Tho the Parliament could give Silver Money to the People, in als great Quantity as there were Occasion: the Parliament could not justly know what Sum would serve the Country, for the Demand changes. If the Quantity of Money is less than the Demand, the Landed Man is wrong'd:
For a 100 lib. then being more Valuable, will buy a greater Quantity of the Landed Mans Goods. If the Quantity of Money is greater than the Demand, the Money'd Man is wrong'd, for a 100 lib. then is not so Valuable, so will not buy the same Quantity of Goods a 100 lib. bought before.
If the Commission do not give out Money when it is demanded, where good Security is offer'd; 'tis a hardship on the Person who is refus'd, and a Loss to the Country: For few if any borrow Money to keep by them; and if employ'd it brings a Profit to the Nation, tho the Employer loses.
If the Commission did not take back what Sums were offer'd to be return'd, it were a hardship on the Money'd Man, who has a Sum payed him, and does not know how to employ it; and the Quantity being greater than the Demand for it, if would fall in Value.
After the Method propos'd, the Quantity being always equal to the Demand for it, it will keep its Value, and buy the same Quantity of Goods 50 years hence, as now: unless the Goods alter in their Value, from any Change in their Quantity, or in the Demand for them.
Suppose this Commission had been establisht 200 years ago, Land then at 14 years Purchase, Money at 10 per cent, victual at 8 shil.
and 4 Pence the Chalder, and Paper Money to have been given out upon Land; 8 shil and 4 pence of that Paper Mony, would now have been equal to a Chalder of Victual, and to 8 lib. 6 sh. and 4 pence Silver-money:
Because Silver-money having increas'd in Quantity, more than the Demand; and having been alter'd in the Denomination, has fallen to one 20th of the value it had then. Nor would the Landed-man have receiv'd less for his Victual, than now; For that Paper-money would have brought him 20 times the Quantity of Goods, Silver-money will buy.
Land has a more certain Value than other goods, for it does not encrease in quantity, all other goods may. The Uses of Goods may be discharge, or by Custom be taken from them, and given to other Goods:
The use of Bread may be taken from Oats, and wholly given to Wheat:
The use of Money may be taken from Silver, and given to Land: The use of Plate, and the other uses of Silver as a Mettal, may be taken from Silver, and given to some other Mettal, or some Mixture that may be more fitted for these uses. In any of these cases, these Goods lose a part of their value, proportion'd to the uses are taken from them: But land cannot lose any of its uses. For as every thing is produced by Land, so the Land must keep its value, because it can be turn'd to produce the Goods that are in use. If Wheat is more us'd, and Oats less, as the Land can produce both, it will be turn'd to produce what is most used, because most valuable.
This Money will not receive any additional Value from being used as Money, so the Receiver will be certain he can be no loser, tho after a Term of years the use of Money is taken from it. The Land will receive an additional Value, from being used as the Pledge upon which the Money is issued; and that additional Value would be greater than what Silver received: Because, tho Land be used as the Pledge to issue out Money upon, yet none of its other uses would be taken from it:
Silver cannot be us'd as Money and Plate at the same time. But as Land is in greater Quantity than there will be occasion for to give out Money upon; so the additional Value it receives, will not be near so great as that Silver-Money has receiv'd.
Suppose the Additional Value of Land received were one 4th, Land now at 20 years Purchase, would then be at 25 years Purchase. If the Parliament call'd in the Paper Money, he who had Paper Money could be no loser by it, tho the Land lost the Additional Value; For no more of it isgiven out than the Value of the Land abstract from its Use as Money, he who had Silver would loose a half, or 2 Thirds; Silver falling then to its Value as a Mettal.
So that this Paper Money propos'd, having a better Value than Silver; and receiving no Addition to its Value, from being used as Money; and not being lyable to any change in its Value, the Quantity and Demand encreasing and decreasing together: It is so far more Qualified to be the measure by which Goods are valued, the Value by which Goods are Exchanged, and in which Contracts are made payable.
The other Qualities necessary in Money, Are, 1. Easy of Delivery.
2. Of the same Value in one place to what it is in another.
3. To be kept without Loss or Expense.
4. To be divided without loss.
5. To be capable of a Stamp.
Paper Money has these Qualities in a greater degree than Silver.
1. It is easier of Delivery: 500 lib. in Paper may be payed in less time, than 5 lib. in Silver.
2. It is nearer the value in one place to what it is in another, being of easier carriage.
3. It can be easier kept; taking up less room. And without loss:
Because it may be Exchanged at the Office. The Consumption of Paper is not of so much value as the Consumption of Silver: The Consumption of the Paper is a loss to the Office, the Consumption of Silver is a loss to the Owner.
4. It can be divided without loss: Because it may be changed for lesser Notes at the Office.
5. It is capable of a Stamp, and less liable to be Counterfeit.
The Practice of most Trading Nations confirms, that Paper is more Qualified for the Use of Money, than Silver; providing it have a Value. In Holland Silver is pledg'd, and Paper is used as Money. That Land pledg'd is a better Value than Silver pledg'd, is evident from what has been said. In England, before the Bank was set up, Gold-smiths Notes were received in Payments preferable to Gold or Silver:
