ThereisnocountrywherepopulationiscarriedtoagreaterheightthaninChina。Thecommonpeoplearesupportedbyriceandricewater；theyworkalmostnakedandinthesouthernprovincestheyhavethreeplentifulharvestsofriceyearly，thankstotheirgreatattentiontoagriculture。Thelandisneverfallowandyieldsahundredfoldeveryyear。Thosewhoareclothedhavegenerallyclothingofcotton，whichneedssolittlelandforitsproductionthatanacreofland，itseems，iscapableofproducingaquantityfullsufficientfortheclothingoffivehundredgrownuppersons。TheChinesebytheprinciplesoftheirreligionareobligedtomarry，andbringupasmanychildrenastheirmeansofsubsistencewillafford。Theylookuponitasacrimetolaylandoutinpleasuregardensorparks，defraudingthepublicofmaintenance。Theycarrytravellersinsedanchairs，andsavetheworkofhorsesuponalltaskswhichcanbeperformedbymen。Theirnumberisincredibleiftherelationofvoyagesistobedependedupon，yettheyareforcedtodestroymanyoftheirchildreninthecradlewhentheyapprehendthemselvesnottobeabletobringthemup，keepingonlythenumbertheyareabletosupport。Byhardandindefatigablelabourtheydrawfromtheriversanextraordinaryquantityoffishandfromthelandallthatispossible。
Neverthelesswhenbadyearscometheystarveinthousandsinspiteofthecareoftheemperorwhostoresriceforsuchcontingencies。NumerousthenasthepeopleofChinaare，theyarenecessarilyproportionedtotheirmeansoflivinganddonotexceedthenumberthecountrycansupportaccordingtotheirstandardoflife；andonthisfootingasingleacreoflandwillsupportmanyofthem。
OntheotherhandthereisnocountrywheretheincreaseofpopulationismorelimitedthanamongthesavagesintheinteriorpartsofAmerica。Theyneglectagriculture，liveinwoods，andonthewildbeaststheyfindthere。Astheirforestsdestroythesweetnessandsubstanceoftheearththereislittlepastureforanimals，andsinceanIndianeatsseveralanimalsinayear，50
or100acressupplyonlyenoughfoodforasingleIndian。
AsmalltribeoftheseIndianswillhave40squareleaguesforitshuntingground。Thewageregularandbitterwarsovertheseboundaries，andalwaysproportiontheirnumberstotheirmeansofsupportfromthechase。
TheEuropeancultivatethelandanddrawcornfromitfortheirsubsistence。Thewoolanddrawcornfromitfortheirsubsistence。Thewooloftheirsheepprovidesthemwithclothing。
Wheatisthegrainonwhichmostofthemarefed，butsomepeasantsmaketheirbreadofrye，andinthenorthofbarleyandoats。ThefoodofthepeasantsandthepeopleisnotthesameinallcountriesofEurope，andlandisoftendifferentinqualityandfertility。
MostofthelandinFlandersandpartofthatinLombardyyields18to20foldwithoutlyingidle；theCampagnaofNaplesyieldsstillmore。ThereareafewpropertiesinFrance，Spain，EnglandandGermanywhichyieldthesameamount。CicerotellsusthatthelandofSicilyinhistimeyieldedtenfold，andtheelderPlinysaysthattheLeontinelandsinSicilyyieldedahundredfold，thoseofBabylonahundredandfifty，andsomeAfricanlandsagooddealmore。
TodaylandinEuropeyieldsontheaveragesixtimeswhatissown，sothatfivetimestheseedremainsfortheconsumptionofthepeople。Landusuallyrestsoneyearinthree，producingwheatthefirstyearandbarleythesecond。
Inthesupplementwillbefoundestimatesoftheamountoflandrequiredforthesupportofamanaccordingtothedifferentassumptionsofhismannerofliving。
Itwillbeseenthatamanwholivesonbread，garlicandroots，wearsonlyhempengarments，coarselinen，woodenshoes，anddrinksonlywater，likemanypeasantsinthesouthofFrance，canliveontheproduceofanacreandahalfoflandofmediumgoodness，yieldingasixfoldharvestandrestingoncein3years。
Ontheotherhandagrown-upmanwhowearsleathershoes，stockings，woollencloth，wholivesinahouseandhasachangeoflinen，abed，chairs，table，andothernecessaries，drinksmoderatelyofbeerorwine，eatseverydaymeat，butter，cheese，bread，vegetables，etc。sufficientlyandyetmoderatelyneedsforallthattheproduceof4to5acresoflandofmediumquality。
Itistruethatintheseestimatesnothingisallowedforthefoodofhorsesexceptfortheploughandcarriageofproducefortenmiles。
HistoryrecordsthatthefirstRomanseachmaintainedhisfamilyontwojournauxofland，equaltooneParisacreand330
squarefeetorthereabouts。Theywerealmostnaked，hadnowineoroil，layinthestraw，andhadhardlyanycomforts，butastheycultivatedintenselytheland，whichisfairlygoodaroundRome，theydrewfromitplentyofcornandofvegetables。
