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changes. But, if it varied in its price in relation to the rest 

 of the circulation, it would serve neither the first nor the 

 third purpose ; and if it rose in price so as not to be com- 

 manded without a sacrifice, when it was wanted for extra 

 foreign supplies, it would serve very indifferently the second 

 purpose. And if the price allowed it to be taken away, and 

 the circulation was curtailed by its departure, as it must be 

 if the notes resting upon it were retired, then the evils of 

 defalcation would arise it was intended to prevent. Yet it 

 must be confessed, if it were otherwise convenient, the fluctu- 

 ations might not be so disastrous, since gold would not be so 

 extremely exported, and the consequent prostration so entire 

 and protracted. 



"Sec. V. The problem how to find a steady currency 

 amidst the elements of its variation. 



"In treating the problem of a steady currency under the 

 influence of certain elements of its variation, the first tiling is, 

 to ascertain the mean point over which the movement is made. 

 As the mean level of the commoved sea between the height 

 and depth of an undulation, or as the centre liue of the 

 swinging pendulum. Tor it is evident, that it is about this 

 point only that it is possible to confine the perturbation to its 

 least amount. Now, as there is a certain increase of the 

 money, which makes gold cheaper than goods and causes it to 

 be exported, and then a certain contraction and depression, 

 which makes it dearer than goods and brings it back again, 

 there must be a mean point between these extremes, where 

 the expansion should be fixed with the greatest likelihood of 

 keeping it steady. That is the point of the average expansion 

 and range of prices, winch will determine, to any country, her 

 average proportion of the gold of the world. And we should 

 ascertain that point near enough, if we fix it in a time of 

 moderate commercial prosperity, or at a period when activity 

 is returning, after a season of stagnation and depression. 

 Here the expansion should stop, and though the metals may 



