XI. NOMINAL PRICES.

 Do you desire to be in a situation to decide between liberty and protection? Do you desire to appreciate the bearing of an economic phenomenon? Inquire into its effects upon the abundance or scarcity¹ of commodities, and not upon the rise or fall of prices. Distrust nominal² prices;* and they will only land you in an inextricable labyrinth³.

* I have translated the expression des prix absolus, nominal

prices, or actual money prices, because the English

economists⁴ do not, so far as I remember, make use of the

term absolute price.—See post, chap. v. of second series,

where the author employs the expression in this sense.—

Translator.

M. Matthieu de Dombasle, after having shown that protection raises prices, adds—

"The enhancement of price increases the expense of living, and consequently the price of labour, and each man receives, in the enhanced price of his products, compensation for the higher prices he has been obliged to pay for the things he has occasion to buy. Thus, if every one pays more as a consumer, every one receives more as a producer."

It is evident that we could reverse this argument, and say—"If every one receives more as a producer, every one pays more as a consumer."

Now, what does this prove? Nothing but this, that protection displaces wealth uselessly and unjustly. In so far, it simply perpetrates spoliation.

Again, to conclude that this vast apparatus⁵ leads to simple compensations, we must stick to the "consequently" of M. de Dombasle, and make sure that the price of labour will not fail to rise with the price of the protected products. This is a question of fact which I remit⁶ to M. Moreau de Jonnes, that he may take the trouble to find out whether the rate of wages advances along with the price of shares in the coal-mines of Anzin. For my own part, I do not believe that it does; because, in my opinion, the price of labour, like the price of everything else, is governed by the relation of supply to demand. Now, I am convinced that restriction⁷ diminishes the supply of coal, and consequently enhances its price; but I do not see so clearly that it increases the demand for labour, so as to enhance the rate of wages; and that this effect should be produced is all the less likely, because the quantity of labour demanded depends on the disposable capital. Now, protection may indeed displace capital, and cause its transference from one employment to another, but it can never increase it by a single farthing.

But this question, which is one of the greatest interest and importance, will be examined in another place.* I return to the subject of nominal price; and I maintain that it is not one of those absurdities⁸ which can be rendered specious⁹ by such reasonings as those of M. de Dombasle.

Put the case of a nation which is isolated¹⁰, and possesses a given amount of specie, and which chooses to amuse itself by burning each year one half of all the commodities that it possesses. I undertake to prove that, according to the theory of M. de Dombasle, it will not be less rich.

In fact, in consequence of the fire, all things will be doubled in price, and the inventories¹¹ of property, made before and after the destruction, will show exactly the same nominal value. But then what will the country in question have lost? If John buys his cloth dearer, he also sells his corn at a higher price; and if Peter loses on his purchase of corn, he retrieves¹² his losses by the sale of his cloth. "Each recovers, in the extra price of his products, the extra expense of living he has been put to; and if everybody pays as a consumer, everybody receives a corresponding amount as a producer."

All this is a jingling¹³ quibble, and not science. The truth, in plain terms, is this: that men consume cloth and corn by fire or by using them, and that the effect is the same as regards price, but not as regards wealth, for it is precisely¹⁴ in the use of commodities that wealth or material prosperity consists.

In the same way, restriction, while diminishing the abundance of things, may raise their price to such an extent that each party shall be, pecuniarily¹⁵ speaking, as rich as before. But to set down in an inventory¹⁶ three measures of corn at 20s., or four measures at 15s., because the result is still sixty shillings,—would this, I ask, come to the same thing with reference to the satisfaction of men's wants?

It is to this, the consumer's point of view, that I shall never cease to recall the protectionists, for this is the end and design of all our efforts, and the solution of all problems.**

* See post, ch. v., second series.—Translator.

 

** To this view of the subject the author frequently

reverts¹⁷. It was, in his eyes, all important; and, four days

before his death, he dictated¹⁸ this recommendation:—"Tell M.

de F. to treat economical questions always from the

consumer's point of view, for the interest of the consumer

is identical with that of the human race."—Editor.

