Thesamereasonswouldoperatewiththeexporterofthecorn，ifthetransactionwereonhisownaccount。ButiftheBank，"fearfulforthesafetyoftheirestablishment，"andknowingthattherequisitenumberofguineaswouldbewithdrawnfromtheircoffersatthemintprice，shouldthinkitnecessarytodiminishtheamountoftheirnotesincirculation，theproportionbetweenthevalueofthemoney，ofthecloth，andofthehardware，wouldnolongerbeas105，106，and107；butthemoneywouldbecomethemostvaluableofthethree，andthereforewouldbelessadvantageouslyemployedindischargingtheforeigndebts。
　　If，whichisamuchstrongercase，weagreedtopayasubsidytoaforeignpower，moneywouldnotbeexportedwhilsttherewereanygoodswhichcouldmorecheaplydischargethepayment。Theinterestofindividualswouldrendertheexportationofthemoneyunnecessary。（2*）
　　Thusthenspeciewillbesentabroadtodischargeadebtonlywhenitissuperabundant；onlywhenitisthecheapestexportablecommodity。IftheBankwereatsuchatimepayingtheirnotesinspecie，goldwouldbedemandedforthatpurpose。Itwouldbeobtainedthereatitsmintprice，whereasitspriceasbullionwouldbesomethingaboveitsvalueascoin，becausebullioncould，andcoincouldnot，belegallyexported。
　　Itisevident，then，thatadepreciationofthecirculatingmediumisthenecessaryconsequenceofitsredundance；andthatinthecommonstateofthenationalcurrencythisdepreciationiscounteractedbytheexportationofthepreciousmetals。（3*）
　　Such，then，appeartometobethelawsthatregulatethedistributionofthepreciousmetalsthroughouttheworld，andwhichcauseandlimittheircirculationfromonecountytoanother，byregulatingtheirvalueineach。ButbeforeIproceedtoexamineontheseprinciplesthemainobjectofmyenquiry，itisnecessarythatIshouldshewwhatisthestandardmeasureofvalueinthiscountry，andofwhich，therefore，ourpapercurrencyoughttobetherepresentative，becauseitcanonlybebyacomparisontothisstandardthatitsregularity，oritsdepreciation，maybeestimated。
　　Nopermanent（4*）measureofvaluecanbesaidtoexistinanynationwhilethecirculatingmediumconsistsoftwometals，becausetheyareconstantlysubjecttovaryinvaluewithrespecttoeachother。Howeverexacttheconductorsofthemintmaybe，inproportioningtherelativevalueofgoldtosilverinthecoins，atthetimewhentheyfixtheratio，theycannotpreventoneofthesemetalsfromrising，whiletheotherremainsstationary，orfallsinvalue。Wheneverthishappens，oneofthecoinswillbemeltedtobesoldfortheother。MrLocke，LordLiverpool，andmanyotherwriters，haveablyconsideredthissubject，andhaveallagreed，thattheonlyremedyfortheevilsinthecurrencyproceedingfromthissource，isthemakingoneofthemetalsonlythestandardmeasureofvalue。MrLockeconsideredsilverasthemostpropermetalforthispurpose，andproposedthatgoldcoinsshouldbelefttofindtheirownvalue，andpassforagreaterorlessernumberofshillings，asthemarketpriceofgoldmightvarywithrespecttosilver。
　　LordLiverpool，onthecontrary，maintainedthatgoldwasnotonlythemostpropermetalforageneralmeasureofvalueinthiscountry，butthat，bythecommonconsentofthepeople，ithadbecomeso，wassoconsideredbyforeigners，andthatitwasbestsuitedtotheincreasedcommerceandwealthofEngland。
　　He，therefore，proposed，thatgoldcoinonlyshouldbealegaltenderforsumsexceedingoneguinea，andsilvercoinsforsumsnotexceedingthatamount。Asthelawnowstands，goldcoinisalegaltenderforallsums；butitwasenactedintheyear1774，"Thatnotenderinpaymentofmoneymadeinthesilvercoinofthisrealm，ofanysumexceedingthesumoftwenty-fivepoundsatanyonetime，shallbereputedinlaw，orallowedtobelegaltenderwithinGreat-BritainorIreland，formorethanaccordingtoitsvaluebyweight，aftertherateof5s。2d。foreachounceofsilver。"Thesameregulationwasrevivedin1798，andisnowinforce。
