27,000 dollars per annum thrown away in the large, wealthy and luxurious ftate of Virginia, owing entirely to the" prodigious fcarcity of money." Now, if a few citizens, mr. printer, whofe liberality has ever been as extenfive as their ability, can only afford to take fo much from their families annually; how is it poffible, with ever fuch efforts of industry, and ever fuch frugal fyftems of economy, for a people thus ftripped of their gold and filver, to pay even the common demands of government, to lay nothing of our foreign and domeftic debts, and our private debts daily contracting? I fay a few of our fellow-citizens," because I cannot fuppofe there is one out of a hundred of the good people of this commonwealth, whofe circumstances or religious principles will admit of their beftowing a fingle fhilling in this laudable way.

If I had not already given fuch proofs of the " unparalleled scarcity of money," as must be perfectly fatisfactory to every unprejudiced and difinterefted reader, I would obferve, further, that no perfon can get more than from 20 to 50 per cent. on the old prices, upon every thing he has to fell, from an horfe of 30l. value, down to a fourpenny cabbage-tobacco excepted (and this we might have had our own price for, if we had neither lent it to merchants, nor run in their debt.) I would urge alfo, that the New England people could not get more than 8s. per cwt. for their hay, laft winter and fpring, nor more than double the worth of their axe and hoe-helves, wooden trays, honey, cranberry-tarts ready made, cyder, potatoes, cabbages, parfnips, carrots, and many other important articles of commerce (as impoffible for us to do without, as to make our felves) and that the variety of luxurious articles, which we fee daily import ed, have scarce an opportunity of being opened, before they are vended. In

fhort, mr. printer, such is our deplorable fituation, for "want of money," that it appears to me, we are on the very brink of ruin, and that we mult go headlong to deftruction, unless timely affifted, by a very liberal emiffion of paper-money-and this, I would have loaned out, to certain popular characters, seven years without intereft, to any amount, not exceeding double the worth of the borrower, and which must be a LEGAL TENDER, IN ALL CASES WHATSOEVER, except as hereafter excepted. Befides, we ought to have a fum fufficient to redeem every fpecies of public fecurities; which the original holders must give up, on penalty of forfeiting the whole fum due them. But thofe who are poffeffed of them, by purchase, should have the liberty of refufing this new paper, because, fuch perfons, having given a " valuable confideration" in gold or filver, ought to be confidered as INNOCENT HOLDERS. If the fum thus emitted, fhould be found inadequate to the wants of my needy fellow-citizens of every defcription, I would then recommend all fuch, to join in a return, fpccifying their names, eftimated value of their estates, and fums refpectively wanted; and lay the fame before the next affembly, who will, no doubt, direct a further emiffion, in order to comply with the utmost wishes of the virtuous community.

Some people, who pretend to be amazingly honeft and confcientious, afk, and with fome warmth, how, in the name of goodness, are we to pay France, Holland, and Spain, the intereft, much more the principal, of the money fo generously lent us, in times of diftrefs, if we have nothing but paper?" This question, from its fimplicity, always makes me fmile

and yet I do not know that ever I heard a found, knock-em-down answer to it-viz." If France, Holland, and Spain, will not take fuch money as we have to give, it will be their

we faults, not ours, if they go unpaid." Now, can any thing, mr. printer, be clearer than this, except the purity of the principle? Such was the pious reasoning of many hoeft men, when they paid off orphans' legacies, and old debts, with papermoney, at no greater depreciation than from 10 to 100 for 1-and, furely, fir, precedents, fo replete with julice, bonefty, equity, and the foundeft policy, can never be forgotten, either in THIS WORLD, or the WORLD TO COME. Methinks I hear fome of your wits fay-thofe wits, I mean, who are verfed in fables and romances -"this fellow's tedious perform ance puts me in mind of the mountain in labour, which brought forth a moufe." Be it fo, it is all one to your old friend, and a branch of the house of

SHANDY.

Efay on money, as a medium of commerce; with remarks on the advantages and disadvantages of paper admitted into general circulation. By a citizen of the united states.

ROM every channel of public

with many repetitions. Others have been full of antithefes, quaint fayings, and witticifms, which have no great tendency to convince or perfuade; and fome have been mingled with the local and party politics of particular ftates. Perhaps these different ways of writing, may be very proper for feveral claffes of readers, and have a good effect; but there are certainly others, who require a different treatment, because their mistakes are owing not to deceitful intentions, but to erroneous judgment. This has given me a strong defire to try what can be done upon the subject, by difpaffionate reafoning. By this, I mean, endeavouring to carry the matter back to its first principles, to explain them, in fo fimple a manner, as that the unlearned may understand them; and, then, to deduce the practical confequences, with the general theory, full in

view.

