of money, and a crown in Harry VII.'s time ferved the fame purpofe as a pound does at present. It is only the public which draws any advantage from the greater plenty of money; and that only in its wars and negotiations with foreign ftates. And this is the reafon, why all rich and trading countries, from Carthage to Britain and Holland, have employed mercenary troops, which they hired from their poorer neighbours. Were they to make use of their native fubjects, they would find lefs advantage from their fuperior riches, and from their great plenty of gold and filver; fince the pay of all their fervants must rife in proportion to the public opulence. Our fmall army in Britain of 20,000 men are maintained at as great expence as a French army thrice as numerous. The English fleet, during the late war, required as much money to support it as all the Roman legions, which kept the whole world in fubjection, during the time of the emperors †.

*

The greater number of people, and their greater industry, are ferviceable in all cafes; at home and abroad, in private and in public. But the greater plenty of money is very limited in its ufe, and may even fometimes be a lois to a nation in its commerce with foreigners.

There feems to be a happy concurrence

• [Thefe difcourfes were first published in 1752] A private foldier in the Roman infantry had denarius a-day, fomewhat lef than eight pence. The Roman emperors had commonly 25 legions in pay, which, allowing 5000 men to a legion, makes 125,000. Tacit. ann. lib. 4. It is true, there were alfo auxiliaries to the legions; but their numbers are uncertain, as well as their pay. To confider only the legionaries, the pay of the pri. vate men could not exceed 1,600,000 pound. Now, the parliament in the laft war commonly allowed for the fleet 2,500,000. We have therefore 900,000 over for the officers and other expences of the Roman legions. There feem to have been but few officers in the Roman armies, in comparison of what are employed in all our modern troops, except fome Swifs corps. And thefe officers had very small pay: A centurion, for inftance, only double a common foldier. And as the foldiers from their pay (Tacit. ann. lib. 1.) bought their own cloaths, arms, tents, and baggage; this must also diminish confiderably the other charges of the army. So little expenfive was that mighty government, and fo cafy was its yoke over the world. And, indeed, this is the more natural conclufion from the foregoing calculations. For money, after the corqueft of Egypt, feems to have been nearly in as great plen ty at Rome, as it is at prefent in the richeft of the European kingdoms.

of causes in human affairs, which chec the growth of trade and riches, and hin der them from being confined entirely t one people; as might naturally at first b dreaded from the advantages of an esta blished commerce. Where one nation has got the start of another in trade, it i very difficult for the latter to regain the ground it has loft; because of the fuperio industry and skill of the former, and the greater stocks, of which its merchants are poffeffed, and which enable them to trade for fo much fmaller profits. But the advantages are compenfated, in fome mea fure, by the low price of labour in every nation, which has not an extenfive com merce, and does not very much abound in gold and filver. Manufactures, therefore, gradually shift their places, leaving thofe countries and provinces which they have already enriched, and flying to others, whither they are allured by the cheapnefs of provifions and labour; till they have enriched thefe alfo, and are again banished by the fame caufes. And, in general, we may observe, that the dear. nefs of every thing, from plenty of mo ney, is a difadvantage, which attends an established commerce, and fets bounds to it in every country, by enabling the poorer states to underfel the richer in all foreign markets.

This has made me entertain a great doubt concerning the benefit of banks and paper-credit, which are fo generally efteemed advantageous to every nation. That provifions and labour fhould become dear by the increase of trade and money, is, in many respects, an inconvenience; but an inconvenience that is unavoidable, and the effect of that public wealth and profperity which are the end of all our withes. It is compenfated by the advantages which we reap from the poffeffion of these precious metals, and the weight which they give the nation in all foreign wars and negotiations. But there appears no reafon for increafing that inconve nience by a counterfeit money, which foreigners will not accept in any payment, and which any great diforder in the flate will reduce to nothing. There are, it is true, many people in every rich flate, who, having large fums of money, would prefer paper with good fecurity; as being of more eafy tranfport and more fafe cuftody. If the public provide not a bank, private bankers will take advantage of this circumftance; as the gold fmiths formerly did in London, or as the bankers

but is confined to the coffers of a few perfons, who immediately feek to employ it to the best advantage. Here are a fet of manufacturers or merchants, we fhall fuppofe, who have received returns of gold and filver for goods which they fent to Cadiz. They are thereby enabled to employ more workmen than formerly; who never dream of demanding higher wages, but are glad of employment from fuch good paymafters. If workmen become fcarce, the manufacturer gives higher wages; but at first requires an increase of labour; and this is willingly fubmitted to by the artifan, who can now eat and drink better to compenfate his additional toil and fatigue. He carries his money to market, where he finds every thing at the fame price as formerly, but returns with greater quantity and of better kinds, for the use of his family. The farmer and gardener, finding, that all their commodities are taken off, apply themselves with alacrity to the raifing of more; and at the fame time can afford to take better and more cloths from their tradefmen, whofe price is the fame as formerly, and their induftry only whetted by fo much new gain. It is ealy to trace the money in its progrefs through the whole commonwealth; where we shall find, that it must first quicken the diligence of every individual, before it increase the price of labour. And that the fpecie may increase to a confiderable pitch, before it have this latter effect, appears, amongst other inftances, from the frequent operations of the French King on the money; where it was always found, that the augmenting the numerary value did not produce a proportional rife of the prices, at leaft for fome time. In the last year of Louis XIV. money was raised three fevenths, but prices augmented only one Corn in France is now fold at the fame price, or for the fame number of livres, it was in 1683; though filver was then at 30 livres the mark, and is now at 50*. Not to mention the great addition of gold and filver, which may have come into that kingdom fince the former period.

