corn is
highest in rich countries. But without further examining which of these
opinions is correct, either of them is sufficient to shew, that gold
will not necessarily be lower in those countries which are in possession
of the mines, though this is a proposition maintained by Adam Smith.
Suppose England to be possessed of the mines, and Adam Smith's opinion,
that gold is of the greatest value in rich countries, to be correct:
although gold would naturally flow from England to all other countries
in exchange for their _goods_, it would not follow that gold was
necessarily lower in England, as compared with corn and labour, than in
those countries. In another place, however, Adam Smith speaks of the
precious metals being necessarily lower in Spain and Portugal, than in
other parts of Europe, because those countries happen to be almost the
exclusive possessors of the mines which produce them. "Poland, where the
feudal system still continues to take place at this day as beggarly a
country as it was before the discovery of America. _The money price of
corn, however, has risen_; THE REAL VALUE OF THE PRECIOUS METALS HAS
FALLEN in Poland, in the same manner as in other parts of Europe. Their
quantity, therefore, must have increased there as in other places, _and
nearly in the same proportion to the annual produce of the land and
labour_. This increase of the quantity of those metals, however, has
not, it seems, increased that annual produce, has neither improved the
manufactures and agriculture of the country, nor mended the
circumstances of its inhabitants. Spain and Portugal, the countries
which possess the mines, are, after Poland, perhaps, the two most
beggarly countries in Europe. The value of the precious metals, however,
_must be lower in Spain and Portugal_ than in any other parts of Europe,
loaded, not only with a freight and insurance, but with the expense of
smuggling, their exportation being either prohibited, or subjected to a
duty. _In proportion to the annual produce of the land and labour,
therefore, their quantity must be greater in_ those countries than in
any other part of Europe: those countries, however, are poorer than the
greater part of Europe. Though the feudal system has been abolished in
Spain and Portugal, it has not been succeeded by a much better."

Dr. Smith's argument appears to me to be this:--Gold, when estimated in
corn, is cheaper in Spain than in other countries, and the proof of this
is