It is impoffible to reach my purpofe, without faying many things, which, in a feparate and detached manner, have been faid by others; but this must be forgiven me; becaufe I mean to lay the whole fyftem

is a difpofition in many of the legiflatures of this country, to emit bills of credit by authority of government; and to make them, in fome measure, at leaft, or in fome cafes, a legal tender for debts already contracted. This is a matter of great delicacy and danger. It has eccafioned a controverfial difcuffion of the fubject, in pamphlets and periodical publications. A few plaufible things, and but a few, that deferve that character, have been publifhed in defence of the meafure. Many fhrewd and fenfible things have been offered against it; but even these laft have not been fo connected and fatisfying, as they might, and ought to have been. Some of the pieces have been verbose and declamatory,

its proper order and connexion. Let us, then, begin by confidering what gave rife to money, and what is its nature and use.

If there were but one man upon the earth, he would be obliged to prepare a hut for his habitation, to dig roots for his fuftenance, to provide skins or fig-leaves for his covering, &c. in fhort, to do every thing for himself. If but one or two more were joined with him, it would foon be found that one of them would be more fkilful in one fort of work, and another in a different: so that common intereft would direct them, each to apply his industry to what he could do beft and fooneft: to communicate the furplus of what he needed himself of that fort of work

to the others, and receive, of their furplus, in return. This directly points out to us, that a barter of commodities, or communication of the fruits of industry, is the first principle, or rather, indeed, conftitutes the effence, of commerce. As fociety increases, the partition of employments is greatly diverfified; but till the fruits of well directed induftry, or the things neceffary and ufeful in life, are what only can be called wealth.

In establishing a mutual exchange of thefe, the first thing neceffary is a ftandard of computation, or common measure, by which to estimate the feveral commodities, that may be offered for fale, or may be defired by purchafers. Without this, it is eafy to fee, that the barter of commodities is liable to very great difficulties, and very great errors. This ftandard, or common measure, muft be fomething that is well known to both parties, and of general or common use. As the first effays, in every thing, are generally rude and imperfect; fo, I think, it appears from the monuments of remote antiquity, that, in the early stages of fociety, cattle were the first things made ufe of as a ftandard. But it would foon appear, that this was a most inaccurate measure; because, one ox might be as good as two, from fize, fatnefs, or other circumftances. Therefore,

NOTE.

Servius Tullius, one of the Roman kings, is faid to have ftamped fome pieces with the figure of cattle; an ox, or a fheep. This was as much as to fay, this piece is of the value of an ox or a sheep. Hence, it is faid, the Roman word pecunia, comes from pecus, cattle. Others have thought it was from the use of leather for money, quafi pecudum corio. But the first etymology feems to be the beft. See a fubfequent note.

in place of this, fucceeded measures both of dry and liquid, that is, corn, wine, and oil. The firft of these was, of all others, the most proper ftandard, because univerfally neceffary, and liable to little variation. Men, upon an average, would probably eat nearly the fame quantity, in the moft diftant ages and countries. It seems to me, that this circumftance of a standard of computation, being neceffary in commerce, and the first thing neceffary, has been, in a great measure, overlooked by moft writers on money, or rather, it has been confounded with the ftandard value of the fign, although effentially different from it; and the equivocal use of the terms, has occafioned great confufion. I must, however, observe, not only that this muft neceffarily be taken in, but, that if we confine ourselves to a ftandard of computation only, fome known commodity, as measured grain, is better, and more intelligible and unalterable, than any money whatever, that either has been, or will be, made. The great alteration, in the value of gold and filver, is known to every person who has but dipped into hiftory; and, indeed is known to many, even by memory, in this country, fince its first settlement.*

NOTE.

There are two eftates near one of the colleges in Scotland, which were originally taxed an equal number of bolls of grain (a boll is about 6 bufhels) to that inftitution. In very remote times, it pleased the proprietor of one of these eftates, with confent of the college, to convert the payment into money, according to the then current value, which was a groat or fourpence fterling for a boll. At this prefent time, the one of these farms pays the fame number of bolls, that the other does of groats; which

But, after a standard of computation had been agreed upon, in commerce, even of the most moderate extent, fomething farther would be abfolutely neceffary. The actual and immediate barter of commodities, could, in few inftances, take place. A man might have the thing that I wanted to purchase, but he might not need, or defire what I was willing to give for it. Another might want what I had to fpare, but not have what I wanted to purchase with it. Befides, bulky or perishable commodities could not be carried about at an uncertainty, or with fafety. Therefore, it became, very early, neceffary, that there fhould be fome figa or figns agreed upon, which fhould reprefent the abfent commodities, or rather should reprefent the ftandard of computation, in all its divifions and multiplications. Thefe figns must be fuch as could easily be carried about, and therefore could be readily applied to every kind of tranfactions, which were connected with the commutation of property.

