Thus money itself varies in price, when measured by other
money in larger masses: and this effect takes place whether the
circulating medium is metallic or of paper. These effects have
constantly occurred, and particularly during the late war; and,
in order to relieve it, silver tokens for various sums were
issued by the Bank of England.
The inconvenience and loss arising from a deficiency of small
money fall with greatest weight on the classes whose means are
least; for the wealthier buyers can readily procure credit for
their small purchases, until their bill amounts to one of the
larger coins.
178. As money, when kept in a drawer, produces nothing, few
people, in any situation of life, will keep, either in coin or in
notes, more than is immediately necessary for their use; when,
therefore, there are no profitable modes of employing money, a
superabundance of paper will return to the source from whence it
issued, and an excess of coin will be converted into bullion and
exported.
179. Since the worth of all property is measured by money, it
is obviously conducive to the general welfare of the community,
that fluctuations in its value should be rendered as small and as
gradual as possible.
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