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

2. In what manner it assists production

3. Function of credit in economizing the use of money

5. Bills of exchange..........

5. Promissory notes...

6. Deposits and cheques.

Page

32

34

means of

36

37

39

41

46

47

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

50

2. Credit a purchasing power similar to money..

51

3. Effects of great extensions and contractions of credit. Pheno-
mena of a commercial crisis analyzed.......

53

4. Bills a more powerful instrument for acting on prices than book
credits, and bank notes than bills....

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

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

75

3. Examination of the doctrine that an inconvertible currency is
safe if representing actual property.....

77

4.

-

- of the doctrine that a convertible currency does not expand
with the increase of wealth

81

Page

-

5. - of the doctrine that an increase of the currency promotes

industry

82

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

84

7. Examination of some pleas for committing this fraud

86

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

--

91

93

94

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

100
102

CHAPTER XVI. Of some Peculiar Cases of Value.

§ 1. Values of commodities which have a joint cost of production... 106
2. Values of the different kinds of agricultural produce

109

CHAPTER XVII. Of International Trade.

§ 1. Cost of Production not the regulator of international values... 112
2. Interchange of commodities between distant places, deter-
mined by differences not in their absolute, but in their
comparative, cost of production

114

3. The direct benefits of commerce consist in increased efficiency
of the productive powers of the world

117

4. not in a vent for exports, nor in the gains of merchants...... 117
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

120

123

2.

which depend on the Equation of International Demand ...

125

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
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

Page

130

131

135

140

143

2. As a commodity, it obeys the same laws of value as other im-
ported commodities

144

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

147

CHAPTER XX. Of the Foreign Exchanges.

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

149

2. Mode of adjusting international payments through the ex-
changes........

149

3. Distinction between variations in the exchanges which are self-
adjusting, and those which can only be rectified through
prices

155

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 158

2. The preceding theorem further illustrated.......

162

3. The precious metals as money, are of the same value, and dis-
tribute themselves according to the same law, with the
precious metals as a commodity

166

4. International payments not of a commercial character............ 168

CHAPTER XXII. Influence of Currency on the Exchanges
and on Foreign Trade.

Page

170

§ 1. Variations in the exchange, which originate in the currency...
2. Effect of a sudden increase of a metallic currency, or of the
sudden creation of bank notes or other substitutes for money 171
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

176

180

2. Circumstances which determine the permanent demand and
supply of loans

181

3. Circumstances which determine the fluctuations

184

4. The rate of interest not really connected with the value of
money, but often confounded with it......

187

5. The rate of interest determines the price of land and of secu-
rities

190

.......

CHAPTER XXIV. Of the Regulation of a Convertible
Paper Currency.

§ 1. Two contrary theories respecting the influence of bank issues 192
2. Examination of each

195

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

a part of the beneficial effect intended by it

199

.........

4.

but produces mischiefs more than equivalent
5. Should the issue of bank notes be confined to a single estab-
blishment?.....

203

216

6. Should the holders of notes be protected in any peculiar
manner against failure of payment?

218

CHAPTER XXV. Of the Competition of different
Countries in the same Market.

§ 1. Causes which enable one country to undersell another
2. Low wages one of those causes

221

224

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

Exchange.

Page

226

228

230

§ 1. Exchange and Money make no difference in the law of wages 233
2. in the law of rent..........

236

237

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 co-operation

CHAPTER II. Influence of the Progress of Industry and
Population on Values and Prices.

245

246

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

252

2. except the products of agriculture and mining, which have
a tendency to rise

254

3.

--

that tendency from time to time counteracted by improve-
ments in production

256

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

257

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

259