Iftheproprietorsoflandhadathearttheincreaseofpopulation，iftheyencouragedthepeasantstomarryyoungandbringupchildrenbypromisingtoprovidethemwithsubsistence，devotingtheirlandentirelytothatpurpose，theywoulddoubtlessincreasethepopulationuptothepointwhichthelandcouldsupport，accordingtotheproducetheyallottedforeachpersonwhetheranacreandahalforfourtofiveacresahead。
Butifinsteadofthattheprince，ortheproprietorsofland，causethelandtobeusedforotherpurposesthantheupkeepofthepeople：ifbythepricestheyofferinthemarketforproduceandmerchandisetheydeterminethefarmerstoemploythelandforotherpurposesthanthemaintenanceofman（forwehaveseenthatthepricestheyofferinthemarketandtheirconsumptiondeterminetheusemadeofthelandjustasiftheycultivateditthemselves）thepeoplewillnecessarilydiminishinnumber。Somewillbeforcedtoleavethecountryforlackofemployment，othersnotseeingthenecessarymeansofraisingchildren，willnotmarryorwillonlymarrylate，afterhavingputasidesomewhatforthesupportofthehousehold。
Iftheproprietorsoflandwholiveinthecountrygotoresideinthecitiesfarawayfromtheirland，horsesmustbefedforthetransportintothecitybothoftheirfoodandthatofallthedomesticservants，mechanicsandotherswhomtheirresidenceinthecityattractsthither。
ThecarriageofwinefromBurgundytoParisoftencostsmorethanthewineitselfcostsinBurgundy；andconsequentlythelandemployedfortheupkeepofthecarthorsesandthosewholookafterthemismoreconsiderablethanthelandwhichproducesthewineandsupportsthosewhohavetakenpartinitsproduction。
Themorehorsesthereareinastatethelessfoodwillremainforthepeople。Theupkeepofcarriagehorses，hunters，orchargers，oftentakesthreeorfouracresofland。
Butwhenthenobilityandproprietorsoflanddrawfromforeignmanufacturestheircloths，silks，laces，etc。andpayforthembysendingtotheforeignertheirnativeproducetheydiminishextraordinarythefoodofthepeopleandincreasethatofforeignerswhooftenbecomeenemiesofthestate。
IfaproprietorornoblemaninPoland，towhomhisfarmerspayyearlyarentequaltoaboutonethirdoftheproduceofhisland，pleasestousethecloths，linens，etc。ofHolland，hewillpayforthesemechandisesonehalfoftherenthereceivesandperhapsusetheotherhalfforthesubsistenceofhisfamilyonotherproductsandroughmanufacturesofPoland：buthalfhisrent，onoursupposition，correspondstothesixthpartoftheproduceofhisland，andthissixthpartwillbecarriedawaybytheDutchtowhomthefarmersofPolandwilldeliveritincorn，wool，hempandotherproduce。HereisthenasixthpartofthelandofPolandwithdrawnfromitspeople，tosaynothingofthefeedingofthecarthorses，carriagehorsesandchargersinPoland，maintainedbythemanneroflivingofthenobilitythere。
FurtherifoutofthetwothirdsoftheproduceofthelandallottedtothefarmerstherelastimitatingtheirmastersconsumeforeignmanufactureswhichtheywillalsopayforeignersforinrawproduceofPoland，therewillbeagoodthirdoftheproduceofthelandinPolandabstractedfromthefoodofthepeople，and，whatisworse，mostlysenttotheforeignerandoftenservingtosupporttheenemiesofthestate。IftheproprietorsoflandandthenobilityinPolandwouldconsumeonlythemanufacturesoftheirownstate，badastheymightbeattheoutset，theywouldsoonbecomebetter，andwouldkeepagreatnumberoftheirownpeopletoworkthere，insteadofgivingthisadvantagetoforeigners：andifallstateshadthelikecarenottobethedupesofotherstatesinmattersofcommerce，eachstatewouldbeconsiderableonlyinproportiontoitsproduceandtheindustryofitspeople。
IftheladiesofParisarepleasedtowearBrusselslace，andifFrancepaysforthislacewithChampagnewine，theproductofasingleacreofflaxmustbepaidforwiththeproductof16，000acresoflandundervines，ifmycalculationsarecorrect。
Thiswillbemorefullyexplainedelsewhereandthefiguresareshowninthesupplement。SufficetosayherethatinthistransactionagreatamountofproduceofthelandiswithdrawnfromthesubsistenceoftheFrench，andthatalltheproducesentabroad，unlessanequallyconsiderableamountofproducebebroughtbackinexchange，tendstodiminishthenumberofpeopleinthestate。
