按键盘上方向键 ← 或 → 可快速上下翻页，按键盘上的 Enter 键可回到本书目录页，按键盘上方向键 ↑ 可回到本页顶部！
————未阅读完？加入书签已便下次继续阅读！
is divided amongst the different nations of which it is composed。
Each district will retain in its circulation such a proportionate
share of the currency of the country； as its trade； and
consequently its payments； may require； compared to the trade of
the whole； and no increase can take place in the circulating
medium of one district； without being generally diffused； or
calling forth a proportionable quantity in every other district。
It is this which keeps a country bank note always of the same
value as a Bank of England note。 If in London； where Bank of
England notes only are current； one million be added to the
amount in circulation； the currency will become cheaper there
than elsewhere； or goods will become dearer。 Goods will；
therefore； be sent from the country to the London market； to be
sold at the high prices； or which is much more probable； the
country banks will take advantage of the relative deficiency in
the country currency； and increase the amount of their notes in
the same proportion as the Bank of England had done； prices would
then be generally； and not partially affected。
In the same manner； if Bank of England notes be diminished
one million； the comparative value of the currency of London will
be increased； and the prices of goods diminished。 A Bank of
England note will then be more valuable than a country bank note；
because it will be wanted to purchase goods in the cheap market；
and as the country banks are obliged to give Bank of England
notes for their own when demanded； they would be called upon for
them till the quantity of country paper should be reduced to the
same proportion which it before bore to the London paper；
producing a corresponding fall in the prices of all goods for
which it was exchangeable。
The country banks could never increase the amount of their
notes； unless to fill up a relative deficiency in the country
currency； caused by the increased issues of the Bank of
England。（9*） If they attempted it； the same check which compelled
the Bank of England to withdraw part of their notes from
circulation when they used to pay them on demand in specie； would
oblige the country banks to adopt the same course。 Their notes
would； on account of the increased quantity； be rendered of less
value than the Bank of England notes； in the same manner as Bank
of England notes were rendered of less value than the guineas
which they represented。 They would therefore be exchanged for
Bank of England notes until they were of the same value。
The Bank of England is the great regulator of the country
paper。 When they increase or decrease the amount of their notes；
the country banks do the same； and in no case can country banks
add to the general circulation； unless the Bank of England shall
have previously increased the amount of their notes。
It is contended； that the rate of interest； and not the price
of gold or silver bullion； is the criterion by which we may； that
if it were always judge of the abundance of paper…money too
abundant； interest would fall； and if not sufficiently so；
interest would rise。 It can； I think； be made manifest； that the
rate of interest is not regulated by the abundance or scarcity of
money； but by the abundance or scarcity of that part of capital；
not consisting of money。
〃Money；〃 observes Dr A。 Smith； 〃the great wheel of
circulation； the great instrument of commerce； like all other
instruments of trade； though it makes a part； and a very valuable
part of the capital； makes no part of the revenue of the society
to which it belongs； and though the metal pieces of which it is
composed； in the course of their annual circulation； distribute
to every man the revenue which properly belongs to him； they make
themselves no part of that revenue。
〃When we compute the quantity of industry which the
circulating capital of any society can employ； we must always
have regard to those parts of it only which consist in
provisions； materials； and finished work： the other； which
consists in money； and which serves only to circulate those
three； must always be deducted。 In order to put industry into
motion； three things are requisite： … materials to work upon；
tools to work with； and the wages or recompense for the sake of
which the work is done。 Money is neither a material to work upon；
nor a tool to work with； and though the wages of the workman are
commonly paid to him in money； his real revenue； like that of all
other men； consists not in money； but in money's worth； not in
the metal pieces； but what can be got for them。〃
And in other parts of his work； it is maintained； that the
discovery of the mines in America； which so greatly increased the
quantity of money； did not lessen the interest for the use of it：
the rate of interest being regulated by the profits on the
employment of capital； and not by the number or quality of the
pieces of metal； which are used to circulate its produce。
Mr Hume has supported the same opinion。 The value of the
circulating medium of every country bears some proportion to the
value of the commodities which it circulates。 In some countries
this proportion is much greater than in others； and varies； on
some occasions； in the same country。 It depends upon the rapidity
of circulation； upon the degree of confidence and credit existing
between traders； and above all； on the judicious operations of
banking。 In England so many means of economizing the use of
circulating medium have been adopted； that its value； compared
with the value of the commodities which it circulates； is
probably （during a period of confidence （10*）） reduced to as
small a proportion as is practicable。
What that proportion may be has been variously estimated。 No
increase or decrease of its quantity； whether consisting of gold；
silver； or paper…money； can increase or decrease its value above
or below this proportion。 If the mines cease to supply the annual
consumption of the precious metals； money will become more
valuable； and a smaller quantity will be employed as a
circulating medium。 The diminution in the quantity will be
proportioned to the increase of its value。 In like manner； if new
mines be discovered； the value of the precious metals will be
reduced； and an increased quantity used in the circulation； so
that in either case the relative value of money； to the
commodities which it circulates； will continue as before。
If； whilst the Bank paid their notes on demand in specie；
they were to increase their quantity； they would produce little
permanent effect on the value of the currency； because nearly an
equal quantity of the coin would be withdrawn from circulation
and exported。
If the Bank were restricted from paying their notes in
specie； and all the coin had been exported； any excess of their
notes would depreciate the value of the circulating medium in
proportion to the excess。 If twenty millions had been the
circulation of England before the restriction； and four millions
were added to it； the twenty…four millions would be of no more
value than the twenty were before； provided commodities had
remained the same； and there had been no corresponding
exportation of coins； and if the Bank were successively to
increase it to fifty； or a hundred millions； the increased
quantity would be all absorbed in the circulation of England； but
would be； in all cases； depreciated to the value of the twenty
millions。
I do not dispute； that if the Bank were to bring a large
additional sum of notes into the market； and offer them on loan；
but that they would for a time affect the rate of interest。 The
same effects would follow from the discovery of a hidden treasure
of gold or silver coin。 If the amount were large； the Bank； or
the owner of the treasure； might not be able to lend the notes or
the money at four； nor perhaps； above three per cent。； but having
done so； neither the notes； nor the money； would be retained
unemployed by the borrowers； they would be sent into every
market； and would every where raise the prices of commodities；
till they were absorbed in the general circulation。 It is only
during the interval of the issues of the Bank； and their effect
on prices； that we should be sensible of an abundance of money；
interest would； during that interval； be under its natural level；
but as soon as the additional sum of notes or of