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Chapter XXII. Influence of the Currency on the Exchanges and on Foreign Trade. Page § 1. Variations in the exchange which originate in the currency181 2. Effect of a sudden increase of a metallic currency, or of the sudden creation of bank notes or other substitutes for money182 3. Effect of the increase of an inconvertible paper currency. Real and nominal exchange187 Chapter XXIII. Of the Rate of Interest. § 1. The rate of interest depends on the demand and supply of loans191 2. Circumstances which determine the permanent demand and supply of loans192 3. Circumstances which determine the fluctuations196 4. The rate of interest, how far, and in what sense connected with the value of money199 5. The rate of interest determines the price of land and of securities205 Chapter XXIV. Of the Regulation of a Convertible Paper Currency. § 1. Two contrary theories respecting the influence of bank issues207 2. Examination of each210 3. Reasons for thinking that the Currency Act of 1844 produces a part of the beneficial effect intended by it214 4. — but produces mischiefs more than equivalent220 5. Should the issue of bank notes be confined to a single establishment?235 6. Should the holders of notes be protected in any peculiar manner against failure of payment?238 Chapter XXV. Of the Competition of different Countries in the same Market. § 1. Causes which enable one country to undersell another240 2. Low wages one of those causes248
