§ 3. The precious metals, as money, are of the same value, and dis
tribute themselves according to the same law, with the precious
metals as a commodity

4. International payments of a non-commercial character

PAGE

379

379

CHAPTER XXII. Influence of Currency on the Exchanges and
on Foreign Trade.

§ 1. Variations in the exchange, which originate in the currency

2. Effect of a sudden increase of a metallic currency, or of the sudden

creation of bank notes or other substitutes for money

3. Effect of the increase of an inconvertible paper currency. Real

and nominal exchange

CHAPTER XXIII. Of the Rate of Interest.

§ 1. The rate of interest depends on the demand and supply of loans

2. Circumstances which determine the permanent demand and supply

of loans

3. Circumstances which determine the fluctuations

4. The rate of interest, how far, and in what sense, connected with

the value of money

5. The rate of interest determines the price of land and of securities.

CHAPTER XXIV. Of the Regulation of a Convertible

Paper Currency.

380

381

384

385

386

388

390

393

§ 1. Two contrary theories respecting the influence of bank issues

2. Examination of each.

394

395

3. Reasons for thinking that the Currency Act of 1844 produces a

part of the beneficial effect intended by it.

397

4.

but produces mischiefs more than equivalent

400

5. Should the issue of bank notes be confined to a single esta-

blishment?

408

6. Should the holders of notes be protected in any peculiar manner

against failure of payment?.

409

CHAPTER XXV.

Of the Competition of different Countries

in the same Market.

§ 1. Causes which enable one country to undersell another

2. Low wages one of those causes

CHAPTER XXVI. Of Distribution, as affected by Exchange.

410

411

412

414

414

§ 1. Exchange and Money make no difference in the law of wages

BOOK IV.

INFLUENCE OF THE PROGRESS OF SOCIETY ON
PRODUCTION AND DISTRIBUTION.

CHAPTER I. General Characteristics of a Progressive State

of Wealth.

$ 1. Introductory Remarks

2. Tendency of the progress of society towards increased command

over the powers of nature; increased security; and increased

capacity of co-operation

CHAPTER II. Influence of the Progress of Industry and

Population on Values and Prices.

§ 1. Tendency to a decline of the value and cost of production of all

commodities

-

except the products of agriculture and mining, which have a

tendency to rise

that tendency from time to time counteracted by improvements

in production

PAGR

421

421

424

425

426

427

428

4. Effect of the progress of society in moderating fluctuations of value

5. Examination of the influence of speculators, and in particular of

corn dealers.

CHAPTER III. Influence of the Progress of Industry and

Population on Rents, Profits, and Wages.

§ 1. First case; population increasing, capital stationary

2. Second case; capital increasing, population stationary

430

432

3. Third case; population and capital increasing equally, the arts of

production stationary.

433

4. Fourth case; the arts of production progressive, capital and popu-

lation stationary

433

5. Fifth case; all the three elements progressive

437

CHAPTER IV. Of the Tendency of Profits to a Minimum.

§ 1. Doctrine of Adam Smith on the competition of capital

2. Doctrine of Mr. Wakefield respecting the field of employment

3. What determines the minimum rate of profit

439

440

441

4. In opulent countries, profits habitually near to the minimum

- prevented from reaching it by commercial revulsions

- by improvements in production

443

444

445

- by the importation of cheap necessaries and instruments

- by the emigration of capital

446

447

CHAPTER V. Consequences of the Tendency of Profits to

a Minimum.

§ 1. Abstraction of capital not necessarily a national loss

2. In opulent countries, the extension of machinery not detrimental

but beneficial to labourers

CHAPTER VI. Of the Stationary State.

§ 1. Stationary state of wealth and population, dreaded and deprecated

by writers

2.

- but not in itself undesirable

CHAPTER VII. On the Probable Futurity of the Labouring

Classes.

§ 1. The theory of dependence and protection no longer applicable to

the condition of modern society

2. The future well-being of the labouring classes principally dependent

on their own mental cultivation

455

458

3. Probable effects of improved intelligence in causing a better

adjustment of population-Would be promoted by the social

independence of women

459

4. Tendency of society towards the disuse of the relation of hiring

and service

459

5. Examples of the association of labourers with capitalists.

461

6.

465

476

of the association of labourers among themselves

7. Competition not pernicious, but useful and indispensable.

BOOK V.

ON THE INFLUENCE OF GOVERNMENT.

CHAPTER I. Of the Functions of Government in general.

§ 1. Necessary and optional functions of government distinguished .

2. Multifarious character of the necessary functions of government

3. Division of the subject

CHAPTER II. Of the General Principles of Taxation.

§ 1. Four fundamental rules of taxation.

479

480

482

483

2. Grounds of the principle of Equality of Taxation

3. Should the same percentage be levied on all amounts of income?

4. Should the same percentage be levied on perpetual and on termi-

nable incomes? .

484

485

488

6. A land tax, in some cases, not taxation, but a rent-charge in favour

of the public.

5. The increase of the rent of land from natural causes a fit subject of

peculiar taxation

492

493

7. Taxes falling on capital, not necessarily objectionable

494

CHAPTER III. Of Direct Taxes.

§ 1. Direct taxes either on income or on expenditure

2. Taxes on rent.

CHAPTER IV. Of Taxes on Commodities.

§ 1. A Tax on all Commodities would fall on profits.

2. Taxes on particular commodities fall on the consumer.

3. Peculiar effects of taxes on necessaries.

4.-

PAGH

495

496

496

498

499

501

504

505

506

507

6. Effects produced on international exchange by duties on exports

and on imports

510

512

- how modified by the tendency of profits to a minimum
5. Effects of discriminating duties

CHAPTER VIII.

§ 1. Is it desirable to defray extraordinary public expenses by loans? .

2. Not desirable to redeem a national debt by a general contribution

3. In what cases desirable to maintain a surplus revenue for the

redemption of debt

Of the Ordinary Functions of Government,

considered as to their Economical Effects.

§ 1. Effects of imperfect security of person and property

531

2. Effects of over-taxation .

532

3. Effects of imperfection in the system of the laws, and in the admi-

nistration of justice

CHAPTER X. Of Interferences of Government grounded on

Erroneous Theories.

540

541

542

545

548

CHAPTER XI. Of the Grounds and Limits of the Laisser-faire

or Non-Interference Principle.

§ 1. Governmental intervention distinguished into authoritative and

unauthoritative .

2. Objections to government intervention--the compulsory character

of the intervention itself, or of the levy of funds to support it.

increase of the power and influence of government.

3.

567

568

570

4.

5.

- increase of the occupations and responsibilities of government

- superior efficiency of private agency, owing to stronger interest

in the work

570

571

6.

-

- importance of cultivating habits of collective action in the

people.

572

7. Laisser faire the general rule.

573

8.

-

but liable to large exceptions. Cases in which the consumer is

an incompetent judge of the commodity. Education

575

9. Case of persons exercising power over others. Protection of chil-

dren and young persons; of the lower animals. Case of women

not analogous

10. Case of contracts in perpetuity

577

579

11. Cases of delegated management

12. Cases in which public intervention may be necessary to give effect

to the wishes of the persons interested. Examples: hours of

labour; disposal of colonial lands.

13. Case of acts done for the benefit of others than the persons con-

cerned. Poor Laws

16. Government intervention may be necessary in default of private

agency, in cases where private agency would be more suitable . 590

583

585

589