Note 197-4 — Chapter VI

Compare J. Mill, Anfangsgründe der polit. Oekonomie, Jacob's translation, § 13 ff.; McCulloch, Principles, III, 6. Adam Smith was of opinion, that higher wages enhanced the price of commodities in an arithmetical ratio, a higher rate of interest in a geometrical one (I, ch. 9). Similarly Child, Discourse of Trade, 38. This last Kraus, Staatswirthschaft, better expresses by saying that an increase in the rate of interest operates in the ratio of the compounded interests.