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,

22

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

Demand and Supply.

§ 1. Value of Money, an ambiguous expression,

2. The Value of Money depends, cæteris paribus, on its quantity,

3. together with the rapidity of circulation,

-

4. Explanations and limitations of this principle,

25

26

31

33

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,

37

40

42

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,

PAGE

46

48

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,

50

51

53

55

60

61

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,

64

65

3. Effects of great extensions and contractions of credit. Phe-

nomena of a commercial crisis analyzed, .

67

4. Bills a more powerful instrument for acting on prices than
book credits, and bank notes than bills, .

5.

6. Cheques an instrument for acting on prices, equally power-

ful with bank notes,.

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,

PAGE

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

industry, .

9.6

99

100

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

. 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,

114

116

CHAPTER XVI. Of some Peculiar Cases of Value.

§ 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, .

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,

. 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,

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,

3. Distinction between variations in the exchanges which are

self-adjusting, and those which can only be rectified

through prices,.

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,

PAGR

189

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

money,

3. Effect of the increase of an inconvertible paper currency.

Real and nominal exchange,

199

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,

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, .

203

205

208

210

213

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-
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-
lishment?.

6. Should the holders of notes be protected in any peculiar
manner against failure of payment?.