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
In all countries, however, men seem at last to have been determined by
irresistible reasons to give the preference, for this employment, to
metals above every other commodity. Metals can not only be kept with as
little loss as any other commodity, scarce any thing being less
perishable than they are, but they can likewise, without any loss, be
divided into any number of parts, as by fusion those parts can easily be
re-united again; a quality which no other equally durable commodities
possess, and which, more than any other quality, renders them fit to be
the instruments of commerce and circulation. The man who wanted to buy
salt, for example, and had nothing but cattle to give in exchange for
it, must have been obliged to buy salt to the value of a whole ox, or a
whole sheep, at a time. He could seldom buy less than this, because what
he was to give for it could seldom be divided without loss; and if he
had a mind to buy more, he must, for the same reasons, have been obliged
to buy double or triple the quantity, the value, to wit, of two or three
oxen, or of two or three sheep. If, on the contrary, instead of sheep or
oxen, he had metals to give in exchange for it, he could easily
proportion the quantity of the metal to the precise quantity of the
commodity which he had immediate occasion for.
Different metals have been made use of by different nations for this
purpose. Iron was the common instrument of commerce among the ancient
Spartans, copper among the ancient Romans, and gold and silver among all
rich and commercial nations.
Those metals seem originally to have been made use of for this purpose
in rude bars, without any stamp or coinage. Thus we are told by
Pliny[6], upon the authority of Timæus, an ancient historian, that, till
the time of Servius Tullius, the Romans had no coined money, but made
use of unstamped bars of copper, to purchase whatever they had occasion
for. These rude bars, therefore, performed at this time the function of
money.
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