Summary of Principles illustrated in this Volume.
Nations exchange commodities, as individuals do, for mutual accommodation; each imparting of its superfluity to obtain that in which it is deficient.
The imparting is therefore only a means of obtaining. Exportation is the means of obtaining importation,--the end for which the traffic is instituted.
The importation of money into a country where money is deficient is desirable on the same principle which renders desirable the supply of any deficient commodity.
The importation of money into a country where money is not deficient is no more desirable than it is to create an excess of any other commodity.
That money is the commodity most generally bought and sold is no reason for its being a more desirable article of importation than commodities which are as much wanted in the country which imports it.
That money is the commodity most generally bought and sold is a reason for its being the commodity fixed upon for measuring the relative amounts of other articles of national interchange.
Money bearing different denominations in the different trading countries, a computation of the relative values of these denominations was made in the infancy of commerce, and the result expressed in terms which are retained through all changes in the value of these denominations.
The term by which in each country the original equal proportion was expressed is adopted as the fixed point of measurement called the par of exchange; and any variation in the relative amount of the total money debts of trading nations is called a variation from par.
This variation is of two kinds, nominal and real.