CONTENTS.

INTRODUCTION.

DEFINITION of Political Economy-Wealth-Money-The mercan-

tile system

...PAGES I-4

SECTION I. Production of Wealth.

The three requisites of production-Land, Labour and Capital......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 increasing the pro-

ductiveness of labour-Productive and unproductive consump-

tion......

9-22

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 circu-

lating capital-Circumstances which favour the accumulation

of capital-A glut of capital
..PAGES 22- -34

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.

..35-39

Definition of Value-Barter-Definition of Price-There can never

be a general rise in values; there may be a general rise in

prices
..39-42

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..........

.42-52

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 produce-The growth

of population tends to increase the price of agricultural produce—

Circumstances which determine the price of manufactured com-

modities—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 summary of the effect of demand and supply

on prices
........PAGES 52-73

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 discoveries on the

value of money

.73-84

SECTION III. The Distribution of Wealth.

Wealth is divided into rent, wages and profits-In different countries

these different portions are owned by different combinations of

persons

.85, 86

CHAPTER I. The Rent of Land.

A definition of Rent-Rent as regulated by competition—Ricardo's

theory of Rent-The margin of cultivation-The effect of increased

population on the position in the scale of productiveness 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
..86-101

CHAPTER II. The Wages of Labour.

Wages as regulated by competition—The influence of population on

wages-Malthus on Population-Emigration an insufficient 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 donations and poor-law relief

frequently check the operation of competition-Competition is

almost inoperative among agricultural labourers—Adam Smith's

five causes which produce different rates of wages in different

employments

PAGES IOI-121

CHAPTER III. On the Profits of Capital.

The profits of capital are necessary and justifiable-Profits consist 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 population-High prices do

not always denote large profits-Profits 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
........122-135

CHAPTER IV. On Trades' Unions, Strikes, and Co-operative

Societies.

The functions of Trades' Unions-Strikes-Combinations of

employers-Locks-out-Strikes are caused by hostility between

employers and employed-Co-operation and co-partnership

remove this hostility and therefore prevent strikes-Boards

of arbitration-Co-operative stores

........

..135-146

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-Reciprocity-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 147-169

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 commodities whose supply is

limited-Commercial panics-The Bank Charter Act of 1844-

Convertible and inconvertible paper currency-The Gold Ring of

New York-The influence of credit on general prices is beneficial

-The direct economy of a paper currency.
.170-189