78 Wisconsin Academy of Sciences^ Arts, and Letters. 



is increased (other things remaining the same) the value of a 

 given quantity declines, the entire stock of gold in the world 

 has thus been slightly depreciated. From this cause, there- 

 fore, it has been depreciated as much in other countries as in 

 this. The rule for determining the general depreciation from 

 this influence is very simple. Assuming that gold derives 

 seventy-five per cent, of its value from its use as money, and 

 that we have demonetized one twenty-fifth part of the entire 

 stock of the world, the depreciation from this cause will be 

 four per cent, of seventy-five per cent., or three per cent, of 

 the whole. Considering the large amount of gold still held in 

 partial circulation by the demands of the government, it is not 

 probable that the amount actually demonetized exceeds the 

 fiftieth part of the world's stock, and that the consequent de- 

 preciation does not exceed one and a half per cent. But the 

 relative depreciation in this country, as compared with other 

 countries, is nothing at all, and it is the relative depreciation 

 which we wish to account for. 



Some economists think that the duties on imports have 

 something to do with this relative depreciation, but how much 

 and in what way the effect is produced, they are unable to de- 

 termine. I think it is susceptible of scientific demonstatioa 

 that the depreciation is wholly the result of these duties, and 

 that the extent of the depreciation is just equal to the average 

 rise of prices on all im portables and exportables added to- 

 gether. 



As we proceed with this demonstration, we must endeavor 

 to gain and keep in mind a clear and accurate conception of 

 the nature of value, which is often confounded with other 

 things or qualities which are quite distinct from it. Some 

 confound the value of a thing with its quality/, and as the 

 quality of pure gold, wherever found, is always the same, they 

 conclude its value must be equally immutable. Others con- 

 found value with utility, while utility is only one of the ele- 

 ments of value, always present, but rarely determining the 



