silver which by law it should contain, a greater
number of such pounds might be employed in the circulation, than if they
were not clipped. If from each pound one tenth were taken away, 11
millions of such pounds might be used instead of 10; if two tenths were
taken away, 12 millions might be employed; and if one half were taken
away, 20 millions might not be found superfluous. If the latter sum were
used instead of 10 millions, every commodity in England would be raised
to double its former price, and the exchange would be 50 per cent.
against England, but this would occasion no disturbance in foreign
commerce, nor discourage the manufacture of any one commodity. If for
example, cloth rose in England from 20_l._ to 40_l._ per piece, we
should just as freely export it after as before the rise, for a
compensation of 50 per cent. would be made to the foreign purchaser in
the exchange; so that with 20_l._ of his money, he could purchase a bill
which would enable him to pay a debt of 40_l._ in England. In the same
manner if he exported a commodity which cost 20_l._ at home, and which
sold in England for 40_l._ he would only receive 20_l._, for 40_l._ in
England would only purchase a bill for 20_l._ on a foreign country. The
same effects would follow from whatever cause 20 millions could be
forced to perform the business of circulation in England, if 10 millions
only were necessary. If so absurd a law, as the prohibition of the
exportation of the precious metals, could be enforced, and the
consequence of such prohibition were to force 11 millions instead of 10
into circulation, the exchange would be 9 per cent. against England; if
12 millions, 16 per cent.; and if 20 millions, 50 per cent. against
England. But no discouragement would be given to the manufactures of
England; if home commodities sold at a high price in England, so would
foreign commodities; and whether they were high or low would be of
little importance to the foreign exporter and importer, whilst he would,
on the one hand, be obliged to allow a compensation in the exchange when
his commodities sold at a dear rate, and would receive the same
compensation, when he was obliged to purchase English commodities at a
high price. The sole disadvantage then which could happen to a country
from retaining by prohibitory laws a greater quantity of gold and silver
in circulation than would otherwise remain there, would be the loss
which it would sustain from employing a por