Let us examine the nature and meaning of thefe figns more particularly. They are of the nature of a tally, that is to fay, they are intended to mark and afcertain a fact. Now, the fact is, that the perfon who can fhew thofe figns, having purchafed them by his goods or indaftry, is entitled to receive, from

NOTE.

is about thirty-two for one. There is also said to be exifting, an old leafe of a borough acre, near a town, in Scotland, for which the tenant was to pay a boll of wheat, and a boll of barley, or, if he did not bring the grain between Christmas and Candlemas, the proprietor was not obliged to accept of it, but he must pay a fum, which is now, 10-12ths of a penny sterling, for the boll of wheat, and 8-12ths, for the boll of barley.

Vol. II. No. I.

fomebody, a certain value, or to a certain amount, which they specify, of the standard of computation. They have, always, a reference to the flandard of computation, and, at last, by that known reference, the diftinction between them and the ftandard of computation is loft, and they become a fecondary ftandard of computation themfelves. Thus, a piece is intended, at first, to be of the value of a measure of grain; but at last, men come to make their bargain by the number of pieces, inftead of the number of measures; ufing the fign for the thing fignified. Thus, alfo, fometimes at leaft, an ideal measure, generated by the other two, comes to be the ftandard of computation : as in England, the pound fterling is the money unit, though there be no coin precifely correfponding to it. This is fufficient to explain the rela tion of the fign to the ftandard of computation, and at laft, if I may fpeak fo, its confolidation with it.

I have faid, above, that the perfon poffeffing the fign, is entitled to receive a certain value from somebody. The reafon of this is, because his debtor is not the fame, in every ftate of things. If we confider the fign as given from one individual to another, it is of the nature of a promiffory note, and is a confeflion of having received fo much property. Probably, there were often fuch figns or tokens given in the infancy of fociety; and it would then fignify, that, if the feller were to come again, at a distance of time, and find the buyer in poffeffion of fuch goods, as he wanted, he would be entitled to receive the amount of the fign or token that had been given him. But the convenience of ufing figns is fo great, that it would immediately occafion their being made ufe of by general confent, exprefs or implied; and, at laft, the matter would be taken under the direction of the ruling part of the community. F

In both cafes, but especialy in this laft, the fociety becomes bound to the perfon who receives the figns for his goods, or induftry, that they fhall be, to him, of the value that they fpecify. I will afterwards fhew, that this was not the firft, but the laft ftep taken in the ufe of figns, and give the reafons for it; but it is proper to mention it now, when we are confidering the nature and ufe of figns in that fingle view.

Let it be obferved here, that, as it was before faid, if we aim at no more than a standard of computation, fome commodities are not only as good, but better than any money; fo, if we confine ourselves to a fign, only, feparate from a ftandard, many things, that might be named, are not only as good, but far better than either the standard itfelf, or what we call money; because, they are much more easily reckoned, transported, and concealed. This appears, particularly, from the ftate of figns, in modern times; after fo much experience and improvement has taken place. For, if we can guard, fufficiently, against the dangers to which they are expofed, figns inconceivably facilitate commerce. We can put any value we please in an obligation, written on a few inches of paper, and can fend it over the world,itfelf, at very little expenfe, and conceal it fo eafily, that there fhall be no danger of its being taken from us.

But it must have appeared, and did fpeedily appear, that all mere figns labour under an effential defect. They depend, ultimately, on the faith or credit of the perfons using or anfwerable for them. Now, whether these be individuals,or the multitude, by general custom, and implied confent, or even the ruling part of the fociety, there is very great uncertainty. Therefore, fomething farther is neceffary, to make a compleat fymbol or medium of general commerce, and that is, a pledge, or

ftandard of value that may be a fecurity or equivalent for the thing given for it, and at all times be fufficient to purchate a like value of any thing that may be needed by him that holds it. An abfent commodity, well known, or even an idea weil underflood, may be a standard of computation and common meature; any thing, almoft whatever, may be a fign, though, fince the art of writing has been known, paper is the beft, but both are effentially defective: there is wanting a value in the fign, that fhall give not only a promife or obligation, but actual poffeffion of property for property.

The mentioning of these three diftinct ends to be ferved by the medium of commerce, and illuftratiug them feparately, was not to convey the idea that there were three fteps of this kind taken at a distance of time from each other, or that men first continued long to deal in grofs barter; and after that invented figns, and were content with them for another period; and at laft perfected the plan, by getting figns poffeffed of real value. On the contrary, it was to shew, that any thing ufed as a medium of univerfal or general commerce, must be able to ferve all the three forementioned purposes; and that, if there is any production of nature, or fabrication of art, that can unite the whole, at leaft as far as they are capable of being united, this must be the great defideratum. Now, it has been found. in experience, that the precious metals, efpecially thofe now called by that name, gold and filver, do answer all the three ends in a great degree. It cannot be denied, that they have been used for this purpofe, in fact, from the earliest times, and through every nation, in the old world; and, indeed, alfo in the new, with fuch exception only, as will confirm the principles of the theory. If any man thinks that this has happened by accident, or through the whim or caprice