Money having merely a fictitious value, arising from the agreement and convention of men, the greater or less plenty of it is of no consequence, if we consider a nation within itself; and the quantity of specie, when once fixed, though never so large, has no other effect than to oblige every one to tell out a greater number of those shining bits of metal for clothes, furniture, or equipage, without increasing any one convenience of life. If a man borrows money to build a house, he then carries home a greater load; because the stone, timber, lead, glass, etc., with the labour of the masons and carpenters, are represented by a greater quantity of gold and silver. But as these metals are considered merely as representations, there can no alteration arise from their bulk or quantity, their weight or colour, either upon their real value or their interest. The same interest, in all cases, bears the same proportion to the sum. And if you lent me so much labour and so many commodities, by receiving 5 per cent. you receive always proportional labour and commodities, however represented, whether by yellow or white coin, whether by a pound or an ounce. It is in vain, therefore, to look for the cause of the fall or rise of interest in the greater or less quantity of gold and silver which is fixed in any nation. High interest arises from three circumstances: A great demand for borrowing; little riches to supply that demand; and great profits arising from commerce. And these circumstances are a clear proof of the small advance of commerce and industry, not of the scarcity of gold and silver. Low interest, on the other hand, proceeds from the three opposite circumstances: A small demand for borrowing; great riches to supply that demand; and small profits arising from commerce. And these circumstances are all connected together, and proceed from the increase of industry and commerce, not of gold and silver. We shall endeavour to prove these points as fully and distinctly as possible, and shall begin with the causes and the effects of a great or small demand for borrowing.