Abroad—wheeledwaggon，attendedbytwomen，anddrawnbyeighthorses，inaboutsixweeks’timecarriesandbringsbackbetweenLondonandEdinburghnearfourtonweightofgoods。Inaboutthesametimeashipnavigatedbysixoreightmen，andsailingbetweentheportsofLondonandLeith，frequentlycarriesandbringsbacktwohundredtonweightofgoods。Sixoreightmen，therefore，bythehelpofwater—carriage，cancarryandbringbackinthesametimethesamequantityofgoodsbetweenLondonandEdinburgh，asfiftybroad—wheeledwaggons，attendedbyahundredmen，anddrawnbyfourhundredhorses。Upontwohundredtonsofgoods，therefore，carriedbythecheapestland—carriagefromLondontoEdinburgh，theremustbechargedthemaintenanceofahundredmenforthreeweeks，andboththemaintenance，and，whatisnearlyequaltothemaintenance，thewearandtearoffourhundredhorsesaswellasoffiftygreatwaggons。Whereas，uponthesamequantityofgoodscarriedbywater，thereistobechargedonlythemaintenanceofsixoreightmen，andthewearandtearofashipoftwohundredtonsburden，togetherwiththevalueofthesuperiorrisk，orthedifferenceoftheinsurancebetweenlandandwater—carriage。Weretherenoothercommunicationbetweenthosetwoplaces，therefore，butbyland—carriage，asnogoodscouldbetransportedfromtheonetotheother，exceptsuchwhosepricewasveryconsiderableinproportiontotheirweight，theycouldcarryonbutasmallpartofthatcommercewhichatpresentsubsistsbetweenthem，andconsequentlycouldgivebutasmallpartofthatencouragementwhichtheyatpresentmutuallyaffordtoeachother’sindustry。
　　Therecouldbelittleornocommerceofanykindbetweenthedistantpartsoftheworld。Whatgoodscouldbeartheexpenseofland—carriagebetweenLondonandCalcutta？Oriftherewereanysopreciousastobeabletosupportthisexpense，withwhatsafetycouldtheybetransportedthroughtheterritoriesofsomanybarbarousnations？Thosetwocities，however，atpresentcarryonaveryconsiderablecommercewitheachother，andbymutuallyaffordingamarket，giveagooddealofencouragementtoeachother’sindustry。
　　Sincesuch，therefore，aretheadvantagesofwater—carriage，itisnaturalthatthefirstimprovementsofartandindustryshouldbemadewherethisconveniencyopensthewholeworldforamarkettotheproduceofeverysortoflabour，andthattheyshouldalwaysbemuchlaterinextendingthemselvesintotheinlandpartsofthecountry。Theinlandpartsofthecountrycanforalongtimehavenoothermarketforthegreaterpartoftheirgoods，butthecountrywhichliesroundaboutthem，andseparatesthemfromthesea—coast，andthegreatnavigablerivers。Theextentoftheirmarket，therefore，mustforalongtimebeinproportiontotherichesandpopulousnessofthatcountry，andconsequentlytheirimprovementmustalwaysbeposteriortotheimprovementofthatcountry。InourNorthAmericancoloniestheplantationshaveconstantlyfollowedeitherthesea—coastorthebanksofthenavigablerivers，andhavescarceanywhereextendedthemselvestoanyconsiderabledistancefromboth。
　　Thenationsthat，accordingtothebestauthenticatedhistory，appeartohavebeenfirstcivilised，werethosethatdweltroundthecoastoftheMediterraneanSea。Thatsea，byfarthegreatestinletthatisknownintheworld，havingnotides，norconsequentlyanywavesexceptsuchasarecausedbythewindonly，was，bythesmoothnessofitssurface，aswellasbythemultitudeofitsislands，andtheproximityofitsneighbouringshores，extremelyfavourabletotheinfantnavigationoftheworld;when，fromtheirignoranceofthecompass，menwereafraidtoquittheviewofthecoast，andfromtheimperfectionoftheartofshipbuilding，toabandonthemselvestotheboisterouswavesoftheocean。TopassbeyondthepillarsofHercules，thatis，tosailoutoftheStraitsofGibraltar，was，intheancientworld，longconsideredasamostwonderfulanddangerousexploitofnavigation。ItwaslatebeforeeventhePhoeniciansandCarthaginians，themostskilfulnavigatorsandship—buildersofthoseoldtimes，attemptedit，andtheywereforalongtimetheonlynationsthatdidattemptit。
