The Science of Money

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1885 edition. ... CHAPTER XII. REGULATION OP MONEYS. Fluctuations of price which do not belong to the domain of science --Variations which do--Practical considerations for the regulation of money--Effect in the United States of an absolutely fixed sum--Influence of a fixed sum per capita of population--Actual movement of population and money during the past century--Had money been regulated instead of being left to commerce, chance, and political contention, the great panics of 1815, 1821, 1837, 1861, and 1870 might have been averted. TDESIDES those changes in the general Level of Prices which arise from changes in the whole Sum of Money, there is a subsidiary and partial movement of prices--a change in the prices of certain things, not of all things-- which arises from war, legislation, speculation, foreign commerce, fashion, the chances of mining discovery, good and bad harvests, the progress of mechanical invention "overproduction," 1 and other causes. These influences directly affect value, whilst money only affects price; these influences, whether separately or combined, may only affect the value of some things, they cannot affect that of all; whilst money cannot affect any without 1 There can only be a permanent over-production of two improved lands and the precious metals. See "History of the Precious Metals," pp. 226, 275. affecting every one. With the fluctuations of value occasioned by the various causes above set forth, the Science of Money has no concern; they belong to the domain of Commerce. When money consists, as it does now, partly of a commodity--let us say gold, made into coins--and partly of notes, whether convertible or not, and its Sum is liable to be affected by the commercial or political supply and demand for gold...