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
Were any person, talking of lengths and distances, to use the word
_foot_, sometimes to signify _yard_, sometimes _perch_; or to use the
word _mile_, to signify sometimes _league_, sometimes _inch_, and
sometimes _fathom_; who could comprehend one word of his discourse
concerning the matter? Would we not even laugh at such a person, for
pretending to inform us of any thing concerning lengths or distances.
If any change be made upon the value of the money-unit of a country,
which is called a pound; in propriety of language, it can no more be
called a pound, after the change, than it can be called a rhinoceros.
[Sidenote: Farther obscurities from the abuse of language.]
_5to_, Another reason for the obscurity of money-jargon, is the manner
in which writers express themselves, when they speak of variations in
the value of money. Upon this occasion, says one, the King raised the
money 5 _per cent._ What does this mean? No man living can understand
the expression; because it may signify, that he raised either the
denomination of the coin, or the value of the unit. If he raised the
coin, he debased the unit: if he sunk the coin, he raised the unit. A
crown of 6 livres is a coin: a livre is the unit. If it is said, the 6
livre piece is raised; that is as much as to say, it is made to be more
than 6 units; consequently, as the silver in the piece does not change
its weight, it follows, that the unit, or money of accompt, is
diminished. On the other hand, if it is said that the livre is raised,
it implies that the crown, which contained 6 livres, is made to contain
less than 6 units; therefore, the value of the unit is raised; that is,
it is made to contain more silver than before.
[Sidenote: How to avoid such abuse.]
Writers, therefore, to be distinct, ought never to mention these
matters, without removing the ambiguity, in favour of readers of all
denominations. As for example: The King raised his coin, and debased his
money of accompt. For this reason the French expression is good, and
easily understood; _augmenter la valeur numeraire des especes_, is
liable to no obscurity.
There are also two terms used by French writers, which appear
synonimous, and yet are directly opposite; AFFOIBLISSEMENT, _et_
DIMINUTION _de la monnoïe_. Such terms are perplexing, and ought either
to be avoided, or constantly explained. The first signifies the coining
the specie of the same denomination lighter in the metals than before:
the last signifies the lowering the denominations of the coin already
made. The first therefore diminishes, the second increases the value of
the unit, which is the livre.
[Sidenote: Quest 2d. What is the difference between raising the _value_
of coin, by imposing coinage, and raising the denomination of
it?]
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