Three Lectures on the Value of Money

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B. Fellowes, 1840 - Money - 84 pages
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Page 21 - The quantity wanted will depend partly on the cost of producing gold, and partly on the rapidity of its circulation. The rapidity of circulation being given, it would depend on the cost of production : and the cost of production being given, the quantity of money would depend on the rapidity of its circulation...
Page 3 - ... hundredth, or any other part of the goods, will " exchange against one tenth, or any other part " of the whole of the money ; and that this tenth, " &c. will be a great quantity or small, exactly in " proportion as the whole quantity of the money " in the country is great or small.
Page 3 - It is not difficult to perceive that it is the total quantity of the money in circulation in any country which determines what portion of that quantity shall exchange for a certain portion of the goods or commodities of that country. It is the proportion between the circulating money and the commodities in the market which determines the price.
Page 23 - ... for it, might be increased or diminished ; and during the interval between the diminution or increase of the demand, and the increase or diminution of the supply in the market, the value might rise above, or sink below, the cost of production. The primary cause of the utility of gold is, of course, its use as the material of plate. The secondary cause is its use as money.
Page 25 - The gathering of gold would, of course, cease; until the gradual loss and wear of plate and money i uncompensated by any annual supply, should have reduced the quantity of gold below the amount necessary to supply the existing demand for plate and money. On the occurrence of that event, it would again become profitable to gather gold ; and the price of every thing would again depend on the proportion of the labour necessary to its production, compared with the labour necessary to obtain a given quantity...
Page 17 - The value of the precious metals as money must depend ultimately on their value as materials of jewellery and plate ; since if they were not used as commodities, they could not circulate as money.
Page 30 - My principal object in this long discussion has been to show that the value of money, as far as it is decided by intrinsic causes, does not depend permanently on the quantity of it possessed by a given community, or on the rapidity of its circulation, or on the prevalence of exchanges, or on the use of barter or credit, or, in short, on any cause whatever, excepting the cost of its production.
Page 6 - If this were the state of the facts, therefore, il is evident that the value of money would depend wholly upon the quantity of it. ' It will appear that the case is precisely the same in the actual state of the facts. The whole of the goods of a country are not exchanged at once against the whole of the money ; the goods are exchanged in portions, often in very small portions, and at different times, during the course of the whole year. The same piece of money which is paid in one exchange to-day...
Page 7 - ... if each performs ten different exchanges to effect " one exchange of all the goods, the value of all " the goods in the country is equal to ten times " the value of all the money. " This, it is evident, is a proposition universally " true. Whenever the value of money has either " risen or fallen (the quantity of goods against " which it is exchanged, and the rapidity of " circulation, remaining the same,) the change " must be owing to a corresponding diminution " or increase of the quantity,...
Page 7 - ... diminution or increase of the quantity; and can be owing to nothing else. If the quantity of goods diminish while the quantity of money remains the same, it is the same thing as if the quantity of money had been increased; and if the quantity of goods be increased while the quantity of money remains unaltered, it is the same thing as if the quantity of money had been diminished.

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