13 



tendency to make cp = mt, or ^=1, the integer of the 



value of money; by increasing one or both of the terms of the 



numerator, the rest being constant, you enhance the value of 



money, for you make the quotient greater than 1, and inversely. 



The same will happen if you diminish either of the terms of 



the denominator, the rest being constant, and inversely. And 



to keep t constant, or to have an uniform activity of business, 



if you increase c or p you must increase m, and c andj? being 



constant and you diminish m, you will increase t, or you will 



have duller markets or slacker business. 



f 



"If you take t, equal 1, then c p=m and c 2p = %?n, and 

 if t and c be constant, twice the quantity of money, giving 

 twice the price, will do no more business, and is of no more 

 value than the unit quantity with the unit price. An expan- 

 sion of money that raises the prices beyond just remuneration 

 and becomes depreciated, serves for no good purpose, but 

 delusion. If the time of selbng and being paid be increased, 

 then the supply of wants is more slow, while they are equally 

 urgent. The return of profits is slower, too, while rents, taxes, 

 and all liabilities are as swift as ever. A slow or heavy 

 market soon becomes glutted, and a glutted market requires 

 cessation of supplies, and this requires cessation of industry 

 and employment, and reacts to aggravate the heaviness of the 

 market. The same results follow the lowering of price, for 

 they (price and time) are correlative, and result in each other : 

 a heavy market will result in a falling price; and, as far as this 

 is a mere action of property, and not of money, it is a desi- 

 rable consequence. But, in the event of a large reduction of 

 money, this operation is only mischievous. Tor the goods 

 that have been produced in one medium have to be sold in 

 another, while the change in the value of money has no 

 retrospective mitigation of the expenses that have been in- 

 curred. And those expenses consist, for the most part, in 

 payments and obligations that are so fixed that they cannot 

 be easily changed for the future. If the goods that have 



