la tendencia indicada, y que incluso puede llegar a suspenderla de vez en cuando. Tal como se ha señalado anteriormente, las cuestiones de negocios son fundamentalmente cuestiones de precios. Una caída de los precios que
With the above aD&lyeiB may be contrasted Man's discussian of the declining rale of promts and the mBoner In which be coocetTee oTerpTodQction, speoulatloa, and crises to arise oat of the tendrncy of profits to a minlmuin. (Kapilat, vol. III. ch. XV.) In the same codnection, see Togan-Barauowsky's criticism of Hara, Handel*ltri»eii, ch. VTL
THE THEORY OF MODERN WELFARE 235 widely touches biisinesa interests brings depression. Conversely, an appreciable advance in prices, from 1 whatever cause, means improvement in business. | Such an advance in prices may come of a speculative movement; which Jn turn may arise from a variety of circumstances, for the most part circumstances extraneous to the industrial proceas. For the present, however, the question of a speculative movement is best left on one side. Another factor touches the case more intimately. As has more than once been the case, prices may be advanced through a freer supply of the precious metals, or by an inflation of the currency, or a more facile use of credit instruments as a subsidiary currency mechanism. Now, the growing efficiency of industry has an effect in lowering the (material) cost of production of the precious metals and so increasing the ease with which they are supplied, after the same manner as it affects the supply of goods for industrial or consumptive use. But the increased supply of the precious metals has, of course, an effect upon prices contrary to that ex- \ erted by the increasing supply of goods. In so far as this effect is had, it acts to correct or mitigate the trend of business toward chronic depression.'