I shall never cease to say to them: Is it, or is it not, true that restriction, by impeding¹⁹ exchanges, by limiting the division of labour, by forcing labour to connect itself with difficulties of climate and situation, diminishes ultimately the quantity of commodities produced by a determinate amount of efforts? And what does this signify, it will be said, if the smaller quantity produced under the regime of protection has the same nominal value as that produced under the regime of liberty? The answer is obvious. Man does not live upon nominal values, but upon real products, and the more products there are, whatever be their price, the richer he is.

In writing what precedes, I never expected to meet with an anti-economist who was enough of a logician²⁰ to admit, in so many words, that the wealth of nations depends on the value of things, apart from the consideration of their abundance. But here is what I find in the work of M. de Saint-Chamans (p. 210):—

"If fifteen millions' worth of commodities, sold to foreigners, are taken from the total production, estimated at fifty millions, the thirty-five millions' worth of commodities remaining, not being sufficient to meet the ordinary demand, will increase in price, and rise to the value of fifty millions. In that case the revenue of the country will represent a value of fifteen millions additional.... There would then be an increase of the wealth of the country to the extent of fifteen millions, exactly the amount of specie imported."

This is a pleasant view of the matter! If a nation produces in one year, from its agriculture and commerce, a value of fifty millions, it has only to sell a quarter of it to the foreigner to be a quarter richer! Then if it sells the half, it will be one-half richer! And if it should sell the whole, to its last tuft of wool and its last grain of wheat, it would bring up its revenue to 100 millions. Singular way of getting rich, by producing infinite dearness by absolute scarcity!

Again, would you judge of the two doctrines²¹? Submit them to the test of exaggeration.

According to the doctrine²² of M. de Saint-Chamans, the French would be quite as rich—that is to say, quite as well supplied with all things—had they only a thousandth part of their annual products, because they would be worth a thousand times more.

According to our doctrine, the French would be infinitely²³ rich if their annual products were infinitely abundant, and, consequently, without any value at all. 

1 scarcity   

n.缺乏，不足，萧条

参考例句：

• The scarcity of skilled workers is worrying the government.熟练工人的缺乏困扰着政府。
• The scarcity of fruit was caused by the drought.水果供不应求是由于干旱造成的。

2 nominal   

adj.名义上的；(金额、租金)微不足道的

参考例句：

• The king was only the nominal head of the state. 国王只是这个国家名义上的元首。
• The charge of the box lunch was nominal.午餐盒饭收费很少。

3 labyrinth   

n.迷宫；难解的事物；迷路

参考例句：

• He wandered through the labyrinth of the alleyways.他在迷宫似的小巷中闲逛。
• The human mind is a labyrinth.人的心灵是一座迷宫。

4 economists   

n.经济学家，经济专家( economist的名词复数 )

参考例句：

• The sudden rise in share prices has confounded economists. 股价的突然上涨使经济学家大惑不解。
• Foreign bankers and economists cautiously welcomed the minister's initiative. 外国银行家和经济学家对部长的倡议反应谨慎。 来自《简明英汉词典》

5 apparatus   

n.装置，器械；器具，设备

参考例句：

• The school's audio apparatus includes films and records.学校的视听设备包括放映机和录音机。
• They had a very refined apparatus.他们有一套非常精良的设备。

6 remit   

v.汇款，汇寄；豁免（债务），免除（处罚等）

参考例句：

• I hope you'll remit me the money in time.我希望你能及时把钱汇寄给我。
• Many immigrants regularly remit money to their families.许多移民定期给他们的家人汇款。

7 restriction   

n.限制，约束

参考例句：

• The park is open to the public without restriction.这个公园对公众开放，没有任何限制。
• The 30 mph speed restriction applies in all built-up areas.每小时限速30英里适用于所有建筑物聚集区。

8 absurdities   

n.极端无理性( absurdity的名词复数 )；荒谬；谬论；荒谬的行为

参考例句：

• She has a sharp eye for social absurdities, and compassion for the victims of social change. 她独具慧眼，能够看到社会上荒唐的事情，对于社会变革的受害者寄以同情。 来自辞典例句
• The absurdities he uttered at the dinner party landed his wife in an awkward situation. 他在宴会上讲的荒唐话使他太太陷入窘境。 来自辞典例句

