An Inquiry into the Principles of Political Oeconomy (Vol. 2 of 2): Being an essay on the science of domestic policy in free nations. In which are particularly considered population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxesSteuart, James, Sir
General
An Inquiry into the Principles of Political Oeconomy (Vol. 2 of 2): Being an essay on the science of domestic policy in free nations. In which are particularly considered population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxes
Steuart, James, Sir
Economics
But I answer, that the principal use of coin, is, not to send it out of
the country; but to keep accompts clear among inhabitants within the
country. If there be a variation in the value of coin, according to
circumstances, that variation must affect the inhabitants in their
transactions. No one can gain upon this coin, without supposing a
relative loss to some other, whether they perceive it or not. Must not
this disturb all reckoning? Must it not disturb prices? Since at
different times, I may be paying the same denominations of coin for the
same commodity; and yet be paying, really, more value at one time than
at another. Is not then the most invariable money the best calculated
for the interest of trade, and prosperity of manufactures? Whence arise
complaints against paper money, and regrets for want of coin? They issue
from those who both wish to profit of the rising value of the metals
contained in the coin, and who endeavour to persuade the public, that
its interest, and not their own, is their object.
What a trifle is a foreign balance, let it be ever so great, compared
with the whole alienations of a country! Is it reasonable to disturb the
harmony of all domestic dealings, in order to furnish an opportunity to
a few clear-sighted people, who can, upon some occasions, profit of the
fluctuating value of the substance of which the coin is composed, to the
prejudice of the ignorant? If the country owes a balance to other
nations, let it be paid: nothing so just; nothing so essential to the
interest of the country which is the debtor. If the precious metals are
the most proper vehicles, as I may say, for conveying this value, let
them be procured and sent off; but never let us say, that because _some_
of our money _may_ be made of that metal, that all our money should be
made of it; in order that those who transact the balance may have an
opportunity of sending our metals away with greater ease, and thereby of
depriving us of the means of carrying on alienations among ourselves.
Let every one that has coin send it away: nothing can be more just;
nothing more consistent with principles: but let him send it away as a
_manufacture_; carrying in its bosom the price of making it, which he
has paid, and for which his foreign creditors will make him no
allowance.
Exchangers run to the coin of the nation, for paying, with the least
expence to themselves, the balance they are about to transact. When that
resource is cut off by the imposition of coinage, the nation will
preserve at least her darling specie; and then exchangers will be
obliged, by the best of all compulsions, their own interest, to think of
other expedients; bullion, manufactures, and natural produce. And when
all these come to fail, a regular plan must be laid down, and authorised
by government, for obtaining credit in other countries, by mortgaging
the revenue of the solid property of the kingdom; according to the
principles we shall discover when we come to treat of exchange.
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