Besides。loweringtheMoneymaynotlowerthePricesAbroad。For，aswhenMoneywasrais’d，Goodsmayhaveroseinproportion，orhavebeenmadeworse；Soasa100lib。aftertheMoneyislower’dwillhave33Crownsand1/6moreSilverinit，thana100lib。hadbefore；SoagreaterQuantityofGoodsmaybeboughtwitha100lib。thanbefore，ortheGoodsmaybemadebetter：EspeciallytheLinen—Cloth，sincetheMaterialwouldbeimportedforless。But，allowingthatuponthelowereingtheMoney，GoodssoldinScotlandasbefore，andweremadenobetter；AndallowingthatonThirdormoreoftheGoodsexported，couldnotberais’dintheirPricesAbroad；BecauseForreignersmightbeser’dcheaperwiththesamekindofgoodsfromotherplaces，ormightsupplytheuseofthemwithgoodsofanotherkind；ormightconsumelessofthem；yet，thatoughtnottohindersuchaRegulationoftheMoneyandExchange；foraDraw—backmightbegivenupontheExportofsuchGoods，whosepricesAbroadwerenotgreatenoughtoyieldareasonableProfit。
ButleastsuchanAlterationintheExchange，orundervaluingForraignMoney，shouldlessentheExportofGoods：Itmaynotbeadvisable，unlessaFundweregiven，outofwhichDraw—backsmightbepayedtoencourageExport，andanAdditionbemadetotheMoney，wherebythePeoplemaybesettoWork。ForwithoutsomeAdditiontotheMoney，tisnottobesuppos’dnextyearsExportcanbeequaltothelast：ItwilllessenasMoneyhaslessen’d；apartofthePeoplethenimploy’dbeingnowidle；norforwantofInclinationtowork，orforwantofImployers，butforwantofMoneytoimploythemwith。
Chapter3
OfthedifferentMeasurshavebeenusedtoPreserveandIncreaseMoney。AndofBanks。
TheMeasureshavebeenusedtopreserveandIncreaseMoney，haveinsomeCountriesbeenoppositetowhathasbeenusedinothers：AndoppositeMeasureshavebeenus’dinthesameCountries，withoutanydifferingCircumstancestooccasionthem。
SomeCountrieshaverais’dMoneyintheDenomination，whenothershavelower’dit；Somehaveallay’dit，whenotherswhohadallay’dithaverectifiedit；SomehaveprohibittheExportofMoneyundertheseverestPenalties，whenothershavebyLawallowedittobeexported；
SomethinkingtoaddtotheMoney，haveobligedTraderstobringhomeBullion，inproportiontotheGoodstheyimported。MostCountrieshavetry’dsomeoralloftheseMeasures，andothersofthesameNature，andhavetryedcontraryMeasuresatonetime，fromwhattheyus’dimmediatlybefore，fromtheOpinion，thatsincetheMethodusedhadnottheeffectdesign’d，acontrarywould：Yetishasnotbeenfound，thatanyofthemhavepreserv’dorincreasedMoney；butonthecontrair。
TheuseofBankshasbeenthebestMethodyetpractis’dfortheincreaseofMoney。Bankshavebeenlongus’dinItaly，butasI’minform’dtheInventionofthemwasowingtoSweedland。TheirMoneywasCopper，whichwasinconvient，byreasonofitsWeightandBulk；toremedythisInconveniency，aBankwassetupwheretheMoneymightbepledg’d，andCreditgiventotheValue，whichpastinPayments，andfacilitatTrade。
TheDutchforthesamereasonsetuptheBankofAmsterdam。TheirMoneywasSilver，buttheirTradewassogreatastofindpaymentseveninSilverinconvenient。ThisBanklikethatofSweedland，isasecurePlace，whereMerchantsmaygiveinMoney，andhavecredittotradewith。BesidestheconvenienceofeasierandquickerPayments，theseBankssavestheExpenseofCasheers，theExpenseofBagsandCarriage，lossesbybadmoney，andtheMoneyissaferthanintheMerchantsHouses，for’tislesslyabletoFireorRobbery，thenecessaryMeasuresbeingtakentopreventthem。
MerchantswhohaveMoneyintheBankofAmsterdam，andPeopleofotherCountrieswhodealwiththem，arenotlyabletotheChangesintheMoney，byitsbeingallay’doralter’dintheDenomination：for，theBankreceivesnoMoneybutwhat’sofValue，andisthereforecall’dBank—money；andthorais’dincurrentpayments，itgoesfortheValueitwaspledg’dforinBank—payments。TheAgiooftheBankchangesaQuarterorahalfpercentascurrentMoneyismoreorlessscarce。
BankswheretheMoneyispledg’dequaltotheCreditgiven，aresure；For，thosDemandsaremadeofthewhole，theBankdoesnotfailinpayment。
BytheConstitutionofthisBank，thewholesumforwhichCreditisgiven，oughttoremainthere，tobereadyatdemand；YetasumislentbytheManagersforaStocktotheLumbar，and’tisthoughttheylendgreatSumsonotheroccasions。SofarastheylendtheyaddtotheMoney，whichbringsaProfittotheCountry，byimployingmorePeople，andextendingTrade；TheyaddtotheMoneytobelent，wherebyitiseasierborrowed，andatlessuse；andtheBankhasabenefit：
ButtheBankislesssure，andthononesufferbyit，orareapprehensiveofDanger，itsCreditbeinggood；YetifthewholeDemandsweremade，orDemandsgreaterthantheremainingMoney，therecouldnotallbesatisfied，tilltheBankhadcalledinwhatSumswerelent。
Thecertaingooditdoes，willmorethanballancethehazard，thoonceintwoorthreeyearsitfailedinpayment；providingtheSumslendbewellsecured：MerchantswhohadMoneythere，mightbedisapointedofitatdemand，buttheSecuritybeinggood，andInterestallowed；MoneywouldbehadonasmallDiscompt，perhapsatthePar。
LastWar，EnglandsetupaBanktohavetheConvenienciesofthatatAmsterdam，andbytheirConstitutiontoencreaseMoney。ThisBankwasmadeupofSubscribers，wholenttheKing1200000lib。at8andathirdpercentfor11years，onaParliamentaryFund；Andwerepriviledg’dBankersforthattime。ThesumduebytheGovernmentwasaSecuritytothePeople，tomakegoodanyLossestheBankmightsuffer。
ThisBankwassaferthantheGoldsmithsNotesinusebefore。ItmadeagreatAdditiontotheMoney，havingamuchgreaterSumofNotesout，thanMoneyinBank。AndtheSumlenttheKing，whichwastheFundbelong’dtotheSubscribers，wasnegotiatatProfit，andhadthesameEffectinTradeasMoney。Idon’tknowhowtheirNotescametobeatdiscount，whetherfromtheCircumstancesoftheNation，orfromillManagement。
TheFundoftheBankofScotlandwasa100000l。ofwhichaTenthwaspay’din。ThisBankwassaferthanthatofEngland，therebeingaRegisterwherebymostSumslentweresecured。ItsNoteswentfor4or5timesthevalueoftheMoneyinBank，andbysomuchastheseNoteswentformorethantheMoneyinBank；SomuchwasaddedtotheMoneyoftheNation。
ThisBankwasmoreusefulthanthatofAmsterdam，orEngland；ItsNotespassinginmostpayments，andthroughthewholeCountry：TheBankofAmsterdambeingonlyforthatTown，andthatofEnglandoflittleusebutatLondon。
ThestopofPaymentswhichhapnedtotheBankofScotland，wasforeseen，andmighthavebeenprevented。TheConsumptionofForreignGoods，andExpenseinEngland，beingmorethantheExportofGoodsdidpay；theBallancesentoutinMoneylessen’dtheCreditoftheBank。
