e in the price
of corn will be produced by such improvement of machinery in
manufactures, as shall enable us to manufacture commodities with
peculiar advantages: for the influx of money will be the consequence; it
will fall in value, and therefore exchange for less corn. But the
effects resulting from a high price of corn when produced by the rise in
the value of corn, and when caused by a fall in the value of money, are
totally different. In both cases the money price of wages will rise, but
if it be in consequence of the fall in the value of money, not only
wages and corn, but all other commodities will rise. If the manufacturer
has more to pay for wages, he will receive more for his manufactured
goods, and the rate of profits will remain unaffected. But when the rise
in the price of corn is the effect of the difficulty of production,
profits will fall; for the manufacturer will be obliged to pay more
wages, and will not be enabled to remunerate himself by raising the
price of his manufactured commodity.

Any improvement in the facility of working the mines, by which the
precious metals may be produced with a less quantity of labour, will
sink the value of money generally. It will then exchange for fewer
commodities in all countries; but when any particular country excels in
manufactures, so as to occasion an influx of money towards it, the value
of money will be lower, and the prices of corn and labour will be
relatively higher in that country, than in any other.

This higher value of money will not be indicated by the exchange; bills
may continue to be negotiated at par, although the prices of corn and
labour should be 10, 20, or 30 per cent. higher in one country than
another. Under the circumstances supposed, such a difference of prices
is the natural order of things, and the exchange can only be at par when
a sufficient quantity of money is introduced into the country excelling
in manufactures, so as to raise the price of its corn and labour. If
foreign countries should prohibit the exportation of money, and could
successfully enforce obedience to such a law, they might indeed prevent
the rise in the prices of the corn and labour of the manufacturing
country; for such rise can only take place after the influx of the
precious metals, supposing paper money not to be used; but they could
not prevent the exchange from being very unfavourable to them. If
England were the manufacturing country, and it were possible to