　　FormanyreasonsgivenbyLordLiverpool，itappearsprovedbeyonddispute，thatgoldcoinhasbeenfornearacenturytheprincipalmeasureofvalue，butthisis，Ithink，tobeattributedtotheinaccuratedeterminationofthemintproportions。Goldhasbeenvaluedtoohigh；nosilver，therefore，canremainincirculationwhichisofitsstandardweight。
　　Ifanewregulationweretotakeplace，andsilvertobevaluedtoohigh，or（whichisthesamething）ifthemarketproportionsbetweenthepricesofgoldandsilverweretobecomegreaterthanthoseofthemint，goldwouldthendisappear，andsilverbecomethestandardcurrency。
　　Thismayrequirefurtherexplanation。Therelativevalueofgoldandsilverinthecoinsisas159/124to1。Anounceofgoldwhichiscoinedinto3l。17s。101/2d。ofgoldcoin，isworth，accordingtothemintregulation，159/124ouncesofsilver，becausethatweightofsilverisalsocoinedinto3l。
　　17s。101/2d。ofsilvercoin。Whilsttherelativevalueofgoldtosilverisinthemarketunder15to1，whichithasbeenforagreatnumberofyearstilllately，goldcoinwouldnecessarilybethestandardmeasureofvalue，becauseneithertheBank，nor3
　　anyindividual，wouldsend159/124ozs。ofsilvertotheminttobecoinedinto3l。17s。101/2d。whentheycouldsellthatquantityo*silverinthemarketformorethan3l。17s。101/2d。
　　ingoldcoin，andthistheycoulddobythesupposition，thatlessthan15ouncesofsilverwouldpurchaseanounceofgold。
　　Butiftherelativevalueofgoldtosilverbemorethanthemintproportionof159/124to1，nogoldwouldthenbesenttotheminttobecoined，becauseaseitherofthemetalsarealegaltendertoanyamount，thepossessorofanounceofgoldwouldnotsendittotheminttobecoinedinto3l。17s。10
　　1/2d。ofgoldcoin，whilsthecouldsellit，whichhecoulddoinsuchcase，formorethan3l。17s。101/2d。ofsilvercoin。Notonlywouldnotgoldbecarriedtotheminttobecoined，buttheillicittraderwouldmeltthegoldcoin，andsellitasbullionformorethanitsnominalvalueinthesilvercoin。Thusthengoldwoulddisappearfromcirculation，andsilvercoinbecomethestandardmeasureofvalue。Asgoldhaslatelyexperiencedaconsiderablerisecomparedwithsilver，（anounceofstandardgold，which，onanaverageofmanyyears，wasofequalvalueto143/4ozs。ofstandardsilver，beingnowinthemarketofthesamevalueas151/2oz。）thiswouldbethecasenowweretheBankRestriction-billrepealed，andthecoinageofsilverfreelyallowedatthemint，inthesamemannerasthatofgold；butinanactofparliamentof39Geo。IIIisthefollowingclause:——
　　"Whereasinconveniencemayarisefromanycoinageofsilveruntilsuchregulationsmaybeformedasshallappearnecessary；andwhereasfromthepresentlowpriceofsilverbullion，owingtotemporarycircumstances，asmallquantityofsilverbullionhasbeenbroughttotheminttobecoined，andthereisreasontosupposethatastillfurtherquantitymaybebrought；anditisthereforenecessarytosuspendthecoiningofsilverforthepresent；beitthereforeenacted，Thatfromandafterthepassingofthisact，nosilverbullionshallbecoinedatthemint，norshallanysilvercointhatmayhavebeencoinedtherebedelivered，anylawtothecontrarynotwithstanding。"
　　Thislawisnowinforce。Itwouldappear，therefore，tohavebeentheintentionofthelegislaturetoestablishgoldasthestandardofcurrencyinthiscountry。Whilstthislawisinforce，silvercoinmustbeconfinedtosmallpaymentsonly，thequantityincirculationbeingbarelysufficientforthatpurpose。