　　OfallthecountriesonthecoastoftheMediterraneanSea，Egyptseemstohavebeenthefirstinwhicheitheragricultureormanufactureswerecultivatedandimprovedtoanyconsiderabledegree。UpperEgyptextendsitselfnowhereaboveafewmilesfromtheNile，andinLowerEgyptthatgreatriverbreaksitselfintomanydifferentcanals，which，withtheassistanceofalittleart，seemtohaveaffordedacommunicationbywater—carriage，notonlybetweenallthegreattowns，butbetweenalltheconsiderablevillages，andeventomanyfarmhousesinthecountry;nearlyinthesamemannerastheRhineandtheMaasdoinHollandatpresent。TheextentandeasinessofthisinlandnavigationwasprobablyoneoftheprincipalcausesoftheearlyimprovementofEgypt。
　　TheimprovementsinagricultureandmanufacturesseemlikewisetohavebeenofverygreatantiquityintheprovincesofBengal，intheEastIndies，andinsomeoftheeasternprovincesofChina;thoughthegreatextentofthisantiquityisnotauthenticatedbyanyhistoriesofwhoseauthoritywe，inthispartoftheworld，arewellassured。InBengaltheGangesandseveralothergreatriversformagreatnumberofnavigablecanalsinthesamemannerastheNiledoesinEgypt。IntheEasternprovincesofChinatoo，severalgreatriversform，bytheirdifferentbranches，amultitudeofcanals，andbycommunicatingwithoneanotheraffordaninlandnavigationmuchmoreextensivethanthateitheroftheNileortheGanges，orperhapsthanbothofthemputtogether。ItisremarkablethatneithertheancientEgyptians，northeIndians，northeChinese，encouragedforeigncommerce，butseemalltohavederivedtheirgreatopulencefromthisinlandnavigation。
　　AlltheinlandpartsofAfrica，andallthatpartofAsiawhichliesanyconsiderablewaynorthoftheEuxineandCaspianseas，theancientScythia，themodernTartaryandSiberia，seeminallagesoftheworldtohavebeeninthesamebarbarousanduncivilisedstateinwhichwefindthematpresent。TheSeaofTartaryisthefrozenoceanwhichadmitsofnonavigation，andthoughsomeofthegreatestriversintheworldrunthroughthatcountry，theyareattoogreatadistancefromoneanothertocarrycommerceandcommunicationthroughthegreaterpartofit。
　　ThereareinAfricanoneofthosegreatinlets，suchastheBalticandAdriaticseasinEurope，theMediterraneanandEuxineseasinbothEuropeandAsia，andthegulfsofArabia，Persia，India，Bengal，andSiam，inAsia，tocarrymaritimecommerceintotheinteriorpartsofthatgreatcontinent:andthegreatriversofAfricaareattoogreatadistancefromoneanothertogiveoccasiontoanyconsiderableinlandnavigation。Thecommercebesideswhichanynationcancarryonbymeansofariverwhichdoesnotbreakitselfintoanygreatnumberofbranchesorcanals，andwhichrunsintoanotherterritorybeforeitreachesthesea，canneverbeveryconsiderable;becauseitisalwaysinthepowerofthenationswhopossessthatotherterritorytoobstructthecommunicationbetweentheuppercountryandthesea。
　　ThenavigationoftheDanubeisofverylittleusetothedifferentstatesofBavaria，AustriaandHungary，incomparisonofwhatitwouldbeifanyofthempossessedthewholeofitscoursetillitfallsintotheBlackSea。
　　CHAPTERIV
　　OftheOriginandUseofMoneyWHENthedivisionoflabourhasbeenoncethoroughlyestablished，itisbutaverysmallpartofaman’swantswhichtheproduceofhisownlabourcansupply。Hesuppliesthefargreaterpartofthembyexchangingthatsurpluspartoftheproduceofhisownlabour，whichisoverandabovehisownconsumption，forsuchpartsoftheproduceofothermen’slabourashehasoccasionfor。Everymanthuslivesbyexchanging，orbecomesinsomemeasureamerchant，andthesocietyitselfgrowstobewhatisproperlyacommercialsociety。
　　Butwhenthedivisionoflabourfirstbegantotakeplace，thispowerofexchangingmustfrequentlyhavebeenverymuchcloggedandembarrassedinitsoperations。Oneman，weshallsuppose，hasmoreofacertaincommoditythanhehimselfhasoccasionfor，whileanotherhasless。Theformerconsequentlywouldbegladtodisposeof，andthelattertopurchase，apartofthissuperfluity。Butifthislattershouldchancetohavenothingthattheformerstandsinneedof，noexchangecanbemadebetweenthem。Thebutcherhasmoremeatinhisshopthanhehimselfcanconsume，andthebrewerandthebakerwouldeachofthembewillingtopurchaseapartofit。Buttheyhavenothingtoofferinexchange，exceptthedifferentproductionsoftheirrespectivetrades，andthebutcherisalreadyprovidedwithallthebreadandbeerwhichhehasimmediateoccasionfor。Noexchangecan，inthiscase，bemadebetweenthem。Hecannotbetheirmerchant，northeyhiscustomers;andtheyareallofthemthusmutuallylessserviceabletooneanother。Inordertoavoidtheinconveniencyofsuchsituations，everyprudentmanineveryperiodofsociety，afterthefirstestablishmentofthedivisionoflabour，mustnaturallyhaveendeavouredtomanagehisaffairsinsuchamannerastohaveatalltimesbyhim，besidesthepeculiarproduceofhisownindustry，acertainquantityofsomeonecommodityorother，suchasheimaginedfewpeoplewouldbelikelytorefuseinexchangefortheproduceoftheirindustry。
