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There is another seeming consequence of the reducing of money to a low price, which at first sight has such an appearance of truth in it, that I have known it to impose upon very able men, and I guess it has no small influence, at this time, in the promoting this alteration; and that is, that the lowering of interest will raise the value of all other things in proportion. For money being the counter-balance to all other things purchaseable by it, and lying, as it were, in the opposite scale of commerce, it looks like a natural consequence, that as much as you take off from the value of money, so much you add to the price of other things which are exchanged for it; the raising of the price of any thing being no more but the addition to its value in respect of money, or, which is all one, lessening the value of money. For example: should the value of gold be brought down to that of silver, one hundred guineas would purchase little more corn, wool, or land, than one hundred shillings; and so, the value of money being brought lower, say they, the price of other things will rise, and the falling of interest from six pounds to four pounds per cent. is taking away so much of the price of money, and so consequently the lessening its value.

The mistake of this plausible way of reasoning will be easily discovered, when we consider that the measure of the value of money, in proportion to any thing purchaseable by it, is the quantity of the ready money we have in comparison with the quantity of that thing, and its vent; or, which amounts to the same thing, the price of any commodity rises or falls, by the proportion of the number of buyers and sellers: this rule holds universally in all things that are to be bought and sold, bating now and then an extravagant fancy of some particular person, which never amounts to so considerable a part of trade, as to make any thing in the account worthy to be thought an exception to this rule.

The vent of any thing depends upon its necessity or usefulness; as convenience, or opinion, guided by fancy, or fashion, shall determine.

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The vent of any commodity comes to be increased, or decreased, as a greater part of the running cash of the nation is designed to be laid out, by several people at the same time, rather in that than another; as we see in the change of fashions.

I shall begin first with the necessaries, or conveniencies of life, and the consumable commodities subservient thereunto; and show, that the value of money, in respect of those, depends only on the plenty or scarcity of money, in proportion to the plenty and scarcity of those things; and not on what interest shall, by necessity, law, or contract, be at that time laid on the borrowing of money; and then afterwards I shall show that the same holds in land.

There is nothing more confirmed, by daily experience, than that men give any portion of money, for whatso ever is absolutely necessary, rather than go without it. And in such things, the scarcity of them alone makes their prices. As for example: let us suppose half an ounce of silver, or half a crown now in England, is worth a bushel of wheat: but should there be next year a great scarcity of wheat in England, and a proportionable want of all other food, five ounces of silver would, perhaps, in exchange purchase but one bushel of wheat: so that money would be then nine-tenths less worth in respect of food, though at the same value it was before, in respect of other things, that kept their former proportion, in their quantity and consumption.

By the like proportions, of increase and decrease, does the value of things, more or less convenient, rise and fall, in respect of money; only with this difference, that things absolutely necessary for life must be had at any rate; but things convenient will be had only as they stand in preference with other conveniencies: and therefore in any one of these commodities, the value ́rises only as its quantity is less, and vent greater, which depends upon its being preferred to other things, in its consumption. For supposing that, at the same time that there is a great scarcity of wheat, and other grain, there were a considerable quantity of oats, men, no question, would give far more for wheat than oats, as

being the healthier, pleasanter, and more convenient food: but, since oats would serve to supply that absolute necessity of sustaining life, men would not rob themselves of all other conveniencies of life, by paying all their money for wheat, when oats, that are cheaper, though with some inconvenience, would supply that defect. It may then so happen at the same time, that half an ounce of silver, that the year before would buy one bushel of wheat, will this year buy but one tenth of a bushel; half an ounce of silver, that the year before would have bought three bushels of oats, will this year still buy one; and at the same time half an ounce of silver, that would the year before have bought fifteen pounds of lead, will still buy the same quantity. So that at the same time silver, in respect of wheat, is nine-tenths less worth than it was, in respect of oats two-thirds less worth, and in respect of lead as much worth as before.