ForasCreditisvolunatary，itdependsontheQuantityofMoneyintheCountry，andIncreasesorDecreaseswithit。CoyningNotesofonePoundsupportedtheBank，byfurnishingPaperforsmallpayments，andtherebypreventingapartoftheDemandforMoney：bytheseNotestheBankmighthavekeptitsCredit，tillotherMethodshadbeentakentosupplytheCountrywithMoney；hadnotaReportofraisingtheMoneyoccasion’danextraordinaryDemand，whichinfewdaysexhausttheMoneyinBank，andputastoptopayments。
ItwouldnothavebeeneasieinthatscarcityofMoneytohavegotenoughtosupporttheBank，thoMenofthebestCredithadundertakenit；ThatReportofraisingtheMoneyhavingonlyoccasionedaDemandfromthePeopleofEdinburgh。InashorttimeNoteswouldhavecomeinsofastfromtheCountry，thatwhatMoneycouldhavebeengot，wouldnothaveanswer’dtheDemand。
IfthePrivyCouncilhadlower’dtheMoney，theEnglishCrownto5sh。andtheotherMoneyinproportion，totakeplace2pencep。
Crownin3days，andtheother3penceinaMonth；theoccasionoftheDemandbeingremov’d，inallappearanceMoneywouldhavebeenreturn’dtotheBank。
IfthestateoftheBankhadbeenknown，orsuspectedbythePeople；suchaProclamationwouldhavehadthesameeffect，thothestopofpaymenthadthenhappen’d。Inthatcase，thesupportoftheBankmighthavebeentheNarrativeoftheProclamation；Thesecuritybeinggood，fewornonewouldhavekepttheirMoneytoloss，ratherthanreturnittotheBank。Andifin3daysMoneyhadnotcomeinsofastasexpected，theirLordshipsbya2dProclamationmighthavelower’dtheCrownto5sh。totakeplacethen，and6pencemorein3
days。WhentheCreditoftheBankhadbeenre—establish’d，theMoneymighthavebeencry’dup，ifthathadbeennecessary，theCrownto5
shand5pence，andtheothermoneyinproportionasitwasbefore。
SomeareagainstallBankswheretheMoneydoesnotliepledg’dequaltotheCredit。1。TheysaytheDemandmaybegreaterthantheMoneyinBank。Secondly，IfwearedeclininginourTrade，orMoney，wearenotatall，orareless—sensibleofit：AndiftheBankfail，weareinaworseconditionthanbefore。
Tothefirstit’sAnswered，thotheNationhadnoBenefitbytheadditiontheBankmakestotheMoney；NorthePeoplebybeingsupply’dwithMoneywhenotherwisetheycouldnot，andatlessInterest；AndthotheProprietorshadnogainbyit：theotherConveniencies，asquickerandeasierPayments，etc。aremorethanequaltothathazard；
OrBankNotes，Gold—smithsandBankersNotes，wouldnotbeprefer’dtoMoney，everyBodyknowingsuchastopmayhappentotheBank，andthatGold—smithsandBankersmayfail。
TheotherObjectionisthesameastosay，aMerchantwhohadasmallStock，answascapableofimployingagreater；IfaSumwereoffer’dhimwithoutInterest，equaltowhathehad，andmoreashisownencreas’d，shouldrefuseit，becausehemightfancyhimselfRicherthanhewas，andifhisownStockdecreas’d，thatSumlentwouldbetakenfromhim。
If15000issuppos’dtheMoneyinBank，and75000lib。ofNotesout；60000lib。isaddedtotheMoneyoftheNation，withoutInterest：
Forwhatispay’dbytheBorrowers，isgotbytheProprietors。AstheMoneyoftheNationencreases，theCreditoftheBankencreases，andtheSumofNotesoutisgreater；AndsofarfrommakingthePeoplelesssensibleoftheconditionoftheCountry，asurerJudgmentofthestateofTradeandMoneymaybemadefromtheBooksoftheBank，thananyotherway。
IfTradecanbecarriedonwitha100000lib。andaBallancethenduebyForreigners；Thesamemeasures，andagreaterQuantityofMoney，wouldmaketheBallancegreater。NoristhatAdditionalMoneytheBankfurnishes，tobesuppos’dwillbelost，ifbyaBallanceduefromTradetheSilverMoneyencreases：ThatCreditmayfailfromanaccidentwhenMoneyisplentiful，andwouldsoonberecover’d；’TisonlylostbyascarcityofMoney。SuchaCreditmaysupportTrade，incaseswherewithoutitTradewouldsink，butcannotdoprejudice。
AnotherObjectionismadeagainsttheBank。Thatitencourag’dtheExportationofMoney，byfurnishingSumsinsuchSpeciesaswereofmostvalueAbroad。ToanswerthisObjection，IshallmakeaSupposition。A。B。Merchanthasoccasionfora1000lib。inHolland，anddesiresC。D。BankertogivehimaBillforthatvalue；ThereisnoMoneydueinHollandtoScotsMerchants，soC。D。mustExporttheMoneytopaytheBillheDraws：ButtherebeingnoBank，noranypossibilityofgettinga1000lib。in40PencePieces，hesendsoutMoneyofdifferentSpecies。ThisdoesnothindertheMoneytogoout，butmakestheExchangedearerby2or3percent，thenitwouldhavebeenif40
PencePiecescouldhavebeengot。AndthonootherMoneywereleft，butoldMarks，ifaBallanceisduethesewillgoout，thonotworth10Pence：TheExchangewillbesomuchhigher，theprofitofExportingisthesame；AndsofarfromdoinghurttotheCountry，theBankbyfurnishingsuchpiecesascouldbeExportedtoleastloss，kepttheExchange2or3percentlowerthanotherwiseitwouldhavebeen，andsavedyearlythesendingoutaconsiderableSumtopayagreaterBallance，thehigherExchangewouldhaveoccasioned。
Chapter4
TheSeveralMeasuresnowpropos’d，consider’d。As，raisingorallayingtheMoney。CoyningthePlate。RegulatingtheBallanceofTrade。Or，Re—establishingtheBank。
WhenIusetheWords，RaisingtheMoney，IdesiretobeunderstoodraisingitintheDenomination；ForIdonotsupposeitaddstotheValue。
ThereisnowaySilvercanbemademorevaluable，butbylesseningtheQuantity，orencreasingtheDemandforit。IftheExportandConsumptionofSilverbegreaterthantheImport，ortheDemandbeencreas’d；SilverwilbeofmoreValue。IftheQuantityImportedbegreaterthantheQuantityExportedorConsumed，ortheDemandlessen’d；SilverwillbeoflessValue。
IfraisingorallayingtheMoneycouldaddtoitsValue，orhaveanygoodEffectonHomeorForreignTrade；ThennoNationwouldwantMoney。A100lib。mightberais’dorallay’dto2，to10，toa100
timestheDenominationithad，ormoreastherewereoccasion。Butas’tisunjusttoraise，orallayMoney；Because，thenallcontractsarepayedwithalesserValuethanwascontractedfor；AndasithasbadeffectsonHomeorForreignTrade：SonoNationpracticesit，thathasregardtoJustice，orunderstandsthenatureofTradeandMoney。IfA。B。sell12ChalderofVictualfora100lib。payablein6Months，withwhichheistopayBillsofExchangeofthatValue，tobedrawnonhimthenfromFranceforWinehehasCommission’d；andinthattimetheMoneyisrais’dorally’dtodouble，the100lib。A。B。receiveswillonlypayhalftheBillhehastopay，beingonlyequalto50ib。
oftheMoneyheContractedfor。Norwillthat100lib。buythesameQuantityofGoodsoftheCountry，thata100lib。broughtbefore：ItwillpaywhereMoneyisdue，andsatisfiepastContractsmadeupontheFaithofthePublick，becausethePrincesayseveryManshalltakehalfwhatisowinghiminfullPayment。Butinbargainstobemade，theValueoftheMoneywillbeconsidered；Goodswillrise，thoperhapsnottotheProportiontheMoneyisrais’d：AndsuchPersonsasdonotraisetheirGoods，equaltotheMoney，areimpos’don。
When6penceisraisedto12pence，the6penceisworth12
pence；Butthevalueofthepenceislower’dtoHalf—pence。
Toexplainthismatterbetter，IshallsupposewhenMoneyisrais’d，Goodsrise，ornot。
