64 THE THIRD POWER 



money in the world, and if all trade were carried on 

 by barter. Then all the goods in the country would 

 be both supply and demand. It is only when we 

 measure goods against money that we come to look 

 on money as demand and goods as supply. So 

 the farmer demands money and supplies wheat, 

 while the miller demands wheat and supplies money. 

 So the law of supply and demand describes the 

 working of a force that is not so simple and easily 

 understood as we may at first think. 



Again, we talk of demand equaling supply, or of 

 supply equaling demand. This means absolutely 

 nothing unless we take into account the question of 

 price. An increase of price will affect both supply 

 and demand, increasing the former and lessening the 

 latter. And this brings us to the main point to be 

 noted in this connection, and that is, that the force 

 under consideration is not a great natural force 

 above and beyond the power of man to regulate or 

 control. We may say that the price of harvesters is 

 regulated by the law of supply and demand, and so 

 it is. But the men who make them control the sup- 

 ply and manufacture no more of them than they 

 think can be disposed of at a good profit. Further, 

 by raising or lowering the price they can, and do, 

 temporarily influence the demand for harvesters. 

 And here is the thing to be borne in mind. We may 

 admit that the price of farm products is, or should 

 be regulated by supply and demand, or, better still, 

 by production and consumption, but still it is true 



