9.6c On the Orlg'iH of Moniy, 



IV. 



Obfervatlcns on Metallic Money \ chlejly tiireiied to nfctrtain the moji adv^intageous Dljirlhutlm 

 and Figure of Gold, Silver, and Copper in Coins, 



I 



F the value of fcience be meafured by its utility, there is no part of human knowledge 

 that will rank higher than political economy. If we juiHy applaud the inventor, who by 

 the conftruftion of a machine, or the improvement of a chemical procefs, has added to the 

 fum of our enjoyments, in onefmsU part of the great fcheme of fecial life; how much more 

 is due to thofe, who, by inveftigating the procefies upon which that fcheme itfelf depends, 

 have added to the facilities of mutual intercourfe, and given vigour to every department cf 

 adive induftry? 



When we contemplate the ftate of man, fupported merely by the art of the hunter, or by 

 the immediate produiSls of the earth ; aflbciated lefs for the purpofe of mutual affiftance in 

 the arts than for predatory enterprife or djreft refiftance againft the bppreffion ofhws neigh- 

 brturs; we are almoft inclined to think him of a different fpecies from the fame creature 

 in the civilized ftate. Upon examination, however, it appears, that the inevitable neceffity 

 of events has produced the difference. The variety of productions, of wants and of fabrica- 

 tions, has given rife to barter or exchange. Mutual fupply has increafed the fubJivifion.of 

 labour, and improved the means of conveyance. Streams, roads, fhips and carriages, have ex- 

 tended this beneficial intercourfe. Confidence between man and man has advanced the moral 

 principles of fociety, and afforded a progreffion, of which the part gradations may indeed be 

 traced, but to the future part of which the imagination can fcarccly afford a probable outline. 



Among the impediments to commerce, the greateft undoubtedly is the charge of convey- 

 ance from place to place. This is the great obftacle which limits the exchange of com- 

 modities from one extremity of the world to the other. Whenever the charges of carriage 

 arife to fuch an amount as to equal the effe£l:ual return in any remote market, the motive 

 for conveying merchandize to that place ceafes. If goods were always exchanged for goods,, 

 it is clear that the conveyance, under the uncertainty of difpofal, would take place to a very 

 fmall diftance indeed ; and the labour required to difcover the perfons willing to exchange 

 would greatly enhance the charge. It would require a volume to enumerate and defcribe 

 the expedients, moral as well as mechanical, by which thefe difficulties are in part fubdued, 

 and ftill more to deduce their origin and general effeils. One of the chief of thefe expedi- 

 ents confifls in the ufe of fome article of merchandize, as the medium of exchange, which 

 fhall be acceptable to every man, and will therefore be received and held by the feller of any 

 commodity until he fliall meet with another individual, who he knows will again take it for 

 the article he wants. 



In the ifland of Madagafcar, it is faid, that the exchangeable value of goods is reckoned in 

 hatchets, bullock?, and flaves ; thefe commodities being univerfaliy vendible, and for that 

 reafoa every where received. Smith affirms, that nails anfwer the fame purpofe in fome 

 parts of Great Britain. Thefe and other inftanccs may ferve to fhew how a preferable 

 medium of exchange becomes adopted, and it will without difficulty be feen that the fcarceft 

 and leaft deflruftiblc metals muft have at length become the univetfal fubflitutes. For their 

 value does not depend on their figure 3 they may be fubdivided and joined again without 



6 lofs; 



