The diminished purchasing power of railway earnings; suggestions concerning the necessity of an adjustment of railway rates to meet new industrial ... and additional transportation facilities

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1909 Excerpt: ...very little labor.... Commodities mav be said to have a real and nominal price.... Real price may be said to consist in the quantity of the necessaries and conveniences of T-tf' J-' ' Nominal Price is the quantity of money.... ine distinction between the real and the nominal price of commodities and labor is not a matter of mere speculation, but may sometimes be of considerable use in practice. The same real price is always at the same value, but on account ol the variations in the value of gold and silver the same nominal price is sometimes of very different values." The following is from John Stuart Mill, in his "Principles of Political Economy": thlSPZu iS a comTMdity and its value is determined like TMi?7 commodities, temporarily by demand and supply, The relaHnn, n? '" the erage cost of Production... hv montv rt, commodlties to one another remain unaltered tion tn Z'J-?"yc nuew relation introduced is their relaw?ll xchTg? fo' hW Th r, "ttle money they it will «.j5:».i ',, rhe value of a thing is what prke arf lowgrnr: th« P£rchasinS power of money. If fs of hfcrh TMl'„. Tf TM" buy much of ther things. TMd other SSaand k IT" ar,e high' il wiI1 buy »& of inverselv f '«,TM i low,value-The vaIue of money is as they fell/ P"«s-falling as they rise, and rising And President Hadley, of Yale, in his "Economics," said: thi'Sth f Ztne0yf ss s&rsftof otr versely as the general level 3 XF$1&£ £TM £ high, a given amount of products or services will cost a great many dollars. "If the price of different commodities rose or fell simultaneously it would be easy to ascertain the amount of change in the general price level and in the value of mo...