IfGoodsrise，thenraisingtheMoneyhasnottheeffectdesign’d。Ifapieceofsergeissoldfor40sh。andtheShillingberaisedto18pence，thepieceofSergewillbesoldfor3pound。ThisaddstotheTaleoftheMoney，andpaysDebtswithtwoThirdsofwhatisdue，butdoesnotaddtotheMoney。thisisthenaturalconsequencesofraisingtheMoney；For，itisnotthesoundofthehigherDenomination，butthevalueoftheSilverisconsider’d。
If，whenMoneyisrais’d，GoodskeepthePricestheyhadbefore。
ThenallGoodsexportedaresoldforalesserValueabroad，andallGoodsimportedaresolddearer。（Ex。）AHalf—crownisrais’dto40
pence，andthathalf—crownbuysthesameQuantityofGoods40Penceboughtbefore；ThentheMerchantwhosendsGoodstoHolland，tothevalueof300lib。whicharesoldfor390lib。there，wouldgain220
lib。onthevalueof300lib。exported：Because，390lib。inHollandwouldbeequalto，orworthbyExchangeatthePar，orsentinBullion，520lib。inScotland。ThattradewouldbringnomoreProfittotheNation，thanwhentheReturnoftheGoodsyieldedonly390lib：
For，390lib。beforeitwasrais’d，hadthesameQuantityofSilver，that520librais’dMoneywouldhave；andboughtalsgreataQuantityofForreignGoods。ButthatTradewouldbesoprofitabletotheMerchant，thatmorePeoplewoulddealinitthancouldgetGoodstobuy；andasmoreBuyersthanSellerswouldraisethePriceshere，sooneMerchantundersellingtheotherwouldlowerthePricesinHolland。
ButthothePriceskeptlowhere，andourMerchantskeptupthePricesAbroad；TheDutchknowingtheGoodsweresocheapintheCountry，wouldbuynonefromourMerchants，butCommisontheminreturnofGoodstheysent。
SupposetheyearlyExportfirstCost300000lib。soldabroad390000lib。TheImport，andExpenseabroad410000lib。and20000lib。
sentinMoney，topaytheBallance。TheMoneyrais’doneThird，andGoodstokeepthePricestheyhadbefore，225000lib。senttoScotlandinForreignMoney，orGoods，orbyExchange，wouldbuywhatwassoldabroadfor390000lib。TheExport，Import，andExpenseAbroadcontinuingthesame，ScotlandwouldbedueaBallanceof18500lib。
for，thoScotsGoodsweresoldunderthevalue，yetotherNationswouldnotselltheirGoodsforlessthanbefore；orthantheycouldhaveinotherPlaces。
Itmaybealledg’d，wehavemoreProductandManufacture，thanisconsum’d，orexported；andsellingcheaper，wouldoccasionagreaterDemandforourGoodsAbroad。
TheProductandManufacturemightbemuchincreas’d，ifwehadMoneytoimploythePeople：But，I’mofOpinionwehavenotanygreatQuantityofGoods，morethanwhatisconsum’dorexported。AllowSellingcheaperwouldoccasionagreaterDemand；thatthegreaterDemand，wouldoccasionanincreaseinProduct，andManufacture，tothevalueofa1000000lib。andallowthattheextraordinarycheapnessofGoods，didnotoccasionagreaterConsumptionintheCountry：Yet，wewouldbeinthesameConditionasbefore；20000lib。wouldbestilldueofballance，andtheImprovementwouldbegiventoForreignersfornothing。ButthisImprovementisimaginary，forthotheDemandencreas’d，yetwithoutmoreMoneymorePeoplecouldnotbeimployed，sonofurtherImprovementcouldbemade：wewouldbeforc’dtoretrenchnearonehalfoftheordinaryConsumptionofForreignGoods，andExpenseAbroad；nothavingMoneytopaythegreatballancewouldbedue。
SomethinkForreignMoneybeingrais’d，wouldbringinMoneytoScotland。
ThotheCrownwererais’dto10sh。yetifaBallanceisduebyScotland，theExchangewillbeabovethePar，and’tisnottobesuppos’danEnglishMerchantwillbringCrownstoScotland，whenfora100pay’dinatLondon，hecanhave105or6ofthesameCrownspayedhimatEdinburgh。
IftheballanceofTradewasequal，ForreignMoneyrais’d，andScotsMoneynotraisedinproportion；ForreignMoneywouldbebroughtin，andagreatervalueofScotsMoneywouldbecarriedout。’TisthesamelosstoaCountrywhenMoneyisrais’d，andGoodsnonotriseinproportion：（Ex。）IfForreignerssendinMoneytobuyGoods，andthisMoneywhenexportedisnotvaluedsohighashere；theReturninGoodswillbesomuchless，besidesthewantoftheProfitwewouldhavehadontheExportofourGoods。
IfallImport，andForreignExpenseweredischarged，Scotlandwouldthenbesomuchricher，astherewasBullionorMoneyimported：
But，ifthatProhibitionbesuppos’d，ScotlandwouldbericherbykeepingtheMoneyatthevalueithas；Because，agreaterQuantitywouldbebroughtin，tobuythesameQuantityofGoods。
Ifwecouldbesuppos’dtobewithoutanyCommercewithotherNations，a100lib。maybeallay’dandrais’dtohavethesameeffectinTradeasaMillion：but，ifaStrangerweresuffer’dtocometoScotland，hemightpurchaseagreatpartoftheLandorGoodswithasmallSum。AndarichManherewouldmakeaverysmallFigureAbroad。
MoneyistheMeasurebywhichallGoodsarevalued；andunlessGoodsrisetothefullproportiontheMoneyisrais’d，theGoodsareundervalued。IftheyearlyValueofScotlandinProductandManufacturebe2Millions，at20YearsPurchase40Millions。TheMoneya100000lib。RaisingtheMoney20percent，makesitpassfora120000lib。SupposetheGoodsriseonly10percent，thenthata120000lib。isequalinScotlandtoa110000lib。oftheMoneybeforeitwasrais’d；andBuysthesameQuanitityofGoods。So，anadditionismadeof20000lib。tothelate，andof100000lib。totheValueofScotsorForreignMoney，compar’dwiththeValueofScotsgoods：butthemeasurebywhichgoodsarevalued，beingrais’dintheDenomination20percent；AndtheGoodsrisingonly10percent：
Scotlandisnear4Million，oroneTenthlessvaluablethanbefore。
AndanyManwhoSellshisEstate，willreceiveaTenthlessSilver，orofanyotherForreignGoodsforit，thanifhehadSolditbeforetheMoneywasrais’d。
FranceandHollandaregivenasExamplesofraisingandalloyingtheMoney。InFrancetheMoneyishigherintheDenominationthaninotherCountries，butthatdoesnothindertheMoneyofFrancetobeExported。WhentheLued’orewasat12Livreswerepay’dthenatParis，fora100Lued’oresofthesameWeightandFinenessatAmsterdam，andpassingtherefor9GuildersBankMoney；So10perCentwasgotbyExportingMoneyFromFrance。WhentheLued’orewasrais’dto14Livres，thatdidnotmaketheBallanceagainstFranceless；TheExchangecontinuedthesame，110Lued’oresthoat14Livreswerepayedforabillofa100atAmsterdam，andthesameProfitwasmadebyExportingMoney。IftheExchangehapnedtobelower，itwsfromtheBallanceofTradeduebyFrancebeingless，andthatwouldhavelower’dtheExchangewhethertheMoneyhadbeenrais’dornot。ButtheraisingtheMoney，sofarfrombringingtheBallancetotheFrenchside，keepstheBallanceagainstFrance：For，astheirGoodsdonotrisetothefullproportiontheMoneyisrais’d，soFrenchGoodsareSoldcheaper，andForreignGoodsareSolddearer，whichmakestheBallancegreater，occasionsagreaterExportofMoney，setsIdlesomanyofthePeopleasthatMoneyemploy’d，lessenstheProductorManufacture，theyearlyValueoftheCountry，andthenumberofthePeople。