　　Manydifferentcommodities，itisprobable，weresuccessivelyboththoughtofandemployedforthispurpose。Intherudeagesofsociety，cattlearesaidtohavebeenthecommoninstrumentofcommerce;and，thoughtheymusthavebeenamostinconvenientone，yetinoldtimeswefindthingswerefrequentlyvaluedaccordingtothenumberofcattlewhichhadbeengiveninexchangeforthem。ThearmourofDiomede，saysHomer，costonlynineoxen;butthatofGlaucuscostanhundredoxen。SaltissaidtobethecommoninstrumentofcommerceandexchangesinAbyssinia;aspeciesofshellsinsomepartsofthecoastofIndia;driedcodatNewfoundland;tobaccoinVirginia;sugarinsomeofourWestIndiacolonies;hidesordressedleatherinsomeothercountries;andthereisatthisdayavillageinScotlandwhereitisnotuncommon，Iamtold，foraworkmantocarrynailsinsteadofmoneytothebaker’sshoporthealehouse。
　　Inallcountries，however，menseematlasttohavebeendeterminedbyirresistiblereasonstogivethepreference，forthisemployment，tometalsaboveeveryothercommodity。Metalscannotonlybekeptwithaslittlelossasanyothercommodity，scarceanythingbeinglessperishablethantheyare，buttheycanlikewise，withoutanyloss，bedividedintoanynumberofparts，asbyfusionthosepartscaneasilybereunitedagain;aqualitywhichnootherequallydurablecommoditiespossess，andwhichmorethananyotherqualityrendersthemfittobetheinstrumentsofcommerceandcirculation。Themanwhowantedtobuysalt，forexample，andhadnothingbutcattletogiveinexchangeforit，musthavebeenobligedtobuysalttothevalueofawholeox，orawholesheepatatime。Hecouldseldombuylessthanthis，becausewhathewastogiveforitcouldseldombedividedwithoutloss;andifhehadamindtobuymore，hemust，forthesamereasons，havebeenobligedtobuydoubleortriplethequantity，thevalue，towit，oftwoorthreeoxen，oroftwoorthreesheep。If，onthecontrary，insteadofsheeporoxen，hehadmetalstogiveinexchangeforit，hecouldeasilyproportionthequantityofthemetaltotheprecisequantityofthecommoditywhichhehadimmediateoccasionfor。
　　Differentmetalshavebeenmadeuseofbydifferentnationsforthispurpose。IronwasthecommoninstrumentofcommerceamongtheancientSpartans;copperamongtheancientRomans;andgoldandsilveramongallrichandcommercialnations。
　　Thosemetalsseemoriginallytohavebeenmadeuseofforthispurposeinrudebars，withoutanystamporcoinage。ThuswearetoldbyPliny，upontheauthorityofTimaeus，anancienthistorian，that，tillthetimeofServiusTullius，theRomanshadnocoinedmoney，butmadeuseofunstampedbarsofcopper，topurchasewhatevertheyhadoccasionfor。Thesebars，therefore，performedatthistimethefunctionofmoney。
　　Theuseofmetalsinthisrudestatewasattendedwithtwoveryconsiderableinconveniencies;first，withthetroubleofweighing;and，secondly，withthatofassayingthem。Inthepreciousmetals，whereasmalldifferenceinthequantitymakesagreatdifferenceinthevalue，eventhebusinessofweighing，withproperexactness，requiresatleastveryaccurateweightsandscales。Theweighingofgoldinparticularisanoperationofsomenicety。Inthecoarsermetals，indeed，whereasmallerrorwouldbeoflittleconsequence，lessaccuracywould，nodoubt，benecessary。Yetweshouldfinditexcessivelytroublesome，ifeverytimeapoormanhadoccasioneithertobuyorsellafarthing’sworthofgoods，hewasobligedtoweighthefarthing。