　　Itmightbefortheinterestofadebtortopayhislargedebtsinsilvercoinifhecouldgetsilverbullioncoinedintomoney；
　　butbeingpreventedbytheabovelawfromdoingso，heisnecessarilyobligedtodischargehisdebtwithgoldcoin，whichhecouldobtainatthemintwithgoldbulliontoanyamount。
　　Whilstthislawisinforce，goldmustalwayscontinuetobethestandardofcurrency。
　　Werethemarketvalueofanounceofgoldtobecomeequaltothirtyouncesofsilver，goldwouldneverthelessbethemeasureofvalue，whilstthisprohibitioncontinuedinforce。Itwouldbeofnoavail，thatthepossessorof30ouncesofsilvershouldknowthatheoncecouldhavedischargedadebtof3l。17s。10
　　1/2d。byprocuring159/124ouncesofsilvertobecoinedatthemint，ashewouldinthiscasehavenoothermeansofdischarginghisdebtbutbysellinghis30oz。ofsilveratthemarketvalue，thatistosay，foroneounceofgold，or3l。17s。101/2d。ofgoldcoin。
　　Thepublichassustained，atdifferenttimes，veryseriouslossfromthedepreciationofthecirculatingmedium，arisingfromtheunlawfulpracticeofclippingthecoins。
　　Inproportionastheybecomedebased，sothepricesofeverycommodityforwhichtheyareexchangeableriseinnominalvalue，notexceptinggoldandsilverbullion:accordinglywefind，thatbeforethere-coinageinthereignofKingWilliamtheThird，thesilvercurrencyhadbecomesodegraded，thatanounceofsilver，whichoughttobecontainedinsixty-twopence，soldforseventy-sevenpence；andaguinea，whichwasvaluedatthemintattwentyshillings，passedinallcontractsforthirtyshillings。Thisevilwasthenremediedbytherecoinage。Similareffectsfollowedfromthedebasementofthegoldcurrency，whichwereagaincorrectedin1774bythesamemeans。
　　Ourgoldcoinshave，since1774，continuednearlyattheirstandardpurity；butoursilvercurrencyhasagainbecomedebased。Byanassayatthemintin1798，itappearsthatourshillingswerefoundtobetwenty-fourpercent，andoursixpencesthirty-eightpercent。undertheirmintvalue；andIaminformed，thatbyalateexperimenttheywerefoundconsiderablymoredeficient。Theydonot，therefore，containasmuchpuresilverastheydidinthereignofKingWilliam。Thisdebasement，however，didnotoperatepreviouslyto1798，asontheformeroccasion。Atthattimebothgoldandsilverbullionroseinproportiontothedebasementofthesilvercoin。Allforeignexchangeswereagainstusfulltwentypercent。，andmanyofthemstillmore。Butalthoughthedebasementofthesilvercoinhadcontinuedformanyyears，ithadneither，previouslyto1798，raisedthepriceofgoldnorsilver，norhaditproducedanyeffectontheexchanges。Thisisaconvincingproof，thatgoldcoinwas，duringthatperiod，consideredasthestandardmeasureofvalue。Anydebasementofthegoldcoinwouldthenhaveproducedthesameeffectsonthepricesofgoldandsilverbullion，andontheforeignexchanges，whichwereformerlycausedbythedebasementofthesilvercoins（5*）。
　　Whilethecurrencyofdifferentcountriesconsistsofthepreciousmetals，orofapapermoneywhichisatalltimesexchangeableforthem；andwhilethemetalliccurrencyisnotdebasedbywearing，orclipping，acomparisonoftheweight，anddegreeoffinenessoftheircoins，willenableustoascertaintheirpitofexchange。ThustheparofexchangebetweenHollandandEnglandisstatedtobeaboutelevenflorins，becausethepuresilvercontainedinelevenflorinsisequaltothepuresilvercontainedintwentystandardshillings。
　　Thisparisnot，norcanitbe，absolutelyfixed；because，goldcoinbeingthestandardofcommerceinEngland，andsilvercoininHolland，apoundsterling，or20/21ofaguinea，mayatdifferenttimesbemoreorlessvaluablethantwentystandardshillings，andthereforemoreorlessvaluablethanitsequivalentofelevenflorins。Estimatingthepareitherbysilverorbygoldwillbesufficientlyexactforourpurpose。
