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annum compounded. The money of the United States, though not without frequent and injurious, if not dangerous, fluctuations, appears to have augmented at the rate of about thirty-three per mille per annum.1

Another determinable quantity to which the actual increase of money appears to have conformed is the net rate of interest for money. This quantity is not so readily nor easily determinable as the increase of population; nevertheless it is determinable. The net rate of interest means the average actual or market rate of interest, less risk, taxes, and the cost of the superintendence of loans. This rate in the United States has been and is still about thirty-three per mille per annum.

Without as yet assuming that these indications offer a practical solution to so difficult a problem, let it be supposed that the money of the United States, instead of being left, as it has been, to alternately expand or contract with the commercial movements of bullion, the paper emissions of banks and treasuries, the exigencies of governments, and the contentions of party, had been regulated to augment at the rate of thirty-three per mille per annum-then these results would have followed :

1. The country would have had, all along, substantially the same amount of money that it has had; only, instead of alternately increasing and diminishing, in some years to more than half the extent of its previous volume, it would have augmented steadily at the rate of 33 per cent. per

annum.

1 Consult the author's "History of Precious Metals," pp. 214-17.

2. The reckless inflations, speculations, and dishonest transactions of 1814, 1819, 1829, 1837, 1857, and 1864 would not have occurred.

3. The contractions and stringencies that followed these eras would not have been occasioned.

4. Nor would it have been necessary to legalise the disgraceful repudiations, nor to pass the stay-laws and bankruptcy Acts which were enacted to relieve the distresses occasioned by these contractions, and into which innocent and honourable men were drawn, together with the designing and dishonourable.

Though the character of these advantages does not rank them among the most important which such a system would have brought about, yet surely even these are worthy of attention. To secure to each class of persons in a state the uninterrupted and peaceful enjoyment of their industrial condition, should certainly form an object of desire to statesmen. To discourage recklessness or dishonesty; to visit upon the labouring and indebted classes no unnecessary nor peculiar hardships; to incur no reproach of pecuniary turpitude; to hold out no inducements to fraudulent bankrupts; to let no rascal through meshes of the law which are strong enough to bind the innocent,—these are ends which no progressive community can long afford to disregard or neglect.

INDEX.

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Bacon, Lord, engages in a mining enter-
prise, vi.

Bank-cheques, comparative use of, in
various countries, 48.
Bank-deposits, impropriety of including
them in money, 41 to 45.
Bank-loans, increasing shortness of, 93.
Bank of England, circulation of notes
out of England, 42; no longer able
to control flow of precious metals, 89;
consequences of the Resumption of
1821,94; expansion of its circulation
during the Suspension, vii.; further
expansion after Resumption, vii.
Bank-notes, general increase of, in first
quarter of nineteenth century, vii.;
further increase in second quarter,
vii.; various classes of, 17, 25.

I 2

Bankruptcy laws, operation of, in Rome,
92; in United States, 116.
Black Friday panic in New York, 108.
Brassage, a mint charge in France, 22.
Brazil, counterfeit money in, 44; bank
cheques infrequent in, 45; incon-
vertible note system of, 89.
Budelius cited, 5, 6.

Buenos Ayres, inconvertible note system
of, 89.

Bullion, when to be classed as money,
22;
when not to be so classed, 40;
influence of new supplies upon prices,

55.

California, exhaustion of its placer
mines, viii.; nullification of United
States monetary laws by, 20; high
rates of interest in, 96.
Capital, growth of, affected by money,
82 to 84; rate of augmentation in
United States, 105; rule to deter-
mine same in any country, 107.
Carthage, monetary system of, 31.
Cash, Hindoo origin of the term, 1.
Census of United States, unreliable
character of, 106.

Cernuschi, M. Henry, cited, 49.
Chase, Chief-Justice Salmon P., his de-
finition of money, 45.

Cheques, bank, comparative use of, in
various countries, 45.

China, monetary systems of, 31.
Classical conception of money, 2, 8, 9.
Clearing-house, nullification of monetary

22.

laws by the New York, 21; system
of, not new, 90; incapable of further
extension, 90.
Coinable bullion a potential money,
Coins, various classes of, 17; quantities
melted by jewellers and others, 38;
carried abroad by travellers, 38; ex-
ported in packages of merchandise,
38; circulated in foreign countries,
38; on shipboard, 38; counterfeited,
39; light, 41; sweated, 41; bank
reserves of, 41; not a measure of
value by themselves, 52, 55.
Commerce, rapid growth of when freed
from the limitations of mining, vii.;
distinction between and stock-jobbery
becoming effaced, 92.
Commercial crises, averted by paper
notes, viii; their era coincident with
closure of Spanish American mines,
viii.