　　Theoperationofassayingisstillmoredifficult，stillmoretedious，and，unlessapartofthemetalisfairlymeltedinthecrucible，withproperdissolvents，anyconclusionthatcanbedrawnfromit，isextremelyuncertain。Beforetheinstitutionofcoinedmoney，however，unlesstheywentthroughthistediousanddifficultoperation，peoplemustalwayshavebeenliabletothegrossestfraudsandimpositions，andinsteadofapoundweightofpuresilver，orpurecopper，mightreceiveinexchangefortheirgoodsanadulteratedcompositionofthecoarsestandcheapestmaterials，whichhad，however，intheiroutwardappearance，beenmadetoresemblethosemetals。Topreventsuchabuses，tofacilitateexchanges，andtherebytoencourageallsortsofindustryandcommerce，ithasbeenfoundnecessary，inallcountriesthathavemadeanyconsiderableadvancestowardsimprovement，toaffixapublicstampuponcertainquantitiesofsuchparticularmetalsaswereinthosecountriescommonlymadeuseoftopurchasegoods。Hencetheoriginofcoinedmoney，andofthosepublicofficescalledmints;institutionsexactlyofthesamenaturewiththoseoftheaulnagersandstamp—mastersofwoolenandlinencloth。Allofthemareequallymeanttoascertain，bymeansofapublicstamp，thequantityanduniformgoodnessofthosedifferentcommoditieswhenbroughttomarket。
　　Thefirstpublicstampsofthiskindthatwereaffixedtothecurrentmetals，seeminmanycasestohavebeenintendedtoascertain，whatitwasbothmostdifficultandmostimportanttoascertain，thegoodnessorfinenessofthemetal，andtohaveresembledthesterlingmarkwhichisatpresentaffixedtoplateandbarsofsilver，ortheSpanishmarkwhichissometimesaffixedtoingotsofgold，andwhichbeingstruckonlyupononesideofthepiece，andnotcoveringthewholesurface，ascertainsthefineness，butnottheweightofthemetal。AbrahamweighstoEphronthefourhundredshekelsofsilverwhichhehadagreedtopayforthefieldofMachpelah。Theyaresaid，however，tobethecurrentmoneyofthemerchant，andyetarereceivedbyweightandnotbytale，inthesamemannerasingotsofgoldandbarsofsilverareatpresent。TherevenuesoftheancientSaxonkingsofEnglandaresaidtohavebeenpaid，notinmoneybutinkind，thatis，invictualsandprovisionsofallsorts。WilliamtheConquerorintroducedthecustomofpayingtheminmoney。Thismoney，however，was，foralongtime，receivedattheexchequer，byweightandnotbytale。
　　Theinconveniencyanddifficultyofweighingthosemetalswithexactnessgaveoccasiontotheinstitutionofcoins，ofwhichthestamp，coveringentirelybothsidesofthepieceandsometimestheedgestoo，wassupposedtoascertainnotonlythefineness，buttheweightofthemetal。Suchcoins，therefore，werereceivedbytaleasatpresent，withoutthetroubleofweighing。
　　Thedenominationsofthosecoinsseemoriginallytohaveexpressedtheweightorquantityofmetalcontainedinthem。InthetimeofServiusTullius，whofirstcoinedmoneyatRome，theRomanasorpondocontainedaRomanpoundofgoodcopper。ItwasdividedinthesamemannerasourTroyespound，intotwelveounces，eachofwhichcontainedarealounceofgoodcopper。TheEnglishpoundsterling，inthetimeofEdwardI，containedapound，Towerweight，ofsilver，ofaknownfineness。TheTowerpoundseemstohavebeensomethingmorethantheRomanpound，andsomethinglessthantheTroyespound。ThislastwasnotintroducedintothemintofEnglandtillthe18thofHenryVIII。
　　TheFrenchlivrecontainedinthetimeofCharlemagneapound，Troyesweight，ofsilverofaknownfineness。ThefairofTroyesinChampaignwasatthattimefrequentedbyallthenationsofEurope，andtheweightsandmeasuresofsofamousamarketweregenerallyknownandesteemed。TheScotsmoneypoundcontained，fromthetimeofAlexandertheFirsttothatofRobertBruce，apoundofsilverofthesameweightandfinenesswiththeEnglishpoundsterling。English，French，andScotspennies，too，containedallofthemoriginallyarealpennyweightofsilver，thetwentiethpartofanounce，andthetwo—hundred—and—fortiethpartofapound。Theshillingtooseemsoriginallytohavebeenthedenominationofaweight。Whenwheatisattwelveshillingsthequarter，saysanancientstatuteofHenryIII，thenwastelbreadofafarthingshallweighelevenshillingsandfourpence。
　　Theproportion，however，betweentheshillingandeitherthepennyontheonehand，orthepoundontheother，seemsnottohavebeensoconstantanduniformasthatbetweenthepennyandthepound。DuringthefirstraceofthekingsofFrance，theFrenchsouorshillingappearsupondifferentoccasionstohavecontainedfive，twelve，twenty，andfortypennies。AmongtheancientSaxonsashillingappearsatonetimetohavecontainedonlyfivepennies，anditisnotimprobablethatitmayhavebeenasvariableamongthemasamongtheirneighbours，theancientFranks。FromthetimeofCharlemagneamongtheFrench，andfromthatofWilliamtheConqueroramongtheEnglish，theproportionbetweenthepound，theshilling，andthepenny，seemstohavebeenuniformlythesameasatpresent，thoughthevalueofeachhasbeenverydifferent。Forineverycountryoftheworld，I
