Hume's Political Discourses — David Hume — John Shaqi
Hume's Political Discourses
David Hume · en
But after men begin to refine on all these enjoyments, and live not
always at home, nor are contented with what can be raised in their
neighbourhood, there is more exchange and commerce of all kinds, and
more money enters into that exchange. The tradesmen will not be paid in
corn, because they want something more than barley to eat. The farmer
goes beyond his own parish for the commodities he purchases, and cannot
always carry his commodities to the merchant who supplies him. The
landlord lives in the capital, or in a foreign country, and demands
his rent in gold and silver, which can easily be transported to him.
Great undertakers, and manufacturers, and merchants arise in every
commodity; and these can conveniently deal in nothing but in specie.
And consequently, in this situation of society, the coin enters into
many more contracts, and by that means is much more employed than in
the former.
The necessary effect is, that, provided the money does not increase in
the nation, everything must become much cheaper in times of industry
and refinement than in rude, uncultivated ages. It is the proportion
between the circulating money and the commodities in the market which
determines the prices. Goods that are consumed at home, or exchanged
with other goods in the neighbourhood, never come to market; they
affect not in the least the current specie; with regard to it they
are as if totally annihilated; and consequently this method of using
them sinks the proportion on the side of the commodities and increases
the prices. But after money enters into all contracts and sales, and
is everywhere the measure of exchange, the same national cash has a
much greater task to perform: all commodities are then in the market;
the sphere of circulation is enlarged; it is the same case as if that
individual sum were to serve a larger kingdom; and therefore, the
proportion being here lessened on the side of the money, everything
must become cheaper, and the prices gradually fall.