WhenIsaidthattheproprietorsoflandmightmultiplythepopulationasfarasthelandwouldsupportthem，Iassumedthatmostmendesirenothingbetterthantomarryiftheyaresetinapositiontokeeptheirfamiliesinthesamestyleastheyarecontenttolivethemselves。Thatis，ifamanissatisfiedwiththeproduceofanacreandahalfoflandhewillmarryiftheissureofhavingenoughtokeephisfamilyinthesameway。Butifheisonlysatisfiedwiththeproduceoffivetotenacreshewillbeinonhurrytomarryunlesshethinkshecanbringuphisfamilyinthesamemanner。
InEuropethechildrenofthenobilityarebroughtupinaffluence；andasthelargestshareofthepropertyisusuallygiventotheeldestsons，theyoungersonsareinnohurrytomarry。Theyusuallyliveasbachelors，eitherinthearmyorinthecloisters，butwillseldombefondunwillingtomarryiftheyareofferedheiressesandfortunes，orthemeansofsupportingafamilyonthefootingwhichtheyhaveinviewandwithoutwhichtheywouldconsiderthemselvestomaketheirchildrenwretched。
Inthelowerclassesofthestatealsotherearemenwhofromprideandfromreasonssimilartothoseofthenobility，prefertoliveincelibacyandtospendonthemselvesthelittlethattheyhaveratherthansettledowninfamilylife。Butmostofthemwouldgladlysetupafamilyiftheycouldcountuponkeepingitupastheywouldwish：theywouldconsiderthemselvestodoaninjusticetotheirchildreniftheybroughtthemuptofallintoalowerclassthanthemselves。Onlyafewmeninastateavoidmarriagefromsheerflightiness。Allthelowerorderswishtoliveandbringupchildrenwhocanlivelikethemselves。
Whenlabourersandmechanicsdonotmarryitisbecausetheywaittilltheysavesomethingtoenablethemtosetupahouseholdortofindsomeyoungwomanwhobringsalittlecapitalforthatpurpose，sincetheyseeeverydayotherslikethemwhoforlackofsuchprecautionstarthousekeepingandfallintothemostfrightfulpoverty，beingobligedtodeprivethemselvesoftheirownfoodtonourishtheirchildren。
FromtheobservationsofMrHalley，atBreslawinSilesia，itisfoundthatofallthefemalescapableofchildbearing，from16to45yearsofage，notoneinsixactuallybearsachildeveryyear，while，saysMrHalley，thereoughttobeatleast4
or6whoshouldhavechildreneveryyear，withoutincludingthosewhoarebarrenorhavestillbirths。Thereasonwhyfourwomenoutofsixdonotbearchildreneveryyearisthattheycannotmarrybecauseofthediscouragementsanddifficultiesintheirway。Ayoungwomantakescarenottobecomeamotherifsheisnotmarried；shecannotmarryunlessshefindsamanwhoisreadytoruntheriskofit。Mostofthepeopleinastatearehiredorareundertakers；mostaredependentandliveinuncertaintywhethertheywillfindbytheirlabourortheirundertakingsthemeansofsupportingtheirhouseholdonthefootingtheyhaveinview。Thereforetheydonotallmarry，ormarrysolatethatofsixwomen，oratleastfour，whoshouldproduceachildeveryyearthereisactuallyonlyoneinsixwhobecomesamother。
Iftheproprietorsoflandhelptosupportthefamilies，asinglegenerationsufficestopushtheincreaseofpopulationasfarastheproduceofthelandwillsupplymeansofsubsistence。
Childrendonotrequiresomuchofthisproduceasgrown-uppersons。Bothcanliveonmoreorlessaccordingtotheirconsumption。Thenorthernpeople，wherethelandproduceslittle，havebeenknowntoliveonsolittleproducethattheyhavesentoutcolonistsandswarmsofmentoinvadethelandsofthesouthanddestroyitsinhabitantstoappropriatetheirland。Accordingtothedifferentmannerofliving，400，000peoplemightsubsistonthesameproduceofthelandwhichordinarilysupportsbut100，000。Amanwholivesupontheproduceofanacreandahalfofland，maybestrongerandstouterthanhewhospendstheproduceoffiveortenacres；itthereforeseemsprettyclearthatthenumberofinhabitantsofastatedependsonthemeansallottedthemofobtainingtheirsupport；andasthismeansofsubsistencearisesfromthemethodofcultivatingthesoil，andthismethoddependschieflyonthetaste，humoursandmanneroflivingoftheproprietorsofland，theincreaseanddecreaseofpopulationalsostandonthesamefoundation。
Theincreaseofpopulationcanbecarriedfurthestinthecountrieswherethepeoplearecontenttolivethemostpoorlyandtoconsumetheleastproduceofthesoil。Incountrieswhereallthepeasantsandlabourersareaccustomedtoeatmeatanddrinkwine，beer，etc。somanyinhabitantscannotbesupported。