　　believe，theavariceandinjusticeofprincesandsovereignstates，abusingtheconfidenceoftheirsubjects，havebydegreesdiminishedtherealquantityofmetal，whichhadbeenoriginallycontainedintheircoins。TheRomanas，inthelatteragesoftheRepublic，wasreducedtothetwenty—fourthpartofitsoriginalvalue，and，insteadofweighingapound，cametoweighonlyhalfanounce。TheEnglishpoundandpennycontainatpresentaboutathirdonly;theScotspoundandpennyaboutathirty—sixth;andtheFrenchpoundandpennyaboutasixty—sixthpartoftheiroriginalvalue。Bymeansofthoseoperationstheprincesandsovereignstateswhichperformedthemwereenabled，inappearance，topaytheirdebtsandtofulfiltheirengagementswithasmallerquantityofsilverthanwouldotherwisehavebeenrequisite。Itwasindeedinappearanceonly;fortheircreditorswerereallydefraudedofapartofwhatwasduetothem。Allotherdebtorsinthestatewereallowedthesameprivilege，andmightpaywiththesamenominalsumofthenewanddebasedcoinwhatevertheyhadborrowedintheold。Suchoperations，therefore，havealwaysprovedfavourabletothedebtor，andruinoustothecreditor，andhavesometimesproducedagreaterandmoreuniversalrevolutioninthefortunesofprivatepersons，thancouldhavebeenoccasionedbyaverygreatpubliccalamity。
　　Itisinthismannerthatmoneyhasbecomeinallcivilisednationstheuniversalinstrumentofcommerce，bytheinterventionofwhichgoodsofallkindsareboughtandsold，orexchangedforoneanother。
　　Whataretheruleswhichmennaturallyobserveinexchangingthemeitherformoneyorforoneanother，Ishallnowproceedtoexamine。Theserulesdeterminewhatmaybecalledtherelativeorexchangeablevalueofgoods。
　　Thewordvalue，itistobeobserved，hastwodifferentmeanings，andsometimesexpressestheutilityofsomeparticularobject，andsometimesthepowerofpurchasingothergoodswhichthepossessionofthatobjectconveys。Theonemaybecalled"valueinuse";theother，"valueinexchange。"Thethingswhichhavethegreatestvalueinusehavefrequentlylittleornovalueinexchange;and，onthecontrary，thosewhichhavethegreatestvalueinexchangehavefrequentlylittleornovalueinuse。
　　Nothingismoreusefulthanwater:butitwillpurchasescarceanything;scarceanythingcanbehadinexchangeforit。A
　　diamond，onthecontrary，hasscarceanyvalueinuse;butaverygreatquantityofothergoodsmayfrequentlybehadinexchangeforit。
　　Inordertoinvestigatetheprincipleswhichregulatetheexchangeablevalueofcommodities，Ishallendeavourtoshow:
　　First，whatistherealmeasureofthisexchangeablevalue;
　　or，whereinconsiststherealpriceofallcommodities。
　　Secondly，whatarethedifferentpartsofwhichthisrealpriceiscomposedormadeup。
　　And，lastly，whatarethedifferentcircumstanceswhichsometimesraisesomeorallofthesedifferentpartsofpriceabove，andsometimessinkthembelowtheirnaturalorordinaryrate;or，whatarethecauseswhichsometimeshinderthemarketprice，thatis，theactualpriceofcommodities，fromcoincidingexactlywithwhatmaybecalledtheirnaturalprice。
　　Ishallendeavourtoexplain，asfullyanddistinctlyasI
　　can，thosethreesubjectsinthethreefollowingchapters，forwhichImustveryearnestlyentreatboththepatienceandattentionofthereader:hispatienceinordertoexamineadetailwhichmayperhapsinsomeplacesappearunnecessarilytedious;andhisattentioninordertounderstandwhatmay，perhaps，afterthefullestexplicationwhichIamcapableofgivingofit，appearstillinsomedegreeobscure。IamalwayswillingtorunsomehazardofbeingtediousinordertobesurethatIamperspicuous;andaftertakingtheutmostpainsthatI
　　cantobeperspicuous，someobscuritymaystillappeartoremainuponasubjectinitsownnatureextremelyabstracted。
　　CHAPTERV
