Increasing the Silver Money or Establishing a Credit of Silver Money are ineffectual

Silver Money has fallen much from the Value it had. That Land is of greater Value. That Silver may lose the additional Value it received from being used as Money.

National Power and Wealth consists in:

• numbers of People, and
• Magazines of Home and Forreign Goods

These depend on Trade.

Trade depends on Money.*

So to be Powerful and Wealthy in proportion to other Nations, we should have Money in proportion with them.

• The best Laws without Money cannot employ the People, Improve the Product, or advance Manufacture and Trade.

The measures have been used or proposed to preserve and encrease Money are attended with Difficulties.

Even if the Difficulties were removed, the measures would still be ineffectual, and incapable of furnishing Money so as to:

• improve the Country, or
• extend Trade

Credit that promises a Payment of Money, cannot well be extended beyond a certain proportion it ought to have with the Money.

We have so little Money, that any Credit could be given upon it, would inconsiderable.

Can any other Goods than Silver be made Money with the same safety and convenience?

Chapter 1 hs explained that any other Goods which have the Qualities necessary in Money may be made Money equal to their Value, with Safety and Convenience.

There is nothing of Humour or Fancy in making Silver to be Money. It was made Money, because it was thought best Qualified for that use.

I propose another Money that has all the Qualities necessary in Money in a greater degree than Silver.

This Money:

• has other Qualities that Silver has not
• preferable for use as Money, tho Silver were the product of Scotland

This Money can:

• employ People
• improve the Country
• advance Manufacture
• carry on Trade Domestick and Forreign
• attain Wealth and Power

My proposal is:

• safe and practicable
• advantageous in general to Scotland, and to every Scots Man

The Defects of Silver Money

Money is the Measure by which Goods are Valued, the Value by which goods are Exchanged, and in which Contracts are made payable.

Money is not a pledge. It is a Value paid, or Contracted to be paid, with which ’tis supposed.

The Receiver may, as his occasions require, Buy an equal Quantity of the same Goods he has Sold, or other Goods equal in Value to them.

That Money is the most secure Value, either to Receive, to Contract for, or to Value Goods by; which is least lyable to a change in its Value.

Silver Money is more uncertain in its Value than other Goods, so less Qualified for the Use of Money.

The Power the Magistrate has to alter the Money in its Demomination or Fineness takes away the chief Quality for which Silver was made Money.

In countries where the Money is often changed in the Denomination or Fineness, ’tis more uncertain to Contract for Money, than it was in the state of Barter to Contract for Goods.

For example:

• 100 Ounces of Silver are Lent
• a Bond is given for them in Pounds payable in a Year

But in that time half a Crown is raised to a Crown, and so 50 Ounces pays the 100 Lent.

The Magistrat never altered the Money in its Denomination or Fineness. Yet, it is more uncertain in its Value than other Goods.

Goods of the same kind and quality differ in Value, from any change in their Quantity, or in the Demand for them: In either of these cases Goods are said to be dearer, or cheaper, being more or les svaluable, and equal to a greater or lesser Quantity of other Goods, or of Money.

Silver in Bullion or Money changes its Value, from any change in its Quantity, or in the Demand for it: In either of these cases Goods are said to be dearer, or cheaper; but ’tis Silver or Money is dearer or cheaper, being more or less valuable, and equal to a greater or lesser Quantity of Goods.

Perishable Goods as Corn, etc. encrease or decrease in Quantity as the Demand for them encreases or decreases; so their Value continues equal or near the same.

More durable Goods as Mettals, materials for Shipping, etc. encrease in Quantity beyond the Demand for them, so are less valuable.

Silver or Money encreases in Quantity by so much as is Imported to Europe, more than is Consumed or Exported. The Demand has encreas’d, but not in proportion to the Quantity; For, 1st The same Quantity of Silver or Money, won’t Purchase the same Quantity of Goods as before. 2ndly. 10 per cent was payed for the Use of it; now ’tis to be had at 6, in Holland at 3 or 4.

An Ounce of Silver being worth 5 sh. and 2 pence, and a Crown worth 60 Pence, unless alter’d by the Prince, makes most People insensible of any change in the Value of Silver or Money: But as one Year the Boll of Barley is Sold for 2 Crowns, and the Year after for 3; This difference comes from a change in the Quantity or Demand of the Barley, or of the Money: And that of the Money will occasion a difference in the Price, als well as that of the Barley.

