will command double the quantity either of labour, or of the greater part of other commodities; the money price of labour, and along with it that of most other things, continuing the same during all these fluctuations.

ations than it ever did in England, and in money price of corn, therefore, may, during France, where it has undergone still greater so long a period, continue the same, or very than it ever did in Scotland, some ancient nearly the same, too, and along with it the rents, originally of considerable value, have, money price of labour, provided, at least, the in this manner, been reduced almost to no- society continues, in other respects, in the thing. same, or nearly in the same, condition. In Equal quantities of labour will, at distant the mean time, the temporary and occasional times, be purchased more nearly with equal price of corn may frequently be double one quantities of corn, the subsistence of the la-year of what it had been the year before, or bourer, than with equal quantities of gold and fluctuate, for example, from five-and-twenty silver, or, perhaps, of any other commodity. to fifty shillings the quarter. But wher, corn Equal quantities of corn, therefore, will, at is at the latter price, not only the nominal, distant times, be more nearly of the same real but the real value of a corn rent, will be value, or enable the possessor to purchase or double of what it is when at the former, or command more nearly the same quantity of the labour of other people. They will do this, I say, more nearly than equal quantities of almost any other commodity; for even equal quantities of corn will not do it exactly. The subsistence of the labourer, or the real Labour, therefore, it appears evidently, is price of labour, as I shall endeavour to shew the only universal, as well as the only accuhereafter, is very different upon different occa- rate, measure of value, or the only standard sions; more liberal in a society advancing to by which we can compare the values of difopulence, than in one that is standing still, ferent commodities, at all times, and at all and in one that is standing still, than in one places. We cannot estimate, it is allowed, that is going backwards. Every other com- the real value of different commodities from modity, however, will, at any particular time, century to century by the quantities of silver purchase a greater or smaller quantity of la- which were given for them. We cannot es.. bour, in proportion to the quantity of subsist-timate it from year to year by the quantities ence which it can purchase at that time. A of corn. By the quantities of labour, we can, rent, therefore, reserved in corn, is liable only with the greatest accuracy, estimate it, both to the variations in the quantity of labour from century to century, and from year to which a certain quantity of corn can purchase. year. From century to century, corn is a But a rent reserved in any other commodity better measure than silver, because, from cen. is liable, not only to the variations in the tury to century, equal quantities of corn will quantity of labour which any particular quan- command the same quantity of labour more tity of corn can purchase, but to the variations nearly than equal quantities of silver. From in the quantity of corn which can be purchas-year to year, on the contrary, silver is a better ed by any particular quantity of that commo- measure than corn, because equal quantities dity. of it will more nearly command the same quantity of labour.

Though the real value of a corn rent, it is to be observed, however, varies much less But though, in establishing perpetual rents, from century to century than that of a money or even in letting very long leases, it may be rent, it varies much more from year to year. of use to distinguish between real and nomiThe money price of labour, as I shall endea-nal price; it is of none in buying and selling, vour to shew hereafter, does not fluctuate the more common and ordinary transactions from year to year with the money price of of human life.

able you to purchase or command. At the same time and place, therefore, money is the exact measure of the real exchangeable value of all commodities. It is so, however, at the same time and place only.

corn, but seems to be everywhere accommo- At the same time and place, the real and dated, not to the temporary or occasional, but the nominal price of all commodities are exto the average or ordinary price of that neces-actly in proportion to one another. The more sary of life. The average or ordinary price or less money you get for any commodity, in of corn, again is regulated, as I shall likewise the London market, for example, the more or endeavour to shew hereafter, by the value of less labour it will at that time and place ensilver, by the richness or barrenness of the mines which supply the market with that metal, or by the quantity of labour which must be employed, and consequently of corn which must be consumed, in order to bring any particular quantity of silver from the Though at distant places there is no regular mine to the market. But the value of silver, proportion between the real and the money though it sometimes varies greatly from cen- price of commodities, yet the merchant who tury to century, seldom varies much from year carries goods from the one to the other, has to year, but frequently continues the same, or nothing to consider but the money price, or very nearly the same, for half a century or a the difference between the quantity of silver century together. The ordinary or average for which he buys them, and that for which

use of as the instrument of commerce. Hav. ing once begun to use it as their standard, which they must have done when they had no other money, they have generally continued to do so even when the necessity was not the same.

