1000000031

NI O

infc:par.lble

from lhe mc

:til.lt

lh~mC.;.h·~3 .

or from

tlle:

f \

brication of th :m) lhe whok:

Il1c.tlur~

v.lluc.

~ncl

:1.11

the

rc1.\tlVc

inrerells of

d~blOrs

a"tI

cl cdlfOIS , bc:cUlne

i\t

the

dirpor:tl

nOI

\1.ly

o( wurkml:n in 111(: m:nt, of J .: ws

",ha d(,i\1 in money. of chl'pers

allJ

w,i/llclS of com, l.H1t

they are

airo

cntircly

the

tUl're)'

pfinces. \\

h:l...

lhe right of

coin.lge,

and who h,tl'e

fr~'1uently

al lo

the right of

rair.ng

cleba(jn~

the

n;l nd,lrd

al the coin,

3ccording as

they

tind

mon

(\.Ir (heí.

pre(ent

and tem o

porary intereft.

/llt!lhodJ ".JJhi, h

IIIflJ

prnp".f:(J

( 'JI'

1.:d"(ni",I' th(

frvtra l

inc~mulJi(lIc(l

l o

'l.uhirl,

lIIa /(rtal

mone)' il

liahl(.

incon\'cnicnccs fr om

lhe

\'al

¡ation in

lhe

rc:lative

....ahu: of lhe mctals to one anotha, m.IYin fome mea(ure

be ob.i.ted by the folJolI'ing expedients.

1m'.

By confiderine one only

the n.tndard, and

learing the othcr

(O fClk

its

0\\'0

, ¡Illt, likc any other

commodity.

oda.

n y confidering one only

the n.ndard, and

fixing ,he value of the other (roO) time to time

lU'

ity, l ccordine as thc market.pricc of the metals Chall

vary.

"ío.

By fi xing the n,nd:trd of ,he uni t according to

the rucln propoqian of lhe

metals,

3uaching

la ncither:

rcgl1l:uing the coio accordingly; and

upoo

cvcry ccnfi·

¿erable variarian in the proportian betwccn them, tilher

m~ke

a new coin;tgc. or

la raire

lhe clcnomioiltion of

one of (he fpecies, "nd Jower

in lhe.other, in arder

'prcfnve (he

unit

exaélly

in lhe mean

proponian betwecn

t be

gold and lil

ver.

4",

h.ve

t\Vo unit!, and two nandard,. one of

gold, and one of fi l

v<r,

and tO

.11011'

cvery body to

ni·

puJate in either.

5/ 0.

O r lan of all.

oblig. all oehtors to p.y one

h.lf

jn 'gold, and one half in ,he GiI'er H,

md.rd.

Varia/io/u

ItI

"I.uhich

,h, v/lile

ol/he

lI"n~J'UfJil

; /

ex'

pl)fod

fnm (ver)

difarder in ,he &o;n.

T \lS

fuppof., at prefent, the ooly Jiforder 'o Can·

lin in a w'nt of the duc proportion betwc.n the Eold and

filTer in the: coin.

This proportioo c.n only'be ell.lbliChecl

the m"k. t.

price of the metals; becaufc an

augment.ltion

:md riCe in

,he demand for gold or filver has the elrd l of al1¡:ment·

ine the value of the metal demanded . Lct tis fuppofe,

that tO day one pound of gold m, l' buy r.rteen pounds of

filvcr

to·morro\V there be a 11Igh dcmand for (jlvt'r,

a competidon amon$! merchants to have fil ver fo r Aold

\ViII enfue; ,hey will cooter.o who

nl.II

get Ihe filver "

the rate of "f,een pound, fo r one of CaId : this \\"ill raife

the price

it;

::lnd in

propon ian

to (heÍr views of profir,

fom e

wi:1

acc~pt

Icfs than

che

fiflccn

pm,nds. 1' his is

plainly a raife in Ihe fi"'er, mor< propcoly Ih.n • fall in

thc gold; hecauf"it is ,he con'petitlOn for the lilver whieh

h as occ2(joncd the vJriation in lhe

(orml"

proportian

bc~

t wecn lhe

mculs.

Let us

noW

fuppofe, that a

n.He

h:w ing \Virh r,rc;¡ t ex .

allllcfs ('x,lInincd Ihe proponían of lhe Illl!t:ds in lhe

nJ:Jrket, and having

determinen

the

prccir\!

