of mankind, as one would fufpect, from the language fometimes ufed in fpeech and writing, he is greatly miftaken. No effect of whim or accident ever was fo uniform or folafting. The truth is, that thefe metals do poffefs, in a degree fuperior to every thing elfe, the qualities neceffary for the purposes mentioned above.

This wil appear to any impartial perfon, who will confider, with a view to the preceding principles, what qualities a medium of general commerce ought to poffefs. It ought, then, to be 1. valuable 2.. rare; 3. portable; 4. divifible; 5. durable. Whoever will examine the matter, with attention, mult perceive, that any one of these qualities being wholly or greatly wanting, the fyftem would be either entirely ruined, or remarkably injured. Let us examine them feparately.

1. It must be valuable; that is to fay, it must have an intrinfic worth in itself, in fubftance, distinct from the form. By value or intrinfic worth here, must be understood precifely the fame thing that gives to every other commodity its commercial value. Do you ask, what that is? I anfwer, its being either neceffary or remarkably ufeful for the purposes of life, in a social state, or, at leaft, fupposed to be fo; and therefore the object of human defire. Without this, it could be no more than a bare fign; nor, indeed, so useful in this view, as many other figns. But we want fomething, that must be not only a ftandard of computation, but a standard of value; and, therefore, capable of being a pledge and fecurity to the holder, for the property that he has exchanged for it. It is likely, fome will fay, what is the intrinfic value of gold and filver? they are not wealth; they are but the fign or reprefentative of commodities. Superficial philofophers, and even fome men of good understanding, not attending to the nature of cur

rency, have really faid fo. What is gold, fay fome the value is all in the fancy. You can neither eat nor wear it. It will neither feed, clothe, nor warm you. Gold, fay others, as to intrinfic value, is not fo good as iron, which can be applied to many more ufeful purposes. Thefe perfons have not attended to the nature of commercial value, which is in a compound ratio of its ufe and scarcenefs. If iron were аз rare as gold, it would probably be as valuable; perhaps more fo. How many inftances are there of things, which, though a certain proportion of them is not only valuable, but indifpenfibly neceffary to life itself; yet, from their abundance, have no commercial value at all. Take, for examples, air and water. People do not bring thefe to market, because they are in fuperabundant plenty. But let any circumstances take place that render them rare, and difficult to be obtained, and their value immediately rifes above all computation. What would one of thofe, who were ftifled in the black hole, at Calcutta, have given to get but near a window, for a little air; and what will the crew of a fhip, at fea, whofe water is nearly expended, give for a fresh supply?

Gold and filver have intrinfic value as metals, becaufe, from their duc- tility, durability, and other qualities, they are exceedingly fit for domeftic utenfils, and many purposes in life. This circumftance was the foundation of their ufe, as a medium of commerce, and was infeparable from it. No clearer proof of this can be adduced, than that, in the earliest times, even when ufed in commerce, they were weighed before they were divided into fmaller pieces, and pailed in tale. They muft furely then have had intrinfic value; for their value was in proportion to their bulk or quantity. This circumftance, as a fign, made them worfe; but as a valuable

metal, made them better. The fame thing appears as clearly, from the practice of modern times. Even when they are taken into the management of the rulers of fociety, and ftamped under various denominations, there must be an exact regard had to their commercial value. The ftamp upon them, is the fign; the intrinfic worth of the metal, is the value. It is now found, and admitted, by every nation, that they muft give, to every piece, that denomination and value, in legal currency, that it bears in bullion; and if any do otherwife, there is neither authority nor force fufficient to make it pafs.*

The author, referred to, in the note, has given us quotations from three perfons of name, in the literary world, in fupport of a contrary opinion. The firt is dr. Franklin, whom he makes to fay, gold and filver are not intrinfically of equal value with iron; a metal, of itself, capable of many more beneficial ufes to mankind. Their value refts chiefly

NOTE.

66

An author on this fubject, in a pamphlet, lately published, fays, The value of the precious metals is however, enhanced by their peculiar aptitude to perform the office of an univerfal money, beyond any real inherent value they poffefs. This extrinfic value of gold and filver, which belongs to them under the modifica tion of coin or bullion, is totally diftinct from their inherent value as a commodity." I do not very well comprehend, what this gentleman means by the extrinfic value of gold and filver. Perhaps, it is the ftamp or nominal value affixed to them, by the ftate; but whatever it is, I will venture to affure him, that their value, as coin, is fo far from being totally diftinct from, that it must be, precifely, the fame with, their value as a commodity.

