If a money is establish’d that has no intrinsick value, and its extrinsick value to be such, as it will not be exported; nor will not be less than the demand for it within the country: wealth and power will be attained, and be less precarious. money not being liable to be lessen’d directly, nor consequentially; and trade not liable to decay consequentially. so the power and wealth of that country will only be precarious, from what may be directly hurtful to trade.
The paper money propos’d being always equal in quantity to the demand, the people will be employ’d, the country improv’d, manufacture advanc’d, trade domestick and foreign will be carried on, and wealth and power attained. and not being liable to be exported, the people will not be set idle, &c. and wealth and power will be less precarious.
From whence it is evident, that land is more qualified for the use of money than silver; and preferable for that use tho’ silver were the product of Scotland: being more certain in its value, and having the qualities necessary in money, in a greater degree: with other qualities that silver has not; so more capable of being the general measure by which goods are valued, the value by which goods are exchanged, and in which contracts are taken.
If 2000 lib. of paper money, is equal to the property of land worth 2000 lib. in silver; then that 2000 lib. of paper money, is equal to 2000 lib. of silver.
What buys land, will buy every thing the land produces; and what buys the product of land, will buy all other goods whether home or foreign. if wine is brought from France, the merchant designs to lay out his money on goods, at interest, or on land: the commission does not receive silver money, so he cannot have a bond from the commission, unless he give the value in paper; and many of the landed men won’t take silver for their goods or lands, having occasion for paper to pay the commission. so the merchant will choose to sell his wines for paper money, because it will purchase him goods, bonds or lands where silver money will, being equally valuable: and in cases where silver money will not.
And this is supposing silver were equally qualified for the use of money, as land is. but as silver is an uncertain value, and is given for much more than its value as a metal; and has not all the qualities necessary in money, nor in so great a degree as paper money: so paper money will for these other reasons be prefer’d to silver.
Some object that a paper money tho’ upon a good fund, and current in the country; yet will not be valued abroad, equal to what it were in Scotland.
The goods of Scotland will always be valued abroad, equal to goods of the same kind and goodness; and that money tho’ of paper, which buys goods in Scotland, will buy goods or money in other places. if a 1000 lib. in serges, linen cloth, &c. be worth abroad all charges payed 1300 lib. the merchant who exports such goods, will give a bill for that money at the par, having 1300 lib. for what cost him a 1000.
When a nation establishes a money, if the money they set up, have a value equal to what it is made money for, and all the other qualities necessary in money; they ought to have no regard what value it will have in other countries. on the contrair, as every country endeavours by laws to preserve their money, if that people can contrive a money that will not be valued abroad; they will do what other countries have by laws endeavour’d in vain.
No nation keeps to silver because it is used in other countries, it is because they can find nothing so safe and convenient. trade betwixt nations is carried on by exchange of goods, and if one merchant sends out goods of a less value, than he brings home; he has money furnish’d him abroad by another who brings home for a less value than he sent out: if there is no money due abroad, then the merchant who designed to import for a greater value than he exported, is restricted; and can only import equal to his export, which is all the many laws to regulate trade have been endeavouring.