CONTENTS
PALS
§ 5. THE VALUE OF MONEY OR GENERAL LEVEL
oF PRICES WHERE THE UNIT OF ACCOUNT
is A BANK NoTE or CURRENCY NOTE . 39-63
Convertible Notes get into circulation because more
sonvenient than coin . ’ . " . .
Inconvertible notes are sometimes convertible notes
which have lost their convertibility, but are generally
documents made legal tender by law . : "
Notes convertible into exportable and meltable coin
tend to diminish the value of coin and of bullion . .
But cannot fall below the value of the bullion into
which they are convertible . . . . .
{nconvertible notes may fall below face value .
And so may notes convertible only into coin which
may not be exported or melted . . .
The depreciation is usually rapid > . .
Various arguments being used in their favour . .
And higher prices being absurdly supposed to show
need for more currency . . . . "
If no check is imposed, the end comes at last with
sudden drop in the value of the notesto nil . - :
30-43
43-6
46-4
47-9
409-53
53-4
54-5
55-8
58-62
62-2
PART II. FURTHER ELUCIDATIONS
§ 1. TaE SuppLYy OF CURRENCY AND THE * QUAN-
T1Tvy THEORY ’ .
The true theory of the value of money is not identical
with, but includes, the quantity theory . . .
The quantity is to be taken as the stock rather than
the annual output ’ . . ; : .
Why does increase of quantity reduce value? .
How much does increase of quantity reduce value ? .
Not alwavs in equal proportion . .
§ 2. THE DEMAND FOR CURRENCY
The demand for currency is to be taken as the demand
for currency to hold, not merely to pass on in purchases
Causes of variation in demand . . . .
How much does an increase of demand raise value ?
64—71
64-5
65-6
667
67-9
bo~-*1
”T—8
77-4
7 8
L-.