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,

PAGE

46

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

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

tion, .

2. In what manner it assists production,

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

4. 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. 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,

2. If regulated by the price of bullion, an inconvertible cur-
rency might be safe, but not expedient,

3. Examination of the doctrine that an inconvertible currency
is safe if representing actual property,

888

91

93

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

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

6. 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

PAGE

96

99

100

105

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.

114

116

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

2. Values of the different kinds of agricultural produce,

CHAPTER XVII. Of International Trade.

123

§ 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,

3. The direct benefits of commerce consist in increased effi-
ciency of the productive powers of the world, .

4.

128

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,

CHAPTER XVIII. Of International Values.

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

international interchange,

134

137

2.

-

which depend on the Equation of International Demand,

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,

PAGE

139

144

145

149

153

5. Effect of improvements in production, on international

values,

The preceding theory not complete,

7. International values depend not solely on the quantities de-

manded, but also on the means of production available in

each country for the supply of foreign markets,

155

8. The practical result little affected by this additional element, 160

9. The cost to a country of its imports, on what circumstances

dependent,

163

CHAPTER XIX. Of Money, considered as an Imported

Commodity.

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

medium of exchange,

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

imported commodities,

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

tion at the mines,

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,.

166

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,

3. The precious metals, as money, are of the same value, and

distribute themselves according to the same law, with the

precious metals as a commodity,

4. International payments of a non-commercial character,

PAGE

189

•

191

CHAPTER XXII. Influence of Currency on the Exchanges

and on Foreign Trade.

§ 1. Variations in the exchange, which originate in the currency, 193

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

sudden creation of bank notes or other substitutes for

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,

194

199

203

205

208

210

213

3. Circumstances which determine the fluctuations,

4. The rate of interest not really connected with the value of

money, but often confounded with it,

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

securities, .

CHAPTER XXIV. Of the Regulation of a Convertible

Paper Currency.

§ 1. Two contrary theories respecting the influence of bank

issues,

2. Examination of each,

3. Reasons for thinking that the Currency Act of 1844 pro-

4.

duces a part of the beneficial effect intended by it,
but produces mischiefs more than equivalent,

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

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

manner against failure of payment?.

245

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,

3.

- when peculiar to certain branches of industry,

4. but not when common to all,

5. Some anomalous cases of trading communities examined,

PAGE

247

250

CHAPTER XXVI. Of Distribution, as affected by

Exchange.

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

CHAPTER I. General Characteristics of a Progressive

State of Wealth.

§ 1. Introductory Remarks,.

2. Tendency of the progress of society towards increased com-
mand over the powers of nature; increased security; and
increased capacity of co-operation,

272

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,

278

2.

except the products of agriculture and mining, which

have a tendency to rise,

280

3.

- that tendency from time to time counteracted by improve-

ments in production,

282

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

value,

283