COMPARATIVE COSTS 
33 
of demand, — on the relation in each country between the condi- 
tions of demand both for the domestic product and for the foreign 
product — those conditions of relative demand have been sup- 
posed to alter in the one country, but not in the other. 
In all this, be it noted, it is the changes in prices and in money 
incomes which serve to bring about the eventual results. Under 
the modified conditions brought about by an increase in the German 
demand for wheat, the concrete form in which advantage comes to 
the United States is that money incomes are higher, prices of 
imported goods (linen) are lower. And for the Germans the con- 
crete form in which the disadvantage to them appears is that 
money incomes are lower, prices of imported goods (wheat) are 
higher. The quicker the flow of specie begins and the more prompt 
its influence on prices and incomes, the sooner will the readjust- 
ment work itself out. The whole chain of operations depends on 
monetary movements and monetary influences; a fact which can- 
not be too strongly emphasized when it comes to a testing or 
verification of the whole series of propositions presented in their 
simplest theoretic formulation.