbw-retromon-28892

Document type:: Monograph

Author:: Ricardo, David

Title:: Oeuvres complètes

Place of publication:: Paris

Publisher:: Guillaumin

Year of publication:: 1847

Scope:: 1 Online-Ressource (XLVIII, 752 S)

Collection:: Economics Books

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

COMPARATIVE COSTS 27 States at the price of $0.75. Suppose, however, that at this price they want more than 8,000,000; the German demand for wheat increases. More than the 8,000,000 bushels are bought in Ger- many, and more than $6,000,000 become payable by German purchasers to Americans. Foreign exchange no longer is at par. Exchange rises in Germany, falls in the United States. Specie ows from Germany to the United States. Prices tend to rise in the United States, to fall in Germany; and not only prices, but money wages also. The nature of the outcome of these readjustments is indicated by such figures as the following : Wages in the United States rise from $1.50 to $1.70. Wages in Germany fall from $1.00 to $0.90. aay VR, = PS At these rates of money wages : In the U. S. 10 days’ labor " » U. S. 10 » 2) ” Germany 10 ” ? " Germany 10 ” 2 WAGES PER DAY ™a 70 . TU $0.90 20.90 ToraL WAGES L x PropUCE 20 linen 20 wheat i5 linen 10 wheat DowmesTIC SuprrLY Price $0.85 $0.85 $0.60 $0.90 Observe that, as before, the prices of both articles are such that they will move from country to country. Wheat in the United States at $0.85 still sells for a lower price than that at which it can be produced in Germany ($0.90). Linen at $0.60 in Ger- many still sells for a lower price than that at which it can be produced in the United States ($0.85). The range of difference between the domestic supply price and the import price is now less in wheat than in linen; but the differences are of the same kind as before. The physical quantities moving between the countries also will be affected. More wheat will move from the United States to Germany, obedient to the greater German demand. But more linen will also move from Germany to the United States. Money incomes as well as prices rise in the United States, and the Amer- icans will be tempted to buy more German linen. Since prices (as well as money incomes) fall in Germany, the price of linen will

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