140 ADAM SMITH. 



the one of falling upon some commodity generally desir- 

 able, produced in moderate quantities, and capable of 

 being easily and exactly divided into portions as well as 

 easily transported and easily preserved, which might be 

 exchanged for all other commodities, and thus become, as 

 it were, a material or tangible measure of their exchange- 

 able value, as well as an easy medium of carrying on all 

 exchanges ; the other of agreeing, that when any bargain 

 was made for the exchange of commodities, he who did 

 not immediately want to have the article delivered to 

 which he was entitled, might receive some document as- 

 certaining his claim to receive it when he wished, and he 

 who did not wish to part with it, but desired to have the 

 equivalent commodity immediately, might find the docu- 

 ment binding him to pay something for the delay, in 

 case the other party wished it: the former of these in- 

 ventions is money ; the latter is credit, or paper cur- 

 rency. In some rude countries shells have been used for 

 money; in others, leather; almost universally, however, 

 the metals have been so employed, and chiefly those 

 which from their beauty and their scarcity, are the most 

 valuable; gold, silver, and copper, though sometimes iron 

 has been so used. Bills of exchange and promissory 

 notes have greatly facilitated the operations of commerce, 

 by enabling debts to be transferred, so that there should 

 be no necessity of employing either goods or money to 

 pay more than the net balance due from one given coun- 

 try, or from one district of the same country to another, 

 upon the whole mutual dealings of both countries or both 

 districts; and also by enabling credit to do the office of 

 coin, and thus to economize the use of the precious 

 metals. The fifth chapter enters at large into the sub- 



