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WITH A PROPOSAL FOR SUPPLYINGTHE NATION WITH MONEY.
FIRST PUBLISHED AT EDINBURGH MDCCV.
BY THE CELEBRATED
JOHN LAW, Esq;
AFTERWARD
DIRECTOR TO THE MISSISIPI COMPANY.
GLASGOW,
PRINTED AND SOLD BY R. & A. FOULIS
MDCCL.
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There are several proposals offer’dto remedy the difficultiesthe nation is under from the greatscarcity of money.
That a right judgment may bemade, which will be most safe, advantageousand practicable; it seemsnecessary, 1. that the nature ofmoney be inquired into, and whysilver was used as money preferableto other goods. 2. that trade beconsidered, and how far money affectstrade. 3. that the measures havebeen used for preserving and increasingmoney, and these now proposed,be examined.
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How goods are valued. of barter. of silver; its valueas a metal; its qualities fitting it for money; and ofthe additional value it received from being used asmoney.
Goods have a value from the usesthey are applyed to; and their valueis greater or lesser, not so much fromtheir more or less valuable, or necessaryuses, as from the greater or lesserquantity of them in proportion to thedemand for them. example; water isof great use, yet of little value; becausethe quantity of water is muchgreater than the demand for it. diamondsare of little use, yet of greatvalue, because the demand for diamondsis much greater, than thequantity of them.
Goods of the same kind differ invalue, from any difference in their[Pg 5]quality, one horse is better than anotherhorse. barley of one countryis better than barley of anothercountry.
Goods change their value, from anychange in their quantity, or in thedemand for them. if oats be ingreater quantity than last year, andthe demand the same, or lesser, oatswill be less valuable.
Mr. Locke says, the value of goodsis according to their quantity in proportionto their vent. the vent ofgoods cannot be greater than thequantity, but the demand may begreater: if the quantity of winebrought from France be a 100 ton,and the demand be for 500 ton, thedemand is greater than the vent; andthe 100 ton will sell at a higher price,[Pg 6]than if the demand were only equalto the vent. so the prices of goods arenot according to the quantity in proportionto the vent, but in proportionto the demand.
Before the use of money wasknown, goods were exchanged bybarter, or contract; and contracts weremade payable in goods.
This state of barter was inconvenient,and disadvantageous. 1. hewho desired to barter would not alwaysfind people who wanted thegoods he had, and had such goods ashe desired in exchange.
2. Contracts taken payable ingoods were uncertain, for goods ofthe same kind differed in value.
3. There was no measure bywhich the proportion of value goods[Pg 7]had to one another could