SirWilliamPetty，andafterhimMrDavenant，InspectoroftheCustomsinEngland，seemtodepartfromnaturewhentheytrytoestimatethepropagationoftheracebyprogressivegenerationsfromAdam，thefirstfather。Theircalculationsseemtobepurelyimaginaryanddrawnupathazard。Onthebasisofwhattheyhaveseenoftheactualbirthrateincertaindistricts，howcouldtheyexplainthedecreaseofthoseinnumerablepeopleformerlyfoundinAsia，Egypt，etc。andeveninEurope？Ifseventeencenturiesagotherewere26millionsofpeopleinItaly，nowreducedto6millionatmost，howcanitbedeterminedbytheprogressionsofMrKingthatEnglandwhichtodaycontains5or6millionsofinhabitantswillprobablyhave13millionsinacertainnumberofyears？WeseedailythatEnglishmen，ingeneral，consumemoreoftheproduceofthelandthantheirfathersdid，andthisistherealreasonwhytherearefewerinhabitantsthaninthepast。
Menmultiplylikemiceinabarniftheyhaveunlimitedmeansofsubsistence；andtheEnglishinthecolonieswillbecomemorenumerousinproportioninthreegenerationsthantheywouldbeinthirtyinEngland，becauseinthecoloniestheyfindforcultivationnewtractsoflandfromwhichtheydrivethesavages。
Inallcountriesatalltimesmenhavewagedwarsforthelandandthemeansofsubsistence。Whenwarshavedestroyedordiminishedthepopulationofacountry，thesavagesandcivilisednationssoonrepopulateinintimesofpeace；especiallywhentheprinceandtheproprietorsoflandlendtheirencouragement。
Astatewhichhasconqueredseveralprovincesmay，bytributeimposedonthevanquished，acquireanincreaseofsubsistenceforitsownpeople。TheRomansdrewagreatpartoftheirsubsistencefromEgypt，SicilyandAfricaandthatiswhyItalythencontainedsomanyinhabitants。
Astatewhereminesarefound，havingmanufactureswhichdonotrequiremuchoftheproduceofthelandtosendthemintoforeigncountries，anddrawingfromtheminexchangeplentifulmerchandiseandproduceoftheland，acquiresanincreasedfundforthesubsistenceofitssubjects。
TheDutchexchangetheirlabourinnavigation，fishingormanufacturesprincipallywithforeigners，fortheproductsoftheirland。OtherwiseHollandcouldnotsupportofitselfitspopulation。Englandbuysfromabroadconsiderableamountsoftimber，hempandothermaterialsorproductsofthesoilandconsumesmuchwineforwhichshepaysinminerals，manufactures，etc。ThatsavestheEnglishagreatquantityoftheproductsoftheirsoil。WithouttheseadvantagesthepeopleofEngland，onthefootingoftheexpenseoflivingthere，couldnotbesonumerousastheyare。Thecoalminessavethemseveralmillionsofacresoflandwhichwouldotherwisebeneededtogrowtimber。
ButalltheseadvantagesarerefinementsandexceptionalcaseswhichImentiononlyincidentally。Thenaturalandconstantwayofincreasingpopulationinastateistofindemploymentforthepeoplethere，andtomakethelandservefortheproductionoftheirmeansofsupport。
Itisalsoaquestionoutsideofmysubjectwhetheritisbettertohaveagreatmultitudeofinhabitants，poorandbadlyprovided，thanasmallernumber，muchmoreattheirease：amillionwhoconsumetheproduceof6acresperheador4millionwholiveontheproductofanacreandahalf。
ChapterSixteenThemoreLabourthereisinaStatethemorenaturallyrichtheStateisesteemedInalongcalculationworkedoutinthesupplementitisshownthatthelabourof25grownpersonssufficestoprovide100
others，alsogrownup，withallthenecessariesoflifeaccordingtotheEuropeanstandard。Intheseestimatesitistruethefood，clothing，housing，etc。arecoarseandratherelementary，butthereiseaseandplenty。Itmaybeassumedthatagoodthirdofthepeopleofstatearetooyoungortoooldfordailyworkandthatanothersixthareproprietorsofland，sick，orundertakersofdifferentsortswhodonotbythelabouroftheirhands，contributetothedifferentneedsofmen。Thatmakeshalfthepeoplewithoutwork，oratleastwithouttheworkinquestion。Soif25personsdoalltheworkneededforthemaintenanceofahundredothers，thereremain25personsoutofthehundredwhoarecapableofworkingbutwouldhavenothingtodo。
Thesoldiers，andthedomesticservantsinwell-to-dofamilies，willformpartofthese25；andifalltheothersarebusiedinworkingupbyadditionallabourthethingsnecessaryforlife，likemakingfinelinen，finecloth，etc。thestatewillbedeemedrichinproportiontothisincreaseinwork，thoughitaddnothingtothequantityofthingsneededforthesubsistenceandmaintenanceofman。