9 specious   

adj.似是而非的；adv.似是而非地

参考例句：

• Such talk is actually specious and groundless.这些话实际上毫无根据，似是而非的。
• It is unlikely that the Duke was convinced by such specious arguments.公爵不太可能相信这种似是而非的论点。

10 isolated   

adj.与世隔绝的

参考例句：

• His bad behaviour was just an isolated incident. 他的不良行为只是个别事件。
• Patients with the disease should be isolated. 这种病的患者应予以隔离。

11 inventories   

n.总结( inventory的名词复数 )；细账；存货清单（或财产目录）的编制

参考例句：

• In other cases, such as inventories, inputs and outputs are both continuous. 在另一些情况下，比如存货，其投入和产出都是持续不断的。
• The store must clear its winter inventories by April 1st. 该店必须在4月1日前售清冬季存货。

12 retrieves   

v.取回( retrieve的第三人称单数 )；恢复；寻回；检索（储存的信息）

参考例句：

• The mole comes in later, retrieves the item and packs it back in his gear. 鼹鼠随后到达，找回东西然后用他的传送装置返回。 来自电影对白
• Retrieves the pitch of the current image, in bytes. 得到代表目前图像斜度的字节数。 来自互联网

13 jingling   

叮当声

参考例句：

• A carriage went jingling by with some reclining figure in it. 一辆马车叮当驶过，车上斜倚着一个人。 来自英汉文学 - 嘉莉妹妹
• Melanie did not seem to know, or care, that life was riding by with jingling spurs. 媚兰好像并不知道，或者不关心，生活正马刺丁当地一路驶过去了呢。

14 precisely   

adv.恰好，正好，精确地，细致地

参考例句：

• It's precisely that sort of slick sales-talk that I mistrust.我不相信的正是那种油腔滑调的推销宣传。
• The man adjusted very precisely.那个人调得很准。

15 pecuniarily   

adv.在金钱上，在金钱方面

参考例句：

16 inventory   

n.详细目录，存货清单

参考例句：

• Some stores inventory their stock once a week.有些商店每周清点存货一次。
• We will need to call on our supplier to get more inventory.我们必须请供应商送来更多存货。

17 reverts   

恢复( revert的第三人称单数 )； 重提； 回到…上； 归还

参考例句：

• The mind reverts to the earliest days of colonial history. 我们回想到早期的殖民地历史。
• Macau reverts to Chinese sovereignty at midnight on December19. 澳门主权于十二月十九日零时回归中国。

18 dictated   

v.大声讲或读( dictate的过去式和过去分词 )；口授；支配；摆布

参考例句：

• He dictated a letter to his secretary. 他向秘书口授信稿。
• No person of a strong character likes to be dictated to. 没有一个个性强的人愿受人使唤。 来自《简明英汉词典》

19 impeding   

a.(尤指坏事)即将发生的，临近的

参考例句：

• Fallen rock is impeding the progress of rescue workers. 坠落的石头阻滞了救援人员的救援进程。
• Is there sufficient room for the kiosk and kiosk traffic without impeding other user traffic? 该环境下是否有足够的空间来摆放信息亭？信息亭是否会妨碍交通或者行走？ 来自About Face 3交互设计精髓

20 logician   

n.逻辑学家

参考例句：

• Mister Wu Feibai is a famous Mohist and logician in Chinese modern and contemporary history. 伍非百先生是中国近、现代著名的墨学家和逻辑学家。 来自互联网

21 doctrines   

n.教条( doctrine的名词复数 )；教义；学说；（政府政策的）正式声明

参考例句：

• To modern eyes, such doctrines appear harsh, even cruel. 从现代的角度看，这样的教义显得苛刻，甚至残酷。 来自《简明英汉词典》
• His doctrines have seduced many into error. 他的学说把许多人诱入歧途。 来自《现代汉英综合大词典》

22 doctrine   

n.教义；主义；学说

参考例句：

• He was impelled to proclaim his doctrine.他不得不宣扬他的教义。
• The council met to consider changes to doctrine.宗教议会开会考虑更改教义。

23 infinitely   

adv.无限地，无穷地

参考例句：

• There is an infinitely bright future ahead of us.我们有无限光明的前途。
• The universe is infinitely large.宇宙是无限大的。