The gold supply and prosperity . other-wise have obtained. Not as the result of the con-scious attempt of any individual or any attempt of anyindividual or any number of individuals to offset whatthey perceive to be a steady depreciation of the mone-tary standard, but as the unconscious working out ofhis own business problems by each business man, onthe one hand, and by money lending capitalists, on theother. The manufacturer finds that with rising priceshe not only wants to borrow more money but can payhigher interest therefor and still increase his marginof profit. The capitalist, on the oth
The gold supply and prosperity . other-wise have obtained. Not as the result of the con-scious attempt of any individual or any attempt of anyindividual or any number of individuals to offset whatthey perceive to be a steady depreciation of the mone-tary standard, but as the unconscious working out ofhis own business problems by each business man, onthe one hand, and by money lending capitalists, on theother. The manufacturer finds that with rising priceshe not only wants to borrow more money but can payhigher interest therefor and still increase his marginof profit. The capitalist, on the other hand, is ap-proached by an unusually large and promising numberof opportunities for investment bidding against eachother and thus increasing the interest rates. In view of all the considerations which have beensuggested, it does not seem too much to assert that thetendency of the increased production of gold, if it shallcontinue uninterruptedly for some years, will unques-tionably be in the direction of higher interest ROBERT GOODBODY More Gold Means Higher Time Moneyand Lower Bond Prices By Robert Goodbody THE problem of the effect of a change in the valueof gold as expressed in labor and commodities onthe rate of interest has attracted much attention oflate. Up to the last two or three years it was practicallyimpossible to interest business men, even bankers, init, and what thought and discussion there was on thesubject was confined to university professors andscientific economists. The ordinary business man,even when possessed of keen intelligence in his call-ing, argued (and often still argues), about as follows:Gold is money. If, because of more gold, gold fallsin value, money falls, and therefore the rate on money(i. e., interest) falls, too. For the ordinary man isaccustomed to use the expression money for therate of interest on money. It is a glaring example ofthe fallacy called by logicians ignoratio elenchi, forthe word money is used in two entirely differe
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