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

making both of them legal tender

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 cheques

Page

32

34

36

37

40

41

47

48

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

51

52

3. Effects of great extensions and contractions of credit.

Phenomena of a commercial crisis analyzed

54

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

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
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. Examination of the doctrine that an increase of the
currency promotes industry

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

power of purchase

3. never does exceed the inclination to consume

4. Origin and explanation of the notion of general oversupply

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 pro-

duction .

2. Values of the different kinds of agricultural produce

CHAPTER XVII. Of International Trade.

107

110

1. Cost of production not the regulator of international values 113

-2. Interchange of commodities between distant places, deter-
mined by differences not in their absolute, but in their
comparative, cost of production.

4.

. . 115

3. The direct benefits of commerce consist in increased

efficiency of the productive powers of the world . . 118

not in a vent for exports, nor in the gains of merchants 119

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

121

124

126

Page

§ 4. The law of values which holds between two countries and

two commodities, holds of any greater number . . . 132

5. Effect of improvements in production on international

values

6. The preceding theory not complete.

136

140

7. International values depend not solely on the quantities

demanded, but also on the means of production avail-

able in each country for the supply of foreign markets. 142

8. The practical result little affected by this additional

element . .

9. The cost to a country of its imports, on what circum-

stances 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

147

150

154

2. As a commodity, it obeys the same laws of value as other

imported commodities .

155

3. Its value does not depend exclusively on its cost of produc-

tion at the mines.

158

CHAPTER XX. Of the Foreign Exchanges.

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

as a medium of exchange

160

2. Mode of adjusting international payments through the

exchanges

160

3. Distinction between variations in the exchanges which are

self-adjusting, and those which can only be rectified

through prices

166

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

2. The preceding theorem further illustrated.

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

169

173

177

179

CHAPTER XXII. Influence of the Currency on the

Exchanges and on Foreign Trade.

Page

§ 1. Variations in the exchange which originate in the currency 181

2. Effect of a sudden increase of a metallic currency, or of

the sudden creation of bank notes or other substitutes

for money

. . 182

3. Effect of the increase of an inconvertible paper currency.
Real and nominal exchange

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.

187

191

192

196

4. The rate of interest, how far, and in what sense connected

with the value of money

199

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

securities

205

CHAPTER XXIV. Of the Regulation of a Convertible

Paper Currency.

§ 1. Two contrary theories respecting the influence of bank

issues. .

2. Examination of each

207

210

214

220

235

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

establishment? . .

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

manner against failure of payment?

§ 1. Causes which enable one country to undersell another

2. Low wages one of those causes

5. Some anomalous cases of trading communities examined. 249

CHAPTER XXVI. Of Distribution, as affected by

Exchange.

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

INFLUENCE OF THE PROGRESS OF SOCIETY ON

PRODUCTION AND DISTRIBUTION.

2. Tendency of the progress of society towards increased

command over the powers of nature; increased secu-

rity; and increased capacity of co-operation

263

264

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 commodities

270

2.

except the products of agriculture and mining, which

have a tendency to rise

272

3.

that tendency from time to time counteracted by im-

provements in production .

274

4. Effect of the progress of society in moderating fluctuations

of value

275

5. Examination of the influence of speculators, and in parti-

cular of corn dealers

277