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?©d?©ric, 1801-1850

"Essays on Political Economy"

It would seem
that we ought to say,--"This Napoleon, which _was worth_ twenty francs,
_is now worth_ forty." Now, do you know how this is expressed? Just as
if it was the other objects of comparison which had fallen in price, it
is said,--"Corn, which _was worth_ twenty francs, _is now only worth_
ten."
B. It all comes to the same thing in the end.
F. No doubt; but only think what disturbances, what cheatings are
produced in exchanges, when the value of the medium varies, without our
becoming aware of it by a change in the name. Old pieces are issued, or
notes bearing the name of twenty _francs_, and which will bear that name
through every subsequent depreciation. The value will be reduced a
quarter, a half, but they will still be called _pieces_ or _notes of
twenty francs_. Clever persons will take care not to part with their
goods unless for a larger number of notes--in other words, they will ask
forty francs for what they would formerly have sold for twenty; but
simple persons will be taken in. Many years must pass before all the
values will find their proper level. Under the influence of ignorance
and _custom_, the day's pay of a country labourer will remain for a
long time at a franc, while the saleable price of all the articles of
consumption around him will be rising. He will sink into destitution
without being able to discover the cause.


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