An Inquiry Into the Nature and Causes of the Wealth of NationsSmith, Adam
General
An Inquiry Into the Nature and Causes of the Wealth of Nations
Smith, Adam
Economics
The quantity of silver commonly in the market, it is probable, is much
greater in proportion to that of gold, than the value of a certain
quantity of gold is to that of an equal quantity of silver. The whole
quantity of a cheap commodity brought to market is commonly not only
greater, but of greater value, than the whole quantity of a dear one.
The whole quantity of bread annually brought to market, is not only
greater, but of greater value, than the whole quantity of butcher's
meat; the whole quantity of butcher's meat, than the whole quantity of
poultry; and the whole quantity of poultry, than the whole quantity of
wild fowl. There are so many more purchasers for the cheap than for the
dear commodity, that, not only a greater quantity of it, but a greater
value can commonly be disposed of. The whole quantity, therefore, of the
cheap commodity, must commonly be greater in proportion to the whole
quantity of the dear one, than the value of a certain quantity of the
dear one, is to the value of an equal quantity of the cheap one. When we
compare the precious metals with one another, silver is a cheap, and
gold a dear commodity. We ought naturally to expect, therefore, that
there should always be in the market, not only a greater quantity, but a
greater value of silver than of gold. Let any man, who has a little of
both, compare his own silver with his gold plate, and he will probably
find, that not only the quantity, but the value of the former, greatly
exceeds that of the latter. Many people, besides, have a good deal of
silver who have no gold plate, which, even with those who have it, is
generally confined to watch-cases, snuff-boxes, and such like trinkets,
of which the whole amount is seldom of great value. In the British
coin, indeed, the value of the gold preponderates greatly, but it is not
so in that of all countries. In the coin of some countries, the value of
the two metals is nearly equal. In the Scotch coin, before the union
with England, the gold preponderated very little, though it did
somewhat[21], as it appears by the accounts of the mint. In the coin of
many countries the silver preponderates. In France, the largest sums are
commonly paid in that metal, and it in there difficult to get more gold
than what is necessary to carry about in your pocket. The superior
value, however, of the silver plate above that of the gold, which takes
place in all countries, will much more than compensate the preponderancy
of the gold coin above the silver, which takes place only in some
countries.
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