Silver was likewise used as the Measure by which Goods were valued, because certain in Quality. (Ex.) If A.B. had a 100 weight of Lead, and desired to exchange it for Barley, the way to know what quantity of Barley was equal in value to the Lead, was by the Silver.
If the 100 Weight of Lead was equal to five Ounces of fine Silver, and 5 Ounces of fine Silver equal to 20 Bolls of Barley, then 20 Bolls was the Quantity to be given in exchange for the Lead.
Silver being easie of Carriage, so equal in one Place to what it was in another; was used as the Measure by which Goods to be deliver'd in different places were valued. (Ex.) If a Piece of Wine was to be deliver'd at Glasgow by A.B. Merchant there, to the Order of C.D.
Merchant in Aberdeen: And the Value to be deliver'd in Oats at Aberdeen by C.D. to the Order of A.B. The Wine could not be valued by the Quantity of Oats it was worth at Glasgow, nor the Oats by the Quantity of Wine they were worth at Aberdeen. Wine or Oats might differ in Quantity, or be more or less valuable at the one Place than at the other. The way to have known what Quantity of Oats was equal to the Wine, was by the Quantity of Silver each was worth at the places they were to be delivered. If the Piece of Wine was worth at Glasgow 20 Ounces of fine Silver, and 20 Ounces of fine Silver worth 50 Bolls of Oats at Aberdeen; then 50 Bolls was the Quantity of Oats to be given there in return for the Wine.
Silver being capable of a Stamp, Princes, for the greater Convenience of the People, set up Mints to bring it to a Standard, and Stamp it; Whereby its Weight and Fineness was known, without the Trouble of Weighing or Fyning; but the Stamp added nothing to the Value.
For these Reasons Silver was used as Money; Its being Coin'd was only a Consequence of its being applyed to that use in Bullion, tho'
not with the same Convenience.
* Mr Lock and others who have Wrot on this Subject, say, The general Consent of Men plac'd an imaginary Value upon silver, because of its Qualities fitting it for Money. [*Lock, pag. 31. upon Interest, and pag. 1, upon Money.]
I cannot conceive how different Nations could agree to put an Imaginary Value upon any thing, expecially upon Silver, by which all other Goods are valued; Or that any one Country would receive that as a Value, which was not valuable equal to what it was given for; Or how that Imaginary Value could have been kept up. But, suppose France receiving Silver at an Imagainary Value, other Nations receiv'd it at that Value, because receiv'd so in France: Then for the same Reason a Crown passing in France for 76 Sols, should pass in Scotland for 76Pence, and in Holland for 76 Stivers. But on the contrair, even in France where the Crown is rais'd, 'tis worth no more than before when at 60 Sols.
It is reasonable to think Silver was Barter'd as it was valued for its Uses as a Mettal, and was given as Money according to its Value in Barter. The additional Use of Money Silver was apply'd to would add to its Value, because as Money it remedied the Disadvantages and Inconveniences of Barter, and consequently the demand for Silver encreasing, it received an additional Value equal to the greater demand its Use as Money occasioned.
And this additional Value is no more Imaginary, than the Value Silver had in Barter as a Mettal, for such Value was because it serv'd such Uses, and was greater or lesser according to the demand for Silver as a Mettal, proportioned to its Quantity. The additional Value Silver receiv'd from being used as Money, was because of its Qualities which fitted it for that Use; And that Value was according to the additional demand its Use as Money occasioned.
If either of these Values are Imaginary, then all Value is so, for no Goods have any Value, but from the uses they are apply'd to, and according to the Demand for them, in proportion to their Quantity.
Thus Silver having a Value, and Qualities fitting it for Money, which other Goods had not, was made Money, and for the greater convenience of the People was Coin'd.
The Names of the different Pieces might have been Number 1.
Number 2. and so on; Number 60 would have the same as a Crown; For the Name and Stamp was only to certify, that the Piece had such a Quantity of Silver in it, of such a fineness.
Goods of any other kind that have the same Qualities might then, and may now be made Money equal to their Value. Gold and Copper may be made Money, but neither with so much Convenience as Silver. Payments in Copper being Inconvient by reason of its Bulk; and Gold not being in so great Quantity as to serve the Use of Money. In Countries where Gold is in great Quantity, it is used as Money; And where gold and silver are scarce, Copper is used.
Gold is coin'd for the more easie Exchange of that Mettal and Copper to serve in small Payments; but Silver is the measure by which Goods are Valued, the Value by which Goods are Exchang'd, and in which Contracts are made payable.
As Money encreas'd, the Disadvantages and Inconveniences of Barter were remov'd; the Poor and Idle were employ'd, more of the Land was Labour'd, the Product encreas'd, Manufactures and Trade improv'd, the Landed-men Lived better, and the People with less Dependance on them.