　　IfIoweadebtinHolland；byknowingtheparofexchange，I
　　alsoknowthequantityofourmoneywhichwillbenecessitytodischargeit。
　　Ifmydebtamountto1100florins，andgoldhavenotvariedinvalue，100l。inourpuregoldcoinwillpurchaseasmuchDutchcurrencyasisnecessarytopaymydebt。Byexportingthe100l。thereforeincoin，or（whichisthesamething）payingabullionmerchantthe100l。incoin，andallowinghimtheexpencesattendingitstransportation，suchasfreight，insurance，andhisprofit，hewillsellmeabillwhichwilldischargemydebt；atthesametimehewillexportthebullion，toenablehiscorrespondenttopaythebillwhenitshallbecomedue。
　　Theseexpencesthenaretheutmostlimitsofanunfavourableexchange。Howevergreatmydebtmaybe，thoughitequalledthelargestsubsidyevergivenbythiscountytoanally；whileI
　　couldpaythebullion-merchantincoinofstandardvalue，hewouldbegladtoexportit，andtosellmebills。ButifIpayhimforhisbillinadebasedcoin，orinadepreciatedpapermoney，hewillnotbewillingtosellmehisbillatthisrate；
　　becauseifthecoinbedebased，itdoesnotcontainthequantityofpuregoldorsilverwhichoughttobecontainedin100l。，andhemustthereforeexportanadditionalnumberofsuchdebasedpiecesofmoney，toenablehimtopaymydebtof100l。，oritsequivalent，1100florins。IfIpayhiminpapermoney；ashecannotsenditabroad，hewillconsiderwhetheritwillpurchaseasmuchgoldorsilverbullionasiscontainedinthecoinforwhichitisasubstitute；ifitwilldothis，paperwillbeasacceptabletohimascoin；butifitwillnot，hewillexpectafurtherpremiumforhisbill，equaltothedepreciationofthepaper。
　　Whilethecirculatingmediumconsists，therefore，ofcoinundebased，orofpaper-moneyimmediatelyexchangeableforundebasedcoin，theexchangecanneverbemoreabove，ormorebelow，par，thantheexpencesattendingthetransportationofthepreciousmetals。Butwhenitconsistsofadepreciatedpaper-money，itnecessarilywillfallaccordingtothedegreeofthedepreciation。
　　Theexchangewill，therefore，beatolerablyaccuratecriterionbywhichwemayjudgeofthedebasementofthecurrency，proceedingeitherfromaclippedcoinage，oradepreciatedpaper-money。
　　ItisobservedbySirJamesStuart，"ThatifthefootmeasurewasalteredatonceoverallEngland，byaddingtoit，ortakingfromit，anyproportionalpartofitsstandardlength，thealterationwouldbebestdiscovered，bycomparingthenewfootwiththatofParis，orofanyothercountry，whichhadsufferednoalteration。
　　"Justso，ifthepoundsterling，whichistheEnglishunit，shallbefoundanyhowchanged；andifthevariationithasmetwithbedifficulttoascertain，becauseofacomplicationofcircumstances；thebestwaytodiscoveritwillbetocomparetheformerandthepresentvalueofit，withthemoneyofothernationswhichhassufferednovariation。Thistheexchangewillperformwiththegreatestexactness。"TheEdinburghreviewers，inspeakingofLordKing'spamphlet，observe，that"itdoesnotfollowbecauseourimportsalwaysconsistpartlyofbullion，thatthebalanceoftradeisthereforepermanentlyinourfavour。
　　Bullion，"theysay，"isacommodity，forwhich，asforeveryother，thereisavaryingdemand；andwhich，exactlylikeanyother，mayenterthecatalogueeitherofimportsorexports；andthisexportationorimportationofbullionwillnotaffectthecourseofexchangeinadifferentwayfromtheexportationorimportationofanyothercommodities。"
