CONTENTS

OF

THE SECOND VOLUME.

BOOK III.

EXCHANGE. (Continued.)

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

..........

Page

3

5

∞

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

Demand and Supply.

§ 1. Value of Money, an ambiguous expression

11

2. The value of money depends, cæteris paribus, on its quantity 12

together with the rapidity of circulation

3.

.......

4. Explanations and limitations of this principle

17

19

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

23

2.

which is determined by the cost of production

26

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

ceding chapter

.............

28

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

§ 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

production

2. In what manner it assists production

3. Function of credit in economizing the use of money

5. Bills of exchange..

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. Pheno-
mena 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 powerful

with bank notes...........

7. 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 quantity,

is a matter of arbitrary regulation

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

might be safe, but not expedient

75

3. Examination of the doctrine that an inconvertible currency is

safe if representing actual property

4. of the doctrine that a convertible currency does not expand

with the increase of wealth

.........

Page

5.

of the doctrine that an increase of the currency promotes

industry

82

......

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

fraud on creditors

84

86

7. Examination of some pleas for committing this fraud

CHAPTER XIV. Of Excess of Supply.

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

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

power of purchase

3.

never does exceed the inclination to consume

4. Origin and explanation of the notion of general oversupply

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.

§ 1. Values of commodities which have a joint cost of production... 106

2. Values of the different kinds of agricultural produce

CHAPTER XVII. Of International Trade.

109

§ 1. Cost of Production not the regulator of international values ... 112

2. Interchange of commodities between distant places, deter-

mined by differences not in their absolute, but in their

comparative, cost of production

3. The direct benefits of commercé consist in increased efficiency

of the productive powers of the world

4.

114

117

- not in a vent for exports, nor in the gains of merchants

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

greater than the direct

CHAPTER XVIII. Of International Values.

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

international interchange

120

123

2.

- which depend on the Equation of International Demand 125

...

3. Influence of cost of carriage on international values..................

4. The law of values which holds between two countries, and two

commodities, holds of any greater number ....

........

Fage

130

......

131

135

5. Effect of improvements in production, on international values
6. The cost to a country of its imports, on what circumstances
dependent..........

CHAPTER XIX. Of Money, considered as an

Imported Commodity.

§ 1. Money imported in two modes; as a commodity, and as a

medium of exchange

140

143

2. As a commodity, it obeys the same laws of value as other im-

ported commodities

144

...............

3. Its value does not depend exclusively on its cost of production

at the mines.......

147

CHAPTER XX. Of the Foreign Exchanges.

§ 1. Purposes for which money passes from country to country as

a medium of exchange

2. Mode of adjusting international payments through the ex-
changes.........

......

3. Distinction between variations in the exchanges which are self-
adjusting, and those which can only be rectified through
prices

149

149

155

CHAPTER XXI. Of the Distribution of the Precious Metals

through the Commercial World.

§ 1. The substitution of money for barter makes no difference in

exports and imports, nor in the law of international values 158

2. The preceding theorem further illustrated........

162

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

166

4. International payments not of a commercial character............ 168