It’sthoughttheDutchCoinLued’ores，andsendthemtoFrance，wheretheypassat14Livres。And，thatGuineasweresentfromHollandtoEngland，inthetimeoftheCliptMoney，becausetheypasttherefor30sh。ButthesePeoplearemisinformed。EversinceIhaveknownanythingofExchange，aLued’oreatAmsterdamwhetherneworold，hasbeenofmoreValuebyExchange，thananewLued’oreatParis。AndinthetimeoftheCliptMoney，aGuineainHollandwasworthmorebyExchange，thenaGuineainEngland。ThesewhowereIgnorantoftheExchange，mightbuyupguineasorLued’ores，tocarrytoEnglandorFrance，buttheywouldhavegotmorebyBill。TherewasaProfitthenuponExportingGuineasandLued’oresfromEnglandandFrancetoHolland。ThePoundEnglishatthattimewasgivenfor8guilders，orunder；andtheExchangefromAmsterdamtoParishasbeenthese8or10
Yearsforthemostpart，considerablyabovetheParontheDutchside。
IhaveknownthePoundEnglishat7guilders13Stives，andtheFrenchCrownof3LivresboughtinHollandfor37Stivers，inLondonfor39
PencehalfPenny。
RaisingtheMoneyinFranceislayingaTaxonthePeople，whichissoonerpay’d，andthoughttobelessfeltthanaTaxlaidonanyotherway。WhentheKingraisestheLued’orefrom12Livresto14，theyaretakeninattheMintfor13Livres，andgivenoutfor14；SotheKinggainsaLivreontheLued’oro，andthisTaxcomesto20or25MillionofLivres，sometimesmore，accordingtotheQuantityofMoney，itstopstheCirculation：ApartbeingkeptuptillthereisoccasiontoExportittoHolland，fromwhenceareturnismadebyBill，ofasumofLivresequaltothesameQuantityofnewLued’oresthatwereExportedofoldones，and8to10percentmore，accordingastheExchangeisontheDutchside。Otherswhowon’tventuretosendtheMoneyout，keepittillthenewMoneyiscry’ddown，sosavea13thpart，whichtheKingwouldhavegotiftheyhadcarriedtheMoneytotheMinttobeRecoin’d。ThisTaxfallsheavyonthepoorersortofthePeople。
It’sthoughttheDutchCoinLued’ores，andsendthemtoFrance，wheretheypassat14Livres。And，thatGuineasweresentfromHollandtoEngland，inthetimeoftheCliptMoney，becausetheypasttherefor30sh。ButthesePeoplearemisinformed。EversinceIhaveknowanythingofExchange，aLued’oreatAmsterdamwhetherneworold，hasbeenofmoreValuebyExchange，thananewLued’oreatParis。AndinthetimeoftheCliptMoney，aGuineainHollandwasworthmorebyExchange，thanaGuineainEngland。ThesewhowereIgnorantoftheExchange，mightbuyupGuineasorLued’ores，tocarrytoEnglandorFrance，buttheywouldhavegotmorebyBill。TherewasaProfitthenuponExportingGuineasandLued’oresfromEnglandandFrancetoHolland。ThePoundEnglishatthattimewasgiven8Guilders，orunder；andtheExchangefromAmsterdamtoParishasbeenthese8or10
yearsforthemostpart，considerablyabovetheParontheDutchside。
IhaveknownthePoundEnglishat7guilders13Stivers，andtheFrenchCrownof3LivresboughtinHollandfor37Stivers，inLondonfor39PencehalfPenny。
RaisingtheMoneyinFranceislayingaTaxonthePeople，whichissoonerpay’d，andthoughttobelessfeltthanaTaxlaidonanyotherway。WhentheKingraisestheLued’orefrom12Livresto14，theyaretakeninattheMintfor13Livres，andgivenoutfor14；SotheKinggainsaLivreontheLued’ore，andthisTaxcomesto20or25MillionofLivres，sometimesmore，accordingtotheQuantityofMoneyintheCountry。ButsofarfromaddingtotheMoney，itstopstheCirculation：ApartbeingkeptuptillthereisoccasiontoExportittoHolland，fromwhenceareturnismadebyBill，ofaSumofLivresequaltothesameQuantityofnewLued’oresthatwereexportedofoldones，and8to10percentmore，accordingastheExchangeisontheDutchside。Otherswhowon’tventuretosendtheMoneyout，keepittillthenewMoneyiscry’ddown，sosavea13thpart，whichtheKingwouldhavegotiftheyhadcarriedtheMoneytotheMinttobeRecoin’d。ThisTaxfallsheavyonthepoorersortofthePeople。
ItsgenerallythoughttheDutchMoneyisnotworthhalfwhatitpassesfor。ButitwillproveotherwisewhenExamined。TheBankbywhichmostpaymentsaremade，receiveandpayinBankMoney，whichisbetterthantheEnglish：Ducatdownsareat3Guilders，andotherBankMoneyinproportion；AndI’minform’dthecurrentMoneyhasSilverinittotheValueornear，exceptsomeoftheirSkellingswhichareworsethanothers：Themakingthemworsewasnotdesign’d，itwasanabuseoccasionedbytoomanyTownshavingPowertoCoin：Whichabusewasstoptsosoonasknown，andthatSpeciescry’ddownto5Stiversandahalf。
SomeproposetheMoneymayberais’d，togivethelittlewehaveleftabetterCirculation，andtobringouthoardedMoney。Theloweringitbydegreestotakeplacein3or4Months，willhavethesameEffect；AndothergoodConsequences：For，fromwhathasbeensaid，page30and31。Thereisreasontothink，iftheMoneywerelower’dtotheEnglishStandard，Exchangewouldbeonourside，andaBallancedueus：ProvidingtheExport，theImport，andExpenseabroadcontinuedasnow。
ThereisanotherArgumentforraisingtheMoney，whichis，thatsomegoodsdon’tyieldProfitenoughtabroad，soarenotexported。
（Ex。）IfSergesworthinScotlanda100lib。areworth120inHolland，theMerchantwon’texportthemfor20percnetprofit：ButiftheMoneyisrais’d20percent，andGoodskeepatthePricestheyhadbefore，thesameMoneythatbought100lib。ofSerges，buyingnowtothevalueof120lib。AndtheseGoodsbeingworthinHolland144lib：
ThatAdditiontotheProfitbyraisingtheMoney，willoccasiontheExportofthem。
ThisisthesameasifaMerchantwhohada100differentsortsofGoods，andwasoffer’d30percentProfitupon90ofthem；butnobodyofferingabove20percentProfitfortheother10Sorts，shouldaddaQuartertothemeasurebywhichhemeasur’dhisgoods，andsellallthe100SortsforthesamePricehesoldthembefore：AsthismerchantwouldfindhimselfaconsiderableLoserbythisExpedient，sowillaNationwhoraisestheirMoney。
ForthesameReason，itwouldbeagreatlosstoScotlandifallGoodswereallowedtobeexportedwithoutduty；someoughttobefreeofDuty，andsomenot，accordingtotheirValueAbroad。
ThetrueandsafewaytoencouragetheExportofsuchGoods，asdonotyieldgreatenoughProfit；isbyaDraw—back。（Ex。）IfSergessenttoHollandgiveonly20percentprofit，10percentgivenasaDraw—backwillencouragetheirExport：TheDraw—backgiventotheMerchantisnotlosttotheNation，andwhatisgotbytheManufactureorExportoftheGoods，isgain’dbytheNation。
ADraw—backisthebestMethodyetknownforencouragingTrade，anditmaybemadeappear，that10or15000applyedthatway，willoccasionanAdditiontotheExporttotheValueofa100000lib。Norisanypartofthat10or15000lib。losttotheNation；For，ifA。B。
andC。Scotsmengetsuchdraw—back，itisthesamethingtotheNation，asifithadnotbeengiven。WhenDraw—backsarepayedoutofFundsforthesupportoftheGovernment，littleMoneyisapplyedthatway；Because，somuchistakenfromthePrince：But，iftherewasaNationalFundfortheencouragementofTrade，thatNationmightimproveTrade，andunderselotherNationsthatdidnotfollowthesameMeasure。ButthissupposingtherewasMoneyintheCountrytoimploythePeople。
