PREFACE. In the following pages the subject of Money has been treated as coming within the range of the exact sciences; the conclusions being assumed to be in the nature of demonstrations. That they wholly contradict those laid down in the books, which have been accepted as fundamental truths for more than two thousand years, is due to the fact that a subject which could only be made to yield to rigid analysis has been treated after the manner of Aristotle and the Schools. Although the laws of Money are assumed to be sufficiently laid down in the first part of the work, the writer, from the universal prevalence of erroneous opinions, has lost no opportunity of illustrating them in the discussions which follow. If he have not in all cases clearly established the connection between his conclusions and premises, the reason will, he believes, be found in the fact that he has not, with all his efforts, yet been able entirely to emancipate himself from the methods of the Economists and Schoolmen. BROOKLINE, Mass., 1877. TABLE OF CONTENTS. The desire to possess gold and silver an original instinct stronger than This universal desire renders them the universal equivalent - -MONEY The grounds of this preference, their beauty and the uses to which they can be applied. . . . Other qualities fitting them to serve as money. Illustration of the uniformity of their value (note) From their durability they become the reserves of society Illustrations of their value as reserves (note) 22223 Necessity to social and material progress of some article or articles for Demanded in exchange for all other articles, and in discharge of all That of all other articles RELATIVE; depending upon cost and demand Their value being absolute, they are the STANDARDS of all other values Standards of value and media of exchange the same things Misleading influence of the term "medium of exchange" (note) Prime factors in the creation of wealth and in social progress Always in demand at INTEREST as the basis of reproduction The demand for capital increases as natural laws are unfolded Provision for the future to be made only by contracts payable in them, with Currencies between communities widely separated The mode in which they serve as such Based upon or symbolize merchandise, and retired by its use Producers of merchandise the drawers of bills. The holders of bills entitled to the specific thing drawn against Such currencies required to be of every denomination, and payable presently, Cannot, like bills of exchange, be issued by producers. To be issued by parties possessing capital, and not subject to the risks of Banks do not pay out capital in making their loans These are made by an exchange of their notes, presently due, for the bills of Retired in the payment of the bills in the discount of which they are issued Makers of bills virtually undertake to retire the notes issued in their dis- All these operations based upon merchandise The instruments by which they are conducted paper money - -CURRENCY No distinction made by the public between currencies where there are No difference but in form between notes, and checks drawn against deposits Necessity of division of labor in distribution as in production 30 |