arbitrary as not to be reducible to any rule. A taste for beauty is general; but fo different in different perfons, as to make the demand extremely variable: the faint representation of any plant in an agatė, is valued by fome for its rarity; but the demand is far from being univerfal. Savages are despised for being fond of glass beads; but were fuch toys equally rare among us, they would be coveted by many: a copper coin of the Emperor Otho is of no intrinfic value; and yet, for its rarity, would draw a great price.

The value of gold and filver in commerce, like that of other commodities, was at first, we may believe, both arbitrary and fluctuating; and, like other commodities, they found in time their value in the market, With refpect to value, however, there is a great difference between money and other commodities. Goods that are expenfive in keeping, fuch as cattle, or that are impaired by time, fuch as corn, will always be first offered in exchange for what is wanted; and when fuch goods are offered to fale, the vender must be contented with the current price in making the bargain the

there is a copper coin of the Empires O

purchaser

which brought 100

it was discound to be petitions and Dr I bought

for Mra Shillings.

purchaser has the advantage; for he fuffers not by referving his money to a better market. And thus commodities are brought down by money, to the lowest value that can afford any profit. At the fame time, gold and filver fooner find their value than other commodities. The value of the latter depends both on the quantity and on the demand; the value of the former depends on the quantity only, the demand being unbounded : and even with respect to quantity, these precious metals are less variable than other commodities:

Gold and filver, being thus fooner fixed. in their value than other commodities, become a standard for valuing every other commodity, and confequently for comparative values. A bufhel of wheat, for example, being valued at five fhillings, a yard of broad cloth at fifteen, their comparative values are as one to three.

A ftandard of values is effential to commerce; and therefore where gold and filver are unknown, other ftandards are established in practice. The only standard among the favages of North America is the fkin of a beaver. Ten of thefe are given

S 2

given for a gun, two for a pound of gunpowder, one for four pounds of lead, one for fix knives, one for a hatchet, fix for a coat of woollen cloth, five for a petticoat, and one for a pound of tobacco. Some nations in Africa employ fhells, termed couries, for a standard.

As chief view in this fketch is, to my examine how far induftry and commerce are affected by the quantity of circulating coin, I premise the following plain propofitions. Suppofing, firft, the quantity of money in circulation and the quantity of goods in the market, to continue the fame, the price will rife and fall with the demand. For when more goods are demanded than the market affords, those who offer the highest price will be preferred: as, on the other hand, when the goods brought to market exceed the demand, the venders have no refource but to entice purchafers by a low price. The price of fish, flesh, butter, and cheese, is much higher than formerly; for these being now the daily food even of the lowest people, the demand for them is greatly increased.

Suppofing a fluctuation in the quantity

of

of goods only, the price falls as the quantity increases, and rifes as the quantity decreases. The farmer whofe quantity of corn is doubled by a favourable season, must fell at half the ufual price; because the purchaser, who fees a fuperfluity, will pay no, more for it. The contrary happens upon a fcanty crop: thofe who want corn must starve, or give the market-price, however high. The manufactures of wool, flax, and metals, are much cheaper than formerly; for though the demand has increased, yet by skill and industry the quantities produced have increased in a greater proportion. More pot-herbs are confumed than formerly: and yet by skilful culture the quantity is fo much greater in proportion, as to have lowered the price to lefs than one half of what it was eighty years ago.

It is eafy to combine the quantity and demand, fuppofing a fluctuation in both. Where the quantity exceeds the usual demand, more people will be tempted to purchase by the low price; and where the demand rifes confiderably above the quantity, the price will rife in proportion.

In

In mathematical language, these propofi tions may be thus expreffed, that the price is directly as the demand, and inverfely as the quantity.

A variation in the quantity of circulating coin is the moft intricate circumstance; because it never happens without making a variation in the demand for goods, and frequently in the quantity. I take the liberty however to fuppofe, that there is no variation but in the quantity of circulating coin; for tho' that cannot happen in reality, yet the refult of the fuppofition will throw light upon what really happens the fubject is involved, and I wish to make it plain. I put a fimple cafe, that the half of our current coin is at once fwept away by fome extraordinary accident. This at firft will embarrafs our internal commerce, as the vender will infift for the ufual price, which now cannot be afforded. But the error of fuch demand will foon be difcovered 1 and the price of commodities, after fome fluctuation, will fettle at the one half of what it was formerly. At the fame time, there is here no downfal in the value of commodities, which cannot happen while

the