Now why is bullion sometimes cheaper in France than in England? I answer, that in France it is allowed to fall 8 _per cent._ below the coin, and the King only takes it at times when no body can get a better price for it: and that in England the King gives always coin for bullion, and by that keeps the price of it from ever falling lower. Let the English mint pay the pound troy standard silver at the rate of thirteen ounces of coin, the price of bullion in England will always be 1⁄13 dearer than the coin. When bullion in France falls to 8 _per cent._ below the coin, it is carried to the mint: when it is worth more no body carries any to be coined. [Sidenote: The wise regulation.] No body in France (except upon a general coinage) is forced to sell their bullion at this price. Is it not, therefore, a very wise regulation, to permit the operations of trade to reduce, as low as possible, the value of that commodity with which all they owe is paid, and this more especially, as the fall of its price is a proof of the prosperity of their trade. If, therefore, it be supposed, that the effect of having a material money for a scale of value, is, that the denominations in the coin, and not the grains of the bullion, must measure the value of commodities _for home consumption_; then it follows, that the variations in the price of bullion, should not affect the price of commodities. This is a question, however, which I do not pretend to determine, and I apprehend that nothing but experience can resolve it. [Sidenote: England loses by this sometimes 8 per cent. upon her trade with France.] Now let me consider the difference there is between the trade of France and that of England as matters now stand; and what would be the case, were the regulations of the mint the same in both countries. I shall suppose that England buys of French goods as much as may be paid with one thousand pounds troy weight of English guineas. I ask for what weight of French louis d’ors must France buy of English goods to make the balance even? Will it not be answered (according to the ordinary method of calculating the true par of exchange) that if France buys for one thousand pounds troy of her louis d’ors (supposing the guineas and the louis d’ors of the same fineness) that the balance is even? Is it not true, that England must send this thousand pounds weight either in gold bullion or in guineas, and is it not the same thing to the English merchant to send the one or the other, providing the guineas be full weight? But when France comes to send the thousand pounds weight of her louis d’ors, she finds at market a thousand pounds weight of gold bullion 8 _per cent._ cheaper, and this bullion is as good to the Englishman as if he had got the louis d’ors.