If last Year a 100 Sheep were sold for a 100 Crowns, and the person sold them desires this Year to Buy the same number of Sheep; tho the Quantity of the Sheep, and the Demand for them be the same as last Year: Yet if the Money is encreas’d in Quantity, and the Demand for it not encreas’d in Quantity, and the Demand for it not encreas’d in proportion, the 100 Sheep will be equal in Value to more Money than the Year before, so the Money is cheaper. If the Quantity of the Money, and the Demand for it be the same as before; Yet if the Sheep are lesser in Quantity, or the Demand for them greater: The 100 Sheep will be equal to a greater Quantity of Money, so the Sheep are dearer.

So tho the Magistrat did never alter the Money, yet ’tis lyable to a change in its Value as Silver; from any change in its Quantity, or in the Demand for it: And the Receiver is doubly uncertain whether the Money he receives or contracts for, will, when he has occasion, Buy him the same Goods he has Sold, or other Goods equal in value to them; because of the difference may happen in the Value of the Money, or the Goods he is to Buy.

This uncertainty is, tho both Money and Goods were certain in their Quality.

The difference of the Prices of most Goods, from Changes in their Quantity, or in the Demand for them, would be much prevented, if Magazins were kept; but the difference in their Prices from the greater or lesser Quantity of, or Demand for Money; cannot be prevented so long as Silver is the Money.

Money is of much lesser Value than it was; will appear by the value Goods, Land, and Money had 200 years ago.

By the Acts of the Council of Edinburgh, it appears, that Anno 1495, the Fiars for Wheat was 6 sh and 8 pennies Scots Money the Boll. Anno 1520, Claret and white French Wines were order’d to be sold in the Taverns at 6 pennies Scots the Pint, and Ale at 20 pennies Scots the Gallon.

Anno 1526, the Milns belonging to the Town were lett for 400 Merks Scots, now they give 13000.

The Petty Customs at Leith then lett for 115 Merks. Anno 1532, the Load of Malt containing 9 Firlots, was order’d to be sold at 32 sh Scots the Load.

Anno 1551, Order’d that the best Mutton Bulk be sold for 12 pennies Scots, the 2d sort for 10 pennies, and the worst sort for 8 pennies.

Anno 1553, the 9 Firlots of Malt old Measure, with the Charity, is order’d to be sold for 36 sh. Scots. The Landwart Bread to weigh 40 Ounces, and the Townbread 36 Ounces the 4 penny or Plack Loaf. Anno 1555, the Bakers are order’d for each Boll of Wheat, to deliver 7 Score Loafs, at 16 Ounces the Loaf.

By an Act of the 5th Parliament of Queen Mary, Anno 1551. It’s ordain’d, that Wines imported upon the East and North Coast, should not be sold dearer than 20 lib. Scots the Tun of Bourdeaux Wine, and 16 lib. the Tun of Rochel Wine. the Pint of Bourdeaux Wine 10 pennies, and the Pint of Rochel Wine 8 pennies. And that Wine imported upon the West Coast, be sold no dearer than 16 lib the Tun of Rochel Wine. 8 pennies the pint of Bourdeaux Wine, and 6 pennies the pint of Rochel Wine.

So that what 5 lib. bought 200 years ago, will not be bought now for a 100 lib. Nor were Goods in greater plenty, or of less value than now: On the Contrair, as these Acts were made to regulat the prices of Goods, ’tis reasonable to think they were in lesser Quantity than now, proportion’d to the Demand, so of more value. But Money having increas’d in Quantity, more than in Demand, and having been alter’d by the Prince; is fallen in value: And a 100 lib. now is not worth what 5 lib. was worth before.

Land may be computed to have been improv’d in 200 years, that what pays now two Bolls the Acre, payed then but one Boll: Which may be known from old Rentals.

Money gave then 10 per cent Interest, and as 384 Acres, rented at a Boll the Acre, Victual at 8 sh and 4 Pence the Chalder; so the Property of these Acres was equal to, or worth 100 lib. for a 100 lib. gave 10 lib. Interest, and the 384 Acres payed only such a Quantity of Victual, as was sold for 10 lib. But as Land (being preferable to Money for many Reasons) is valued now at 20 years Purchase, tho Money is at 6 per cent: So that land then may have been valued 14 years purchase, 140 lib.