he is likely to sell them. Half an ounce of metal, for those of still smaller consideration. silver at Canton in China may command a They have always, however, considered one of greater quantity both of labour and of the ne- those metals as more peculiarly the measure cessaries and conveniencies of life, than an of value than any of the other two; and this ounce at London. A commodity, therefore, preference seems generally to have been given which sells for half an ounce of silver at Can-to the metal which they happen first to make ton, may there be really dearer, of more real importance to the man who possesses it there, than a commodity which sells for an ounce at London is to the man who possesses it at London. If a London merchant, however, can buy at Canton, for half an ounce of silver, a commodity which he can afterwards The Romans are said to have had nothing sell at London for an ounce, he gains a hund- but copper money till within five years bered per cent, by the bargain, just as much as fore the first Punic war *, when they first beif an ounce of silver was at London exactly of gan to coin silver. Copper, therefore, apthe same value as at Canton. It is of no im- pears to have continued always the measure portance to him that half an ounce of silver at of value in that republic. At Rome all acCanton would have given him the command counts appear to have been kept, and the of more labour, and of a greater quantity of value of all estates to have been computed, the necessaries and conveniencies of life than either in asses or in sestertü. The as was alan ounce can do at London. An ounce at ways the denomination of a copper coin. London will always give him the command The word sestertius signifies two asses and a of double the quantity of all these, which half half. Though the sestertius, therefore, was an ounce could have done there, and this is originally a silver coin, its value was estimatprecisely what he wants. ed in copper. At Rome, one who owed a great deal of money was said to have a great deal of other people's copper.

As it is the nominal or money price of goods, therefore, which finally determines the prudence or imprudence of all purchases and sales, and thereby regulates almost the whole business of common life in which price is concerned, we cannot wonder that it should have been so much more attended to than the real price.

The northern nations who established themselves upon the ruins of the Roman empire, seem to have had silver money from the first beginning of their settlements, and not to bave known either gold or copper coins for several ages thereafter. There were silver In such a work as this, however, it may coins in England in the time of the Saxons; sometimes be of use to compare the different but there was little old coined till the time real values of a particular commodity at dif- of Edward III. nor any copper till that of ferent times and places, or the different de- James I. of Great Britain. In England, grees of power over the labour of other peo- therefore, and for the same reason, I believe, ple which it may, upon different occasions, in all other modern nations of Europe, all have given to those who possessed it. We accounts are kept, and the value of all goods must in this case compare, not so much the and of all estates is generally computed, in different quantities of silver for which it was silver: and when we mean to express the commonly sold, as the different quantities of amount of a person's fortune, we seldom menlabour which those different quantities of sil- tion the number of guineas, but the number ver could have purchased. But the current of pounds sterling which we suppose would prices of labour, at distant times and places, be given for it. can scarce ever be known with any degree of Originally, in all countries, I believe, a leexactness. Those of corn, though they have gal tender of payment could be made only in in few places been regularly recorded, are in the coin of that metal which was peculiarly general better known, and have been more considered as the standard or measure of frequently taken notice of by historians and value. In England, gold was not considered other writers. We must generally, therefore, as a legal tender for a long time after it was content ourselves with them, not as being al- coined into money. The proportion between ways exactly in the same proportion as the the values of gold and silver money was not current prices of labour, but as being the fixed by any public law or proclamation, but nearest approximation which can commonly was left to be settled by the market. If a be had to that proportion. I shall hereafter debtor offered payment in gold, the creditor have occasion to make several comparisons of might either reject such payment altogether, or accept of it at such a valuation of the gold

this kind.

