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 consequence of any change, however, in this regulated proportion,
this distinction becomes, or at least seems to become, something more
than nominal again. If the regulated value of a guinea, for example, was
either reduced to twenty, or raised to two-and-twenty shillings, all
accounts being kept, and almost all obligations for debt being
expressed, in silver money, the greater part of payments 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 silver.
The value of gold would seem to depend upon the quantity of silver which
it would exchange for, and the value of silver would not seem to depend
upon the quantity of gold which it would exchange for. This difference,
however, would be altogether owing to the custom of keeping accounts,
and of expressing the amount of all great and small sums rather in
silver than in gold money. One of Mr Drummond's notes for
five-and-twenty or fifty guineas would, after an alteration of this
kind, be still payable with five-and-twenty or fifty guineas, in the
same manner as before. It would, after such an alteration, be payable
with the same quantity of gold as before, but with very different
quantities of silver. In the payment of such a note, gold would appear
to be more invariable in its value than silver. Gold would appear to
measure the value of silver, and silver would not appear to measure the
value of gold. If the custom of keeping accounts, and of expressing
promissory-notes and other obligations for money, in this manner should
ever become general, gold, and not silver, would be considered as the
metal which was peculiarly the standard or measure of value.
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