Labourgivesanadditionalrelishtofoodanddrink。Afork，aknife，etc。nicelywrought，aremoreesteemedthanthoseroughlyandhastilymade。Thesamemaybesaidofahouse，abed，atableandeverythingneededforthecomfortoflife。
Itistruethatitisoflittledifferenceinastatewhetherpeopleareaccustomedtowearcoarseorfineclothesifbothareequallylasting，andwhetherpeopleeatnicelyorcoarselyiftheyhaveenoughandareingoodhealth，sincedrink，food，clothing，etc。areequallyconsumedwhetherfineorcoarse，andthatnothingisleftinthestateofthissortofwealth。
Butitisalwaystruetosaythatthestateswherefinecloths，finelinen，etc。areworn，andwherethefeedingisdaintyanddelicate，arericherandmoreesteemedthanthosewherethesethingsareruder，andeventhatthestateswhereoneseesmorepeoplelivinginthemannerofthefirstnamedaremorehighlyesteemedthanthosewhereoneseesfewerinproportion。
Butifthe25personsinahundredofwhomwehavespokenwereemployedtoproducepermanentcommodities，todrawfromtheminesiron，lead，tin，copper，etc。andworkthemupintotoolsandinstrumentsfortheuseofman，bowls，platesandotherusefulobjectsmuchmoredurablethanearthenware，thestatewillnotonlyappeartobericherforitbutwillbesoinreality。
Itwillbesoespeciallyifthesepeopleareemployedindrawingfromtheearthgoldandsilverwhichmetalsarenotonlydurablebutsotospeakpermanent，whichfireitselfcannotdestroy，whicharegenerallyacceptedasthemeasureofvalue，andwhichcanalwaysbeexchangedforanyofthenecessariesoflife：andiftheseinhabitantsworktodrawgoldandsilverintoastateinexchangeforthemanufacturesandworkwhichtheyproduceandsendabroad，theirlabourwillbeequallyusefulandwillinrealityimprovethestate。
Thepointwhichseemstodeterminethecomparativegreatnessofstatesistheirreservestockabovetheyearlyconsumption，likemagazinesofcloth，linen，corn，etc。toanswerinbadyears，orwar。Andasgoldandsilvercanalwaysbuythesethings，evenfromtheenemiesofthestate，goldandsilverarethetruereservestockofastate，andthelargerorsmalleractualquantityofthisstocknecessarilydeterminesthecomparativegreatnessofkingdomsandstates。
Ifitthecustomtodrawgoldandsilverfromabroadbyexportingmerchandisesandproduceofthestate，suchascorn，wine，wool，etc。thiswillnotfailtoenrichthestateatthecostofadecreaseofthepopulation；butifgoldandsilverbeattractedfromabroadinexchangeforthelabourofthepeople，suchasmanufacturesandarticleswhichcontainlittleoftheproduceofthesoil，thiswillenrichthestateinausefulandessentialmanner。Inagreatstate，indeed，the25personsinahundredofwhomwehavespoken，cannotbeemployedtomakearticlesforforeignconsumption。Amillionmenwillmakemorecloth，forexample，thenwillbeconsumedannuallyinallthemercantileworld，becausethegreaternumberofpeopleineverycountry，andtherewillseldombefoundinanystate100，000
personsemployeduponclothingforforeigners。ThisisshowninthesupplementwithregardtoEngland，whichofallthenationsofEuropesuppliesmostclothtoforeigners。
Inorderthattheconsumptionofthemanufacturesofastateshouldbecomeconsiderableinforeignparts，thesemanufacturesmustbemadegoodandvaluablebyalargeconsumptionintheinteriorofthestate。Itisneedfultodiscourageallforeignmanufacturesandtogiveplentyofemploymenttotheinhabitants。
Ifenoughemploymentcannotbefoundtooccupythe25
personsinahundreduponworkusefulandprofitabletothestate，Iseenoobjectiontoencouragingemploymentwhichservesonlyforornamentoramusement。Thestateisnotconsideredlessrichforathousandtoyswhichservetotrickouttheladiesorevenmen，orareusedingamesanddiversions，thanitisforusefulandserviceableobjects。Diogenes，atthesiegeofCorinth，issaidtohavefellarollinghistubthathemightnotseemidlewhileallotherswereatwork；andwehavetodaysocietiesofmenandwomenoccupiedinworkandexerciseasuselesstothestateasthatofDiogenes。Howlittlesoeverthelabourofamansuppliesornamentorevenamusementinastateitisworthwhiletoencourageitunlessthemancanfindawaytoemployhimselfusefully。
Itisalwaystheinspirationoftheproprietorsoflandwhichencouragesordiscouragesthedifferentoccupationsofthepeopleandthedifferentkindsoflabourwhichtheyinvent。
Theexampleoftheprince，followedbyhiscourt，isgenerallycapableofdeterminingtheinspirationandtastesoftheotherproprietorsofland，andtheexampleoftheselastnaturallyinfluencesallthelowerranks。Aprince，then，withoutdoubtisablebyhisownexampleandwithoutanyconstrainttogivesuchaturnashelikestothelabourofhissubjects。