　　OftheRealandNominalPriceofCommodities，ortheirPriceinLabour，andtheirPriceinMoneyEVERYmanisrichorpooraccordingtothedegreeinwhichhecanaffordtoenjoythenecessaries，conveniences，andamusementsofhumanlife。Butafterthedivisionoflabourhasoncethoroughlytakenplace，itisbutaverysmallpartofthesewithwhichaman’sownlabourcansupplyhim。Thefargreaterpartofthemhemustderivefromthelabourofotherpeople，andhemustberichorpooraccordingtothequantityofthatlabourwhichhecancommand，orwhichhecanaffordtopurchase。Thevalueofanycommodity，therefore，tothepersonwhopossessesit，andwhomeansnottouseorconsumeithimself，buttoexchangeitforothercommodities，isequaltothequantityoflabourwhichitenableshimtopurchaseorcommand。Labour，therefore，istherealmeasureoftheexchangeablevalueofallcommodities。
　　Therealpriceofeverything，whateverythingreallycoststothemanwhowantstoacquireit，isthetoilandtroubleofacquiringit。Whateverythingisreallyworthtothemanwhohasacquiredit，andwhowantstodisposeofitorexchangeitforsomethingelse，isthetoilandtroublewhichitcansavetohimself，andwhichitcanimposeuponotherpeople。Whatisboughtwithmoneyorwithgoodsispurchasedbylabourasmuchaswhatweacquirebythetoilofourownbody。Thatmoneyorthosegoodsindeedsaveusthistoil。Theycontainthevalueofacertainquantityoflabourwhichweexchangeforwhatissupposedatthetimetocontainthevalueofanequalquantity。Labourwasthefirstprice，theoriginalpurchase—moneythatwaspaidforallthings。Itwasnotbygoldorbysilver，butbylabour，thatallthewealthoftheworldwasoriginallypurchased;anditsvalue，tothosewhopossessit，andwhowanttoexchangeitforsomenewproductions，ispreciselyequaltothequantityoflabourwhichitcanenablethemtopurchaseorcommand。
　　Wealth，asMr。Hobbessays，ispower。Butthepersonwhoeitheracquires，orsucceedstoagreatfortune，doesnotnecessarilyacquireorsucceedtoanypoliticalpower，eithercivilormilitary。Hisfortunemay，perhaps，affordhimthemeansofacquiringboth，butthemerepossessionofthatfortunedoesnotnecessarilyconveytohimeither。Thepowerwhichthatpossessionimmediatelyanddirectlyconveystohim，isthepowerofpurchasing;acertaincommandoverallthelabour，oroveralltheproduceoflabour，whichistheninthemarket。Hisfortuneisgreaterorless，preciselyinproportiontotheextentofthispower;ortothequantityeitherofothermen’slabour，or，whatisthesamething，oftheproduceofothermen’slabour，whichitenableshimtopurchaseorcommand。Theexchangeablevalueofeverythingmustalwaysbepreciselyequaltotheextentofthispowerwhichitconveystoitsowner。
　　Butthoughlabourbetherealmeasureoftheexchangeablevalueofallcommodities，itisnotthatbywhichtheirvalueiscommonlyestimated。Itisofdifficulttoascertaintheproportionbetweentwodifferentquantitiesoflabour。Thetimespentintwodifferentsortsofworkwillnotalwaysalonedeterminethisproportion。Thedifferentdegreesofhardshipendured，andofingenuityexercised，mustlikewisebetakenintoaccount。Theremaybemorelabourinanhour’shardworkthanintwohours’easybusiness;orinanhour’sapplicationtoatradewhichitcosttenyears’labourtolearn，thaninamonth’sindustryatanordinaryandobviousemployment。Butitisnoteasytofindanyaccuratemeasureeitherofhardshiporingenuity。Inexchanging，indeed，thedifferentproductionsofdifferentsortsoflabourforoneanother，someallowanceiscommonlymadeforboth。Itisadjusted，however，notbyanyaccuratemeasure，butbythehigglingandbargainingofthemarket，accordingtothatsortofroughequalitywhich，thoughnotexact，issufficientforcarryingonthebusinessofcommonlife。
　　Everycommodity，besides，ismorefrequentlyexchangedfor，andtherebycomparedwith，othercommoditiesthanwithlabour。Itismorenatural，therefore，toestimateitsexchangeablevaluebythequantityofsomeothercommoditythanbythatofthelabourwhichitcanpurchase。Thegreaterpartofpeople，too，understandbetterwhatismeantbyaquantityofaparticularcommoditythanbyaquantityoflabour。Theoneisaplainpalpableobject;theotheranabstractnotion，which，thoughitcanbemadesufficientlyintelligible，isnotaltogethersonaturalandobvious。
