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 CHAPTER XI. Of Credit, as a Substitute for Money. § 1. Credit not a creation but a transfer of the means of 2. In what manner it assists production .... 3. Function of credit in economizing the use of money 5. Bills of exchange....... 5. Promissory notes.... Page 32 34 36 37 39 41 46 6. Deposits and cheques.. CHAPTER XII. Influence of Credit on Prices. § 1. The influence of bank notes, bills, and cheques, on price, a part 2. Credit a purchasing power similar to money...... 3. Effects of great extensions and contractions of credit. Pheno- 53 4. Bills a more powerful instrument for acting on prices than book 5. the distinction of little practical importance 6888 58 61 6. Cheques an instrument for acting on prices, equally powerful 67 7. No generic distinction between bank notes and other forms of 69 69 CHAPTER XIII. Of an Inconvertible Paper Currency. § 1. The value of an inconvertible paper, depending on its quantity, 72 2. If regulated by the price of bullion, an inconvertible currency 3. Examination of the doctrine that an inconvertible currency is 77 17 -- 4. of the doctrine that a convertible currency does not expand 81 Page 5. of the doctrine that an increase of the currency promotes 6. Depreciation of currency a tax on the community, and a 84 7. Examination of some pleas for committing this fraud 86 CHAPTER XIV. Of Excess of Supply. § 1. Can there be an oversupply of commodities generally ?............ 91 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 CHAPTER XVI. Of some Peculiar Cases of Value. 100 102 § 1. Values of commodities which have a joint cost of production... 106 CHAPTER XVII. Of International Trade. 109 § 1. Cost of Production not the regulator of international values ... 112 ..... 3. The direct benefits of commerce consist in increased efficiency 114 117 4. not in a vent for exports, nor in the gains of merchants...... 117 CHAPTER XVIII. Of International Values. § 1. The values of imported commodities depend on the terms of 120 123 2. — which depend on the Equation of International Demand 125 ... 3. Influence of cost of carriage on international values...... 5. Effect of improvements in production, on international values Page 130 131 135 140 ..................... CHAPTER XIX. Of Money, considered as an § 1. Money imported in two modes; as a commodity, and as a 143 2. As a commodity, it obeys the same laws of value as other im- 144 3. Its value does not depend exclusively on its cost of production 147 CHAPTER XX. Of the Foreign Exchanges. § 1. Purposes for which money passes from country to country as 149 2. Mode of adjusting international payments through the ex- 149 3. Distinction between variations in the exchanges which are self- 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 2. The preceding theorem further illustrated............. .... 162 3. The precious metals as money, are of the same value, and dis- 166 4. International payments not of a commercial character............ 168 CHAPTER XXII. Influence of Currency on the Exchanges Page § 1. Variations in the exchange, which originate in the currency... 170 sudden creation of bank notes or other substitutes for money 171 CHAPTER XXIII. Of the Rate of Interest. § 1. The rate of interest depends on the demand and supply of 176 180 2. Circumstances which determine the permanent demand and 181 3. Circumstances which determine the fluctuations 184 4. The rate of interest not really connected with the value of 187 5. The rate of interest determines the price of land and of secu- 190 CHAPTER XXIV. Of the Regulation of a Convertible § 1. Two contrary theories respecting the influence of bank issues 192 ..... 195 3. Reasons for thinking that the Currency Act of 1844 produces a part of the beneficial effect intended by it 199 4. - but produces mischiefs more than equivalent 203 5. Should the issue of bank notes be confined to a single estab- 216 6. Should the holders of notes be protected in any peculiar 218 CHAPTER XXV. Of the Competition of different § 1. Causes which enable one country to undersell another 221 224 § 1. Exchange and Money make no difference in the law of wages 233 3. nor in the law of profits 236 237 BOOK IV. INFLUENCE OF THE PROGRESS OF SOCIETY ON CHAPTER I. General Characteristics of a Progressive State of Wealth. § 1. Introductory Remarks 2. Tendency of the progress of society towards increased command CHAPTER II. Influence of the Progress of Industry and § 1. Tendency to a decline of the value and cost of production of 245 246 252 2. — except the products of agriculture and mining, which have 254 3. - that tendency from time to time counteracted by improve- 256 4. Effect of the progress of society in moderating fluctuations of 257 5. Examination of the influence of speculators, and in particular 259 |