In the progress of industry, commercial as he and his debtor could agree upon. nations have found it convenient to coin seve- Copper is not at present a legal tender, exral different metals into money; gold for cept in the change of the smaller silver coins. larger payments, silver for purchases of moderate value, and copper, or some other coarse

Pliny, lib xxxiii. cap 3

In this state of things, the distinction between | one regulated proportion between the 1 specthe metal which was the standard, and that tive values of the different metals in coin, the which was not the standard, was something value of the most precious metal regulates the more than a nominal distinction.

value of the whole coin. Twelve copper pence In process of time, and as people became contain half a pound avoirdupois of copper, gradually more familiar with the use of the of not the best quality, which, before it is different metals in coin, and consequently bet- coined, is seldom worth sevenpence in silver. ter acquainted with the proportion between But as, by the regulation, twelve such pence their respective values, it has, in most coun- are ordered to exchange for a shilling, they tries, I believe, been found convenient to as- are in the market considered as worth a shilcertain this proportion, and to declare by a ling, and a shilling can at any time be had for public law, that a guinea, for example, of such them. Even before the late reformation of a weight and fineness, should exchange for the gold coin of Great Britain, the gold, that one-and-twenty shillings, or be a legal tender part of it at least which circulated in London for a debt of that amount. In this state of and its neighbourhood, was in general less dethings, and during the continuance of any one graded below its standard weight than the regulated proportion of this kind, the distinc- greater part of the silver. One-and-twenty tion between the metal, which is the standard, worn and defaced shillings, however, were and that which is not the standard, becomes considered as cquivalent to a guinea, which, little more than a nominal distinction. perhaps, indeed, was worn and defaced too,

the market, however, one-and-twenty shillings of this degraded silver coin are still considered as worth a guinea of this excellent gold coin.

The reformation of the gold coin has evidently raised the value of the silver coin which can be exchanged for it.

In consequence of any change, however, in but seldom so much so. The late regulations this regulated proportion, this distinction be- have brought the gold coin as near, perhaps, comes, or at least seems to become, something to its standard weight as it is possible to bring more than nominal again. If the regulated the current coin of any nation; and the order value of a guinea, for example, was either re- to receive no gold at the public offices but by duced to twenty, or raised to two-and-twenty weight, is likely to preserve it so, as long as shillings, all accounts being kept, and almost that order is enforced. The silver coin still all obligations for debt being expressed, in continues in the same worn and degraded state silver money, the greater part of payments as before the reformation of the cold coin. In could in either case be made with the same quantity of silver money as before; but would require very different quantities of gold money; a greater in the one case, and a smaller in the other. Silver would appear to be more invariable in its value than gold. Silver would appear to measure the value of gold, and gold would not appear to measure the value of sil- In the English mint, a pound weight of ver. The value of gold would seem to de- gold is coined into forty-four guineas and a pend upon the quantity of silver which it half, which at one-and-twenty shillings the would exchange for, and the value of silver guinea, is equal to forty-six pounds fourteen would not seem to depend upon the quantity shillings and sixpence. An ounce of such of gold which it would exchange for. This gold coin, therefore, is worth L.3: 17: 10 difference, however, would be altogether ow-in silver. In England, no duty or seignorage ing to the custom of keeping accounts, and of is paid upon the coinage, and he who carries expressing the amount of all great and small a pound weight or an ounce weight of standsums rather in silver than in gold money.ard gold bullion to the mint, gets back a One of Mr Drummond's notes for five-and-pound weight or an ounce weight of gold in twenty or fifty guineas would, after an altera-coin, without any deduction. Three pounds tion of this kind, be still payable with five- seventeen shillings and tenpence halfpenny an and-twenty or fifty guineas, in the same man-ounce, therefore, is said to be the mint price ner as before. It would, after such an altera- of gold in England, or the quantity of gold tion, be payable with the same quantity of gold coin which the mint gives in return for standas before, but with very different quantities of ard gold bullion.

silver. In the payment of such a note, gold Before the reformation of the gold coin, would appear to be more invariable in its va- the price of standard gold bullion in the marlue than silver. Gold would appear to mea-ket had, for many years, been upwards of sure the value of silver, and silver would not L.3: 18s. sometimes L.3: 19s. and very freappear to measure the value of gold. If the quently L. 4 an ounce; that sum, it is probcustom of keeping accounts, and of expressing able, in the worn and degraded gold coin, selpromissory-notes and other obligations for mo- dom containing more than an ounce of standney, in this manner should ever become gene-ard gold. Since the reformation of the gold ral, gold, and not silver, would be considered coin, the market price of standard gold bullion as the metal which was peculiarly the standard or measure of value.