　　Butwhenbarterceases，andmoneyhasbecomethecommoninstrumentofcommerce，everyparticularcommodityismorefrequentlyexchangedformoneythanforanyothercommodity。Thebutcherseldomcarrieshisbeeforhismuttontothebaker，orthebrewer，inordertoexchangethemforbreadorforbeer;buthecarriesthemtothemarket，whereheexchangesthemformoney，andafterwardsexchangesthatmoneyforbreadandforbeer。Thequantityofmoneywhichhegetsforthemregulates，too，thequantityofbreadandbeerwhichhecanafterwardspurchase。Itismorenaturalandobvioustohim，therefore，toestimatetheirvaluebythequantityofmoney，thecommodityforwhichheimmediatelyexchangesthem，thanbythatofbreadandbeer，thecommoditiesforwhichhecanexchangethemonlybytheinterventionofanothercommodity;andrathertosaythathisbutcher’smeatisworththreepenceorfourpenceapound，thanthatitisworththreeorfourpoundsofbread，orthreeorfourquartsofsmallbeer。Henceitcomestopassthattheexchangeablevalueofeverycommodityismorefrequentlyestimatedbythequantityofmoney，thanbythequantityeitheroflabourorofanyothercommoditywhichcanbehadinexchangeforit。
　　Goldandsilver，however，likeeveryothercommodity，varyintheirvalue，aresometimescheaperandsometimesdearer，sometimesofeasierandsometimesofmoredifficultpurchase。Thequantityoflabourwhichanyparticularquantityofthemcanpurchaseorcommand，orthequantityofothergoodswhichitwillexchangefor，dependsalwaysuponthefertilityorbarrennessofthemineswhichhappentobeknownaboutthetimewhensuchexchangesaremade。ThediscoveryoftheabundantminesofAmericareduced，inthesixteenthcentury，thevalueofgoldandsilverinEuropetoaboutathirdofwhatithadbeenbefore。Asitcostslesslabourtobringthosemetalsfromtheminetothemarket，sowhentheywerebroughtthithertheycouldpurchaseorcommandlesslabour;andthisrevolutionintheirvalue，thoughperhapsthegreatest，isbynomeanstheonlyoneofwhichhistorygivessomeaccount。Butasameasureofquantity，suchasthenaturalfoot，fathom，orhandful，whichiscontinuallyvaryinginitsownquantity，canneverbeanaccuratemeasureofthequantityofotherthings;soacommoditywhichisitselfcontinuallyvaryinginitsownvalue，canneverbeanaccuratemeasureofthevalueofothercommodities。Equalquantitiesoflabour，atalltimesandplaces，maybesaidtobeofequalvaluetothelabourer。Inhisordinarystateofhealth，strengthandspirits;intheordinarydegreeofhisskillanddexterity，hemustalwayslaydownthesameportionofhisease，hisliberty，andhishappiness。Thepricewhichhepaysmustalwaysbethesame，whatevermaybethequantityofgoodswhichhereceivesinreturnforit。Ofthese，indeed，itmaysometimespurchaseagreaterandsometimesasmallerquantity;butitistheirvaluewhichvaries，notthatofthelabourwhichpurchasesthem。Atalltimesandplacesthatisdearwhichitisdifficulttocomeat，orwhichitcostsmuchlabourtoacquire;andthatcheapwhichistobehadeasily，orwithverylittlelabour。Labouralone，therefore，nevervaryinginitsownvalue，isalonetheultimateandrealstandardbywhichthevalueofallcommoditiescanatalltimesandplacesbeestimatedandcompared。Itistheirrealprice;moneyistheirnominalpriceonly。
　　Butthoughequalquantitiesoflabourarealwaysofequalvaluetothelabourer，yettothepersonwhoemployshimtheyappearsometimestobeofgreaterandsometimesofsmallervalue。
　　Hepurchasesthemsometimeswithagreaterandsometimeswithasmallerquantityofgoods，andtohimthepriceoflabourseemstovarylikethatofallotherthings。Itappearstohimdearintheonecase，andcheapintheother。Inreality，however，itisthegoodswhicharecheapintheonecase，anddearintheother。
　　Inthispopularsense，therefore，labour，likecommodities，maybesaidtohavearealandanominalprice。Itsrealpricemaybesaidtoconsistinthequantityofthenecessariesandconveniencesoflifewhicharegivenforit;itsnominalprice，inthequantityofmoney。Thelabourerisrichorpoor，iswellorillrewarded，inproportiontothereal，nottothenominalpriceofhislabour。
　　Thedistinctionbetweentherealandthenominalpriceofcommoditiesandlabourisnotamatterofmerespeculation，butmaysometimesbeofconsiderableuseinpractice。Thesamerealpriceisalwaysofthesamevalue;butonaccountofthevariationsinthevalueofgoldandsilver，thesamenominalpriceissometimesofverydifferentvalues。Whenalandedestate，therefore，issoldwithareservationofaperpetualrent，ifitisintendedthatthisrentshouldalwaysbeofthesamevalue，itisofimportancetothefamilyinwhosefavouritisreservedthatitshouldnotconsistinaparticularsumofmoney。Itsvaluewouldinthiscasebeliabletovariationsoftwodifferentkinds;first，tothosewhicharisefromthedifferentquantitiesofgoldandsilverwhicharecontainedatdifferenttimesincoinofthesamedenomination;and，secondly，tothosewhicharisefromthedifferentvaluesofequalquantitiesofgoldandsilveratdifferenttimes。
