Principles of Political Economy, Vol. 1Roscher, Wilhelm
History
Principles of Political Economy, Vol. 1
Roscher, Wilhelm
Economics
The cessation of these restrictions upon production, in consequence of the
restoration of peace throughout the world and the great progress
afterwards made in almost all branches of industry, explain why, from 1818
to 1848, the precious metals have apparently stood higher than during the
period immediately preceding.(855)(856)
Section CXXXVIII.
Revolution In Prices.—Influence Of The Non-Monetary Use Of Gold And
Silver.
To understand why so great an increase in the production of the precious
metals produced so small a decline of their value in exchange, we must
turn our attention to the other and further uses of gold and silver. The
amount devoted to these uses can never be very accurately determined,
since governmental stamping of every new gold or silver article would
afford no evidence as to the number of such articles manufactured out of
old articles etc.(857) Certain it is, however, that the aggregate amount
of gold and silver thus employed, increases with the increase of luxury
and wealth among modern nations, and that a quantity of the precious
metals thus used, especially when used for purposes of gilding for
instance, is irrestorably lost.(858) In addition to this, there is the
wear and tear of coin in circulation, which is naturally greater in the
case of large pieces than of small, and, therefore, in the case of silver
than of gold. There is, further, the damage caused by the loss of coin in
conflagrations and shipwrecks, and that occasioned by buried and forgotten
treasure.(859)
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