52
TALES IN POLITICAL ECONOMY.
[III.
III.
Isle Pleasant.
Money is a universal measure of value, and medium of exchange—The convenience of using money instead of making exchanges by barter—The substance used as money should possess four qualities: it should be valuable in itself, its value should as far as possible be steady, it should possess great value in small bulk, and it should be capable of being sub-divided without reducing its value—Credit—The effect of credit on prices—The elasticity which various forms of credit give to the currency tends to check fluctuations in prices caused by active or slack trade—The influence of money in promoting division of labour—Shops.
Some years after the last chapter was written I had some letters from Captain Adam, dated from Isle Pleasant, the name that had been given to the settlement. He had carried out his plan of returning to the island, taking with him a steam-engine, some spinning-jennies, and looms for weaving, besides a large collection of books, cutlery, and other articles. He was accompanied by two engineers, and by six Lancashire factory
