rn and _all_ home commodities could not be
materially raised in price without an influx of the precious metals; for
the same quantity of money could not circulate the same quantity of
commodities, at high as at low prices, and the precious metals never
could be purchased with dear commodities. When more gold is required, it
must be obtained by giving more, and not fewer commodities in exchange
for it. Neither could the want of money be supplied by paper, for it is
not paper that regulates the value of gold as a commodity, but gold that
regulates the value of paper. Unless then the value of gold could be
lowered, no paper could be added to the circulation without being
depreciated. And that the value of gold could not be lowered appears
clear, when we consider that the value of gold as a commodity must be
regulated by the quantity of goods which must be given to foreigners in
exchange for it. When gold is cheap, commodities are dear; and when gold
is dear, commodities are cheap, and fall in price. Now as no cause is
shewn why foreigners should sell their gold cheaper than usual, it does
not appear probable that there would be any influx of gold. Without such
an influx there can be no increase of quantity, no fall in its value, no
rise in the general price of goods.

The probable effect of a tax on raw produce would be to raise the price
of all commodities in which raw produce entered, but not in any degree
proportioned to the tax; while other commodities in which no raw produce
entered, such as articles made of the metals and the earths, would fall
in price: so that the same quantity of money as before would be adequate
to the whole circulation.

A tax which should have the effect of raising the price of all home
productions, would not discourage exportation, except during a very
limited time. If they were raised in price at home, they could not
indeed immediately be profitably exported, because they would be subject
to a burthen here from which abroad they were free. The tax would
produce the same effect as an alteration in the value of money, which
was not general and common to all countries, but confined to a single
one. If England were that country, she might not be able to sell, but
she would be able to buy, because importable commodities would not be
raised in price. Under these circumstances nothing but money could be
exported in return for foreign commodities, but this is a trade which
could not long continue; a