Commodity moneys, 16, 17; influences
upon value of, 113.
Communal notes, 17, 26.

Composite moneys, 17, 18, 28; influ-

ences upon value of, 113.
Comstock Lode, exhaustion of, viii.
Confederate States of America, their
notes counterfeited in New York with
connivance of Federal Government,

44.

Contractions of money injurious to trade
and social progress, 115, 116.
Convertible moneys, 17, 18.
Convertible note system, danger of

further extending, viii.

Counterfeiting practised or connived at
by governments as an engine of war,

44.

Counterfeit notes, 39; lessening pro-

portion of to counterfeit coins, 43.
Corporations, baneful growth of, 92.
Corporate notes, 17, 26.

Credit curtailed through use of unlimited
moneys, 92.

Crescendo and diminuendo prices, 91.
Crises, commercial, viii.

Currency, ambiguity of the term, 8;
used by Sir R. Peel, 44; by Chief-
Justice S. P. Chase, 45.

Decay of monetary conceptions, 3, 61.
Decomposition and renascence of classical
terms, 4.

Deposits, bank. See Bank-deposits.
Deposit notes, 17, 26.

Discovery of America, influence of, 6.
Disintegration and resuscitation of mone-
tary conceptions, 2 to 6.
Distinctive moneys for distinct nations,

47.

Dollar, gold, weight and fineness of, 55.
Dollar, silver, 21, 22; weight and fine-
ness of, 55.

Dollars, numerous varieties of, in the
United States, 29.

England. See United Kingdom.
England, Bank of.
See Bank of Eng-

land.

England, rate of interest in, 99, 107.
Enterprise, its commercial value re-
duced, 92.

Equity, as established by value, 68;
as affected by money, 85.
Europe, revival of mining in, vi.
European civilisation, decay of, 3; re-
vival of, 5.

Evolution of words, 1, 60.

Exchanges, analysis of, 102; their re-
spective ratios of activity, 102; these
determined by rates of profit, 103;
hypothetical classification of, 104;
reduction of to one class, 104; rate
of augmentation when reduced, 106;
how determined, 107; relation of to
money, 108.

Exchequer notes, 17, 26.

Feudal conception of money, 4, 6, 8.
Feudal origin of existing monetary
systems, 36, 82.

Foresight, its commercial value reduced,

92.

France, its assignats and mandats coun-
terfeited in England, 44; growth of
capital in, 107; rate of interest in, 107.
Free or gratuitous coinage laws, 22 to

24.

Function of money, the, is to measure
value, 48.

Funding notes, 17, 27.

George, Henry, cited, 98.

Greenback notes of the United States,
20, 30, 31, 33, 43.

Genesis, anachronism in English version
of, 2.

Gold. See Precious metals.
Gold and silver, reduction of supplies,
viii.; first permanently used for
monetary symbols after Roman con-
quest of Spain, 87; value of not due
to cost of production, 53. See Pre-
cious metals.

Greece, ancient, monetary systems of, 31.

Hale, Sir Matthew, cited, 6.
History of money, materials for, 13.
Honesty, its commercial value reduced,

92.

Hume, David, cited, 80.

Hydraulic or placer mining forbidden

in California, viii.

Illimitable money, illiterate suggestion
of, 23.

Inconvertible moneys, 17, 18, 27.
Individual notes as money, 17, 25.
International comparisons of moneys,
fallacious, 47.

Interest, market rate of, to what due,

95; ultimate cause of, the rate of the
growth of plants and animals, 96;
this cause also affects the growth of
population, 97; hence the rate of
interest and population are directly
related, 97; analysis of a rate of, 99;
present tendency of the rate to fall,
100; usury laws at variance with
nature, 101.

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Mahomet, influence of, upon Europe, 5
Measure of value, or money, present
illimitability of, 53, 57.

Measures, when precise, are always arti-
ficial, 76; and numerical, 77; their
efficiency does not necessarily depend
upon the material of which made, 78;
but upon their limits, 78; these limits
fixed by human law, 78; ; essence of,
is limitation, 78; this the meaning of
nomos, 78; function of to number, 50;
substantial immutability of, 51; such
not the case with money as at present
constituted, 53, 57.

Mercantile system, influence upon mone-
tary laws of the, 23, 24.
Merchandise moneys, 17, 19.
Mill, John Stuart, cited, 9, 80.
Mining for the precious metals a losing
industry, v. ; why kept up, v. ; revival

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