§ 1. Doctrine of Adam Smith on the competition of capital . 2. Doctrine of Mr. Wakefield respecting the field of employment 3. What determines the minimum rate of profit 4. In opulent countries, profits habitually near to the minimum by the importation of cheap necessaries and instruments. § 1. The theory of dependence and protection no longer applicable to the condition of modern society. 2. The future well-being of the laboring classes principally dependent 3. Probable effects of improved intelligence in causing a better adjust- § 1. Necessary and optional functions of government distinguished 341 2. Multifarious character of the necessary functions of government 342 3. Should the same per centage be levied on all amounts of income? 354 4. Should the same per centage be levied on perpetual and on ter- 6. A land tax, in some cases, not taxation, but a rent charge in favor 7. Taxes falling on capital, not necessarily objectionable § 1. Is it desirable to defray extraordinary public expenses by loans? . 434 2. Not desirable to redeem a national debt by a general contribution 438 3. In what cases desirable to maintain a surplus revenue for the § 1. Effects of imperfect security of person and property 2. Fffects of over-taxation. 2. Objections to government intervention—the compulsory character of the intervention itself, or of the levy of funds to support it increase of the power and influence of government increase of the occupations and responsibilities of government 517 superior efficiency of private agency, owing to stronger interest importance of cultivating habits of collective action in the but liable to large exceptions. Cases in which the consumer is an incompetent judge of the commodity. Education dren and young persons; of the lower animals. Case of women 10. Case of contracts in perpetuity 11. Cases of delegated management 12. Cases in which public intervention may be necessary to give effect to the wishes of the persons interested. Examples; hours of la- 15. Other miscellaneous examples 16. Government intervention may be necessary in default of private BOOK III. EXCHANGE. (CONTINUED.) CHAPTER VII. OF MONEY. § 1. HAVING proceeded thus far in ascertaining the general laws of Value, without introducing the idea of Money, (except occasionally for illustration,) it is time that we should now superadd that idea, and consider in what manner the principles of mutual interchange of commodities. are affected by the use of what is termed a Medium of Exchange. In order to understand the manifold functions of a Circulating Medium, there is no better way than to consider what are the principal inconveniences which we should experience if we had not such a medium. The first and most obvious would be the want of a common measure for values of different sorts. If a tailor had only coats, and wanted to buy bread or a horse, it would be very troublesome to ascertain how much bread he ought to obtain for a coat, or how many coats he should give for a horse. The calculation must be recommenced on different data, every time he bartered his coats for a different kind of article; |