The Common Sense of Political Economy
Book I, Chapter II
6. On the nature of this assumption of a regular and easily discernible law, see Book II. pages 464 sqq. The values dealt with in the text may be obtained by integration from the function x2/2 -7x + 79/3.
Book I, Chapter III
Book I, Chapter IV
Book I, Chapter V
Book I, Chapter VI
Book I, Chapter VII
Book I, Chapter VIII
33. It should be noted that the supposition we have made does not necessarily imply that the material product of the two men is less than double that of one alone. One man might be able to bottle ten gallons of mineral water per hour and the two together thirty, but the marginal value of the water when issued at the rate of thirty gallons an hour might be only half what it would be if issued at the rate of ten, and thirty halves are fifteen; so that while the issue was trebled by the combination of the two men, the earnings might only be increased by one half. Compare further Book II. Chap. V. pages 546 sqq.
Book I, Chapter IX
41. In 1894 I published (London, Macmillan and Co.) a short mathematical treatise entitled An Essay on the Co-ordination of the Laws of Distribution. In paragraph 6 I made a premature attempt to solve the general problem of distribution, which was at once pronounced by Professor Flux to be worthy of attention, rather on account of its presentation of the problem than on account of the solution offered; and Professors Edgeworth and Pareto subsequently shewed that the solution itself was erroneous. This paragraph of the Essay, therefore, must be regarded as formally withdrawn, and the solution now offered in the text must take its place.
Book II, Chapter I
Book II, Chapter II
15. This analytical proof is, strictly speaking, unnecessary; for since we have ah = aeok and ks = kogd, we have also aegd = ah + ks = ac; and this involves the equality of bef and fgc. But the proof by substitutions may probably be found the more enlightening.
Book II, Chapter III
Book II, Chapter IV
35. I have preserved the convention by which the "demand" curve is made to run down and the "supply" curve to run up, from left to right. Of course it has no significance and might just as well be neglected or reversed.
39. It is necessary, however, to note that in thus reversing our original l curve we have assumed a stability in our psychic unit on the axis of Y that was not granted in our first construction of the figure. The ordinates of the p and l curves for any abscissa were determined with reference to each other, at that point, and consequently our ordinate of 7 for the l curve, when the abscissa is 13, means that irksomeness of effort (or desire for its cessation) at that point is seven times as great as the advantage accruing from labour at that point. It does not follow that it is just equal to the advantage accruing at the abscissa 7, unless we can be sure that the psychic value of the unit remains stable for p throughout its course; and we have seen (pages 469 sqq.) the extreme difficulty of securing even a fair approximation to such stability in far simpler cases than this. If we retain the form of the p curve, and reversing the l curve relate each ordinate to the now corresponding ordinate of p, we may get a different form of the curve, representing the same relations and the same psychic values. But the point at which the two ordinates are equal to each other must obviously be the same.
Book II, Chapter V
Book II, Chapter VI
47. It is of course admitted and understood that such minuteness of estimate takes us absolutely away from all contact with practical business or practical possibilities. It is adopted merely for graphic purposes and to illustrate the principles involved in the current expositions.
49. As a matter of fact the assumed data throughout conform to the formula, crop = 2.248x2e-(7/180)x, in which x stands for the number of "hours" put in per annum per 40 land-units. The corresponding formulæ for the pair of curves on Fig. 41(a), page 566, will naturally be 2.248xe-(7/180)x for the curve containing the rectangle, and 2.248[2 - (7/180)x]xe-(7/180)x for the curve the integral of which equals the rectangle.
Book II, Chapter VII
51. Notes that are at a discount, and will not discharge gold debts to their face value, in their own country, will of course be at a discount elsewhere too, independently of the balance of indebtedness.
52. As I believe that the line of investigation here pursued is somewhat novel, and as I have no technical knowledge of minting or of the gold market, the whole of this section should be regarded as a tentative suggestion rather than a dogmatic exposition. My reason for giving it at all is that I believe the usual treatment of the subject to be theoretically unsound (cf. pages 610 sqq.), and therefore it seemed desirable to attempt a fresh analysis.
58. This is only a particular case of the general phenomenon which is defined under "Gresham's law" as the tendency of bad money to drive out good. This is not really a special law affecting the currency. It is merely a special application of the general principle that if S1 and S2 are units of two specified commodities (in this case heavy and light sovereigns) which are equally capable of serving the purposes of A (who cannot indeed distinguish between them), whereas S1 will serve certain purposes of B (who can distinguish between them) better than S2 will, there will be a tendency, as they pass in exchange, for B to "secrete" the S1's for his own special purposes and pass on the S2's to A. Or in more general terms, if S1 will serve some purposes as well as S2 and other purposes better, there will be a tendency to assign S1 to those purposes which it can serve better than S2 rather than to those it can only serve as well. A light sovereign (within the limits of legal tender weight) will serve the purposes of the ordinary citizen as well as a heavy one, but the latter will serve the technical purposes of the jewellers best.
Book III, Chapter I
59. The only theoretical reservation is that any individual gambler may stop short (if only because he dies) before the run has been long enough to absorb all his gains. But it is a mistake to think that there must come a moment in the career of every gambler at which, if he were wise enough to stop, he would be a winner on his whole transactions. It is probable but not certain that there may be such a moment, or such moments, early in his experience; but the longer he goes on the less likely is it that he can ever stop as a winner on the whole body of his transactions since he began.
73. The salaries of the Indian officials, pensions and all, are surely not higher than the market value of the talent and fidelity which they exercise at their posts. So far as that goes, the justice and peace given her cannot presumably be purchased on any easier terms; but England might give them to India for less than they cost, instead of charging her the full price and then giving her doles when she is ruined.
Book III, Chapter II
Book III, Chapter III