Ifeachproprietorinastatehadonlyalittlepieceofland，likethatwhichisusuallyleasedtoasinglefarmer，therewouldbehardlyanycities。Thepeoplewouldbemorenumerousandthestateveryrichifeveryproprietoremployedonsomeusefulworktheinhabitantssupportedonhisland。
Butwhenthenobleshavegreatlandedpossessions，theyofnecessitybringaboutluxuryandidleness。WhetheranAbbotattheheadofahundredmonksliveontheproduceofseveralfineestates，oranoblemanwith50domesticservants，andhorseskeptonlyforhisservice，liveontheseestates，wouldbeindifferenttothestateifitcouldremaininconstantpeace。
Butanoblemanwithhisretinueandhishorsesisusefultothestateintimeofwar；hecanalwaysbeusefulinthemagistracyandthekeepingoforderinthestateinpeacetime；
andineverycaseheisagreatornamenttothecountry，whilethemonksare，aspeoplesay，neitherusefulnorornamentalinpeaceorwaronthissideofheaven。
TheconventsofMendicantFriarsaremuchmorepernicioustoastatethanthoseoftheclosedorders。Theselastusuallydonomoreharmthantooccupyestateswhichmightservetosupplythestatewithofficersandmagistrates，whiletheMendicantswhoarethemselveswithoutusefulemployment，ofteninterruptandhinderthelabourofotherpeople。Theytakefrompoorpeopleincharitiesthesubsistencewhichoughttofortifythemfortheirlabour。Theycausethemtolosemuchtimeinuselessconversation，nottospeakofthosewhointriguethemselvesintofamiliesandthosewhointriguethemselvesinfamiliesandthosewhoarevicious。ExperienceshowsthatthecountrieswhichhaveembracedProtestantismandhaveneithermonksnormendicantshavebecomevisiblymorepowerful。TheyhavealsotheadvantageofhavingsuppressedagreatnumberofholydayswhennoworkisdoneinRomanCatholiccountries，andwhichdiminishthelabourofthepeoplebyaboutaneighthpartoftheyear。
Ifitweredesiredtomakeuseofeverythinginastateitmightbepossible，itseems，todiminishthenumberofmendicantsbyincorporatingthemintothemonasteriesasvacanciesordeathsoccurthere，withoutforbiddingtheseretreatstothosewhocangivenoevidenceoftheirskillinspeculativesciences，whoarecapableofadvancingthepracticalarts，i。e。insomesectionofmathematics。Thecelibacyofchurchmenisnotsodisadvantageousasispopularlysupposed，asisshownintheprecedingchapter，buttheiridlenessisveryinjurious。
ChapterSeventeenOfMetalsandMoney，andespeciallyofgoldandsilverAslandproducesmoreorlesscornaccordingtoitsfertilityandthelabourspentuponit，sotheminesofiron，lead，tin，gold，silver，etc。producemoreorlessofthesemetalsaccordingtotherichnessoftheminesandthequantityandqualityofthelabourspentuponthem，indigging，draining，smelting，refining，etc。Workinsilverminesisdearonaccountofthemortalityincauses，sincerarelymorethanfiveorsixyearsarespentinthatlabour。
Therealorintrinsicvalueofmetalsislikeeverythingelseproportionabletothelandandlabourthatentersintotheirproduction。Theoutlayonthelandforthisproductionisconsiderableonlysofarastheowneroftheminecanobtainaprofitfromtheworkoftheminerswhentheveinsareunusuallyrich。Thelandneededforthesubsistenceoftheminersandworkers，thatisthemininglabour，isoftentheprincipalexpenseandtheruinoftheproprietor。
Themarketvalueofmetals，asofothermerchandiseorproduce，issometimesabove，sometimesbelow，theintrinsicvalue，andvarieswiththeirplentyorscarcityaccordingtothedemand。
Iftheproprietorsoflandandthelowerordersinastatewhoimitatethem，rejectedtheuseoftimeandcopper，wronglysupposingthattheyareinjurioustohealth，andiftheyallmadeuseofdishesandutensilsofearthenware，thesemetalswouldbeataverylowpriceinthemarketsandtheworkthatwascarriedontoextractthemfromtheminewouldbediscontinued。Butasthesemetalsarefounduseful，andareemployedintheserviceoflife，theywillalwayshaveamarketvaluecorrespondingtotheirplentyorrarityandthedemandforthem；andtheywillalwaysbeminedtoreplacewhatislostbydailyuse。
Ironisnotmerelyserviceableforthedailyuseofcommonlifebutmaybesaidtobeinacertainsensenecessarily；andiftheAmericans，whodidnotmakeuseofitbeforethediscoveryoftheircontinent，hadfoundminesofitandknownhowtouseit，theywoulddoubtlesshavelabouredtoproduceitatanycost。
