The elements of social science, or, Physical, sexual, and natural religion : an exposition of the true cause and only cure of the three primary social evils: poverty, prostitution and celibacy / by a doctor of medicine.

Drysdale, George R., 1825-1904.

Date:: 1889

Credit: The elements of social science, or, Physical, sexual, and natural religion : an exposition of the true cause and only cure of the three primary social evils: poverty, prostitution and celibacy / by a doctor of medicine. Source: Wellcome Collection.

597/634 (page 573)

$nmi !:i t for .-.r. article of the same quality. But in the retnH iiwi.rkeJ : we all know thai there are, I'roquently two or more prices tor tiie s;ih!« article, not merely at iliflerout slioi)s, hut even in the snnie shop. Tlie reason is, that tiie law of demand and sujiply i.s couiilenu-ttil by other causes, such as the carelessness or ijfiiorance of the buyers, wliu do not take pains to learn tlie lowest iiric^e at which the article may he had. In all reasoninns about prices, says Mr. Mill, the proviso must be understood, supposmg all panics to take care of their interests. The cases to which the law of demand and supply is applicable, the following. In the first place, it determines the temporary, or as it is called ths market value, of all commodities wliatsoever. Secondly, it determines the permanent or natural value of those commodities the supply of which cannot be indefinitely increased. The quantity of some things (such as ancient statues, choice wines, &c.), is strictly limited by natural causes. Here the competition is wiiolly on the side of the buyers, and the value is termed a scarcity value. In other cases the limitation of the supply proceeds not from natural but artificial causes. This is the case with those articles which are the subject of a monopoly; such as tobacco in France, and salt and opium in British India. A monopolij is an exclusive privilege of furnishing the market with certain kinds of goods or services. By it the free action of competition is prevented, and the gains of a favored few are kept on a higher level than those of the rest of the community. It is often said that the value of monopolized articles is arbitrary, and depends wholly on the will of the sellers. This is in one sense true; but it is not the less true that the value depends on demand and supply. The monopolist can indeed fix the price for his goods at any amount short of the utmost that purchasers are v\ ii- ling to give; but he can only do so by limiting the supply. He can- not both sell his goods at a high price, and dispose of a large quantity of them. A monopoly value is therefore in reality a scarcity value; it is kept above its just level solely by limitation of the su])p!y; and the case forms no exception to the ordinary law of demand and supply. Thirdly, although but few commodities are permanently insuscep- tible of being increased at will, yet any commodity whatever may be temporarily in this condition. Such for example is habitually the case with agricultural produce. The supply of corn cannot be increased lill tlie next harvest, and during the whole interval the value is regu- lated by demand and supply. The quantity of some other things, such as houses, or gold and silver, is capable of being rapidly in- creased, but cannot be rapidly diminished. If the demand for these durable articles falls off, their value may continue for some time con- siderably below the cost of production; and wDl rise to the natural level only wlien, by the wearing out of the buildings, &c., the supply is no longer excessive. In this case also, the value may be for some length of time governed by demand and supply. Fourthly, there arc some commodities of waich, though susceptible$