CoiningthePlatewerealossoftheFashion，whichmaybevaluedone6th，andwouldaddlittletotheMoney：thePlateattheRestaurationwasinconsiderable，havingbeencall’dinalittlebefore。Sincetheremayhavebeenwroughoneyearwithanotherabout60stoneweight；ofthatagreatparthasbeenmelteddown，orexported，theRemainderwon’tbeofgreatvalue。WhatPlatehasbeenimportedbelongstoafewMenofQuality，whowillsenditoutoftheCountryratherthanlosetheFashion；andinthattheydoaServicetotheCountry，providingtheydon’tspenditabroad，becausewroughtPlatewillsellformoreSilveratLondon，thanitwillmelttohere。
If’tispropos’dtheMoneybeallay’d，andtheAdvantageoftheAllaybegiventotheOwnersofthePlate。SupposethenewMoneywithAllayberais’dtodoubletheDenomination；5sh。ofPlatewiththeFashionworth6sh。willgiveattheMint10sh。allay’dMoney：ButeventhenthePlatewillnotbebroughtinvolunatarly，forthatPlatesoldinEngland，andtheValuebroughtbackbyBill，willyieldfrom11to12sh。ExchangebeingabovethePar，and6pencesupposedtobegotfortheFashionoftheOunceofPlate。
IfitbenecessarytocointhePlate，suchPlateshouldbeallow’dtobeexportedascanbesoldabroadformorethanitsWeight：
SecuritybeinggiventoimportMoneyorBulliontothevalue。
SomeproposeaRegulationoftheBallanceofTrade，byretrenchingtheConsumptionofForreignGoods，andExpenseinEngland：
SotheBallancebeingbroughttobeonourside，wemaybecomerichbylivingwithinouryearlyvalue，aswebecomepoorbyspendingbeyondit。
SuchaRegulationwillhaveitsDifficulties。1。TodischargealloragreatpartoftheImport，willlessenconsiderablytheRevenueoftheCrown；andHerMajestymaynotthinkgoodtogivetheRoyalAssenttosuchaRegulation，unlessanEquivalentbegiven。2。SuchaRegulationwouldnotbesostrictlykept，butapartofwhatwasusedtobeimportedwouldbestolein。3。TheResidenceofourPrincesbeinginEngland，weareunderanecessityofhavingaMinistrythere：
ImploymentsbeingatthedisposalofthePrince，andLondonbeingaPlaceofmoreDiversionthanEdinburgh，theGentrywillcontinuetogotoLondonforPlacesorPleasure。
ButallowingtheRoyalAssentweregiventosucharegulation；
eitherwithorwithoutanEquivalent；andtheRegulationcouldbesostrictlykept，thatnothingwereimportedcontrairtothatLaw；andallow20000lib。couldbesav’doftheExpenseinEngland，sothattheImportandExpenseAbroadshouldbe60000lib。lessthanlastyear：
YetthereareotherDifficulties，thatIfearwillmaketheRegulationineffectual。
1。SupposetheBallancelastyearduebyuswas20000lib。theImportandExpenseAbroadlessen’d60000lib。ThesewhoproposethisRegulationmaythinkaBallancewillbeduetousof40000lib。ButastheBankmayhavesupplyeduswith60000lib。ofnotes，morethantheMoneyinBank：andas20000libissuppos’dtohavebeenexportedlastyear：SoourMoneybeinglessen’d80000lib。thenextyearsExportmaybesomuchlessvaluable，thewantofthatMoneyhavingsetidleapartofthePeoplewerethenimployed：andagreaterBallancebeduethanlastyear，notwithstandingoftheRegulation。
2。40000lib。firstcostofGoodsImported，and20000lib。spentAbroad，lessen’dtheconsumptionoftheGoodsoftheCountry；andtheExportwasbysomuchgreater，astheConsumptionoftheGoodsoftheCountrywaslessen’d。ButthisRegulationoccasioningagreaterConsumptionoftheGoodsoftheCountry，theExportwillbeless。
3。SeveralMerchantsmayhaveExportedGoods，thotheyhadnotmuchProfitupontheExportofthem；butbecauseoftheProfittobemadeupontheImport；whichbeinglessen’d，maylikewiselessentheExport。
4。IfScotlandDischargeorputaveryhighDutyontheGoodsofotherNations，otherNationsmayDischargeScotsGoods。
AllowingtherewerenodifficultiesinRegulatingtheBallanceofTrade，andthatthesameMeasureswerefollowedasarefollowedinHolland；WewouldgrowRicher，buttheirRicheswouldencreaseinthesameproportion：And50YearshenceScotlandwouldbeasPoorasnow，incomparisonwithHolland。
IftwoCountriesequalintheirProduct，Peopleetc。theonewitha100000lib。ofMoney，andLivingwithinitsyearlyValue；sothatthefirstYearaBallanceisdueof20000lib。thesecondYearof25000lib。andsoon。TheotherCountrywith20MillionsofMoney，andconsumingmorethantheyearlyValue；sothataMillionissentouttopaytheBallance，thesecondYear1200000lib。andsoon。ThisCountrywillbesoonPoor，andtheothersoonRich：ButifthatPeoplewhohas20MillionsofMoney，willretrenchinproportiontotheother；theywillbeRichandPowerfulincomparisonwiththeother。
ConsideringhowsmallasharewehaveoftheMoneyofEurope，andhowmuchTradedependsonMoney：ItwillnotbefoundverypracticabletobetterourCondition，butbyanadditiontoourMoney。Orifitispracticablewithoutit，itismuchmoresowithit。
TheBankwilladdlittletotheMoney；ForasCreditisvoluntary，itdependsontheQuantityofMoneyintheCountry。AndthotheBankhadneverfail’d，yetitcouldnothavekeptitsCreditmuchlonger。Because，theQuantityofMoneyinScotlandisnotsufficienttogiveaCirculationtosuchaSumofNotes，aswillpaytheChargesoftheBank，andtheInteresttotheOwners。
’TisthoughttheProprietorsoftheBankdesigntoapplytotheParliamentforfurtherPriviledges：Butastheirdesignisnotyetmadepublick，Ishallonlysayingeneral，thatifotherPriviledgesaertobegiven，thenitisnotthesameBank；atleastnotonthesameEstablishmentitwas：Ineitherofthesecases，everyPersonshouldbeallowedtoshareinit。
WhenaBankisEstablish’teveryPersonmayhaveashare，upontheTermsoftheActofParliament；andhethatOffersfirstispreferred。SupposeuponthesettingupoftheBank，A。B。andC。didnotSubscribetoit，becausetheythoughttheestablishmentnotfavourableenough：SolongastheywhodidSubscribecansupporttheBankupontheTermsoftheActofParliament，nonewillpretendtoanyshareinit；unlesstheSubscribersarepleas’dtosell。ButifotherPriviledgesaregiven，A。B。andC。asanyothersoftheCountrymaydesiretheBookstobeopen’d，thattheybeallow’dtoshareinit；
andanyothersetofMenwhoofferthesameSecurity，mayatthesametimebeallowedtosetupaBankwiththesamePriviledges：SoeveryShireinScotlandwilldesireone。AndifnewPrivilegesaregiventothisBank，itwereahardshiptorefusethesametoothers，whoareableandwillingtogivethesameSecurity，especiallywhentheNationstandsinneedofmoreMoneythanthisBankwouldbeallowedtogiveout。
Chapter5
ThatanyMeasurespropos’dforencreasingtheSilverMoneyorEstablishingaCreditPromisingaPaymentofSilverMoneyareineffectual。ThatSilverMoneyhasfallenmuchfromtheValueithad。
ThatLandisofgreaterValue。ThatSilvermaylosetheadditionalValueitreceivedfrombeingusedasMoney。
