Under the second head he explained the reasons for the use of money as a common standard and its consequential use as the instrument of commerce. He showed why gold and silver were commonly chosen and why coinage was introduced, and proceeded to explain the evils of tampering with the currency, and the difficulty of keeping gold and silver money in circulation at the same time. Money being a dead stock, banks and paper credit, which enable money to be dispensed with and sent abroad, are beneficial. The money sent abroad will “bring home materials for food, clothes, and lodging,” and, “whatever commodities are imported, just so much is added to the opulence of the country.” It is “a bad police to restrain” banks. Mun, “a London merchant,” affirmed “that as England is drained of its money it must go to ruin.” “ Mr. Gee, likewise a merchant,” endeavoured to “show that England would soon be ruined by trade with foreign countries,” and that “in almost all our commercial dealings with other nations we are losers.” Mr. Hume had shown the absurdity of these and other such doctrines, though even he had not kept quite clear of “the notion that public opulence consists in money.” Money is not consumable, and “the consumptibility, if we may use the word, of goods, is the great cause of human industry.”
The absurd opinion that riches consist in money had given rise to “many prejudicial errors in practice,” such as the prohibition of the exportation of coin and attempts to secure a favourable balance of trade. There will always be plenty of money if things are left to their free course, and no prohibition of exportation will be effectual. The desire to secure a favourable balance of trade has led to “most pernicious regulations,” such as the restrictions on trade with France.
“The absurdity of these regulations will appear on the least reflection. All commerce that is carried on betwixt