time it has to run. At the same rate of interest, a bond running for a long term of years is better for an investment than one for a short term. The lumberman, who looks at two trees of equal diameter at the base, estimates the total value of each according to the height of the tree. Then, again, a bond running for a short term may be worth less than one for a long term, even though the first bears a higher rate of interest. That is, to resume the illustration, one tree, not rising very high, although larger at the bottom, may not contain so many square feet as another, with perhaps a less diameter at the bottom, but which stretches much higher up into the air.
Chapter XX. Of The Competition Of Different Countries In The Same Market.
§ 1. Causes which enable one Country to undersell another.
In the phraseology of the Mercantile System, there is no word of more frequent recurrence or more perilous import than the word underselling. To undersell other countries—not to be undersold by other countries—were spoken of, and