In reality, during the continuance of any

seldom exceeds L.3: 17: 7 an ounce. Before the reformation of the gold coin, the market price was always more or less above the

B

mint price. Since that reformation, the mar- rendered the demand for silver bullion greater ket price has been constantly below the mint than the demand for silver coin. But the price. But that market price is the same number of people who want silver coin for the whether it is paid in gold or in silver coin. common uses of buying and selling at home, The late reformation of the gold coin, there is surely much greater than that of those who fore, has raised not only the value of the gold want silver bullion either for the use of exporcoin, but likewise that of the silver coin in tation or for any other use. There subsists at proportion to gold bullion, and probably, too, present a like permission of exporting gold bulin proportion to all other commodities; though lion, and a like prohibition of exporting gold the price of the greater part of other commo- coin; and yet the price of gold bullion bas dities being influenced by so many other fallen below the mint price. But in the Engcauses, the rise in the value of either gold or lish coin, silver was then, in the same manner silver coin in proportion to them may not be as now, under-rated in proportion to gold; so distinct and sensible. and the gold coin (which at that time, too, In the English mint, a pound weight of was not supposed to require any reformation) standard silver bullion is coined into sixty-two regulated then, as well as now, the real value shillings, containing, in the same manner, a of the whole cuin. As the reformation of the pound weight of standard silver. Five shil- silver coin did not then reduce the price of lings and twopence an ounce, therefore, is said silver bullion to the mint price, it is not very to be the mint price of silver in England, or probable that a like reformation will do so the quantity of silver coin which the mint now. gives in return for standard silver bullion. Were the silver coin brought back as near Before the reformation of the gold coin, the to its standard weight as the gold, a guinea, market price of standard silver bullion was, it is probable, would, according to the present upon different occasions, five shillings and proportion, exchange for more silver in coin fourpence, five shillings and fivepence, five than it would purchase in bullion. The silver shillings and sixpence, five shillings and seven-coin containing its full standard weight, there pence, and very often five shillings and eight- would in this case, be a profit in melting it pence an ounce. Five shillings and seven-down, in order, first to sell the bullion for pence, however, seems to have been the most gold coin, and afterwards to exchange this common price. Since the reformation of the gold coin for silver coin, to be melted down gold coin, the market price of standard silver in the same manner. Some alteration in the bullion has fallen occasionally to five shillings present proportion seems to be the only method and threepence, five shillings and fourpence, of preventing this inconveniency. and five shillings and fivepence an ounce, which last price it has scarce ever exceeded. Though the market price of silver bullion has fallen considerably since the reformation of the gold coin, it has not fallen so low as the mint price.

The inconveniency, perhaps, would be less, if silver was rated in the coin as much above its proper proportion to gold as it is at present rated below it, provided it was at the same time enacted, that silver should not be a legal tender for more than the change of a guinea, in In the proportion between the different met- the same manner as copper is not a legal tenals in the English coin, as copper is rated very der for more than the change of a shilling. much above its real value, so silver is rated No creditor could, in this case, be cheated in somewhat below it. In the market of Europe, consequence of the high valuation of silver in in the French coin and in the Dutch coin, an coin; as no creditor can at present be cheated ounce of fine gold exchanges for about four- in consequence of the high valuation of copteen ounces of fine silver. In the English per. The bankers only would suffer by this coin, it exchanges for about fifteen ounces, regulation. When a run comes upon them, that is, for more silver than it is worth, ac- they sometimes endeavour to gain time, by cording to the common estimation of Europe, paying in sixpences, and they would be pre But as the price of copper in bars is not, even cluded by this regulation from this discredit in England, raised by the high price of cop-able method of evading immediate payment. per in English coin, so the price of silver in bullion is not sunk by the low rate of silver in English coin. Silver in bullion still preserves its proper proportion to gold, for the same reason that copper in bars preserves its proper proportion to silver.

They would be obliged, in consequence, to keep at all times in their coffers a greater quantity of cash than at present; and though this might, no doubt, be a considerable inconveniency to them, it would, at the same time, be a considerable security to their creditors.

