in the theory of value and prices. 51 



changes in the valuation of money are of course subject to the con- 

 dition that each income measured in money remains the same. 



v. Depress all income stoppers proportionally, i. e. increase all 

 incomes in the same ratio. Then will all prices increase and the 

 valuation of money decrease exactly in this ratio. There will be 

 no change in the distribution of commodities. There is merely a 

 depreciated standard of money. Formerly the whole marketed 

 commodity was valued at a given number of dollars, now this 

 number is increased. 



We have seen under number 1, that an increase in the naoney 

 income of a single individual without an increase in commodities 

 is a benefit to him, but such an increase when universal is bene- 

 ficial to no one. 



8. Remove cistern I A and replace it with a shallower one, i. e. 

 suppose a change in the taste of I for A, making the article less 

 attractive. 



It is as if we raise the bottom of the original cistern lA. More 

 of A will flow to other consumers and more of I's money will flow 

 to the purchase of other commodities. A will fall in price, most 

 other articles will rise. I's valuation of money will fall. For those 

 who consume A extensively the valuation of money will fall. For 

 others it may rise. 



If all of the I cisterns grow shallower there will be a fall in the 

 valuation of money for I, but either prices will not change or their 

 changes must be compensatory, for the quantities of commodities 

 have not been altered nor their aggregate value. If all of the I row 

 cisterns change so as to admit of a uniform percentage shortening 

 of ordinates without any commodity flowing out of any cistern, no 

 commodity loill flow out, no prices will change and there will be 

 no change whatsoever in the distribution of commodities nor in the 

 valuation of money to other people. If one cistern shortens more 

 than this requirement, the effects will be analogous to those just 

 described for a single cistern. 



If all the cisterns of the A row are made shallower the price of 

 A will decrease.* That of other articles will in general increase. 

 In order that the distribution of commodities may not change, the 

 A cisterns must be so changed as to admit of a shortening of ordin- 



* Otherwise while the A ordinates shorten and their ratio to other ordinates 

 lessens, the back cisterns would have a relatively too great thickness compared 

 with the other thicknesses. 



