The Rationale of Market Fluctuations (Paperback)

This historic book may have numerous typos, missing text or index. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. 1879. Not illustrated. Excerpt: ... CHAPTER VII. MANUFACTURES. The meaning of the term "state of trade " in England--Trade cycles-- Fluctuations in prices. Much mention has already been made here of the state of trade generally. On analysing that rather vague term it will be found to mean the degree of activity or depression in our manufacturing districts, for England's trade is chiefly a manufacturing one. We bring in raw produce from all parts of the earth, we work it up for our own use, and also re-export it in the form of manufactures to almost every nook and corner accessible by sea or land. It would be wearisome, because inefficiently done, to lay down laws for the fluctuations in the market price of manufactured goods; it would require minute investigations into the cost of special materials, into changing fashions, and into details of manufacture. I cannot here attempt to trace the course of such undercurrents, but it can be shown that here is a broad swing in prices which seems to belong to them naturally, and there are various great accidents, such as war, famine, discredit, &c, to which the market values of our manufactures respond. There are waves in price in a normal state of trade; with singular unanimity prices go up in all our markets, and their fall is as unanimous and more striking. The term inflation pictures better than any other the nature of these general upward movements, for prices become gradually blown out to unnatural dimensions, only to shrink and shrivel when the unsubstantial trade bubbles burst. There is nearly always a speculative fermentation going on in trade which causes the inflation of prices; manufactures are bought at one price with a view of selling them at a higher, and when prices once begin to rise this speculative market-dabbling leads to a further and f...