they would have loaded and oppreffed all commerce, by a jealous and fuperfluous caution. Since the union has removed the barriers between SCOTLAND and ENGLAND, which of these nations gains from the other by this free. commerce? Or if the former kingdom has received any encrease of riches, can it reasonably be accounted for by, any thing but the encrease of its art and industry? It was a common apprehenfion in ENGLAND, before the union, as we learn from L'ABBE DU Bost, that SCOTLAND would foon drain them of their treafure, were an open trade allowed; and on the other fide the TWEED a contrary apprehenfion prevailed: With what juftice in both, time has shown.

What happens in fmall portions of mankind, must take place in greater. The provinces of the ROMAN empire, no doubt, kept their balance with each other, and with ITALY, independent of the legislature: as much as the several counties of BRITAIN, or the feveral parishes of each county. And any man who travels over EUROPE at this day, may fee, by the prices of commodities, that money, in fpite of the abfurd jealousy of princes and ftates, has brought itself nearly to a level; and that the difference between one kingdom and another is not greater in this refpect, than it is often between different provinces of the fame kingdom. Men naturally flock to capital cities, fea-ports, and navigable rivers. There we find more men, more industry, more commodities, and confequently more money; but ftill the latter difference holds proportion with the former, and the level is preferved *.

Les interets d'ANGLETERRE mal-entendus.

* See NOTE [R].

Our jealoufy and our hatred of FRANCE are without bounds; and the former fentiment, at leaft, must be acknowledged reasonable and well-grounded. These paffions have occafioned innumerable barriers and obftructions upon commerce, where we are accused of being commonly the aggreffors. But what have we gained by the bargain? We loft the FRENCH market for our woollen manufactures, and transferred the commerce of wine to SPAIN and PORTUGAL, where we buy worse liquor at a higher price. There are few ENGLISHMEN who would not think their country abfolutely ruined, were FRENCH wines fold in ENGLAND fo cheap and in fuch abundance as to fupplant, in fome meafure, all ale, and home-brewed liquors: But would we lay aside prejudice, it would not be difficult to prove, that nothing could be more innocent, perhaps advantageous. Each new acre of vineyard planted in FRANCE, in order to fupply ENGLAND with wine, would make it requifite for the FRENCH to take the produce of an ENGLISH acre, fown in wheat or barley, in order to fubfift themselves; and it is evident, that we should thereby get command of the better commodity,

There are many edicts of the FRENCH king, prohibiting the planting of new vineyards, and ordering all those which are lately planted to be grubbed up: So fenfible are they, in that country, of the fuperior value of corn, above every other product.

Marefchal VAUBAN complains often, and with reason, of the abfurd duties which load the entry of those wines of LANGUEDOC, GUIENNE, and other fouthern provinces, that are imported into BRITANY and NORMANpy. He entertained no doubt but these latter provinces Could preferve their balance, notwithstanding the open Commerce which he recommends. And it is evident,

that

that a few leagues more navigation to ENGLAND would make no difference; or if it did, that it muft operate alike on the commodities of both kingdoms.

There is indeed one expedient by which it is poffible to fink, and another by which we may raise, money be yond its natural level in any kingdom; but these cases, when examined, will be found to refolve into our general theory, and to bring additional authority to it.

I scarcely know any method of finking money below its level, but those institutions of banks, funds, and papercredit, which are fo much practifed in this kingdom. Thefe render paper equivalent to money, circulate it through the whole ftate, make it fupply the place of gold and filver, raise proportionably the price of labour and commodities, and by that means either banish a great part of thofe precious metals, or prevent their farther encrease. What can be more fhort-fighted than our reasonings on this head? We fancy, because an individual would be much richer, were his ftock of money doubled, that the fame good effect would follow were the money of every one encreased; not confidering, that this would raife as much the price of every commodity, and reduce every man, in time, to the same condition as before. It is only in our public negociations and tranfactions with foreigners, that a greater ftock of money is advantageous; and as our paper is there abfolutely infignificant, we feel, by its means, all the ill effects arifing from a great abundance of money, without reaping any of the advantages ‡.

We observed in Effay III. that money, when encreafing, gives encouragement to industry, during the interval between the encrease of money and rife of the prices. A good effect of this nature may follow too from papercredit; but it is dangerous to precipitate matters, at the risk of losing all by the failing of that credit, as must happen upon any violent fhock in public affairs,

Suppofe

Suppofe that there are 12 millions of paper, which circulate in the kingdom as money, (for we are not to imagine, that all our enormous funds are employed in that fhape) and fuppofe the real cash of the kingdom to be 18 millions: Here is a ftate which is found by experience to be able to hold a stock of 30 millions. I fay, if it be able to hold it, it must of neceffity have acquired it in gold and filver, had we not obstructed the entrance of thefe metals by this new invention of paper. Whence would it have acquired that fum? From all the kingdoms of the world. But why? Because, if you remove these 12 millions, money in this state is below its level, compared with our neighbours; and we muft immediately draw from all of them, till we be full and faturate, so to fpeak, and can hold no more. By our prefent politics, we are as careful to stuff the nation with this fine commodity of bank-bills and chequer-notes, as if we were afraid of being overburthened with the precious metals.

It is not to be doubted, but the great plenty of bullion in FRANCE is, in a great measure, owing to the want of paper-credit. The FRENCH have no banks: Merchants' bills do not there circulate as with us: Ufury or lending on intereft is not directly permitted; so that many have large fums in their coffers: Great quantities of plate are used in private houses; and all the churches are full of it. By this means, provifions and labour still remain cheaper among them, than in nations that are not half fo rich in gold and filver. The advantages of this fituation, in point of trade as well as in great public emergencies, are too evident to be difputed.

The fame fashion a few years ago prevailed in GENOA, which ftill has place in ENGLAND and HOLLAND, of ufing fervices of CHINA-ware instead of plate; but the fenate, foreseeing the confequence, prohibited the use of

that

that brittle commodity beyond a certain extent; while the use of filver-plate was left unlimited. And I fuppofe, in their late distresses, they felt the good effect of this ordinance. Our tax on plate is, perhaps, in this view, fomewhat unpolitic.

Before the introduction of paper-money into our colonies, they had gold and filver fufficient for their circulation. Since the introduction of that commodity, the leaft inconveniency that has followed is the total banishment of the precious metals. And after the abolition of paper, can it be doubted but money will return, while thefe colonies poffefs manufactures and commodities, the only thing valuable in commerce, and for whofe fake alone all men defire money.

What pity LYCURGUS did not think of paper-credit, when he wanted to banish gold and filver from SPARTA! It would have ferved his purpose better than the lumps of iron he made ufe of as money; and would also have prevented more effectually all commerce with ftrangers, as being of fo much lefs real and intrinfic value.

It must, however, be confeffed, that, as all these questions of trade and money are extremely complicated, there are certain lights, in which this fubject may be placed, fo as to represent the advantages of paper-credit and banks to be fuperior to their disadvantages. That they banish specie and bullion from a state is undoubtedly true; and whoever looks no farther than this circumftance does well to condemn them; but fpecie and bullion are not of fo great confequence as not to admit of a compenfation, and even an overbalance from the encrease of industry and of credit, which may be promoted by the right use of paper-money. It is well known of what advantage it is to a merchant to be able to discount his bills

upon