NationalPowerandWealthconsistsinnumbersofPeople，andMagazinesofHomeandForreignGoods。ThesedependonTrade，andTradedependsonMoney。SotobePowerfulandWealthyinproportiontootherNations，weshouldhaveMoneyinproportionwiththem；forthebestLawswithoutMoneycannotemploythePeople，ImprovetheProduct，oradvanceManufactureandTrade。
ThemeasureshavebeenusedtopreserveandencreaseMoney，orsuchasarenowpropos’d，areattendedwithDifficulties；andthotheDifficultieswereremov’d，areineffectual，andnotcapabletofurnishMoneysoastoimprovetheCountry，orextendTradeinanyproportiontotheImprovementsandTradeofotherNations。
CreditthatpromisesaPaymentofMoney，cannotwellbeextendedbeyondacertainproportionitoughttohavewiththeMoney。AndwehavesolittleMoney，thatanyCreditcouldbegivenuponit，wouldinconsiderable。
Itremainstobeconsidered，whetheranyotherGoodsthanSilver，canbemadeMoneywiththesamesafetyandconvenience。
FromwhathasbeensaidaboutthenatureofMoney，Chap。1itisevident，thatanyotherGoodswhichhavetheQualitiesnecessaryinMoney，maybemadeMoneyequaltotheirValue，withSafetyandConvenience。ThereisnothingofHumourorFancyinmakingSilvertobeMoney；itwasmadeMoney，becauseitwasthoughtbestQualifiedforthatuse。
Ishallendeavourtoprove，thatanotherMoneymaybeEstablish’t，withalltheQualitiesnecessaryinMoneyinagreaterdegreethanSilver；withotherQualitiesthatSilverhasnot：AndpreferableforthatUse，thoSilverweretheproductofScotland。AndthatbythisMoney，thePeoplemaybeEmploy’d，theCountryImprov’d，ManufactureAdvance’d，TradeDomestickandForreignbecarriedon，andWealthandPowerattain’d。
WhatIpropose，willIhopebefoundsafe，andpracticable；
AdvantageousingeneraltoScotland，andinparticulartoeveryScotsMan。
ButasIoffertoprove，thatwhatIshallproposeismoreQualifiedfortheUseofMoneythanSilver：SobeforeIcometotheProposal，IshallshewsomedefectsinSilverMoney；andthatithasnot，noredoesnotanswerthedesignofMoney。
MoneyistheMeasurebywhichGoodsareValued，theValuebywhichgoodsareExchanged，andinwhichContractsaremadepayable。
Moneyisnotapledge，assomecallit。It’saValuepayed，orContractedtobepayd，withwhich’tissupposed，theReceivermay，ashisoccasionsrequire，BuyanequalQuantityofthesameGoodshehasSold，orotherGoodsequalinValuetothem：AndthatMoneyisthemostsecureValue，eithertoReceive，toContractfor，ortoValueGoodsby；whichisleastlyabletoachangeinitsValue。
SilverMoneyismoreuncertaininitsValuethanotherGoods，solessQualifiedfortheUseofMoney。
ThePowertheMagistrathastoaltertheMoneyinitsDemominationorFineness，takesawaythechiefQualityforwhichSilverwasmadeMoney。IncountrieswheretheMoneyisoftenchangedintheDenominationorFineness，’tismoreuncertaintoContractforMoney，thanitwasinthestateofBartertoContractforGoods。
Example，Ifa100OuncesofSilverareLent，orContractedfor，andaBondgivenforthemDenominantPounds，payableinaYear：InthattimehalfaCrownisrais’dtoaCrown，and50Ouncespaysthe100LentorContractedfor。
ThotheMagistratdidneveraltertheMoneyinitsDenominationorFineness，yetitismoreuncertaininitsValuethanotheGoods。
GoodsofthesamekindandqualitydifferinValue，fromanychangeintheirQuantity，orintheDemandforthem：IneitherofthesecasesGoodsaresaidtobedearer，orcheaper，beingmoreorlessvaluable，andequaltoagreaterorlesserQuantityofotherGoods，orofMoney。
SilverinBullionorMoneychangesitsValue，fromanychangeinitsQuantity，orintheDemandforit：IneitherofthesecasesGoodsaresaidtobedearer，orcheaper；but’tisSilverorMoneyisdearerorcheaper，beingmoreorlessvaluable，andequaltoagreaterorlesserQuantityofGoods。
PerishableGoodsasCorn，etc。encreaseordecreaseinQuantityastheDemandforthemencreasesordecreases；sotheirValuecontinuesequalornearthesame。
MoredurableGoodsasMettals，materialsforShipping，etc。
encreaseinQuantitybeyondtheDemandforthem，soarelessvaluable。
SilverorMoneyencreasesinQuantitybysomuchasisImportedtoEurope，morethanisConsumedorExported。TheDemandhasencreas’d，butnotinproportiontotheQuantity；For，1stThesameQuantityofSilverorMoney，won’tPurchasethesameQuantityofGoodsasbefore。2ndly。10percentwaspayedfortheUseofit；now’tistobehadat6，inHollandat3or4。
AnOunceofSilverbeingworth5sh。and2pence，andaCrownworth60Pence，unlessalter’dbythePrince，makesmostPeopleinsensibleofanychangeintheValueofSilverorMoney：ButasoneYeartheBollofBarleyisSoldfor2Crowns，andtheYearafterfor3；ThisdifferencecomesfromachangeintheQuantityorDemandoftheBarley，oroftheMoney：AndthatoftheMoneywilloccasionadifferenceinthePrice，alswellasthatoftheBarley。
IflastYeara100Sheepweresoldfora100Crowns，andthepersonsoldthemdesiresthisYeartoBuythesamenumberofSheep；
thotheQuantityoftheSheep，andtheDemandforthembethesameaslastYear：YetiftheMoneyisencreas’dinQuantity，andtheDemandforitnotencreas’dinQuantity，andtheDemandforitnotencreas’dinproportion，the100SheepwillbeequalinValuetomoreMoneythantheYearbefore，sotheMoneyischeaper。IftheQuantityoftheMoney，andtheDemandforitbethesameasbefore；YetiftheSheeparelesserinQuantity，ortheDemandforthemgreater：The100SheepwillbeequaltoagreaterQuantityofMoney，sotheSheeparedearer。
SothotheMagistratdidneveraltertheMoney，yet’tislyabletoachangeinitsValueasSilver；fromanychangeinitsQuantity，orintheDemandforit：AndtheReceiverisdoublyuncertainwhethertheMoneyhereceivesorcontractsfor，will，whenhehasoccasion，BuyhimthesameGoodshehasSold，orotherGoodsequalinvaluetothem；becauseofthedifferencemayhappenintheValueoftheMoney，ortheGoodsheistoBuy。
Andthisuncertaintyis，thobothMoneyandGoodswerecertainintheirQuality。
ThedifferenceofthePricesofmostGoods，fromChangesintheirQuantity，orintheDemandforthem，wouldbemuchprevented，ifMagazinswerekept；butthedifferenceintheirPricesfromthegreaterorlesserQuantityof，orDemandforMoney；cannotbepreventedsolongasSilveristheMoney。
ThatMoneyisofmuchlesserValuethanitwas；willappearbythevalueGoods，Land，andMoneyhad200yearsago。
BytheActsoftheCouncilofEdinburgh，itappears，thatAnno1495，theFiarsforWheatwas6shand8penniesScotsMoneytheBoll。
Anno1520，ClaretandwhiteFrenchWineswereorder’dtobesoldintheTavernsat6penniesScotsthePint，andAleat20penniesScotstheGallon。
Anno1526，theMilnsbelongingtotheTownwerelettfor400
MerksScots，nowtheygive13000。
ThePettyCustomsatLeiththenlettfor115Merks。
Anno1532，theLoadofMaltcontaining9Firlots，wasorder’dtobesoldat32shScotstheLoad。
Anno1551，Order’dthatthebestMuttonBulkbesoldfor12
