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

does not affect the laws of Value,

PAGE

17

19

22

CHAPTER VIII. Of the Value of Money, as dependent on

Demand and Supply.

§ 1. Value of Money, an ambiguous expression, .

2. The Value of Money depends, cæteris paribus, on its quantity,

25

26

31

33

4. Explanations and limitations of this principle,

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, .

37

-

2. which is determined by the cost of production,

40

3. This law, how related to the principle laid down in the pre-

ceding chapter,

42

CHAPTER X. Of a Double Standard, and Subsidiary Coins.

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

making both of them legal tender,

PAGE

46

48

Mch.20

CHAPTER XI. Of Credit, as a Substitute for Money.

1. Credit not a creation but a transfer of the means of produc-

tion,.

2. In what manner it assists production,

50

51

3. Function of credit in economizing the use of money,

53

55

60

61

4. Bills of exchange,.

5. Promissory notes, .

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. Phe-
nomena 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. Cheques an instrument for acting on prices, equally power-
ful with bank notes,

7. Are bank notes money?

8. No generic distinction between bank notes and other forms

of credit, .

85

CHAPTER XIII. Of an Inconvertible Paper Currency.

§ 1. The value of an inconvertible paper, depending on its quan-
tity, is a matter of arbitrary regulation,

88

2. If regulated by the price of bullion, an inconvertible cur-

rency might be safe, but not expedient,

91

3. Examination of the doctrine that an inconvertible currency

is safe if representing actual property,