第37章

Wesee，fromwhathasbeenalreadysaid，thatwhentheexchangeislowerthanthespecie，aprofitmaybemadebysendingitabroad；forthesamereason，whenitishigherthanthespecie，thereisprofitincausingittoreturn。

Butthereisacaseinwhichprofitmaybemadebysendingthespecieoutofthekingdom，whentheexchangeisatpar；thatis，bysendingitintoaforeigncountrytobecoinedoveragain。Whenitreturns，anadvantagemaybemadeofit，whetheritbecirculatedinthecountryorpaidforforeignbills。

Ifacompanyhasbeenerectedinastatewithanimmensenumberofshares，andtheseshareshaveinafewmonthsrisentwentyortwenty—fivetimesabovetheoriginalpurchasevalue；if，again，thesamestateestablishedabank，whosebillsweretoperformtheofficeofmoney，whilethelegalvalueofthesebillswasprodigious，inordertoanswertothelegalvalueoftheshares（thisisMr。Law’sSystem），itwouldfollow，fromthenatureofthings，thatthesesharesandthesebillswouldvanishinthesamemannerastheyarose。Stockscannotsuddenlyberaisedtwentyortwenty—fivetimesabovetheiroriginalvaluewithoutgivinganumberofpeoplethemeansofprocuringimmenserichesinpaper：everyonewouldendeavourtomakehisfortune；andastheexchangeoffersthemosteasywayofremovingitfromhome，orconveyingitwhitheronepleases，peoplewouldincessantlyremitapartoftheireffectstothenationthatregulatestheexchange。Acontinualprocessofremittancesintoaforeigncountrymustlowertheexchange。

LetussupposethatatthetimeoftheSystem，inproportiontothestandardandweightofthesilvercoin，theexchangewasfixedatfortygrostothecrown；whenavastquantityofpaperbecamemoney，theywereunwillingtogivemorethanthirty—ninegrosforacrown，andafterwardsthirty—eight，thirty—seven，&c。Thisproceededsofar，thatafterawhiletheywouldgivebuteightgros，andatlasttherewasnoexchangeatall。

TheexchangeoughtinthiscasetohaveregulatedtheproportionbetweenthespecieandthepaperofFrance。Isupposethat，bytheweightandstandardofthesilver，thecrownofthreelivresinsilverwasworthfortygros，andthattheexchangebeingmadeinpaper，thecrownofthreelivresinpaperwasworthonlyeightgros，thedifferencewasfour—fifths。Thecrownofthreelivresinpaperwasthenworthfour—fifthslessthanthecrownofthreelivresinsilver。

11。OftheProceedingsoftheRomanswithrespecttoMoney。Howgreatsoevertheexertionofauthorityhadbeeninourtimes，withrespecttothespecieofFrance，duringtheadministrationoftwosuccessiveministers，stillitwasvastlyexceededbytheRomans；notatthetimewhencorruptionhadcreptintotheirrepublic，norwhentheywereinastateofanarchy，butwhentheywereasmuchbytheirwisdomastheircourageinthefullvigouroftheconstitution，afterhavingconqueredthecitiesofItaly，andattheverytimethattheydisputedforempirewiththeCarthaginians。

AndhereIampleasedthatIhaveanopportunityofexaminingmorecloselyintothismatter，thatnoexamplemaybetakenfromwhatcanneverjustlybecalledone。

InthefirstPunicwartheas，[16]whichoughttobetwelveouncesofcopper，weighedonlytwo，andintheseconditwasnomorethanone。

Thisretrenchmentanswerstowhatwenowcalltheraisingofcoin。Totakehalfthesilverfromacrownofsixlivres，inordertomaketwocrowns，ortoraiseittothevalueoftwelvelivres，ispreciselythesamething。

TheyhaveleftusnomonumentofthemannerinwhichtheRomansconductedthisaffairinthefirstPunicwar；butwhattheydidinthesecondisaproofofthemostconsummatewisdom。Therepublicfoundherselfunderanimpossibilityofpayingherdebts：theasweighedtwoouncesofcopper，andthedenarius，valuedattenases，weighedtwentyouncesofcopper。Therepublic，beingwillingtogainhalfonhercreditors，madetheasofanounceofcopper，[17]andbythismeanspaidthevalueofadenariuswithtenounces。Thisproceedingmusthavegivenagreatshocktothestate；theywereobligedthereforetobreaktheforceofitaswellastheycould。Itwasinitselfunjust，anditwasnecessarytorenderitaslittlesoaspossible。Theyhadinviewthedeliveranceoftherepublicwithrespecttothecitizens；theywerenotthereforeobligedtodirecttheirviewtothedeliveranceofthecitizenswithrespecttoeachother。Thismadeasecondstepnecessary。

