: HB
PRINCIPLES 161

M6

1884
şikayet ve Cevighest V.2

- COPY A
POLITICAL ECONOMY

OF

WITLI

SOME OF THEIR APPLICATIONS TO SOCIAL PHILOSOPHY,

BY

JOHN STUART MILL.

IN TWO VOLUMES.

VOL. II.

FROM THE FIFTH LONDON EDITION.

2 NEW YORK :
D. APPLETON AND COMPANY,
1 1, 3, AND Ď BOND STREET.

1884.

"Hivi

Ć; prí : MARYARD UNIVERSITY GRADUATE ECONOMIC LIBRARY

CONTENTS

OF THE SECOND VOLUME.

BOOK III.

EXCHANGE.-(Continued.)

PAGE

CHAPTER VII. Of Money.

§ 1. Purposes of a Circulating Medium, . . . . .

2. Gold and Silver, why fitted for those purposes, . . .

3. Money a mere contrivance for facilitating exchanges, which

does not affect the laws of Value, . . . . .

CHAPTER VIII. Of the Value of Money, as dependent on

Demand and Supply.

§ 1. Value of Money, an ambiguous expression, . .

2. The Value of Money depends, cæteris paribus, on its quantity,

3. — together with the rapidity of circulation, . . . 31

4. Explanations and limitations of this principle, . . . 33

CHAPTER IX. Of the Value of Money, as dependent on

Cost of Production.

§ 1. The Value of money, in a state of freedom, conforms to the

value of the bullion contained in it, . . . . . 37

2. — which is determined by the cost of production, . . 40

3. This law, how related to the principle laid down in the pre-

ceding chapter, . . . . . . . . 42

CHAPTER X. Of a Double Standard, and Subsidiary Coins.

PAGE

46

§ 1. Objections to a double standard, . . . . . .

2. The use of the two metals as money, how obtained without

making both of them legal tender, . . . . .

CHAPTER XI. Of Credit, as a Substitute for Money.

§ 1. Credit not a creation but a transfer of the means of produc-

tion, . . . . . . . . . . . 50

2. In what manner it assists production, . . . . .

3. Function of credit in economizing the use of money, . .

í 4. Bills of exchange,

. . . . . 55

5. Promissory notes, . . . .

6. Deposits and cheques, . . . . . . . .

.

CHAPTER XII. Influence of Credit on Prices.

§ 1. The influence of bank notes, bills, and cheques, on price, a

part of the influence of Credit, . . . . . .

2. Credit a purchasing power similar to money, . . .
3. Effects of great extensions and contractions of credit. Phe-

nomena of a commercial crisis analyzed, . . . .
4. Bills a more powerful instrument for acting on prices than

book credits, and bank notes than bills, . .

5. — the distinction of little practical importance, .

6. Cheques an instrument for acting on prices, equally power-

ful with bank notes, . . . . . . . .

7. Are bank notes money ? . . . . . . .

8. No generic distinction between bank notes and other forms

of credit, . . . . . . . . . .

CHAPTER XIII. Of an Inconvertible Paper Currency.

1. The value of an inconvertible paper, depending on its quan-

tity, is a matter of arbitrary regulation, . . . i 88

2. If regulated by the price of bullion, an inconvertible cur-

rency might be safe, but not expedient, . . . . 91

3. Examination of the doctrine that an inconvertible cărrency

is safe if representing actual property, . . . . 93

PAGE

4. - of the doctrine that an increase of the currency promotes

industry, . . . . . . . . . . . 96

5. Depreciation of currency a tax on the community, and a

fraud on creditors, . . . . . .

6. Examination of some pleas for committing this fraud, . . 100

CHAPTER XIV. Of Excess of Supply.

§ 1. Can there be an oversupply of commodities generally?. . 105

2. The supply of commodities in general, cannot exceed the

power of purchase, . . . . . . . . 107

3. – never does exceed the inclination to consume, . . 108

4. Origin and explanation of the notion of general oversupply,. 110

CHAPTER XV. Of a Measure of Value.

§ 1. A Measure of Exchange Value, in what sense possible,

2. A Measure of Cost of Production, . . . .

CHAPTER XVI. Of some Peculiar Cases of Value.

ini § 1. Values of commodities which have a joint cost of production, 120

2. Values of the different kinds of agricultural produce, . . 123

CHAPTER XVII. Of International Trade.

1. Cost of production not the regulator of international values, 126

2. Interchange of commodities between distant places, deter-

mined by differences not in their absolute, but in their

comparative, cost of production, . . . . . 128

3. The direct benefits of commerce consist in increased effi-

ciency of the productive powers of the world, . . . 131

4. — not in a vent for exports, nor in the gains of merchants, . 132

5. Indirect benefits of commerce, economical and moral; still

greater than the direct, . . . . . . . 134

Hot

CHAPTER XVIII. Of International Values.

$ 1. The values of imported commodities depend on the terms of

international interchange, . .

. . 137