CHAPTER X. Of a Double Standard, and Subsidiary

Coins.

.

31

§ 1. Objections to a double standard

2. The use of the two metals as money, how obtained without

making both of them legal tender

33

CHAPTER XI.

Of Credit, as a Substitute for Money.

.

§ 1. Credit not a creation, but a transfer of the means of production.

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 checks

36

36

39

40

46

47

.

.

CHAPTER XII.

Influence of Credit on Prices.

.

49

51

53

.

§ 1. The influence of bank notes, bills, and checks, on prices, a part of

the influence of Credit

2. Credit a purchasing power similar to money.

3. Effects of great extensions and contractions of credit. Phenomena

of a commercial crisis analyzed .

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

credits, and bank notes than bills

5. the distinction of little practical importance

6. Checks an instrument for acting on prices, equally powerful with

bank notes.

7. No generic distinction between bank notes and other forms of

credit .

§ 1. The value of an inconvertible paper, depending on its quantity, is a

matter of arbitrary regulation
2. If regulated by the price of bullion, an inconvertible currency

might be safe, but not expedient
3. Examination of the doctrine that an inconvertible currency is safe

if representing actual property
4. of the doctrine that an increase of the currency promotes in-

dustry
6. 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.

90

§ 1. Can there be an over-supply of commodities generally?.

2. The supply of commodities, in general, cannot exceed the power

of purchase

3. - never does exceed the inclination to consume

4. Origin and explanation of the notion of general over-supply

92

93

96

.

CHAPTER XV. Of a Measure of Value.

§ 1. A Measure of Exchange Value, in what sense possible.

2. A Measure of Cost of Production.

100

102

CHAPTER XVI.

Of some Peculiar Cases of Value.

§ 1. Values of commodities which have a joint cost of production

2. Values of the different kinds of agricultural produce

106

109

CHAPTER XVII. Of International Trade.

112

115

§ 1. Cost of Production not the regulator international values.

2. Interchange of commodities between distant places, determined by

differences, not in their absolute, but in their comparative, cost

of production

3. The direct benefits of commerce consist in increased efficiency of

the productive powers of the world .

4. 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.

117

118

121

CHAPTER XVIII. Of International Values.

123

125

131

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

national interchange

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

5. Effect of improvements in production, on international values

6. The cost to a country of its imports, on what circumstances de-

pendent

VOL. II.

.

CHAPTER XIX.

Of Money, considered as an Imported

Commodity.

144

$ 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 production at

the mines

145

148

CHAPTER XX. Of the Foreign Exchanges.

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

medium of exchange .

150

2. Mode of adjusting international payments through the exchanges 151

3. Distinction between variations in the exchanges which are self-

adjusting, and those which can only be rectified through prices 156

CHAPTER XXI. Of the Distribution of the Precious

Metals through the Commercial World.

.

.

159

164

1. The substitution of money for barter makes no difference in ex-

ports and imports, nor in the law of international values
2. The preceding theorem further illustrated .
3. The precious metals as money, are of the same value, and distrib-

ute themselves according to the same law, with the precious

metals as a commodity

4. International payments not of a commercial character

168

170

CHAPTER XXII.

Influence of Currency on the Exchanges

and on Foreign Trade.

172

§ 1. Variations in the exchange, which originate in the currency
2. Effect of a sudden increase of a metallic currency, or of the sud-

den creation of bank notes or other substitutes for money .

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

and nominal exchange

173

178

CAAPTER XXIII. Of the Rate of Interest.

.

$ 1. The rate of interest depends on the demand and supply of loans 182

| 2. Circumstances which determine the permanent demand and sup-

ply of loans

184

3. Circumstances which determine the fluctuation

187

4. The rate of interest not really connected with the value of money,

but often confounded with it

190

5. The rate of interest determines the price of land and of securities 193

.

.

CHAPTER XXIV. Of the Regulation of a Convertible Pa-

per Currency.

.

.

.

.

§ 1. Two contrary theories respecting the influence of bank issues 194

2. Examination of each

197

3. Reasons for thinking that the Currency Act of 1844 produces a

part of the beneficial effect intended by it .

201

4. but produces mischiefs more than equivalent .

206

5. Should the issue of bank notes be confined to a single establish-

ment?.

220

6. Should the holders of notes be protected in any peculiar manner

against failure of payment?

.

222

CHAPTER XXV. Of the Competition of different Coun-

tries in the same Market.

§ 1. Causes which enable one country to undersell another

2. Low wages one of those causes

3. when peculiar to certain branches of industry

4. but not when common to all .

5. Some anomalous cases of trading communities examined

CHAPTER XXVI.

Of Distribution, as affected by Ec-

change.

§ 1. Exchange and Money make no difference in the law of wages

2. — in the law of rent

3. nor in the law of profits

237

240

241

.

.

.

BOOK IV.

INFLUENCE OF THE PROGRESS OF SOCIETY ON PRODUCTION

AND DISTRIBUTION.

CHAPTER I.

General Characteristics of a Progressive

State of Wealth.

247

$ 1. Introductory remarks

2. Tendency of the progress of society towards increased command

over the powers of nature; increased security; and increased

capacity of coöperation

248

CHAPTER II. Influence of the Progress of Industry and

Population on Values and Prices.

253

256

.

$ 1. Tendency to a decline of the value and cost of production of all

commodities

2.

except the products of agriculture and mining, which have a

tendency to rise .

3. that tendency from time to time counteracted by improvements

in production

4. Effect of the progress of society in moderating fluctuations of

value.

5. Examination of the influence of speculators, and in particular of

corn dealers

258

.

259

261

CHAPTER III. Influence of the Progress of Industry and

Population on Rents, Profits, and Wages.

266

270

.

§ 1. First case; population increasing, capital stationary

2. Second case; capital increasing, population stationary

3. Third case; population and capital increasing equally, the arts of

production stationary.

4. Fourth case; the arts of production progressive, capital and pop-

ulation stationary

6. Fifth case; all the three elements progressive

271

273

280