CHAPTER XI. Of Credit, as a Substitute for Money. § 1. Credit not a creation but a transfer of the means of produc- 51 53 55 60 61 CHAPTER XII. Influence of Credit on Prices. § 1. The influence of bank notes, bills, and cheques, on price, a 4. Bills a more powerful instrument for acting on prices than 5. the distinction of little practical importance, CHAPTER XIII. Of an Inconvertible Paper Currency. § 1. The value of an inconvertible paper, depending on its quan- 3. Examination of the doctrine that an inconvertible currency 2. If regulated by the price of bullion, an inconvertible cur- 88 93 CHAPTER XVI. Of some Peculiar Cases of Value. 1. Values of commodities which have a joint cost of production, 120 § 1. Cost of production not the regulator of international values, 126 2. Interchange of commodities between distant places, deter- 4. - 3. The direct benefits of commerce consist in increased effi- 137 - which depend on the Equation of International Demand, 3. Influence of cost of carriage on international values, 144 5. Effect of improvements in production, on international . The preceding theory not complete, 7. International values depend not solely on the quantities de- 8. The practical result little affected by this additional element, 160 9. The cost to a country of its imports, on what circumstances 2. Mode of adjusting international payments through the ex- 3. Distinction between variations in the exchanges which are 3. The precious metals, as money, are of the same value, and 4. International payments of a non-commercial character, PAGE CHAPTER XXII. Influence of Currency on the Exchanges § 1. Variations in the exchange, which originate in the currency, 193 2. Effect of a sudden increase of a metallic currency, or of the CHAPTER XXIII. Of the Rate of Interest. § 1. The rate of interest depends on the demand and supply of 3. Circumstances which determine the fluctuations, . 4. The rate of interest not really connected with the value of 4. but produces mischiefs more than equivalent, 5. Should the issue of bank notes be confined to a single estab- CHAPTER XXV. Of the Competition of different Countries in the same Market. when peculiar to certain branches of industry, 5. Some anomalous cases of trading communities examined, § 1. Introductory Remarks,. 2. Tendency of the progress of society towards increased com- 271 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 |