viz. by such Nation's exporting more Goods in Value than they import: For, in proportion, as the Value of the Exports exceeds the Value of the Imports, Money, which must balance the Account, increaseth faster or slower; and, contrariwise, where the Imports-exceed the Value of the Exports, the Cash of such Nation must proportionably diminish. And this is called, and doth constitute, the general Balance of the Trade of all Nations, that have not Mines.
III. Money will be most plentiful, where the Mines are: Imean by this, just the same as if I should say the Quantity of Coals will be greater at Newcastle than at any Place that is supplied only with Coals from thence: And consequently I mean that Gold and Silver will as certainly be less valuable where the Mines are, than at any other Place which is supplied with those Metals by them; as Coals are, and will be less valuable at Newcastle, than at any other Place that is supplied with Coals only from thence. Whence it follows, IV. That the Prices of the Produce or Manufactures of every Nation will be higher or lower, according as the Quantity of Cash circulating in such Nation is greater or less, in Proportion to the Number of People inhabiting such Nation.
To illustrate this, let it be supposed that we have ten Millions of Cash, and as many People in England; it's evident they have twice as much Money amongst them, in Proportion to their Number, as they wou'd have if their Number were doubled, and the Quantity of Cash remain'd just the same. And therefore, Ithink, they could give but half the Price for Things in general in this Case, that they could do when they were but half the Number, with the same Quantity of Money circulating and divided amongst them. Wherefore, if the People increase, and the Cash doth not increase in like Proportion, the Prices of Things must fall; for all the People must have Necessaries, to procure which they must all have Money: This will divide the same Quantity of Cash into more Parts, that is, lessen the Parts; and then it's evident they can't pay so much for their Necessaries, as when the same Cash divided into fewer Parts, makes the Parts greater.
The Prices of all Things in this Kingdom, some Centuries ago, were vastly lower than they are now. In the Reign of King Henry the Eighth, it was enacted, that Butchers should sell their Meat by Weight; Beef at an Half-penny, and Mutton at Three-farthings per Pound: And if we look back to the Reign of King Edward the Third, we find Wheat was sold at two Shillings per Quarter, a fat Ox for a Noble, a fat sheep for Six-pence, six Pidgeons for a Penny, a fat Goose for Two-pence, a Pig for a Penny; and other Things in Proportion. See Baker's Chronicle.
Now, since the great Difference of the Prices of these Things now, to what they then sold for, is undoubtedly owing solely to the great Quantity of Gold and Silver, which since that Time hath been brought into this Kingdom by Trade, which hath furnished us with so much more Money, to pay such a vast deal more as we now must, and do give for them; it follows, that the Prices of Things will certainly rise in every Nation, as the Gold and Silver increase amongst the People; and, consequently, that where the Gold and Silver decrease in any Nation, the Prices of all Things must fall proportionably to such Decrease of Money, or the People must be distress'd; unless the Number of People decrease in as great Proportion as the Cash decreaseth in any such Nation.
V. Banking, so far as one is paid with the Money of another, that is, where more Cash Notes are circulated, than all the Cash the Bankers are really possessed of will immediately answer and make good; I say, so long as this Credit is maintain'd, it hath the same Effect, as if there was so much more Cash really circulating and divided amongst the People; and will be attended with these Consequences, that as the Price of Things will hence be rais'd, it must and will make us the Market, to receive the Commodities of every Country whose Prices of Things are cheaper than ours. And though we should lay on Duties, or prohibit such Goods, this will not prevent the Mischief, because we shall not be able to carry our Commodities thus raised to any Nation, where Things are cheaper than ours; and because such Nations will hence be enabled to set up many of our Manufactures, etc. and by their Cheapness so interfere in our Trade at all other foreign Markets, as to turn the Balance of Trade against us, which will diminish the Cash of the Nation. The same Thing must be understood of all publick Securities whatever, that operate as Money amongst us.
VI. The Plenty or Scarcity of any Particular Thing, is the sole Cause when any Commodity or Thing can become higher or lower in Price; or, in other Words, as the Demand is greater or less in Proportion to the Quantity of any Thing, so will such Thing, whatsoever it is, be cheaper or dearer. Nor can any Arts or Laws make this otherwise, any more than Laws or Arts can alter the Nature of Things.
VII. All Things, that are in the World, are the Produce of the Ground originally; and thence must all Things be raised. The more Land therefore shall be improv'd and cultivated, etc. the greater will the Plenty of all things be, and the more People will it also imploy. And as the Produce will hence be increased, so will the Consumption of all Things increase too; and the greater the Plenty becomes this Way, the cheaper will every Thing be.