Principles of Political Economy and Taxation. 193 



Therefore by (3) 



^ = Z_fI + 7 + 1 U = 315 107 _ 208 _ 52 

 ft 4 V5 6 '6 180 180 ~ 180" 45' 

 Hence the quantity of money in the country is increased in the 

 ratio 45 : 52, and therefore, by Post. II, the prices of all domestic 

 commodities are increased in the same ratio. The prices of im 

 ported commodities are not affected by this change, for the 

 foreigners will be content with a remunerating money price, and 

 will be prevented by their own competition from obtaining more. 

 By last article, equation (2), 



„ Se -€iv;„_ 45 1 45 1 



The value of the ultimate exports and imports, at the original 

 prices, would be nearly \ and \ of the original currency, and 

 in the equilibrium of exports and imports these values become 

 equal, by means of the increased quantity of gold in the country 

 To find the gold in the country at the end of each of the three 

 years, we have 



!3 17 -50 



ft- lifts ft-n*s ft-jf*; 



Also for the value of the exports in each year, 



If we suppose the skill of the workmen of this country to 

 increase, so that the commodities which we can manufacture 

 cheaper than foreigners become more numerous, the value of the 

 exports (restrictions being supposed absent) will increase. In that 

 case such an importation of gold, and consequent increase of all 

 prices here, will occur, as has been supposed in the last and 

 present article. 



Vol. IV. Part I. B . 