penniesScots，the2dsortfor10pennies，andtheworstsortfor8
pennies。
Anno1553，the9FirlotsofMaltoldMeasure，withtheCharity，isorder’dtobesoldfor36sh。Scots。TheLandwartBreadtoweigh40
Ounces，andtheTownbread36Ouncesthe4pennyorPlackLoaf。
Anno1555，theBakersareorder’dforeachBollofWheat，todeliver7ScoreLoafs，at16OuncestheLoaf。
ByanActofthe5thParliamentofQueenMary，Anno1551。It’sordain’d，thatWinesimportedupontheEastandNorthCoast，shouldnotbesolddearerthan20lib。ScotstheTunofBourdeauxWine，and16lib。theTunofRochelWine。thePintofBourdeauxWine10pennies，andthePintofRochelWine8pennies。AndthatWineimportedupontheWestCoast，besoldnodearerthan16libtheTunofRochelWine。8
penniesthepintofBourdeauxWine，and6penniesthepintofRochelWine。
Sothatwhat5lib。bought200yearsago，willnotbeboughtnowfora100lib。NorwereGoodsingreaterplenty，oroflessvaluethannow：OntheContrair，astheseActsweremadetoregulatthepricesofGoods，’tisreasonabletothinktheywereinlesserQuantitythannow，proportion’dtotheDemand，soofmorevalue。ButMoneyhavingincreas’dinQuantity，morethaninDemand，andhavingbeenalter’dbythePrince；isfalleninvalue：Anda100lib。nowisnotworthwhat5
lib。wasworthbefore。
Landmaybecomputedtohavebeenimprov’din200years，thatwhatpaysnowtwoBollstheAcre，payedthenbutoneBoll：WhichmaybeknownfromoldRentals。
Moneygavethen10percentInterest，andas384Acres，rentedataBolltheAcre，Victualat8shand4PencetheChalder；sothePropertyoftheseAcreswasequalto，orworth100lib。fora100lib。
gave10lib。Interest，andthe384AcrespayedonlysuchaQuantityofVictual，aswassoldfor10lib。ButasLand（beingpreferabletoMoneyformanyReasons）isvaluednowat20yearsPurchase，thoMoneyisat6percent：Sothatlandthenmayhavebeenvalued14yearspurchase，140lib。
AstheQuantityofMoneyhasencreas’dsincethattime，muchmorethantheDemandforit；andasthesameQuantityofSilverhasreceive’dahigherDenomination，soofConsequenceMoneyisoflesservalue：AlesserInterestisgivenforit：AgreaterQuantityofitisgivenforthesameQuantityofGoods，andtheLandisworthmoreyearspurchase。
ThevalueofsuchLandnow，theAcrerentedat2Bolls，victualat8lib。6shand6pence，Moneyat6percent，solandat20yearspurchase，wouldbe8000lib。BythisComputationMoneyisonlyworththe20thpartofGoods，andthe57thpartofLand，itwasworth200
yearsago。PartofthisdifferenceisfromtheImprovementmadeonLand，andthegreaterDemandforLand，theQuantitybeingthesame，wherebyitsvalueisgreater：TherestoftheDifferenceis，fromtheMoneybeingmoreenceas’dinquantity，thaninDemand，wherebyitsValueislesser，anditsuselower：Aslikewisefromitsbeingalter’dintheDenomination。
TherewasthenagreaterQuantityofSilverinthesamenumberofpencethanthereisnow：WhichappearsbyseveralActsofParliamentmadeaboutthattime。
Anno1475，inthe8Par。ofK。Jamesthe3。TheOunceofSilverwasorder’dtobesoldfor12sh。Scotsand12GroatswasmadeoftheOunceofSilver。
The3d。ofNovember1554，byanActoftheTownCouncilofEdinburgh，theOunceofSilverwasorder’dtobesoldat18sh。and8
penniesScots；ButtheseActsdoesnotmentiontheFinenesstheSilverwasof。Supposethesamenumberofpencehadtwiceor4timestheValueofSilverinthemthattheyhavenow：ThenSilverisonlyfallentooneTenth，oroneFifthoftheValueithadtoGoods；andtoone28th，orone14oftheValueithadtoLand。ButstillMoneyisfallentoone20thoftheValueithadtoGoods，andtoone57thoftheValueithadtoLand。
TheManneroflendingMoneyinFrance，andIsupposeinotherRomanCatholickCountries；isbywayofperpetualInterest，redeemablebytheDebitor，andwhichtheCreditormaydisposeorassign，butcanneverdemandthePrincipal。AnditisUsurybyLawtotakeanyInterestforMoney，iftheCrditorhaspowertocallforthePrincipal，thotheTermofpaymentbemanyyearsaftertheMoneyislent。SupposethemanneroflendinginScotlandwasthesame200yearsago，andthatA。B。having768AcresofLand，rentedataBollofVictualtheAcre，theyearlyRent48Chalder，at5lib。ScotstheChalder，20lib。sterl。C。D。wortha100lib：inMoney，tohavelentittoA。B。andInterestbeingat10percent，tohavereceivedanannualinterestof10lib。whichhelefttohisSon，andthoughtheprovidedsufficientlyforhim，10lib。beingequalto，orworth24ChalderofVictual。ButInterestbeingloweredto6percent，Moneybeingrais’dintheDenomination，andoflessvaluebyitsgreaterQuantity：the6
lib。nowpayedfortheAnnualInterestofthat100lib。isnotworthoneChalderofVictual。And384Acres，orthehalfofA。B。’sLand200
yearsagoonlyequaltoa100，ora140lib；isnowworth57timesthatSum，theRentalsupposedtobedoubled，anditsvalueat20yearspurchase。
InFranceithasbeenobserv’d，thatabout200yearsago，thesameLandwasin30yearsworthdoubletheMoneyitwasworthbefore。
SoLandwortha100lib。anno1500，wasworth200lib。anno1530。400
lib。anno1560。andsoon，tillwithinthese50or60yearsithascontinuednearthesameValue。
InEngland，20timestheQuantityofMoneyisgivenforGoods，thatwasgiven200yearsago。IntheseCountries’tisthoughtGoodshaverose；butGoodshavekepttheirvalue，’tisMoneyhasfallen。
MostGoodshaveincreas’dinQuantity，equalornearastheDemandforthemhasencreas’d；andareatorneartheValuetheyhad200yearsago。Landismorevaluable，byimprovementproducingtoagreaterValue，andtheDemandincreasing，thequantitybeingthesame。
SilverandMoneyareoflesservalue，beingmoreincreas’sinQuantity，thaninDemand。
GoodswillcontinueequalinQuantityastheyarenowtoDemand，orwon’tdiffermuch：FortheincreaseofmostGoodsdependsontheDemand（Ex。）IftheQuantityofOatsbegreaterthantheDemandforConsumptionandMagazineswhatisoverisaDrug，sothatProductwillbelessen’d，andtheLandimployedtosomeotheruse：IfbyaScarcitytheQuantitybelesserthandemand，thatDemandwillbesupply’dfromMagazinesofformerYears；oriftheMagazinesarenotsufficienttoanswertheDemand，thatScarcitycannotwellbesuppos’dtolastaboveayearortwo。
Landwillcontinuetoriseinvalue，beingyetcapableofImprovement；AndastheDemandincreases，fortheQuantitywillbethesame。
Silverwillcontinuetofallinvalue，asitincreasesinquantity，theDemandnotincreasinginproportion；fortheincreasedoesnotdependontheDemand。MostPeoplewon’tallowthemselvestothinkthatSilverischeaperorlessvaluable，thoitappearsplainly，bycomparingwhatQuantityofGoodssuchaweightoffineSilverbought200yearsago，andwhatQuantityofthesameGoodsitwillbuynow。IfapieceofwineinFranceisequalinvalueto20BollsofOatsthere，thatQuantityofOatscanneverbeworthmoreorlessWine；solongastheQuality，QuantityandDemandofBothcontinuesthesame：ButanyDisproportion’dChangeintheirQuality，QuantityorDemand，willmakethesameQuantityoftheone，beequaltoagreaterQuantityoftheother。SoifapieceofWineinFrance，isequaltoorworth40Crownsthere；itwillalwayscontinueso，unlesssomedisproportion’dChangehappenintheQuantity，QualityorDemandoftheWine，oroftheMoney。
