al, was not a matter of chance, nor a
matter of compulsion, but wholly the effect of choice; it did not suit
him to take silver to the mint, it did suit him to take gold thither. It
is probable that if the quantity of this debased silver in circulation
had been enormously great, and also a legal tender, that a guinea would
have been again worth thirty shillings; but it would have been the
debased shilling that would have fallen in value, and not the guinea
that had risen.

It appears then, that whilst each of the two metals was equally a legal
tender for debts of any amount, we were subject to a constant change in
the principal standard measure of value. It would sometimes be gold,
sometimes silver, depending entirely on the variations in the relative
value of the two metals, and at such times the metal, which was not the
standard, would be melted, and withdrawn from circulation, as its value
would be greater in bullion than in coin. This was an inconvenience
which it was highly desirable should be remedied, but so slow is the
progress of improvement, that although it had been unanswerably
demonstrated by Mr. Locke, and had been noticed by all writers on the
subject of money since his day, a better system was never adopted till
the last session of Parliament, when it was enacted that gold only
should be a legal tender for any sum exceeding forty-two shillings.

Dr. Smith does not appear to have been quite aware of the effect of
employing two metals as currency, and both a legal tender for debts of
any amount; for he says that "in reality, during the continuance of any
one regulated proportion between the respective values of the different
metals in coin, the value of the most precious metal regulates the value
of the whole coin." Because gold was in his day the medium in which it
suited debtors to pay their debts, he thought that it had some inherent
quality by which it did then, and always would regulate the value of
silver coin.

On the reformation of the gold coin in 1774 a new guinea fresh from the
mint would exchange for only twenty-one debased shillings; but in the
reign of King William, when the silver coin was in precisely the same
condition, a guinea also new and fresh from the mint would exchange for
thirty shillings. On this Mr. Buchanan observes, "here, then, is a most
singular fact, of which the common theories of currency offer no
account; the guinea exchanging at one time for thirty shillings, its
intr