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

8

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

3. together with the rapidity of circulation

-

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..

2.

which is determined by the cost of production .

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

ceding chapter

23

26

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

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 pro-

duction

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

53

4. Bills a more powerful instrument for acting on prices than

book credits, and bank notes than bills

58

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

71

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

74

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

rency might be safe, but not expedient

77

3. Examination of the doctrine that an inconvertible currency

is safe if representing actual property

79

of the doctrine that an increase of the currency pro-

motes industry

.

Page

84

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
power of purchase .

3.

-

never does exceed the inclination to consume

94

4. Origin and explanation of the notion of general oversupply 97

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 produc-

tion .

101

103

107

2. Values of the different kinds of agricultural produce. 110

§ 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

. . 115

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

ciency of the productive powers of the world. . . . 118

4. not in a vent for exports, nor in the gains of merchants 118

5. Indirect benefits of commerce, economical and moral; still
greater than the direct

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CHAPTER XVIII. Of International Values.

121

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

of international interchange.

124

2.- which depend on the Equation of International De-

mand

Page

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

two commodities, holds of any greater number . . . 132

5. Effect of improvements in production, on international

values

6. The preceding theory not complete.

7. International values depend not solely on the quantities

demanded, but also on the means of production avail-

able in each country for the supply of foreign markets

8. The practical result little affected by this additional ele-

ment . .

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

stances 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

136

140

142

147

150

154

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

imported commodities

155

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

tion at the mines

158

CHAPTER XX. Of the Foreign Exchanges.

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

as a medium of exchange

160

2. Mode of adjusting international payments through the

exchanges.

160

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

2. The preceding theorem further illustrated .

159

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