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.

31

33

§ 1. Credit not a creation, but a transfer of the means of production. 35

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

CHAPTER XII.

Influence of Credit on Prices.

§ 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

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.

CHAPTER XIII. Of an Inconvertible Paper Currency.

§ 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

- of the doctrine that an increase of the currency promotes in-

dustry

82

5. Depreciation of currency a tax on the community, and a fraud on
creditors

CHAPTER XIV. Of Excess of Supply.

§ 1. Can there be an over-supply of commodities generally?... 90

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

3. - never does exceed the inclination to consume.

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

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 production

2. Values of the different kinds of agricultural produce

CHAPTER XVII. Of International Trade.

§ 1. Cost of Production not the regulator of 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.

-

112

115

117

118

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 inter-

national interchange

which depend on the Equation of International Demand

3. Influence of cost of carriage on international values

125

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.

136

141

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

144

145

148

3. Its value does not depend exclusively on its cost of production at

the mines

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.

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.

CHAPTER XXII. Influence of Currency on the Exchanges

and on Foreign Trade.

§ 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

172

173

CHAPTER 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

3. Circumstances which determine the fluctuation

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

but often confounded with it

184

187

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

2. Examination of each

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

224

228

CHAPTER XXVI. Of Distribution, as affected by Ex-

change.

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

BOOK IV.

INFLUENCE OF THE PROGRESS OF SOCIETY ON PRODUCTION

AND DISTRIBUTION.

CHAPTER I.

General Characteristics of a Progressive

State of Wealth.

§ 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.

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

except the products of agriculture and mining, which have a

tendency to rise.

256

3.

-

that tendency from time to time counteracted by improvements

in production

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

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

corn dealers

CHAPTER III.

Influence of the Progress of Industry and

Population on Rents, Profits, and Wages.

§ 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