on the eftimation they happen to be in, among the generality of nations, and the credit given to the opinion, that that estimation will continue; otherwife, a pound of gold would not be a real equivalent for a bushel of wheat." The fecond is Anderson, on national induftry, who says, "money, confidered in itfelf, is of no value; but, in many civilized nations, who have found how convenient it is, for facilitating the barter or exchange of one commodity for another, it has received an artificial value; fo that, although uselefs in itself, it has come to be accepted among all civilized nations, as a token, proving, that the perfon who is poffeffed of it, had given fomething, of real value, in exchange for it, and is, on that account, accepted of, by another, in exchange for fomething that is of real utility and intrinfic worth." The third is fir James Steuart, who fays, "by money, I understand any commodity, which, purely in itfelf. is of no material ufe to man; but which acquires fuch an eftimation, from his opinion of it, as to become the univerfal measure of what is called value, and an adequate equivalent for any thing alienable." The name of any man, how great foever, will not have much weight with me, when I perceive, that, in any instance, he has mistaken his fubject. This, I believe, has been the cafe with all the gentlemen just mentioned. There is a confiderable confufion in the ideas expressed by the laft two; but the thing in which they all agree, and for which they are adduced by this author, is, that they feem to deny the intrinsic value of gold and filver, and to impute the estimation in which they are held, to accidental opinion. Now, I muft beg leave to obferve, as to the comparison of the intrinfic worth of gold and iron, if it were poffible to determine whether, on fuppofiti

en of iron and gold being in equal quantity, the one or the other would be the most valuable, it would not be worth a fingle ftraw in the prefent queftion; for, if iron were the most valuible, it would,in that cafe, be the mohey, and the gold would be but in the next degree. Accidental opinion has nothing to do with it. It arifes from the nature of things. As to a pound of gold not being, as to intrinfic value, equivalent to a bushel of wheat, it might, with equal truth, be affirmed, that, to a man, perishing with hunger, a mountain of gold would not be equivalent to half a pound of bread. But is this any argument against the intrinfic commercial value of gold, as it has taken place fince the beginning of the world?

As to the other two authors, they feem to fay, that money is, in itself, of no value, and of no material use to man, If, by money, they mean gold and filver, the propofition is directly false because they are both of material ufe for the purposes of focial life. But what has led them into this error, has been their abstracting the idea, and taking money in the fingle light of a fign, without confidering it as a ftandard. Then, no doubt, even gold, while it continues in this form, is of no other use than as a fign of property. But how little is this to the purpofe? for it is equally true of every other commodity. A nail, while it continues a nail, is of no other ufe, but joining boards together, or fome fimilar purpofe, and can neither be lock nor key; but a quantity of nails, or the iron which they contain, can be eafily converted into either the one or the other. So a guinea, while it continues a guinea, is of no ufe whatever, but as an inftrument of commerce; but the gold of which a guinea confifts, can eafily be converted into a ring, or any thing which its quantity will reach. This is what is

called, with perfect propriety, its intrinfic value.

2. That which is the medium of commerce, must be rare. It will not be neceffary to fay much upon this, because it has already received fome illuftration from what has gone before. It may, however, be obferved, that the medium of commerce muft not only be fo rare, as to bring it within commercial value, in ordinary cafes, but it must be much more rare than moft other things, that its value may be increased, and a fmall quantity of it may reprefent goods of confiderable variety and bulk. If gold and filver were only twenty times as plentiful as they are at prefent, they would ftill have a proper value, could be bought and fold, and applied to many useful purposes, but they would be quite unfit for general circulation.

3. The circulating medium must be portable. It must be capable of being carried to a diftance with little trouble or expenfe, and of paffing from hand to hand, with eafe and expedition. This is one of the reafons why it must be rare; but it deferves mention alfo by itself, because it is poffible to conceive of things that may be both valuable and rare, and yet incapable of being carried about, and paffing from one to another. Some precious drugs, and fome curiofities may be fo rare as to have a high value, and yet may be quite improper for circulation.

4. The medium of commerce muft be divifible. It ought to be capable of divifion into very small quantities. This is neceffary, in order to anfwer the divifion of many commodities, and the conveniency of perfons of different ranks. It is of fuch importance, that in the calculations of a complex and diverfified commerce, we find divifions and fractional parts even of the fmallest coins or denominations of money, that have ever yet been brought into ufe.

5. Laftly. The medium of commerce ought to be durable. It ought to have this quality, on two accounts; firit, that in perpetually paffing from hand to hand, it may not be broken or wasted; and, fecondly, that if it be preserved or laid up, as may be fometimes neceffary, and often a greeable or profitable, it may not be liable to be fpeedily corrupted or confumed.

