[Recapitulation]

11 Oct 1801

Alarm

Ballance Recapitulation

Upon the whole, the truth of the following propositions, some old, some new, will, I am inclined to think be found pretty well established.

1

That the value of the mass of the pretious metals in the way of use of a /the/ mass of pretious metals possessed by a nation does encrease with the quantity.

2

That the value of it in the way of exchange as between individual and individual in /within/ the nation does not encrease with the quantity.

3

That the value in the way of exchange of the mass of the pretious

4

That in acquiring a fresh value in the way of exchange by being converted into money (into a form given it for the purpose of adapting it in a special manner to the business of exchange) a mass of the pretious metals loses for so long as it continues in the shape of money all value in the way of use.

5

That a nation /government/ which endeavours to perpetuate the existence of a mass of money in the shape of coin and to perpetuate its continuance within the country in that shape in proportion as it succeeds in such its endeavours, destroys utterly the value of so much of the pretious metals.

6

That in the case of an individual, true it is, that even in the shape of money, the value of the mass he possesses of the pretious metals does encrease with /in exact proportion with/ the quantity of an undiminished ratio with the quantity, because as the quantity of his particular share in the mass encreases, so does its proportion to the whole of the general or aggregate mass of money, the value of which or of so much as is employd in a given time in buying and selling things, is always exactly equal to the aggregate value of the things bought and sold within that time.

7

But that this equality as between encrease of quantity and encrease of value in exchange, depends upon the non-encrease in value on the part of the masses respectively possessed by other individuals members of the same community: for if the quantity of each man’s mass encreases in the same proportion in the same time, neither his mass nor theirs will experience any encrease in value

8

That the inference that because the share of the individual - each individual - encreases in value as it encreases in magnitude so must that of the nation is a natural but not a just one but a compleatly erroneous one because in the case of an individual, as his particular share encreases in magnitude, so it does in its proportion to the whole. This is not the case with the aggregate mass belonging to the whole nation (composed of the several particular masses belonging to the several individuals) because its proportion is at all times the whole, and can never be either less or greater.

9

Be the quantity of the whole mass of money employ’d in buying and selling things ever so small the value of it will always be equal to the value of all the things equal to the buying of all the things and be the quantity of it ever so large, it can never buy more than all.

10

The overplus could buy other things from other nations, if it could be reserved and exclusively appropriated to that use: but that can never be: as it spreads in the nation it spreads among the vendible things offered to sale within this nation, and employs itself in encreasing the powers of the national stock of things that are within reach: there is little or none of the overplus left for the purchase of foreign things. It is the care of governments by their taxes and prohibitions that it shall not be so employd.

11

That it is by the encrease in the mass of real capital, and not by an encrease in the mass of money that an encrease is produced in the mass of real serviceable wealth and that by the encrease of the mass of money taken together the mass of real capital does not receive any encrease.

12

That as far as money is encreased the encrease of real wealth depends upon the encrease of the proportion of the money employd in the shape of capital: but that the encrease of this proportion

depends

depends not upon the absolute quantity of money so employd but upon the proportion between the quantity of money employd in that shape, and the quantity employd in other shapes.

13

That a decrease in the quantity /national stock/ of money would if it were rapid enough to deprive in any sensible degree persons under pecuniary engagements for terms of years of the faculty /means/ of fulfilling those engagements, would in that respect be productive of inconvenience and a source of loss not compensated for by any attendant gain.

14

But that no such sudden decrease can obtain in the course of trade.

15

That if the quantity of money in a country were so fixed as to be prevented from encreases while the quantity of things vendible not being prevented from encrease would encrease of course, a decrease to a proportionable amount would take place in respect of the faculty of fulfilling pecuniary engagements for terms of years, but that no such decrease arising from such cause could be rapid enough to produce any sensible degree of inconvenience.