Thefe facts I give upon the authority of Monf. du Tot in his Reflections politiques, an author of reputation. Though I must confefs, that the facts which he advances on other oc cafions, are often fo fufpicious as to make his authority lefs in this matter. However, the general obfervation, that the augmenting the

From the whole of this reafoning we may conclude, that it is of no manner of confequence, with regard to the domestic happiness of a state, whether money be in a greater or lefs quantity. The good policy of the magiftrate confifts only in keeping it, if poffible, ftill increafing; becaufe, by that means, he keeps alive a fpirit of industry in the nation, and increafes the ftock of labour, in which confifts all real power and riches. A nation whose money decreafes, is actually, at that time, much weaker and more milerable, than another nation, who poffeffes no more money, but is on the increafing hand. This will be eafily ac counted for, if we consider, that the alterations in the quantity of money, either on the one fide or the other, are not immediately attended with proportionable alterations in the prices of commodities. There is always an interval before matters be adjusted to their new fituation; and this interval is as pernicious to induftry when gold and filver are diminishing, as it is advantageous when these metals are increasing. The workman has not the fame employment from the manufac turer and merchant; though he pays the fame price for every thing in the market. The farmer cannot difpofe of his corn and cattle; though he must pay the fame rent to his landlord. The poverty, and beggary, and floth, which must enfue, are easily foreseen. money in France does not at first proportionably augment the prices, is certainly just.

By the by, this feems to be one of the best reasons which can be given, for a gradual and univerfal augmentation of the money, though it has been entirely overlooked in all thofe volumes which have been wrote on that queftion by Melon, Du Tot, and Paris de Verney. Were all our money, for instance, recoined, and a penny's worth of silver taken from every fhilling, the new fhilling would probably purchase old; the prices of every thing would thereby be every thing that could have been bought by the infenfibly diminished; foreign trade enlivened; and domeftic industry, by the circulation of a greater number of pounds and thillings, would receive fome increafe and encouragement. In executing fuch a project, it would be better to make the new fhilling pafs for 24 half-pence, in order to preferve the illufion, and make it be taken for the fame. And as a recoinage of our filver begins to be requifite, by the continual wearing of our fhillings and fixpences, it is doubtful, whether we ought to imitate the example in King William's reign, when the clipt money was raised to the old standard. II. The

ruftic hospitality: The reft, perhaps, he difpofes of for money to the neighbouring town, whence he draws the few materials of his expence and luxury.

But after men begin to refine on all thefe enjoyments, and live not always at home, nor are contented with what can be raised in their neighbourhood, there is more exchange and commerce of all kinds, and more money enters into that exchange. The tradefmen will not be paid in corn; because they want fome thing more than barely to eat. The farmer goes beyond his own parish for the commodities he purchases, and cannot always carry his commodities to the merchant who fupplies him. The landlord lives in the capital, or in a foreign country; and demands his rent in gold and filver, which can easily be tranfported to him. Great undertakers, and manufacturers, and merchants arife in every commodity; and these can conveniently deal in nothing but in fpecie. And confequently, in this fituation of fociety, the coin enters into many more contracts, and by that means is much more employed than in the former.

The neceffary effect is, that, provided the money does not increase in the nation, every thing muft become much cheaper in times of industry and refine ment, than in rude, uncultivated ages. It is the proportion betwixt the circulating money, and the commodities in the market, which determines the prices. Goods that are confumed at home, or exchanged with other goods in the neighbourhood, never come to market; they affect not in the least the current fpecie; with regard to it they are as if totally annihilated; and confequently this method of using them finks the proportion on the fide of the commodities, and in creases the prices. But after money enters into all contracts and fales, and is every where the measure of exchange, the fame national cafh has a much greater task to perform; all commodities are then in the market; the fphere of circulation is enlarged; it is the fame cafe as if that individual fum were to ferve a larger kingdom; and therefore, the proportion being here leffened on the fide of the money, every thing muft become cheaper, and the prices gradually fall.

By the most exact computations that have been formed all over Europe, after making allowance for the alteration in the numerary value or the denomination, it is found, that the prices of all things

have only rifen three, or at most four times, fince the difcovery of the Weft Indies. But will any one affert, that there is no more than four times the coin in Europe, that was in the fifteenth century, and the centuries preceding it? The Spaniards and Portuguese from their mines, the English, French, and Dutch, by their African trade, and by their interlopers in the Weft Indies, bring home about fix millions a-year, of which not above a third part goes to the East Indies. This fum alone in ten years would proba bly double the ancient stock of money in Europe. And no other fatisfactory reafon can be given, why all prices have not rifen to a much more exorbitant height, except that derived from a change of cuftoms and manners. Befides that more commodities are produced by additional industry, the fame commodities come more to market, after men depart from their ancient fimplicity of manners. And though this increase has not been equal to that of money, it has, however, been confiderable, and has preserved the proportion betwixt coin and commodities nearer the ancient standard.

Were the queftion propofed, Which of thefe methods of living in the people, the fimple or the refined, is the most advantageous to the state or public? I fhould, without much fcruple, prefer the latter, in a view to politics at least; and fhould produce this as an additional reafon for the encouragement of trade and manufactures.

When men live in the ancient fimple manner, and fupply all their neceflities from domestic industry or from the neighbourhood, the fovereign can levy no taxes in money from a confiderable part of his fubjects; and if he will impofe on them any burdens, he must take his payment in commodities, with which alone they abound; a method attended with fuch great and obvious inconveniencies, that they need not here be infifted on. All the money he can pretend to raise, must be from his principal cities, where alone it circulates; and thefe, it is evident, cannot afford him to much as the whole ftate could, did gold and filver circulate through the whole. But befides this obvious diminution of the revenue, there is also another caufe of the poverty of the public in fuch a fitua tion. Not only the fovereign receives lefs money, but the fame money goes not fo far as in times of industry and general

commerce.