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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)
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
Their use as money double barter
Importance of avoiding their actual intervention in exchanges
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
Banks discharge obligations arising between themselves by mutual offset
No difference but in form between notes, and checks drawn against deposits
Necessity of division of labor in distribution as in production