The shillings and six-pences being then
withdrawn from circulation, their place might be supplied with
silver coins each worth five of the new pence, and by others of
ten-pence, and of twopence halfpenny; the latter coin, having a
distinct name, would be the tenth part of a prince.
170. The various manufactured commodities, and the various
property possessed by the inhabitants of a country, all become
measured by the standard thus introduced. But it must be observed
that the value of gold is itself variable; and that, like all
other commodities, its price depends on the extent of the demand
compared with that of the supply.
171. As transactions multiply, and the sums to be paid become
large, the actual transfer of the precious metals from one
individual to another is attended with inconvenience and
difficulty, and it is found more convenient to substitute written
promises to pay on demand specified quantities of gold. These
promises are called bank-notes; and when the person or body
issuing them is known to be able to fulfil the pledge, the note
will circulate for a long time before it gets into the hands of
any person who may wish to make use of the gold it represents.
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