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.....

CHAPTER I. On Land.

5

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

CHAPTER III. The Value of Commodities.

48-56

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.