<flUntity

".eh for realiz;og or reprcfcQ,ing the moncy.unit, Ihall

M O N

CXC':UI ': .l

mon

,i o:t~e

of co!J anJ

Cil ver

coin.

long

.\5

1I\.I.t pTOp ;1uun

~onllnuc'J

unv.lflcd

the m.l. rket,

nt~ In"OI1Y~nltl1¡';.;

(1.11

rl!.!u ll (rom thal qU.lner, in

nlí\kmJ

ule

I1lct.d, ror

nHlIl~y

accounl.

Hut

let

us fu r porc lh;.: pw pol tlon

chancie ; that lhe

líl \'l.:r.

for

c: xal1lplc,

fh:! 1I

ni!!

IlS

v.due

wtth

regard 10

gnltl ;

\Vdl n

001

follow,

(Tom

that moment,

thar

lhe

UClt

rr.:.dizcJ

In l ltl!

IílverJ

wdl

bcco:ne

of more valu:.: than the

unu rcallzeu

the

gold

coin

But .s the

I.\V

h" ordered th, m to paf, as equi valen"

fUT

one

OInothcr,

and as

debtols

h:we alw,¡y'i lhe

optien

01"

P')ing in \Vh.t Icg. 1 coi n they ¡(link fit, lVill they nOt

all rhufr to

P')'

in gold, and \ViII not then óe GI,,, cOln be

mdled

down

exponed, in

order

be fa Id

.J.S

bullion,

aboye

lhe

Ydlut!

bcars

when

circulOltes

co;o? \ ViU

no, this paying in gold all<, re.lly dimlOilh the value uf

the

money unit,

fince

upon this

vari:ltion evcry thinC

mun lell for more gold ,han before, as we ha.e airead y

oble..ed?

Conft"qucntly, merch:tndize

which

have not vJried

their relali\'e

vallle lO

any

mh,..r lhing bUI

,Jd anu

fih-er,

",u(l

meafureu

lhe:

mean

proponlon

the

mrtals;

and (he

applicatioA

aoy olher

O1cafure

th:m

alt~ring

the

Ilanu.rJ.

If they are mcafured by the

eold, the r.anuard is debafcd ; if by filver, it is ,aifed.

If,

10 prtvent

lhe

inconvcnit:nce

meltigg

down

lhe

filver, ,he !late

Ch.II

give up .Rixing the value of ,heir

unit

both fpeei.s at once, and

n ..

fix

it to one, I.avine

lhc other 10 feck

price

any other comm9di1y;

th..

c.fe,

no doubt. ,h< ntelting down of the coin will be

prevented ; bu, will ever Ihis rcflore the value of the

mooey unit to its form er fl.ndard? ' Vould it, for ex·

"mple, in the foregoing fuppolition, raife the debafed

valoe of ,he money.unit in the &old eoin, if that fpecies

were dcclared 'o be the

nand.rd?

It would indced render

Gr.·er coin purelya mcrch••o,z<, . nl', by allowine i,

f<.c.k its

Yrtlu~,

woulJ

ccrta:nly

prevent

it from

being

mdlcJ

down

:lS

beror~ ;

bec.l.ur

the

pieces would rife

convention:tll)'

th~i r

denomlOrtuon; or a.n agio. as

call.d, "'ou ld be t.keo in p' yments

m.de

lilva;

bu t

rhe

galo

would not ,

that accoynt,

rife

in its

y.due,

begin tO purch.,fe

ally

merchandize than before:,

ere th.refore the

fl.lnd.ro

fixed

,he gold, would

nut this be an arbitrary and a

\"i~lent

re\'olutien in the:

value of ,he money.unit , and a debarement of the flan–

d..

d ?

Ir,

on the other hand, the Hate Chould"" the nandard

lhe

(jher,

which

\Ve

fuppofe

ve rifeo in its

v¡¡lue,

would that cver

fink

lhe adranced val ue which

the

ti:,'(.

coin had gaincd abtve the worth of the former l!3ndarJ

unit? and

woulJ oot

thi, be a villlent ami iln

arunrary fr–

Tolution in the

\ alue ot

lhe

money

unit, and a raifing uf

the lIanu..d ?

T he only

expedicnt, thererorc,

¡s,

in fu ch a c:lfc, to ,(¡x

(he

numerary

unit

to ocitlH.'r

uf the met.t1s, but ro

contTl\'e

W3y lO

make

flut"tu at e

in a mecl n

prl)pOI tion be(\vcen

the01; which is in efFd l

the

inuudul.'llOll

a rure

idc:.\1

l1loney

aCCllunt.

The regul,ttion of fixinS the uni, hy the

mC.ln

.prnpor–

tioo,

ought

take pl:\ce at the

ioH .lot

the

(lJnd,Hd

un, ~

is ¡I[¡¡¡eu wi,h

e". ~lnefs

both tO the gnld ,nu Glver. II