Goldandsilverarecapableofservingnotonlythesamepurposeastinandcopperbutmostofthepurposesofleadandiron。Theyhavethisfurtheradvantageoverothermetalsthattheyarenotconsumedbyfireandaresodurablethattheymaybeesteemedpermanentbodies。Itisnotsurprising，therefore，thatmenwhofoundtheothermetalsusefulshouldhaveesteemedgoldandsilverevenbeforetheyareusedinexchange。TheRomansprizedthemfromthefoundationofRomeandyetonlyusedthemasmoney500yearslater。Perhapsallothernationsdidthelikeandonlyadoptedthesemetalsasmoneylongafterusingthemforotherpurposes。HoweverwefindfromtheoldesthistoriansthatfromtimeimmemorialgoldandsilverwereusedasmoneyinEgyptandAsia，andwelearnintheBookofGenesisthatsilvermoniesweremadeinthetimeofAbraham。
LetussupposethatsilverwasfirstfoundinamineofMountNiphatesinMesopotamia。Itisnaturaltothinkthatoneormoreproprietorsofland，findingthismetalbeautifulanduseful，werethefirsttouseit，andwillinglyencouragedtheminerorundertakertoextractmoreofitfromthemine，givinghiminreturnforhisworkandthatofhisassistantssomuchoftheproduceofthelandastheyneededfortheirmaintenance。
ThismetalbecomingmoreandmoreesteemedinMesopotamia，ifthelargelandownersboughtewersofsilver，thelowerclasses，accordingtotheirmeansorsavings，mightbuysilvercups；andtheundertakerofthemine，seeingaconstantdemandforhismerchandise，gaveitwithoutdoubtavalueproportionabletoitqualityorweightagainsttheotherproductsormerchandisewhichhetookinexchange。Whileeverybodylookedonthismetalasapreciousanddurableobjectandstrovetoownafewpiecesofit，theundertaker，whoalonecouldsupplyit，wasinamannermastertodemandinexchangeanarbitraryquantityofotherproduceandmerchandise。
SupposenowthatonthefurthersideoftheRiverTigris，andthereforeoutsideMesopotamia，anewsilvermineisdiscovered，ofwhichtheveinsareincomparablyricherandlargerthanthoseofMountNiphates，andthattheworkingofthisnewMinewhichwaseasilydrainedwaslesslaboriousthanthatofthefirst。
TheundertakerofthisnewminewasnaturallyinapositiontosupplysilvermuchcheaperthantheundertakerofMountNiphates，andthepeopleofMesopotamiawhowishedtohavepiecesandobjectsofsilverwouldfinditmoreadvantageoustoexporttheirmerchandiseandgiveittotheundertakerofthenewmineinexchangeforsilverthantotakeitfromtheoriginalundertaker。Thislast，findingasmallerdemand，wouldofnecessityreducehisprice；butthenewundertakerloweringhispriceinproportionthefirstadventurerwouldbeobligedtostophisoutput，andthenthepriceofsilverinexchangeforothermerchandiseandproducewouldbenecessarilyfixedbythatwhichwasputuponitatthenewmine。SilverthencostlesstothepeoplebeyondTigristhantothoseofMesopotamiawhohadtobearthecostofalongcarriageoftheirmerchandiseandproducetoobtainsilver。
Itiseasytoperceivethatwhenseveralsilvermineswerefoundandtheproprietorsoflandhadtakenafancytothismetal，theywereimitatedbytheotherclasses，andthatthepiecesandfragmentsofsilver，evenwhennotworkedup，weresoughtaftereagerly，becausenothingwaseasierthantomakesucharticlesfromthemasweredesired，accordingtotheirquantityandweight。Asthismetalwasesteemedasitscostvalue，atleast，afewpeoplewhopossessedsomeofit，findingthemselvesinneed，couldpawnittoborrowthethingstheywanted，andeventosellitlateroutright。Thencearosethecustomoffixingitsvalueinproportiontoitsquantityorweightasagainstallproductsandmerchandise。Butassilvercanbecombinedwithiron，lead，tin，copper，etc。whicharenotsuchscarcemetalsandaremindedatlessexpense，theexchangeofsilverwassubjecttomuchfraud，andthiscausedseveralkingdomstoestablishmintsinordertocertifybyapubliccoinagethetruequantityofsilverthateachcoincontainsandtoreturntoindividualswhobringbarsoringotsofsilvertoitthesamequantityincoinsbearingastamporcertificateofthetruequantityofsilvertheycontain。
Thecostsofthesecertificatesorcoinagearesometimespaidbythepublic，orbytheprince，——themethodfollowedinancienttimesatRomeandtodayinEngland；sometimesthosewhotakesilvertobecoinedpayformintingasinthecustominFrance。