Upon the reformation of the silver coin, in Three pounds seventeen shillings and tenthe reign of William III., the price of silver pence halfpenny (the mint price of gold) cerbullion still continued to be somewhat above tair ly does not contain, even in our present the mint price. Mr Locke imputed this high excellent gold coin, more than an ounce of price to the permission of exporting silver bul- standard gold, and it may be thought, there lion, and to the prohibition of exporting silver fore, should not purchase more standard bulcoin. This permission of exporting, he said, lion. But gold in coin is more convenien

than gold in bullion; and though, in England, |ing to sell a part of it for something less than the coinage is free, yet the gold which is car- the ordinary or average price. When, on the ried in bullion to the mint, can seldom be re- other hand, they import less than is wanted, turned in coin to the owner till after a delay they get something more than this price. of several weeks. In the present hurry of the But when, under all those occasional fluctumint, it could not be returned till after a de- ations, the market price either of gold or sillay of several months. This delay is equiva-ver bullion continues for several years tolent to a small duty, and renders gold in coin gether steadily and constantly, either more or somewhat more valuable than an equal quan-less above, or more or less below the mint tity of gold in bullion. If, in the English price, we may be assured that this steady and coin, silver was rated according to its proper constant, either superiority or inferiority of proportion to gold, the price of silver bullion price, is the effect of something in the state of would probably fall below the mint price, the coin, which, at that time, renders a cereven without any reformation of the silver tain quantity of coin either of more value or coin; the value even of the present worn and of less value than the precise quantity of buldefaced silver coin being regulated by the va- lion which it ought to contain. The conlue of the excellent gold coin for which it can stancy and steadiness of the effect supposes a be changed. proportionable constancy and steadiness in the cause.

A small seignorage or duty upon the coinage of both gold and silver, would probably The money of any particular country is, at increase still more the superiority of those any particular time and place, more or less an metals in coin above an equal quantity of accurate measure or value, according as the either of them in bullion. The coinage current coin is more or less exactly agreeable would, in this case, increase the value of the to its standard, or contains more or less exmetal coined in proportion to the extent of actly the precise quantity of pure gold or is small duty, for the same reason that the pure silver which it ought to contain. If in Aashion increases the value of plate in propor- England, for example, forty-four guineas and on to the price of that fashion. The supe- a half contained exactly a pound weight of riority of coin above bullion would prevent standard gold, or eleven ounces of fine gold, the melting down of the coin, and would and one ounce of alloy, the gold coin of Engdiscourage its exportation. If, upon any land would be as accurate a measure of the public exigency, it should become necessary actual value of goods at any particular time to export the coin, the greater part of it would and place as the nature of the thing would soon return again, of its own accord. Abroad, admit. But if, by rubbing and wearing, it could sell only for its weight in bullion. forty-four guineas and a half generally conAt home, it would buy more than that weight. There would be a profit, therefore, in bringing it home again. In France, a seignorage of about eight per cent. is imposed upon the coinage, and the French coin, when exported, is said to return home again, of its own accord.

tain less than a pound weight of standard gold, the diminution, however, being greater in some pieces than in others, the measure of value comes to be liable to the same sort of uncertainty to which all other weights and measures are commonly exposed. As it rarely happens that these are exactly agreeable to The occasional fluctuations in the market their standard, the merchant adjusts the price price of gold and silver bullion arise from the of his goods as well as he can, not to what same causes as the like fluctuations in that those weights and measures ought to be, but of all other commodities. The frequent loss to what, upon an average, he finds, by expeof those metals from various accidents by sea rience, they actually are. In consequence of and by land, the continual waste of them in a like disorder in the coin, the price of goods gilding and plating, in lace and embroidery, comes, in the same manner, to be adjusted, in the wear and tear of coin, and in that of not to the quantity of pure gold or silver plate, require, in all countries which possess which the coin ought to contain, but to that no inines of their own, a continual importa- which, upon an average, it is found, by expetion, in order to repair this loss and this rience, it actually does contain. waste. The merchant importers, like all By the money price of goods, it is to be other merchants, we may believe, endeavour, observed, I understand always the quantity of as well as they can, to suit their occasional pure gold or silver for which they are sold, importations to what they judge is likely to without any regard to the denomination of be the immediate demand. With all their the coin. Six shillings and eight pence, for attention, however, they sometimes overdo example, in the time of Edward I., I conthe business, and sometimes underdo it. sider as the same money price with a pound' When they import more bullion than is want-sterling in the present times, because it coned, rather than incur the risk and trouble of tained, as nearly as we can judge, the same exporting it again, they are sometimes will- quantity of pure silver. B 2