ABSTRACT
Goods remain the same while the money doubles, with the result that, other things equal, it requires two dollars to do the money-work formerly done by one. The operations of banks lead many to believe that an abundance of money makes interest low; they observe that when the banks have surplus funds they lower the rate in order to attract borrowers. It is advisable to keep in mind the distinction between net or true interest and gross interest. In order to set a number of principies in their true relationship, the example of the evaluation of a farm may be given. The farm and crops form the physical basis for the value problem. Capitalization is the process of determining the present money worth of durable sources of valuable Incomes. The purchase of a government or corporation bond may, with accuracy, be spoken of either as an "investment," or as a "money loan."
