Now, it is the effect operated upon prices by the _return_ of a favourable balance, when coin _regains_ an advanced price above bullion by the influence of commerce, which my theory does not reach to. I cannot discover a principle, which can force the prices _of articles of inland consumption_ to fall and fluctuate with the prices of bullion; because I find them too closely attached to the denominations of the coin; and that foreign commerce has not sufficient influence upon them. As that combination is beyond my reach to extricate, I leave it to the decision of experiment. [Sidenote: An objection answered.] Here a plain objection occurs against what has been said in the twelfth chapter of the first part, viz. That the wearing of the English coin has the effect of raising the price of corn in the market, which would be made to fall upon a restitution of the coin to legal weight. But the answer is plain. In the former case, the diminution of the value of the coin was supposed real and permanent; in which case, with time, it works its effects of raising prices without doubt: but here the augmentation is not real, and the fluctuations of the value of the coin with respect to bullion, are both imperceptible to any but merchants, and at the same time so uncertain, that they have not time to work their effects upon the price of other commodities. Were a balance of trade to continue long favourable, and were coin to preserve, during all that time, the same advanced value with regard to _bullion_, in that case I have little doubt but the value of that universal commodity (bullion) in conjunction with the operations and influence of foreign commerce, might reach inland markets, and reduce the price of commodities. But this is seldom the case (as I am apt to believe,) and in proportion as it is so, more or less, will a duty on coinage influence the price of commodities. [Sidenote: Coinage affects the price of bullion immediately; and that of commodities indirectly.] Coinage therefore ought, upon many occasions, to be considered as affecting _immediately_ the price of bullion only, and that of commodities _indirectly_: whereas the diminution of the intrinsic value of the coin, by immediately affecting _price_, must consequently affect the rate of every thing which is given for it. Let us next examine the consequence of imposing coinage by the influence of the principles of commerce. [Sidenote: Consequence of the price of coinage imposed with consent.] The method here is to leave every one free to do with their coin, or with their bullion, what they please. Do they incline to melt down or export the coin, they may have entire liberty to do it: no penalty ought to be imposed, other than that which will necessarily follow, viz. the expence of procuring new coin. In order to make our reasoning here more distinct, let us form a supposition with regard to a new regulation of the British coin.