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-.