120 THE PROBLEM OF THE UNEMPLOYED
Not only do we find each group of commodities widely
and variously differing from the others in the proportionate
fall of price between 1873 and 1894, but there is no such
general regularity in these fluctuations throughout the
period as would seem necessary, were these changes all
dominated by the single factor volume of currency.
Moreover, if we analyse the several groups we see every
possible variety of price-change in the different component
articles consistent with a general downward tendency.
The more we split up the groups into their component
parts the larger and the more various the fluctuations in
price. While this is inconsistent with an explanation of
fall of prices by volume of currency it is not merely
consistent with but would inevitably follow from the
attribution of price-change to increase of supply stimulated
by improvements of machinery of manufacture and transport
and other reductions in the “cost” of production
of a number of different commodities.
§ y. Want of “ Confidence ” not a Vera Causa—
Itself a Symptom.
The refusal of bimetallists and other monetary specialists
to admit these tests arises from their refusal to
realise the necessity of explaining price-change by facts
relating to quantity of supply and demand of commodities
other than money.
Rejecting on a priori grounds the idea of a general
excess of production, they are driven to explain bad
trade and the apparent surplus of forms of capital by
causes affecting the quantity of money which operates
upon public confidence. This attitude of mind is best
illustrated in one who was in no sense a monetary