Thiswouldbetrueatatimewhenthecurrencyconsistedwhollyofpapernotconvertibleintospecie，butnotwhilespecieformedanypartofthecirculation。Inthelattercasetheeffectofanincreasedissueofpaperwouldbetothrowoutofcirculationanequalamountofspecie；butthiscouldnotbedonewithoutaddingtothequantityofbullioninthemarket，andtherebyloweringitsvalue，orinotherwords，increasingthebullionpriceofcommodities。Itisonlyinconsequenceofthisfallinthevalueofthemetalliccurrency，andofbullion，thatthetemptationtoexportthemarises；andthepenaltiesonmeltingthecoinisthesolecauseofasmalldifferencebetweenthevalueofthecoinandofbullion，orasmallexcessofthemarketabovethemintprice。Butexportingofbullionissynonymouswithanunfavourablebalanceoftrade。Fromwhatevercauseanexportationofbullion，inexchangeforcommodities，mayproceed，itiscalled（Ithinkveryincorrectly）anunfavourablebalanceoftrade。
Whenthecirculationconsistswhollyofpaper，anyincreaseinitsquantitywillraisethemoneypriceofbullionwithoutloweringitsvalue，inthesamemanner，andinthesameproportion，asitwillraisethepricesofothercommodities，andforthesamereasonwilllowertheforeignexchanges；butthiswillonlybeanominal，notarealfall，andwillnotoccasiontheexportationofbullion，becausetherealvalueofbullionwillnotbediminished，astherewillbenoincreasetothequantityinthemarket。
4。Strictlyspeaking，therecanbenopermanentmeasureofvalue。
Ameasureofvalueshoulditselfbeinvariable；butthisisnotthecasewitheithergoldorsilver，theybeingsubjecttofluctuationsaswellasothercommodities。Experiencehasindeedtaughtus，thatthoughthevariationsinthevalueofgoldorsilvermaybeconsiderable，onacomparisonofdistantperiods，yetforshortspacesoftimetheirvalueistolerablyfixed。Itisthisproperty，amongtheirotherexcellencies，whichfitsthembetterthananyothercommodityfortheusesofmoney。Eithergoldorsilvermaytherefore，inthepointofviewinwhichweareconsideringthem，becalledameasureofvalue。
5。Whenthegoldcoinwasdebased，previouslytothere-coinagein1774，goldandsilverbullionroseabovetheirmintprices，andfellimmediatelyonthegoldcoinattainingitspresentperfection。Theexchangeswere，owingtothesamecauses，frombeingunfavourablerenderedfavourable。