money—Steuart does not as yet distinguish between the two forms of money—may take the place of precious metals as a means of purchase or means of payment in the sphere of home circulation, but never in the world
ever to give, but never upon the quantity of coin they are possessed of. . . Let it (namely, the quantity of specie in a country) be ever so low, while there is real property of any denomination in the country, a competition to consume in those who possess it, prices will be high, by the means of barter, symbolical money, mutual prestations and a thousand other inventions. . . . If this country has a communication with other nations, there must be a proportion between the prices of many kinds of merchandize there and elsewhere, and a sudden augmentation or diminution of the specie, supposing it could of itself operate the effects of raising or sinking prices, would be restrained in its operation by foreign competition." l. c. v. 1, p. 400–402. "The circulation of every country must be in proportion to the industry of the inhabitants producing the commodities which come to market. . . If the coin of a country, therefore, falls below the proportion of the price of industry offered to sale, inventions, like symbolical money, will be fallen upon, to provide for an equivalent for it. But if the specie be found above the proportion of industry, it will have no effect in raising prices, nor will it enter into circulation: it will be hoarded up in treasures. . . . Whatsoever be the quantity of money in a nation, in correspondence with the rest of the world, there never can remain in circulation, but the quantity nearly proportional to the consumption of the rich and to the labour and industry of the poor inhabitants," and this proportion is not determined "by the quantity of money actually in the country" (l. c. p. 403–408 passim.) "All nations will endeavor to throw their ready money, not necessary for their own circulation, into that country where the interest of money is high with respect to their own." (l. c. v. 2. p. 5).