The fall, therefore, or rise of interest, making immediately, by its change, neither more nor less land, money, or any sort of commodity in England, than there was before, alters not at all the value of money, in reference to commodities. Because the measure of that is only the quantity and vent, which are not immediately changed by the change of interest. So far as the change of interest conduces, in trade, to the bringing in, or carrying out money, or commodities, and so in time to the varying their proportions here in England, from what it was before; so far the change of interest, as all other things that promote or hinder trade, may alter the value of money, in reference to commodities. But that is not in this place to be considered.

This is perfectly the value of money, in respect of consumable commodities: but the better to understand it, in its full latitude, in respect both of consumable commodities, and land too, we must consider, first, That the value of land consists in this, that, by its constant production of saleable commodities, it brings in a certain yearly income. Secondly, The value of commodities consists in this, that, as portable and use

ful things, they, by their exchange or consumption, supply the necessaries, or conveniencies of life. Thirdly, In money there is a double value, answering to both of these, first, as it is capable, by its interest, to yield us such a yearly income: and in this it has the nature of land, (the income of one being called rent, of the other use) only with this difference, that the land, in its soil being different, as some fertile, some barren, and the products of it very various, both in their sorts, goodness, and vent, is not capable of any fixed estimate by its quantity: but money being constantly the same, and by its interest giving the same sort of product through the whole country, is capable of having a fixed yearly rate set upon it by the magistrate; but land is not. But though, in the uniformity of its legal worth, one hundred pounds of lawful money being all through England equal in its current value to any other one hundred pounds of lawful money, (because by virtue of the law it will every where pass for as much ware, or debt, as any other hundred pounds) is capable to have its yearly hire valued better than land: yet in respect of the varying need and necessity of money, (which changes with the increase or decay of money, or trade, in a country) it is as little capable to have its yearly hire fixed by law as land itself. For were all the land in Rumney-marsh, acre for acre, equally good, that is, did constantly produce the same quantity of equally good hay, or grass, one as another, the rent of it, under that consideration, of every acre being of an equal worth, would be capable of being regulated by law; and one might as well enact, that no acre of land in Rumney-marsh shall be let for above forty shillings per annum, as that no hundred pounds shall be let for above four pounds per annum. But nobody can think it fit (since by reason of the equal value of that land it can) that therefore the rent of the land in Rumney-marsh should be regulated by law. For supposing all the land in Rumney-marsh, or in England, were all of so equal a worth, that any one acre, compared at the same time to any one other, were equally good, in respect of its product; yet the same acre,

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compared with itself in different times, would not, in respect of rent, be of equal value. And therefore it would have been an unreasonable thing, if in the time of Henry VII. the rent of land in Rumney-marsh had been settled by a law, according to the judged value of it at that time, and the same law, limiting the rent perhaps to 5s. per acre, have continued still. The absurdity and impracticableness of this every one sees, at the first proposal, and readily concludes within himself, that things must be left to find their own price; and it is impossible, in this their constant mutability, for human foresight to set rules and bounds to their constantly varying proportion and use, which will always regulate their value.

They who consider things beyond their names will find that money, as well as all other commodities, is liable to the same changes and inequalities; nay, in this respect of the variety of its value, brought in by time, in the succession of affairs, the rate of money is less capable of being regulated by a law, in any country, than the rent of land. Because, to the quick changes that happen in trade, this too must be added, that money may be brought in or carried out of the kingdom, which land cannot; and so that be truly worth six or eight per cent. this year, which would yield but four the last.

2. Money has a value, as it is capable, by exchange, to procure us the necessaries or conveniencies of life, and in this it has the nature of a commodity; only with this difference, that it serves us commonly by its exchange, never almost by its consumption. But though the use men make of money be not in its consumption, yet it has not at all a more standing, settled value, in exchange with any other thing, than any other commodity has; but a more known one, and better fixed by name, number, and weight, to enable us to reckon what the proportion of scarcity and vent of one commodity is to another. For supposing, as before, that half an ounce of silver would last year exchange for one bushel of wheat, or for 15lb. weight of lead; if this year wheat be ten times scarcer, and lead in the same

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