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time served the same purpose 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 states. And, this is the reason, 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 subjects, they would find less advantage from their superior riches, and from their great plenty of gold and silver; since the pay of all their servants must rise in proportion to the public opulence. Our small 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 subjection, during the time of the emperors +. The greater number of people, and their greater industry, are serviceable in all cases; at home and abroad, in private and in public. But the greater plenty of money is very limited in its use, and may even sometimes be a loss to a nation in its commerce with foreigners. There seems to be a happy concurrence

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Vol. xxiv.

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do at present in Dublin : And therefore it is better, it may be thought, that a public company should enjoy the benefit of that paper-credit, which always will have place in every opulent kingdom. But to endeavour artificially to increase such a credit, can never be the interest of any trading nation; but must lay them under disadvantages, by increasing money beyond its natural proportion to labour and commodities, and thereby heighttning their price to the merchant and marulacturer. And in this view, it must be allowed, that no bank could be more advantageous than such a one as locked up all the money it received *, and never augmented the circulating coin, as is usual, by returning part of its treasure into commerce. A public bank, by this expedient, might cut off much of the dealings of private bankers and moneyjobbers; and though the state bore the charge of salaries to the directors and tellers of this bank, (for, according to the preceding supposition, it would have no profit from its dealings), the national

advantage, resulting from the low price

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37 effect for a cause. The contradićtion is only apparent; but it requires some thought and reflection to discover the principles, by which we can reconcile reason to experience. It seems a maxim almost self-evident, That the prices of every thing depend on the proportion betwixt commodities and money, and that any considerable alteration on either of these has the same effect, either of heightening or lowering the prices. Increase the commodities, they become cheaper; increase the money, they rise in their value. As, on the other hand, a diminution of the former and that of the latter have contrary tendencies. It is also evident, that the prices do not so much depend on the absolute quantity of commodities and that of money, which are in a nation, as on that of the commodities, which come or may come to market, and of the money which circulates. If the coin be locked up in chests, it is the same thing with regard to prices, as if it were annihilated: if the commodities be hoarded in granaries, a like effect follows. As the money and commodities, in these cases, never meet, they cannot affect each other. Were we, at any time, to form conjectures concerning the price of provisions, the corn which the farmer must reserve for the maintenance of himself and family, ought never to enter into the estimation. It is only the overplus, compared to the demand, that determines the value. To apply these principles, we must consider, that in the first and more uncultivated ages of any state, ere fancy has confounded her wants with those of nature, men, contented with the productions of their own fields, or with those rude preparations which they themselves can work upon them, have little occasion for exchange, or at least for money, which, by agreement, is the common measure of exchange. The wool of the farmer's own flock, spun in his own family, and wrought by a neighbouring weaver, who receives his payment in corn or wool, suffices for furniture and cloathing. The carpenter, the smith, the mason, the tailor, are retained by wages of a like nature; and the landlord himself, dwelling in the neighbourhood, is contented to receive his rent in the commodities raised by the farmer. The greatest part of these he consumes at home, in - F . - rustic

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town, whence he draws the few materials
of his expence and luxury.
But after men begin to refine on all
these 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 tradesmen will not be
paid in corn; because they want some-
thing more than barely to eat. The
farmer goes beyond his own parish for
the commodities he purchases, and can-
not always carry his commodities to the
merchant who supplies him. The land-
lord lives in the capital, or in a foreign
eountry; and demands his rent in gold
and silver, which can easily be transport-
ed to him. Great undertakers, and ma-
nufacturers, and merchants arise in eve-
ry commodity; and these can conveni-
ently deal in nothing but in specie. And
consequently, in this situation of society,
the coin enters into many more contrads,
and by that means is much more employ-
ed than in the former.
The necessary effect is, that, provided
the money does not increase in the na-
tion, every thing must become much
cheaper in times of industry and refine-
ment, than in rude, uncultivated ages.
It is the proportion betwixt the circula-
ting money, and the commodities in the
market, which determines the prices.
Goods that are consumed at home, or ex-
changed with other goods in the neigh-
bourhood, never come to market; they
affect not in the least the current specie;
with regard to it they are as if totally
annihilated; and consequently this me-
thod of using them sinks the proportion
on the side of the commodities, and in-
creases the prices. But after money en-
ters into all contraćts and sales, and is e-
very where the measure of exchange, the
same national cash has a much greater
task to perform; all commodities are then
in the market; the sphere of circulation
is enlarged; it is the same case as if that
individual sum were to serve a larger
kingdom; and therefore, the proportion
being here lessened on the side of the mo-
ney, every thing must become cheaper,
and the prices gradually fall.
By the most exact computations that
have been formed all over Europe, aster
making allowance for the alteration in
the numerary value or the denomination,
it is found, that the Prices of all things

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