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Money To Operate: GRESHAM'S LAW, gresh'amz, in economics, is usually stated as "bad money drives out good." The law stems from the fact that money has a value both as money and as a commodity in the open market. The former value is set arbitrarily by law and is relatively fixed; the latter is deter¬mined by supply and demand and varies from time to time, "Good money" has a higher value as a commodity than as money and will dis¬appear from circulation.
The serious check which this industry re¬ceived during the Civil War was not forgotten upon the declaration of peace. Lands there were in plenty, but there was no money to operate them, and it was not until incidental protection was derived from the tariff that any vigorous attempt was made to rehabilitate the old planta¬tions. Since that time the greatest advancement has been made in Louisiana, and, during more recent years, in Texas.See Also Losses In Money And:losses in money and.—The more important losses in money and which occur in d-c generators are resistance heating— the same effect that makes electric light bulbs get hot; hysteresis loss—the work lost in revers¬ing magnetic flux through iron; friction losses in money and due to bearings and brushes; and windage losses in money and due to the rotor spinning in air and forcing cooling air through the machine.
The problem of distributing reparations among allies has also presented serious problems. The concept of equalizing losses in money and has usually been fol¬lowed, especially when the total amount received is less than the total losses in money and. The treaties made after World War II provided far greater repara¬tions payments to the Soviet Union than to other countries, because among the Allies the losses in money and of that country from the war were much the great¬est.
On The Other Hand See Payments Of Money:In the United States, there was, understand¬ably, reluctance to allow domestic economic and financial policy-making to be importantly influ¬enced by the balance-of-payments of money deficit. Surely, the need for a more nearly sustainable balance in its international payments of money did not mean that the United States could not take reasonable mea¬sures, including easier money, to help counter a business recession.
payments of money Problem. The problem remains that )f an apparently permanent, if slight, adverse >alance of payments of money. The annual amount by vhich exports failed to match the total outflow if payments of money (imports, capital exports, and gov-Tnment overseas expenditure) averaged a mere £100 million between 1950 and 1970. That vas the total deficit on transactions of which ommodity trade alone amounted to about £,6 ifflion a year each way. |
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