ON VABIATIONS IN TUB VALUE OF THE MONETARY STANDARD. 1 oS 



standard. Sir Rawson's solution of tlie problem in its former pliase i» 

 simple : to put the tonnage of ' ships cleared or entered with cargoes ' ^ 

 as representing the volume of exports and imports. 



Now, we have seen above that volume of trade must be understood in 

 Bome such sense as equivalent, or rather proportional, to volume of value 

 estimated in a corrected monetary standard, or, if the expression is not 

 too harsh, volume of utility as measured by money. Therefore, in order 

 that the new method should be available for the comparison of volumes 

 in different years, say x and y, the following equation ought to hold 

 approximately : — 



Tonnage in year y Corrected value in year y 



Tonnage in year x Corrected value in year x' 



where * corrected value ' is used as a short title for the figure which is 

 obtained by reducing the total value for each year to a standard or normal 

 level. In other words, 



Tonnage in year y 

 Tonnage in year x 

 _ Quantity of a in y x normal price of g + quantity of b in ?/ x normal price of & + &c. 

 Quantity of a in. x x normal price ot a + quantity ot b in x x normal price of b + &c. - 

 Now, ' tonnage ' is the measure of a ship's capacity for cargo. Ton- 

 nage is, or is proportioned to, the cubical capacity of that part of a ship 

 which is available for cargo. ^ Accordingly the first step towards esta- 



' Given in the Statistical Abstract. 



- Accordingly Sir Rawson Rawson's priority is not affected by Drobisch's sugges- 

 tion (noticed in the former Memorandum) to put the number of tons or hundred- 

 weights in the total mass of commodities as the measure of their volume. Mutatis 

 mutandis, the tests here applied to Sir Rawson's method are applicable to that of 

 Drobisch. The validity of the latter is confirmed by the statistics of the German 

 foreign trade for 1885 and 188G, which have recently been published by the Board 

 of Trade, along with an estimate of the change in volume between 1885 and 

 ISSG, based upon the method emploj'ed in Mr. Giffcn's Table IV. {Pari. Papers, 1888, 

 c. 5507). The 'quantities' of the German exports and imports are all expressed ia 

 (German) tons, so that Drobisch's method is readilj' applicable. The following tables 

 exhibit the results of that method in contrast with the theoretically more perfect 

 computation. The results are expressed as Index-numbers for the volume and the 

 level of prices in 188G as compared with 1885. The imports and exports of the 

 precious metals have not been included in the data : — 



This complete consilience affords an indirect verification of Sir Rawson Rawson's 