　　Nopersoneverexportsorimportsbullionwithoutfirstconsideringtherateofexchange。Itisbytherateofexchangethathediscoverstherelativevalueofbullioninthetwocountriesbetweenwhichitisestimated。Itisthereforeconsultedbythebullion-merchantinthesamemannerastheprice-currentisbyothermerchants，beforetheydetermineontheexportationorimportationofothercommodities。IfelevenflorinsinHollandcontainanequalquantityofpuresilverastwentystandardshillings，silverbullion，equalinweighttotwentystandardshillings，canneverbeexportedfromLondontoAmsterdamwhilsttheexchangeisatpar，orunfavourabletoHolland。Someexpenceandriskmustattenditsexportation，andtheverytermparexpressesthataquantityofsilverbullion，equaltothatweightandpurity，istobeobtainedinHollandbythepurchaseofabillofexchange，freeofallexpence。WhowouldsendbulliontoHollandatanexpenceofthreeorfourpercent。when，bythepurchaseofabillatpar，heinfactobtainsanorderforthedeliverytohiscorrespondentinHollandofthesameweightofbullionwhichhewasabouttoexport？
　　Itwouldbeasreasonabletocontend，thatwhenthepriceofcornishigherinEnglandthanontheContinent，cornwouldbesent，notwithstandingallthechargesonitsexportation，tobesoldinthecheapermarket。
　　Havingalreadynoticedthedisorderstowhichametalliccurrencyisexposed，Iwillproceedtoconsiderthosewhich，thoughnotcausedbythedebasedstateofeitherthegoldorsilvercoins，areneverthelessmoreseriousintheirultimateconsequences。
　　Ourcirculatingmediumisalmostwhollycomposedofpaper，anditbehovesustoguardagainstthedepreciationofthepapercurrencywithatleastasmuchvigilanceasagainstthatofthecoins。
　　Thiswehaveneglectedtodo。
　　Parliament，byrestrictingtheBankfrompayinginspecie，haveenabledtheconductorsofthatconcerntoincreaseordecreaseatpleasurethequantityandamountoftheirnotes；andthepreviouslyexistingchecksagainstanover-issuehavingbeentherebyremoved，thoseconductorshaveacquiredthepowerofincreasingordecreasingthevalueofthepapercurrency。
　　Intracingthepresentevilstotheirsource，andprovingtheirexistencebyanappealtothetwounerringtestsIhavebeforementioned，namely，therateofexchangeandthepriceofbullion，IshallavailmyselfoftheaccountgivenbyMrThorntonoftheconductoftheBankbeforetherestriction，toshewhowclearlytheyactedontheprinciplewhichhehasexpresslyacknowledged，viz。thatthevalueoftheirnotesisdependentontheiramount，andthattheyascertainedthevariationintheirvaluebythetestsIhavejustreferredto。
　　MrThorntontellsus，"Thatifatanytimetheexchangesofthecountrybecamesounfavourableastoproduceamaterialexcessofthemarketabovethemintpriceofgold，thedirectorsoftheBank，asappearsbytheevidenceofsomeoftheirbody，giventoparliament，weredisposedtoresorttoareductionoftheirpaper，asameansofdiminishingorremovingtheexcess，andofthusprovidingforthesecurityoftheirestablishment。
　　Theymoreoverhaveatalltimes，"hesays，"beenaccustomedtoobservesomelimitastothequantityoftheirnotesforthesameprudentialreasons。"Andinanotherplace:"Whenthepricewhichourcoinwillfetchinforeigncountriesissuchastotemptitoutofthekingdom，thedirectorsoftheBanknaturallydiminish，insomedegree，thequantityoftheirpaperthroughananxietyforthesafetyoftheirestablishment。Bydiminishingtheirpaper，theyraiseitsvalue；andinrisingitsvalue，theyraisealsothevalueinEnglandofthecurrentcoinwhichisexchangedforit。Thusthevalueofourgoldcoinconformsitselftothevalueofthecurrentpaper，andthecurrentpaperisrenderedbytheBank-directors，ofthatvaluewhichitisnecessarythatitshouldbearinordertopreventlargeexportations；-avaluesometimesrisingalittleabove，andsometimesfallingalittlebelow，thepricewhichourcoinbearsabroad。"