That any Measures propos'd for encreasing the Silver Money or Establishing a Credit Promising a Payment of Silver Money are ineffectual. That Silver Money has fallen much from the Value it had.
That Land is of greater Value. That Silver may lose the additional Value it received from being used as Money.
National Power and Wealth consists in numbers of People, and Magazines of Home and Forreign Goods. These depend on Trade, and Trade depends on Money. So to be Powerful and Wealthy in proportion to other Nations, we should have Money in proportion with them; for the best Laws without Money cannot employ the People, Improve the Product, or advance Manufacture and Trade.
The measures have been used to preserve and encrease Money, or such as are now propos'd, are attended with Difficulties; and tho the Difficulties were remov'd, are ineffectual, and not capable to furnish Money so as to improve the Country, or extend Trade in any proportion to the Improvements and Trade of other Nations.
Credit that promises a Payment of Money, cannot well be extended beyond a certain proportion it ought to have with the Money. And we have so little Money, that any Credit could be given upon it, would inconsiderable.
It remains to be considered, whether any other Goods than Silver, can be made Money with the same safety and convenience.
From what has been said about the nature of Money, Chap. 1 it is evident, that any other Goods which have the Qualities necessary in Money, may be made Money equal to their Value, with Safety and Convenience. There is nothing of Humour or Fancy in making Silver to be Money; it was made Money, because it was thought best Qualified for that use.
I shall endeavour to prove, that another Money may be Establish't, with all the Qualities necessary in Money in a greater degree than Silver; with other Qualities that Silver has not: And preferable for that Use, tho Silver were the product of Scotland. And that by this Money, the People may be Employ'd, the Country Improv'd, Manufacture Advance'd, Trade Domestick and Forreign be carried on, and Wealth and Power attain'd.
What I propose, will I hope be found safe, and practicable;Advantageous in general to Scotland, and in particular to every Scots Man.
But as I offer to prove, that what I shall propose is more Qualified for the Use of Money than Silver: So before I come to the Proposal, I shall shew some defects in Silver Money; and that it has not, nore does not answer the design of Money.
Money is the Measure by which Goods are Valued, the Value by which goods are Exchanged, and in which Contracts are made payable.
Money is not a pledge, as some call it. It's a Value payed, or Contracted to be payd, with which 'tis supposed, the Receiver may, as his occasions require, Buy an equal Quantity of the same Goods he has Sold, or other Goods equal in Value to them: And that Money is the most secure Value, either to Receive, to Contract for, or to Value Goods by; which is least lyable to a change in its Value.
Silver Money is more uncertain in its Value than other Goods, so less Qualified for the Use of Money.
The Power the Magistrat has to alter the Money in its Demomination or Fineness, takes away the chief Quality for which Silver was made Money. In countries where the Money is often changed in the Denomination or Fineness, 'tis more uncertain to Contract for Money, than it was in the state of Barter to Contract for Goods.
Example, If a 100 Ounces of Silver are Lent, or Contracted for, and a Bond given for them Denominant Pounds, payable in a Year: In that time half a Crown is rais'd to a Crown, and 50 Ounces pays the 100 Lent or Contracted for.
Tho the Magistrat did never alter the Money in its Denomination or Fineness, yet it is more uncertain in its Value than othe Goods.
Goods of the same kind and quality differ in Value, from any change in their Quantity, or in the Demand for them: In either of these cases Goods are said to be dearer, or cheaper, being more or les svaluable, and equal to a greater or lesser Quantity of other Goods, or of Money.
Silver in Bullion or Money changes its Value, from any change in its Quantity, or in the Demand for it: In either of these cases Goods are said to be dearer, or cheaper; but 'tis Silver or Money is dearer or cheaper, being more or less valuable, and equal to a greater or lesser Quantity of Goods.
Perishable Goods as Corn, etc. encrease or decrease in Quantity as the Demand for them encreases or decreases; so their Value continues equal or near the same.
More durable Goods as Mettals, materials for Shipping, etc.
encrease in Quantity beyond the Demand for them, so are less valuable.
Silver or Money encreases in Quantity by so much as is Imported to Europe, more than is Consumed or Exported. The Demand has encreas'd, but not in proportion to the Quantity; For, 1st The same Quantity of Silver or Money, won't Purchase the same Quantity of Goods as before. 2ndly. 10 per cent was payed for the Use of it; now 'tis to be had at 6, in Holland at 3 or 4.
An Ounce of Silver being worth 5 sh. and 2 pence, and a Crown worth 60 Pence, unless alter'd by the Prince, makes most People insensible of any change in the Value of Silver or Money: But as one Year the Boll of Barley is Sold for 2 Crowns, and the Year after for 3; This difference comes from a change in the Quantity or Demand of the Barley, or of the Money: And that of the Money will occasion a difference in the Price, als well as that of the Barley.