Illustrations of political economy, Volume 6 (of 9)Martineau, Harriet
History
Illustrations of political economy, Volume 6 (of 9)
Martineau, Harriet
Didactic fiction, English; Political fiction, English; Social problems -- Fiction
Christian's now rigid countenance relaxed into the radiant smile which
betokened his highest mood of faith. The movement, whether of body or
spirit, summoned his pain; but its very first touch released him. He
left the greatest of this world's potentates treasuring up the
forgiveness of a feeble child, and wondering, as at a new thought, that
one who had power over millions of lives should have no more interest
than others with the supreme Lord of Life.
_Summary of Principles illustrated in this Volume._
Nations exchange commodities, as individuals do, for mutual
accommodation; each imparting of its superfluity to obtain that in which
it is deficient.
The imparting is therefore only a means of obtaining. Exportation is the
means of obtaining importation,--the end for which the traffic is
instituted.
The importation of money into a country where money is deficient is
desirable on the same principle which renders desirable the supply of
any deficient commodity.
The importation of money into a country where money is not deficient is
no more desirable than it is to create an excess of any other commodity.
That money is the commodity most generally bought and sold is no reason
for its being a more desirable article of importation than commodities
which are as much wanted in the country which imports it.
That money is the commodity most generally bought and sold is a reason
for its being the commodity fixed upon for measuring the relative
amounts of other articles of national interchange.
Money bearing different denominations in the different trading
countries, a computation of the relative values of these denominations
was made in the infancy of commerce, and the result expressed in terms
which are retained through all changes in the value of these
denominations.
The term by which in each country the original equal proportion was
expressed is adopted as the fixed point of measurement called the par of
exchange; and any variation in the relative amount of the total money
debts of trading nations is called a variation from par.
This variation is of two kinds, nominal and real.
The nominal variation from par is caused by an alteration in the value
of the currency of any country, which, of course, destroys the relative
proportion of its denominations to the denominations of the currency of
other countries. But it does not affect the amount of commodities
exchanged.
The real variation from par takes place when any two countries import
respectively more money and less of other commodities, or less money and
more of other commodities.
This kind of variation is sure to correct itself, since the country
which receives the larger proportion of money will return it for other
commodities when it becomes a superfluity; and the country which
receives the smaller proportion of money will gladly import more as it
becomes deficient.
The real variation from par can never therefore exceed a certain limit.
Public-domain text, read in full here on John Shaqi.
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