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CONTENTS.
INTRODUCTION.
DEFINITION of Political Economy-Wealth-Money-The mer-
cantile system
.PAGES I-4
SECTION I. Production of Wealth.
The three requisites of production-Land, Labour and Ca-
pital...
5
CHAPTER I. On Land.
The service which land renders to production-Circumstances
which increase the productiveness of land-Large and small
farming
5-9
CHAPTER II. On Labour.
The service which labour renders to production - Productive
and unproductive labour-Division of labour-Co-operation
of labour-Simple and complex co-operation - Wakefield's
theory of colonization-Moral and material means of increas-
ing the productiveness of labour-Productive and unproductive
consumption
.9-24
CHAPTER III. On Capital.
The service which capital renders to production-The wages-
fund-A demand for commodities not a demand for labour-
Capital in order to fulfil its functions must be consumed-
Fixed and circulating capital-Circumstances which favour the accumulation of capital-A glut of capital ......PAGES 25-38
SECTION II. The Exchange of Wealth.
Exchange implies the existence of private property-Communism
-Its economic defects compared with the economic defects of
the present industrial organisation
CHAPTER I. Value and Price.
39-43
Definition of Value-Barter-Definition of Price-There can
never be a general rise in values; there may be a general rise
in prices........ ·44-47
CHAPTER II. On Money.
The functions of money-Various substances used as money-
Robert Owen's Labour Exchange-The qualities which the
substance selected as money should possess-Gold and Silver
combine all these qualities in a greater degree than any
other substances that have ever been used as money-A
double standard of value 48-56
CHAPTER III. The Value of Commodities.
The three classes into which commodities are divided in relation
to their values-Cost of production-The effect of demand
and supply on prices-Circumstances which determine the
price of an article the supply of which cannot be increased-
Every article which has an exchange value is characterised by
two qualities, viz. value in use and difficulty of attainment-
-
Circumstances which determine the price of agricultural pro-
duce-The growth of population tends to increase the price of
agricultural produce — Circumstances which determine the
price of manufactured commodities-The elements of cost of
production-Cost of labour to the capitalist depends on its
efficiency, and does not always vary with the amount given
as wages—The relation between profits and prices—A sum-
mary of the effect of demand and supply on prices.
PAGES 56-80
CHAPTER IV. On the Value of Money.
The value of money is regulated by the same laws as those
which determine the value of other mineral produce-The
recent depreciation of silver-Circumstances which influence
the demand for gold and silver-The effect of the gold dis-
coveries on the value of money
..80-92
SECTION III. The Distribution of Wealth.
Wealth is divided into rent, wages and profits - In different
countries these different portions are owned by different com-
binations of persons
CHAPTER I. The Rent of Land.
.93-94
A definition of Rent-Rent as regulated by competition-Ri.
cardo's theory of Rent-The margin of cultivation-The effect
of increased population on the position in the scale of pro-
ductiveness of the margin of cultivation-Population not a
measure of national prosperity-Rent does not increase the
price of agricultural produce-Rent as regulated by custom-
Metayers-The Ulster tenant-right-The Irish Land Act of
1870-The cottier and conacre tenancies of Ireland ...94-111
CHAPTER II. The Wages of Labour.
Wages as regulated by competition-The influence of popula-
tion on wages-Malthus on Population—Emigration an insuf-
ficient remedy for over-population-The effect on wages of a
local decline in profits-The effect on wages of increased
efficiency of labour-High prices do not produce high wages
-The effect of free competition on wages-Charitable dona-
tions and poor-law relief frequently check the operation of ›
competition-Competition is almost inoperative among agri-
cultural labourers-Adam Smith's five causes which produce
different rates of wages in different employments.
PAGES III-135
CHAPTER III. On the Profits of Capital.
The profits of capital are necessary and justifiable—-Profits con-
sist of three elements, viz. interest on capital, compensation
for risk, and wages of superintendence-The rate of interest
the same in all trades in the same country and at the same
time-The rate of interest declines with the increase of popu-
lation-High prices do not always denote large profits—Pro-
fits mainly depend on share of the total wealth jointly produced
by capital and labour, which is apportioned to labour-Cost
of labour to the capitalist a function of three variables—
Workmen do not benefit by a rise in wages which causes their
employers' profits to sink below the ordinary rate-The export
of capital .135-149
CHAPTER IV. On Trades' Unions, Strikes, and Co-operative
Societies.
The functions of Trades' Unions-Strikes-Combinations of em-
ployers-Locks-out-Strikes are caused by hostility between
employers and employed-Co-operation and copartnership
remove this hostility and therefore prevent strikes-Boards of
arbitration-Co-operative stores.............
...........
149—161
SECTION IV. On Foreign Commerce, Credit and
Taxation.
CHAPTER I. On Foreign Commerce.
Foreign commerce is a development of the principle of division
of labour-Protection is disastrous to the general interests of
the community-The effect of protection on wages-The
French and English sugar refiners - The Candlemakers'
petition-Foreign trade advantageous to both countries only
when the relative value of the commodities exchanged is
different in each country-The terms of the exchange are
regulated by an equalisation of demand and supply—Reci-
procity-When there is an exchange between two countries,
the profit of each country is in inverse ratio with its demand
for the imported goods-Protection in America-Exports and
imports tend to an equality-"Balance of trade"-"Unfa-
vourable Exchange" .PAGES 162-186
CHAPTER II. Credit and its Influence on Prices.
Definition of Credit-The meaning of the expressions "good or bad credit”—Credit is not capital—The manner in which credit promotes the productive employment of wealth-Banks -Joint-stock companies-Bills of Exchange-Bill-discounting
-Bills of exchange perform many of the functions of money—
Bank notes-Cheques-The Clearing-house-Book credits-
Credit influences prices, not the particular form which credit
assumes-The purchasing power conferred by credit-Credit
produces the greatest effect on the prices of those commodi-
ties whose supply is limited-Commercial panics-The Bank
Charter Act of 1844-Convertible and inconvertible paper cur-
rency-The Gold Ring of New York-The influence of credit
on general prices is beneficial-The direct economy of a paper
186-208
currency