Principles of Political Economy, Vol. 1Roscher, Wilhelm
History
Principles of Political Economy, Vol. 1
Roscher, Wilhelm
Economics
The principal cause of forced or under-prices (_Schleuderpreise_) is the
facility with which the product deteriorates, and must, therefore, find a
quick sale, especially when its storage or transportation is attended by
further difficulties.(667) But, very durable commodities are also subject
to under-prices, and especially those which last longest, because the
supply of them can be diminished only very slowly. Thus, for instance,
houses, in a declining city. Distress-prices are found most usually in the
case of such commodities as are produced without any intention to produce
them, as for instance, rags and excrementitious substances. The more the
mere forces of nature preponderate in production, the less can the supply
be increased or decreased at pleasure, the more frequently, as a
consequence, do we find monopoly-prices and under-prices. (Compare § 131
ff.) Thus the production of wheat is invariably connected with the order
of the seasons. Between seed-time and harvest, there are a number of
months which neither capital nor skill can shorten to any extent. The
cultivation of land, to be very much greater and more lasting, supposes so
many conditions precedent, increase of live stock, buildings etc., that it
can be attained only after a series of years. Hence it happens that wheat,
much more than manufactured products, is subject to oppressively high
prices and oppressively low ones, during a long period of time. No matter
what the influence of the forces operating in the opposite direction may
be, the price of wheat depends most largely on the result of the last
crop.(668)
Section CXIII.
Exceptions. (Continued.)
Other impediments in the way of freedom of competition have their origin
in social conditions. The rule governing prices applies only where the
vendor and purchaser are equally ready to exchange. But in every case in
which the producer carries on his business, not for the sake of free gain,
but simply to obtain a means of livelihood, it may be subject to many
important exceptions.(669) The richer a seller is, the longer can he wait
for a favorable opportunity to sell. Thus, for instance, wheat is somewhat
lower in price at times when payments are universally made than at other
seasons of the year, because a great many country people are then
compelled to sell. Where the country population are universally needy, it
sinks after a harvest to an unusually low figure, and in spring rises
again very high.
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