2 so Mr. Faraday on 



lytical iofty my perfect monetary ion should have an invarying 

 quantity of force ; that is, it should always be in exactly 

 the same exchangeable relation to commodities, which would 

 then be the corresponding ions passing in the opposite direc- 

 tion ; unit for unit their respective values should be approxi- 

 mately as invariable as the force of electrolytical anions and 

 cations. In developing his electrolytical theory, Michael 

 Faraday found it desirable to have a " natural standard " 

 of electric direction, and he took the earth as that standard. 

 In the present case I take, with Adam Smith, labour as the 

 natural determining standard in relation to all questions 

 involved in the consideration of monetary ions ; the labour 

 being estimated quantitatively acccording to its efficiency. 

 Thus a monetary ion should always bear the same propor- 

 tionate relation to labour that the commodity ions produced 

 by labour bore to labour. Increase of efficiency, as a result of 

 scientific discovery or the application of natural power, 

 would increase the commodity ions produced by a given 

 labourer in a given time ; this, in my view, would be an 

 increase in the quantity of labour. Michael Faraday points 

 out that any change in our views of the nature of electricity 

 and electrical action must affect equally his natural standard 

 and the decomposing substances. Pursuing the analogy 

 which I am setting up in order to make my views clear, my 

 monetary ions^ deriving their force from labour, should be 

 affected by the change which affected the commodity ions ; 

 that is the more efficient labour, producing an increased 

 quantity of commodity ionSy should command a propor- 

 tionately increased quantity of monetary ionSy the relation 

 between the commodity ions and the monetary ions (or the 

 price) remaining undisturbed. I pointed out in my former 

 paper {Proceedings, Vol. XXVI., 1886-7) that labour-saving 

 discoveries tend to extend their influence to the production 

 of all commodities, the efficiency of all labour being propor- 

 tionately increased. The monetary ions must not be 