TheReasonisplain，whySilverhasencreas’dmoreinQuantitythaninDemand：TheSpainiardsbringasgreatQuantitiesintoEuropeastheycangetwroughtoutoftheMines，foritisstillvaluedthonotsohigh。AndthononeofitcomesintoBrittain，yetitwillbeoflessValueinBrittain，asitisingreaterQuantityinEurope。
ItmaybeobjectedthattheDemandforSilverisnowgreaterthantheQuantity。Itisanswered，thotheDemandisgreaterthantheQuantity；yetithasnotincreas’dinProportionwiththeQuantity。
200yearsagoMoneyorSilverwasat10percent，nowfrom6ot3。Ifthedemandhadincreas’dalsmuchastheQuantity，Moneywouldgive10
percentasthen，andbeequaltothesameQuantityofVictual，orotherGoodsthathavekepttheirValue。IfA。B。havinga1000lib。tolend，shouldofferitat10percentInterest，anddesiredLandof240
ChalderofVictualRentforhisSecurity，aswasusedtobegiven200
yearsago：ThonoLawregulattheInterestofMoney，A。B。wouldfindnoBorrowersontheseConditions；BecauseSilverhavingencreas’dmoreinquantitythaninDemand，andtheDenominationbeingalter’d，MoneyisoflessValue，andistobehadoneasierterms。IftheDemandhadencreas’dinthesameproportionwiththeQuantity，andtheMoneyhadnotbeenrais’d，thesameInterestwouldbegivennowasthen，andthesameQuantityofVictualtopaytheInterest；forMoneykeepingitsValue，8shand4pencewouldbeequaltoaChalderofVictual，asitwasthen。
If2000lib。waslaidoutonPlate200yearsago，itisthoughttheLossonthePlatewasonlytheFashion，andtheInterest；butifthe2000lib。hadbeenlaidoutonLand，theRentofthatLandwouldbemorethantheValueofsuchPlate。
ThoMoneyorSilverissomuchfallenfromtheValueithad，yetit’sgivenasavalueforonehalf，ortwoThirdsmorethanitsvalueasSilver，abstractfromitsuseasmoney。
SupposeSilvertobenomoreus’dasMoneyinEurrope，itsQuantitywouldbethesame，andtheDemandforitmuchlessr；whichmightlowerit2Thirdsormore；forbesidesthattheDemandwouldbeless，it’sUsesasPlate，etc。arenotnearsonecessary，asthatofMoney。
GoodsgivenasaValue，oughtfortheirotherUsestobevaluable，equaltowhattheyaregivenfor。Silverwasbarter’dasitwasvaluedforitsUsesasaMetal，andwasatfirstgivenasMoney，accordingtothevalueithadinbarter。Silverhasacquir’danadditionalValuesince，thatadditionalUseitwasapplyedtooccasioningagreaterDemandforit；whichValuePeoplehavenotbeensensibleof，thegreaterQuantitymakingitfallmore：Butithaskeptitfromfallingsolowasitwouldhavefall’n，ifithadnotbeenusedasMoney，asthesameQuantityhadcomeintoEurope。
’TisuncertainhowlongSilvermaykeepthatadditionalValue：IfEnglandsetupaMoneyofanotherkind，SilverwillnotfalltooneThird，becauseusedinotherplacesasMoney；butthelesserDemandbesidestheordinaryfallfromthegreaterQuantitycomingintoEurope，wouldoccasionanextraordinaryfallperhapsof10percent：
IfthenewMoneytheninEnglanddidnotencreasebeyondtheDemandforit，itwouldkeepitsValue，andbeequaltosomuchmoreSilveratHomeorAbroadthanitwasCoin’dfor；asSilverwouldbeoflessValue，fromtheordinaryandextraordinaryfall。
IfEnglandchang’dtheirMoney，otherCountriesmaydothesame。
IfHollandalonekepttoSilverMoney，thePriceofSilvermaybesupposedtofallimmediately50percent，fromthelesserDemandforitasMoney。Anda100lib。inHollandbeworthnomorethan50lib。
newMoneyinEngland，whethersentinSpecieorremittedbyExchange；
andasmoreSilvercameintoEurope，itwouldfallyetlower，becauseofitsgreaterQuantity。
ItmaybeObjected，ThatinScotlandtheQuantityofGoodsareproportionedtotheDemandastheyhavebeensomeYearsago；andMoneyscarcer，theDemandforitthesameorgreater。SoifGoodsandMoneyarehigherorlowerinValue，fromtheirgreaterorlesserQuantityinproportiontotheDemandforthem；Moneyshouldbyitsgreatscarcitybemorevaluable，andequaltoagreaterQuantityofGoods。YetGoodsdifferlittleinPrice，fromwhattheywerewhenMoneywasingreaterQuantity。
TothisisAnswered，TheValueofGoodsorMoneydiffers，astheQuantityofthemorDemandforthemchangesinEurope；notastheychangeinanyparticularCountry。GoodsinScotlandaratornearthesameValuewithGoodsinEngland，beingnearthesameinQuantityinproportiontotheDemandasthere：MoneyinScotlandisnotaboveone40thpartoftheMoneyinEngland，proportion’dtothePeople，Land，orProduct；norabovea10thpartproportion’dtotheDemand。IfScotlandwasincapableofanyCommercewithotherCountries，andinthestateitisnow，MoneyherewouldBuy10timestheQuantityofGoodsitdoesinEngland，ormore：ButasScotlandhasCommercewithotherCountries，thoMoneyweremuchscarcerthannow，orinmuchgreaterQuantitythaninEngland；iftherewerebut10000lib。inScotland，oraMillion，theValueofGoodswouldnotdifferabove3
percent，fromwhattheywereabroad，becauseforthatdifferenceGoodsmmaybeExported，orImported。Prohibitionsmayraisethedifferencehigher。
BrittanniaLanguensandothersonTradeandMoney，areofOpinionthatGoodsinanyCountryfallinValue，asMoneyinthatparticularcountrygrowsscarcer。That，iftherewasnomorethan500lib。inEngland，theyearlyRentofEnglandwouldnotexceed500lib。andanOxwouldbesoldforapenny。WhichOpinioniswrong，forastheOxmightbeExportedtoHolland，itwouldgiveaPriceinEnglandequalorneartothatitwouldgiveinHolland：IfMoneyweresupposedtobeequallyscarceinHolland，andotherplacesasinEngland，theOxmightgivenomorethanaPenny，butthatPennywouldhaveavaluethenequalto5lib。now；becauseitwouldpurchasethesameQuantityofGoodsinEnglandorotherplaces，that5lib。doesnow。
ThesameAnswermaybegiventothesewhothinkanAdditiontotheMoneyofanyparticularCountrywouldundervalueitso，thatthesameQuantityofGoodswouldcostdoubletheMoneyasbefore。
IftheMoneyandCreditcurrentinEnglandbe15Millions，Scotlandreckon’das1to10，theMoneyinScotlandencreas’dtoaMillionandahalf，theDemandinproportiontotheDemandinEngland；
thatAdditiontotheMoneyofScotland，wouldnotmakeMoneyoflessValuehere，thanitisnowinEngland。GoodsinScotlandwouldSellastheySellinEngland，theProductoftheCountrywouldperhapsbe10
or20percentdearer，tobringitequaltowhatitSellsinEngland；
butallsortsofManufacturewouldbecheaper，becauseingreaterQuantity：AndallGoodsImportedwouldbecheaper，Moneybeingeasierborrowed，MerchantswoulddealforagreaterValue，andMenofEstateswouldbecapacitatetoTrade，andabletoSellatlessProfit。NowwouldLandrisehigherthaninEngland，theBuyerhavinginhischoicetoBuyelsewhere；thebetterSecurityofaRegistermaybesuppos’stoaddaYearsPurchaseortwototheValue。