cheaply discharge his debt. If with five quarters of
wheat he can procure as much gold bullion as the mint will coin into
twenty guineas, and for the same wheat as much silver bullion as the
mint will coin for him into 430 shillings, he will prefer paying in
silver, because he would be a gainer of ten shillings by so paying his
debt. But if on the contrary he could obtain with this wheat as much
gold as would be coined into twenty guineas and a half, and as much
silver only as would coin into 420 shillings, he would naturally prefer
paying his debt in gold. If the quantity of gold which he could procure
could be coined only into twenty guineas, and the quantity of silver
into 420 shillings, it would be a matter of perfect indifference to him
in which money, silver or gold, it was that he paid his debt. It is not
then a matter of chance; it is not because gold is better fitted for
carrying on the circulation of a rich country, that gold is ever
preferred for the purpose of paying debts; but simply because it is the
interest of the debtor so to pay them.

During a long period previous to 1797, the year of the restriction on
the Bank payments in coin, gold was so cheap, compared with silver, that
it suited the Bank of England, and all other debtors, to purchase gold
in the market, and not silver, for the purpose of carrying it to the
mint to be coined, as they could in that coined metal more cheaply
discharge their debts. The silver currency was during a great part of
this period very much debased, but it existed in a degree of scarcity,
and therefore on the principle which I have before explained, it never
sunk in its current value. Though so debased, it was still the interest
of debtors to pay in the gold coin. If indeed the quantity of this
debased silver coin had been enormously great, or if the mint had issued
such debased pieces, it might have been the interest of debtors to pay
in this debased money; but its quantity was limited and it sustained its
value, and therefore gold was in practice the real standard of
currency.

That it was so, is no where denied; but it has been contended that it
was made so by the law which declared that silver should not be a legal
tender for any debt exceeding 25_l._, unless by weight, according to the
mint standard.

But this law did not prevent any debtor from paying any debt, however
large its amount, in silver currency fresh from the mint; that the
debtor did not pay in this met