Chapter II: Supply and Demand, and the Value of Money

_Hiatus_ between general theory of value and theory of value
of money 46-47

Partly because former has been developed by different writers
from those who have developed latter 47-49

But chiefly because supply and demand, cost of production,
etc., _assume_ fixed value of money, and are theories of
_price_, rather than _value_ 49

Supply and demand useful but superficial formula, common
property of many value theories 49-50

Crude and unanalyzed in Smith and Ricardo; first made precise
by J. S. Mill, who gives essentials of modern doctrine 49-51

Boehm-Bawerk's pseudo-psychology spoils Mill's clean-cut
doctrine 51-52

Supply and demand assumes fixed _value_ of money-unit, and
hence inapplicable to money itself 52-56

But supply and demand does _not_ assume fixed _price-level_ 56-57

Cairnes _vs._ Mill 57-58

Mill's unsuccessful effort to apply supply and demand to
money 59-62

Walker's attempt 62

Supply and demand in the "money market" 62-63

Chapter III

COST OF PRODUCTION AND THE VALUE OF MONEY

Types of cost theory: modern cost doctrine is "money costs"
doctrine, and inapplicable to value of money 64

Labor cost: Smith; Ricardo; Ricardo's confession of failure;
"real costs" in Senior and Cairnes; Mill's "money-outlay"
cost doctrine, and Cairnes' criticism; but "money-cost"
has survived 64-67

Because "real cost" doctrine does not square with facts 67-69

"Money-cost" of producing money-metal 69-70

Austrian cost doctrine runs still in money terms, assuming
value, money, and fixed value of money 70-71

"Negative social values" as "real costs" note, 71

CHAPTER IV

THE CAPITALIZATION THEORY AND THE VALUE OF MONEY

Money as "capital good," and "money-rates" as rentals 72-73

Capitalization theory; formula; capital value passive
resultant of annual income and rate of discount 73-74

But in case of money, rental and rate of discount not
independent variables 74-76

And in case of money, capital value not passive shadow,
but active cause of income 76

Capitalization theory assumes money, and fixed value of
money 76-77

Assumed fixed value of money absolute, and not relative 77-78

Capitalization theory, in current formulation, inapplicable
to value of money 78-79