FALLACIES OF CONFUSION. 443 



example of this can be found that is more extensively 

 and mischievously employed than in the case of the 

 word representative: assuming that its right meaning 

 must correspond exactly with the strict and original 

 sense of the verb ' represent, 5 the sophist persuades 

 the multitude, that a member of the House of Com- 

 mons is bound to be guided in all points by the 

 opinion of his constituents ; and, in short, to be merely 

 their spokesman: whereas law and custom, which in 

 this case may be considered as fixing the meaning of 

 the term, require no such thing, but enjoin the repre- 

 sentative to act according to the best of his own judg- 

 ment, and on his own responsibility." 



The following are instances, of great practical 

 importance, in which arguments are habitually founded 

 upon a verbal ambiguity. 



The mercantile public are frequently led into this 

 fallacy by the phrase, " scarcity of money." In the 

 language of commerce " money" has two meanings: 

 currency, or the circulating medium; and capital 

 seeking investment, especially investment on loan. In 

 this last sense the word is used when the ''money 

 market" is spoken of, and when the " value of money" 

 is said to be high or low, the rate of interest being 

 meant. The consequence of this ambiguity is, that 

 as soon as scarcity of money in the latter of these 

 senses begins to be felt, as soon as there is difficulty 

 of obtaining loans, and the rate of interest is high, it 

 is concluded that this must arise from causes acting 

 upon the quantity of money in the other and more 

 popular sense; that the circulating medium must have 

 diminished in quantity, or ought to be increased. I 

 am aware that, independently of the double meaning 

 of the term, there are in the facts themselves some 

 peculiarities, giving an apparent support to this error; 



