Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: gold as money should have, at any time, a less value than the same amount of gold as bullion, then all newly mined gold would be used in the arts and little or none corned, until gold in the arts was so plentiful and money so scarce as to make the values even again. Gold money, if full weight, might even be melted into bullion, if it were worth enough more in the latter use to pay for the trouble. Eventually, then, since, when the gold standard is in force, the value of money and the value of gold bullion tend to be the same, both depend upon the amount of gold mined relative to the use for it. The cost of production of gold, and, therefore, the number and richness of gold mines, is not without an influence, in the last analysis, on the level of prices, and on its reciprocal, the purchasing power of money.1 The Level of Prices and the Value of Money in One Country or Locality as Related to the Level of Prices and the Value of Money in Another Before concluding this chapter, something should be said regarding the relation of the quantity of money and prices in one locality or country to the quantity of money and prices in others.2 The subsidiary and credit money of one country is commonly not received in other countries. Gold or silver (at present, with the gold standard general, chiefly gold) is passed from one country to another in payment for goods or services or to redeem obligations.Between different countries, the gold passes only by weight, but since gold coin and bullion are related in all gold standard countries, the effect of the flow of gold from one country to another is to decrease, relatively, the quantity of money in the one and to increase it, relatively, in the other. Between parts of the same nation, all legal tender money, whether gold, silver, or paper,...