Nassau William Senior’s famous lectures* on money and international trade have been newly issued by the London School of Economics and Political Science in their series of reprints.

I*

All the misfortunes from which Europe has suffered in the last two decades have been the inevitable result of the application of the theories which have dominated the social and economic philosophy of the last fifty years. Our troubles are the upshot of much laborious thought.

Introduction*

The expressions, “fluctuations in the purchasing power of gold” and “measurement of the fluctuations in the purchasing power of gold” cannot be used unless we have, at the same time, a conception of the purpose for the attainment of which it is essential to have an exact definition of these terms.

The* monetary economists of the sixteenth and seventeenth centuries succeeded in dissipating the popular fallacies concerning an alleged stability of money. The old error disappeared, but a new one originated, the illusion of money’s neutrality.

I.*

The history of civilization is the record of a ceaseless struggle for liberty.

I. Thought and Conduct*

Earlier historians dealt almost exclusively with the deeds and exploits of kings and warriors. They paid little or no attention to the slowly working changes in social and economic conditions. They did not bother about the modifications of doctrines, creeds, and mentalities.

Karl* Knies has recommended to replace the traditional division of economic goods into consumer goods and producer goods with a threefold classification: producer goods, consumer goods, and means of exchange.

I*

Up to the eighteenth century, historians paid little or no attention to the epistemological problems of their craft.