Abstract
(1) SIR DAVID BARBOUR'S long experience in connection with the finances of India gives great weight to his conclusions on questions of currency and of the standard of value, in which he holds a position of authority. In the present work he undertakes to show in what way the quantity of money affects prices, and what are the limitations to the theory that its influence upon them is substantial. This is a question of real importance, because variations in price exercise a “ profound and subtle influence” on human affairs. “A general fall in prices sets up stresses in the social fabric which search out the weak points in the structure. A general rise in prices smooths away many difficulties, but may create others.” The author puts his theory in the form that “other things being equal, the level of prices is proportionate to the quantity of money.” The question arises, What are the “other things” that are required to be equal, in order that this generalisation may be supported? It is important to consider the modern system of credit, as affecting the amount and efficiency of the work money has to do. Sir D. Barbour rightly deprecates the dangerous practice, which apears to be growing, of attempting to remedy by legislation the evils that are due to a rise or fall in prices.
(1) The Influence of the Gold Supply on Prices and Profits.
By Sir David Barbour. Pp. xii + 104. (London: Macmillan and Co., Ltd., 1913). Price 3s. 6d. net.
(2) Social Insurance. With Special Reference to American Conditions.
By I. M. Rubinow. Pp. vii + 525. (New York: Henry Holt and Co., 1913.) Price 3.00 dollars net.
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(1) The Influence of the Gold Supply on Prices and Profits (2) Social Insurance With Special Reference to American Conditions. Nature 93, 294 (1914). https://doi.org/10.1038/093294a0
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DOI: https://doi.org/10.1038/093294a0