OF POLITICAL ECONOMY WITH SOME OF THEIR APPLICATIONS TO SOCIAL PHILOSOPHY. BY JOHN STUART MILL. IN TWO VOLUMES. VOL. II. THIRD EDITION. LONDON: JOHN W. PARKER AND SON, WEST STRAND. M.DCCC.LII. 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 Page 3 5 CHAPTER VIII. Of the Value of Money as dependent on Demand and Supply. § 1. Value of Money, an ambiguous expression 8 11 2. The value of money depends, cæteris paribus, on its quantity 12 together with the rapidity of circulation 3. 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 23 2. which is determined by the cost of production 26 3. This law, how related to the principle laid down in the pre ceding chapter....... 29 CHAPTER X. Of a Double Standard, and Subsidiary Coins. § 1. Objections to a double standard 2. The use of the two metals as money, how obtained without 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. 5. Bills of exchange 5. Promissory notes Page 32 34 36 37 39 41 46 47 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. Phenomena of a commercial crisis analyzed 5. the distinction of little practical importance 4. Bills a more powerful instrument for acting on prices than book credits, and bank notes than bills...... 58 61 6. Cheques an instrument for acting on prices, equally powerful with bank notes 67 7. No generic distinction between bank notes and other forms of credit 69 69 CHAPTER XIII. Of an Inconvertible Paper Currency § 1. The value of an inconvertible paper, depending on its quantity, is a matter of arbitrary regulation....... 72 2. If regulated by the price of bullion, an inconvertible currency might be safe, but not expedient 75 3. Examination of the doctrine that an inconvertible currency is safe if representing actual property 4.- of the doctrine that a convertible currency does not expand with the increase of wealth......... 5. of the doctrine that an increase of the currency promotes industry....... 6. Depreciation of currency a tax on the community, and a fraud on creditors 7. Examination of some pleas for committing this fraud CHAPTER XIV. Of Excess of Supply. Page 82 84 86 § 1. Can there be an oversupply of commodities generally? 90 2. The supply of commodities in general, cannot exceed the power of purchase ........... 92 3. - never does exceed the inclination to consume 93 4. Origin and explanation of the notion of general oversupply... 95 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 105 2. Values of the different kinds of agricultural produce CHAPTER XVII. Of International Trade. 108 § 1. Cost of Production not the regulator of international values 111 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. CHAPTER XVIII. Of International Values. § 1. The values of imported commodities depend on the terms of international interchange 2. which depend on the Equation of International Demand... 3. Influence of cost of carriage on international values.......................... 113 116 116 119 122 124 129 |