Itwasordainedthatthedenarius，whichhithertocontainedbuttenases，shouldcontainsixteen。Theresultofthisdoubleoperationwas，thatwhilethecreditorsoftherepubliclostone—half，[18]thoseofindividualslostonlyafifth；[19]thepriceofmerchandisewasincreasedonlyafifth；therealchangeofthemoneywasonlyafifth。

Theotherconsequencesareobvious。

TheRomansthenconductedthemselveswithgreaterprudencethanwe，whoinourtransactionsinvolvedboththepublictreasureandthefortunesofindividuals。Butthisisnotall：theirbusinesswascarriedonamidstmorefavourablecircumstancesthanours。

12。TheCircumstancesinwhichtheRomanschangedtheValueoftheSpecie。TherewasformerlyverylittlegoldandsilverinItaly。Thiscountryhasfewornominesofgoldorsilver。WhenRomewastakenbytheGauls，theyfoundonlyathousand—weightofgold[20]AndyettheRomanshadsackedmanypowerfulcities，andbroughthometheirwealth。

Foralongtimetheymadeuseofnonebutcoppermoney；anditwasnottillafterthepeacewithPyrrhusthattheyhadsilverenoughtocoinmoney：[21]theymadedenariiofthismetalofthevalueoftenases，[22]

ortenpoundsofcopper。Atthattimetheproportionofsilverwastothatofcopperas1to960。ForastheRomandenariuswasvaluedattenases，ortenpoundsofcopper，itwasworthonehundredandtwentyouncesofcopper；andasthesamedenariuswasvaluedonlyatone—eighthofanounceofsilver，[23]thisproducedtheaboveproportion。

WhenRomebecamemistressofthatpartofItalywhichisnearesttoGreeceandSicily，bydegreesshefoundherselfbetweentworichnations——theGreeksandtheCarthaginians。SilverincreasedatRome；andastheproportionof1to960betweensilverandcoppercouldbenolongersupported，shemadeseveralregulationswithrespecttomoney，whichtousareunknown。However，atthebeginningofthesecondPunicwar，theRomandenariuswasworthnomorethantwentyouncesofcopper；[24]andthustheproportionbetweensilverandcopperwasnolongerbutas1to160。Thereductionwasveryconsiderable，sincetherepublicgainedfive—sixthsuponallcoppermoney。Butshedidonlywhatwasnecessaryinthenatureofthings，byestablishingtheproportionbetweenthemetalsmadeuseofasmoney。

ThepeacewhichterminatedthefirstPunicwarlefttheRomansmastersofSicily。TheysoonenteredSardinia；afterwardstheybegantoknowSpain；andthusthequantityofsilverincreasedatRome。Theytookmeasurestoreducethedenariusfromtwentyouncestosixteen，[25]whichhadtheeffectofputtinganearerproportionbetweenthesilverandcopper；thustheproportion，whichwasbeforeas1to160，wasnowmadeas1to128。

IfweexamineintotheconductoftheRomans，weshallneverfindthemsogreatasinchoosingaproperconjunctureforperforminganyextraordinaryoperation。

13。ProceedingswithrespecttoMoneyintheTimeoftheEmperors。Inthechangesmadeinthespecieduringthetimeoftherepublic，theyproceededbydiminishingit：initswants，thestateentrustedtheknowledgetothepeople，anddidnotpretendtodeceivethem。Undertheemperors，theyproceededbywayofalloy。Theseprinces，reducedtodespairevenbytheirliberalities，foundthemselvesobligedtodegradethespecie；anindirectmethod，whichdiminishedtheevilwithoutseemingtotouchit。Theywithheldapartofthegiftandyetconcealedthehandthatdidit；and，withoutspeakingofthediminutionofthepay，orofthegratuity，itwasfounddiminished。

Weevenstillseeincabinetsakindofmedalswhicharecalledplated，andareonlypiecesofcoppercoveredwithathinplateofsilver。[26]

Thismoneyismentionedinafragmentofthe77thbookofDio。[27]

DidiusJulianfirstbegantodebaseit。WefindthatthecoinofCaracalla[28]hadanalloyofmorethanhalf；thatofAlexanderSeverusoftwo—thirds；[29]thedebasingstillincreased，tillinthetimeofGallienusnothingwastobeseenbutcoppersilveredover。[30]

Itisevidentthatsuchviolentproceedingscouldnottakeplaceinthepresentage；aprincemightdeceivehimself，buthecoulddeceivenobodyelse。Theexchangehastaughtthebankertodrawacomparisonbetweenallthemoneyintheworld，andtoestablishitsjustvalue。Thestandardofmoneycanbenolongerasecret。Weretheprincetobegintoalloyhissilver，everybodyelsewouldcontinueit，anddoitforhim；

thespecieofthetruestandardwouldgoabroadfirst，andnothingwouldbesentbackbutbasemetal。If，liketheRomanEmperors，