　　Princesandsovereignstateshavefrequentlyfanciedthattheyhadatemporaryinteresttodiminishthequantityofpuremetalcontainedintheircoins;buttheyseldomhavefanciedthattheyhadanytoaugmentit。Thequantityofmetalcontainedinthecoins，Ibelieveofallnations，has，accordingly，beenalmostcontinuallydiminishing，andhardlyeveraugmenting。Suchvariations，therefore，tendalmostalwaystodiminishthevalueofamoneyrent。
　　ThediscoveryoftheminesofAmericadiminishedthevalueofgoldandsilverinEurope。Thisdiminution，itiscommonlysupposed，thoughIapprehendwithoutanycertainproof，isstillgoingongradually，andislikelytocontinuetodosoforalongtime。Uponthissupposition，therefore，suchvariationsaremorelikelytodiminishthantoaugmentthevalueofamoneyrent，eventhoughitshouldbestipulatedtobepaid，notinsuchaquantityofcoinedmoneyofsuchadenomination（insomanypoundssterling，forexample），butinsomanyounceseitherofpuresilver，orofsilverofacertainstandard。
　　Therentswhichhavebeenreservedincornhavepreservedtheirvaluemuchbetterthanthosewhichhavebeenreservedinmoney，evenwherethedenominationofthecoinhasnotbeenaltered。Bythe18thofElizabethitwasenactedthatathirdoftherentofallcollegeleasesshouldbereservedincorn，tobepaid，eitherinkind，oraccordingtothecurrentpricesatthenearestpublicmarket。Themoneyarisingfromthiscornrent，thoughoriginallybutathirdofthewhole，isinthepresenttimes，accordingtoDr。Blackstone，commonlyneardoubleofwhatarisesfromtheothertwo—thirds。Theoldmoneyrentsofcollegesmust，accordingtothisaccount，havesunkalmosttoafourthpartoftheirancientvalue;orareworthlittlemorethanafourthpartofthecornwhichtheywereformerlyworth。ButsincethereignofPhilipandMarythedenominationoftheEnglishcoinhasundergonelittleornoalteration，andthesamenumberofpounds，shillingsandpencehavecontainedverynearlythesamequantityofpuresilver。Thisdegradation，therefore，inthevalueofthemoneyrentsofcolleges，hasarisenaltogetherfromthedegradationinthevalueofsilver。
　　Whenthedegradationinthevalueofsilveriscombinedwiththediminutionofthequantityofitcontainedinthecoinofthesamedenomination，thelossisfrequentlystillgreater。InScotland，wherethedenominationofthecoinhasundergonemuchgreateralterationsthaniteverdidinEngland，andinFrance，whereithasundergonestillgreaterthaniteverdidinScotland，someancientrents，originallyofconsiderablevalue，haveinthismannerbeenreducedalmosttonothing。
　　Equalquantitiesoflabourwillatdistanttimesbepurchasedmorenearlywithequalquantitiesofcorn，thesubsistenceofthelabourer，thanwithequalquantitiesofgoldandsilver，orperhapsofanyothercommodity。Equalquantitiesofcorn，therefore，will，atdistanttimes，bemorenearlyofthesamerealvalue，orenablethepossessortopurchaseorcommandmorenearlythesamequantityofthelabourofotherpeople。Theywilldothis，Isay，morenearlythanequalquantitiesofalmostanyothercommodity;forevenequalquantitiesofcornwillnotdoitexactly。Thesubsistenceofthelabourer，ortherealpriceoflabour，asIshallendeavourtoshowhereafter，isverydifferentupondifferentoccasions;moreliberalinasocietyadvancingtoopulencethaninonethatisstandingstill;andinonethatisstandingstillthaninonethatisgoingbackwards。
　　Everyothercommodity，however，willatanyparticulartimepurchaseagreaterorsmallerquantityoflabourinproportiontothequantityofsubsistencewhichitcanpurchaseatthattime。A
　　rentthereforereservedincornisliableonlytothevariationsinthequantityoflabourwhichacertainquantityofcorncanpurchase。Butarentreservedinanyothercommodityisliablenotonlytothevariationsinthequantityoflabourwhichanyparticularquantityofcorncanpurchase，buttothevariationsinthequantityofcornwhichcanbepurchasedbyanyparticularquantityofthatcommodity。