Money and Its Vicissitudes in Value: As They Affect National Industry and Pecuniary Contracts: with a Postscript on Joint-stock Banks

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E. Wilson, 1837 - Banks and banking - 224 pages
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Page 47 - Accordingly we find, that, in every kingdom into which money begins to flow in greater abundance than formerly, every thing takes a new face : labour and industry gain life ; the merchant becomes more enterprising ; the manufacturer more diligent and skilful ; and even the farmer follows his plough with greater alacrity and attention.
Page 47 - Accordingly we find, that, in every kingdom, into which money begins to flow in greater abundance than formerly, every thing takes a new face ; labour and industry gain life ; the merchant becomes more enterprising, the manufacturer more diligent and skilful, and even the farmer follows his plough with greater alacrity and attention.
Page 48 - In my opinion, it is only in this interval or intermediate situation, between the acquisition of money and rise of prices, that the increasing quantity of gold and silver is favourable to industry. When any quantity of money is imported into a nation, it is not at first dispersed into many hands; but is confined to the coffers of a few persons, who immediately seek to employ it to advantage.
Page 43 - The depreciation was increased from the rate of six to that of thirty to one in nine months. " The average value in silver of the whole amount of paper in circulation, from April to September, 1779, was about six millions, and it sunk below five during the end of the year. The total amount of the paper was at that...
Page 48 - To account, then, for this phenomenon, we must consider, that though the high price of commodities be a necessary consequence of the increase of gold and silver, yet it follows not immediately upon that increase ; but some time is required before the money circulates through the whole state, and makes its effect be felt on all ranks of people. At first, no alteration is perceived ; by degrees the price rises, first of one commodity, then of another ; till the whole at last reaches a just proportion...
Page 50 - From the whole of this reasoning we may conclude, that it is of no manner of consequence with regard to the domestic happiness of a state, whether money be in a greater or less quantity. The good policy of the magistrate consists only in keeping it, if possible, still increasing ; because, by that means, he keeps alive a spirit of industry in the nation, and increases the stock of labour, in which consists all real power and riches.
Page 43 - June, 1778, although the issues had been increased to more than forty-five millions, the depreciation was at the rate of only four to one. From the end of April of that year, to the month of February, 1779, although the issues had been increased from thirty-five to one hundred and fifteen millions, the average value in silver of the whole amount of paper in circulation exceeded ten millions, and it was at one time nearly thirteen millions, or considerably more than that which could be sustained at...
Page 42 - A paper currency, equal in value to that sum in gold or silver, could therefore be sustained so long as confidence was preserved. The issues were gradually increased during the ensuing years, and in April, 1778, amounted to thirty millions. A depreciation was the natural consequence ; but had the value of the paper depended solely on its amount, the whole quantity in circulation would have still been equal in value to nine millions, and the depreciation should not have been more than...
Page 108 - Let us grant for the present, it is of higher price (which how he makes out, I shall examine by and by.) This, if it were so, ought not to annul any man's bargain, nor make him receive less in quantity than he lent. He was to receive again the same sum, and the publick authority was guarantee that the same sum should have the same quantity of silver, under the same denomination. And the reason is plain, why in justice he ought to have the same quantity of silver again, notwithstanding any pretended...
Page 109 - I have now suggested, that they proceed on the supposition, that it belongs to the province of courts of equity to take care that the value of money should never be altered. Nothing so absurd ever entered my imagination. The value of the precious metals, relatively to other commodities, cannot be fixed. It is subject to be affected by the same circumstances of abundance, scarcity, supply or demand, as affect the value of all other articles. That it has greatly decreased within the period which has...

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