All thefe particulars are not of equal moment, and they have an intimate relation one to another; yet each of them is fingly and feparately of importance, perhaps more, than will be, at first view, apprehended. I think it is alfo plain, that there is nothing, yet known to mankind, in which they are all fo fully united, as they are in gold and filver; which is the true reafon why these metals have been applied, as the inftruments of commerce, fince the beginning of the world, or as far back as hiftory enables us to penetrate.*

NOTE

It has been fuggefted to me, by a friend, that gold and filver poffefs another quality, different from all the above, which, in an eminent degree, fits them for circulation, as a medium, viz. that they are equable. The meaning of this expreffion, is, that the metal of each of thefe fpecies, when pure, is of the fame fineness and worth, and perfectly fimilar, from whatever different mines, or from whatever diftant parts it may have been procured; which, it is faid, is not the cafe with any other metal. It is affirmed, that the copper or lead, that comes from one mine, will be preferable to that which comes from another, even after this laft has been refined to as high a degree as is poffible; but, that all gold and filver, completely refined, are perfeâly a like, whether they come from Afia, Africa, or America. I do not pre

It will probably throw fome light| upon the above theory, if we take a brief view of the matter, as it has taken place, in fact, from the beginning of the world. This may be done now, to the greater advantage, that the effects of particular caufes, and the events that will take place in fociety, ia particular circumftances, have been fo fuily afcertained by the experience of ages, and the progress of science, that we are able to make a better ufe of the few remains of ancient hiftory, than could have been done by thofe who lived nearer to the events which are recorded. It appears, then, that the difcovery and ufe of metals, was one of the earliest attainments of mankind. This might naturally be expected, if they were within reach at all, because of their very great utility in all works of industry, and indeed, for all the purposes of convenience and luxury. Therefore, I fuppofe, this fact will not be doubted; but it is a truth, neither so obvious, nor fo much known, that gold, filver, and brafs, or rather copper,were the most ancient metals, and all of them antecedent to iron. Thefe metals being applied

NOTE.

all the purposes of life, came, of carfe, to conflitute a great part of the wealth of the people of ancient times. I have mentioned brafs, betrufe it was one of the metals earlieft known; and, upon the very principes above laid down, was, in the beginning, made ufe of, for money, by many ancient nations. Its being now, in a great measure, left cut, is an illuftration and proof of what has been already faid. It is left out, for no other reason, than its having loft one of its neceffary quahries, viz. rarity. That it was made afe of, for money, amongst the Hebrews, appears from many circumfances. We read of gold, filver, and brafs, brought as contributions to the tabernacle service, in the time of Mofes, and to the building of the temple, in that of David. That brats was made ufe of, as money, in the early times of the Greeks and Romans, appears, both from the ertions of hiftorians, and from the very languages of both nations, for there it is made ufe of to fignify money, in general. That it

NOTES.

of copper; and fome hiftorians tell us, that they had a method of tempering or hardening it, fo as to make it tolerably fit for the purpofe, though certainly not equal to iron or fteel..

In the Roman language, as fignifies not only brafs, but money in general, and from it many other words are derived; as, arurium, the trealary; as alienum, debt; ære mutare, to buy or fell for money, &c. So,in the Greek tongue,chalkos, fignifies brafs,achalkes and achalkein, to be without money, or poor. When the other metals came to be in ufe as money, thewords received the fame meanlag in the language,as, argemti fitis rifacra james, the defire of money. Things proceeded in a way perfectly failar in the three ancient nations, of

ceased to ferve that purpose, afterwards, cannot be accounted for, in any other way, than as above, efpecially, as the neglect of it has been juft as univerfal, as the use of it was formerly.

We are alfo fully fupported, by hiftory, in affirming, that all thefe metals were at firft eftimated, and paffed in commerce, by weight. We fee, that Abraham gave to Ephron, for the cave of Mach pelah, four hundred fhekels of filver. The Greek money was of different weights, from the lower forts to the talent, which was the largeft. The old Roman word pondo was, as it were, the ftandard, and the divifions of it constituted their different denominations. From this, we seem to have derived the English word pound. Very foon, however, they came to have either coins, or, at leaft, fmall pieces, reckoned by number. Abimelech gave to Abraham, as Sarah's brother, one thoufand kefeph, and Jofeph was fold for twenty kefeph,and he gave to his brother Benjamin, three hundred kefeph. As the word kefeph fignifies filver, they must have been reckoned by tale, and are probably very juttly tranflated pieces. Agreeably to all this, the time when the Romans began to coin brafs, and fome hundreds of years afterwards, filver and gold are distinctly mentioned by the historians +.

NOTES.

whom we have the most diftin&t accounts, the Hebrews, Greeks, and Romans. Nabus kejeph zahar, in Hebrew; chalkos arguros and chrufos, in Greek;and as argentum and aurum, in Latin, are all uted for money in general.

See Genefis, xxiii. 16. And Abraham weighed to Ephron, the money that he had faid, in prefence of the fons of Heth, 400 fhekels of filver, current money with the merchants.

We have the exprefs teftimony of Pliny, upon this subject, lib.