Puresilverishardlyeverfoundinthemines。Theancientsdidnotknowtheartofrefiningtoperfection。Theyalwaysmadetheirsilvercoinsoffincesilver，andyetthosewhichremaintousoftheGreeks，Romans，JewsandAsiaticsareneverperfectlypure。Todaythereismoreskill，thesecretofmakingsilverpurhasbeendiscovered。Thedifferentmethodsofrefiningitarenotpartofmysubject。Manyauthorshavetreatedofit，MrBoizardamongothers。Iwillonlyobservethatthereisagooddealofexpenseinrefiningsilverandforthisreasonanounceoffinesilverisgenerallypreferredtotwoounceswhichcontainonehalfofcopperorotheralloy。Itisexpensivetoseparatethealloyandextracttheoneounceofpuresilverwhichisinthesetwoounces，whilebysimplemeltinganyothermetalcanbecombinedwithsilverinanyproportiondesired。Ifcopperissometimesusedasanalloytofinesilveritisonlytorenderitmoremalleableandmoresuitablefortheobjectsmadeofit。Butinthevaluationofallsilverthecopperoralloyisreckonedatnothingandonlytheamountoffinepuresilverisconsidered。
Forthisreasonanassayisalwaysmadetoascertaintheamountofpuresilver。
Assayingismerelyrefiningalittlepieceofabarofsilver，forexample，tofindhowmuchpuresilveritcontainsandtojudgethewholebarbythissmallsample。Asmallportionofthebar，12grainsforexample，iscutoffandnicelyweighedinbalanceswhicharesoaccuratethatathousandthpartofagrainwillsometimesturnthescale。Thenthesampleisrefinedbyaquafortisorbyfireandthecopperoralloyseparated。Whenthesilverispuritisweighedagaininthesamebalanceandifitthenweighs11grainsinsteadof12theassayersaysthatthebaris11partsfine，i。e。itcontains11partsofpuresilverand1
ofcopperoralloy。Thiswillbemoreeasilyunderstoodbythosewhohavethecuriositytoseeassayscarriedout。Thereisnothingmysteriousaboutit。Goldisassayedinthesameway，withthisdifferenceonlythatthedegreesoffinenessofgoldaredividedinto24partscalledcarats，sincegoldismoreprecious；andthesecaratsaredividedinto32parts，whilethedegreesoffinenessofsilverareonlydividedintotwelfths，calleddeniers，andthesearedividedinto24grainsapiece。
Usagehasconferredupongoldandsilverthetitleintrinsicvalue，todesignateandsignifythequantityoftruegoldorsilvercontainedinabar；butinthisessayIhavealwaysusedthetermintrinsicvaluetosignifytheamountoflandandlabourwhichenterintoproduction，nothavingfoundanytermmoresuitabletoexpressmymeaning。Imentionthisonlytoavoidmisunderstanding。Whengoldandsilverarenotinquestionthetermwillalwaysholdgoodwithoutanyconfusion。
Wehaveseenthatthemetalssuchasgold，silver，iron，etc。serveseveralpurposesandhaveavalueproportionabletothelandandlabourwhichenterintotheirproduction。WeshallseeinpartIIofthisessaythatmenhavebeenforcedofnecessitytoemployacommonmeasuretofindintheirdealingstheproportionandthevalueoftheproductsandmerchandisetheywishedtoexchange。Theonlyquestioniswhatproductormerchandisewouldbemostsuitableforthiscommonmeasure，andwhetherithasnotbeennecessityratherthatfancywhichhasgiventhispreferencetogold，silverandcopperwhicharegenerallyinusetodayforthispurpose。
Ordinaryproductslikecorn，wine，meat，etc。havearealvalueandservetheneedsoflife，buttheyareallperishableanddifficulttobetransported，andthereforehardlysuitabletoserveasacommonmeasure。
Merchandisesuchascloth，linen，leather，etc。ispersishablealsoandcannotbesubdividedwithoutinsomesortchangingtheirvaluefortheserviceofman。Likerawproducetheycostagooddealforcarriage；theyevencauseexpenseforstorage，andconsequentlyareunsuitableforacommonmeasure。
Diamondsandotherpreciousstones，eveniftheyhadnoinstrinsicvalueandwereesteemedonlyfromfancy，wouldbesuitableforacommonmeasureiftheywerenotsusceptibleofimitationandiftheycouldbedividedwithoutloss。Withthesedefectsandthatofbeingunserviceableinusetheycannotserveasacommonmeasure。
Iron，whichisalwaysusefulandfairlydurablewouldnotservebadlyindefaultofabetter。Itisconsumedbyfire，andistoobulkyowingtoitsquantity。ItwasusedfromthetimeofLycurgustillthePeloponnesianWar；butasitsvaluewasnecessarilybasedinstrinsically，orinproportiontothelandandlabourwhichenteredintoitsproduction，agreatquantityofitwasneededforsmallvalue。Itiscuriousthatitsqualitywasspoiledbyvinegartomakeituselessforserviceandtokeepitforexchangeonly。ThusitcouldservetheaustereSpartansalone，andcouldnotcontinuetodosoevenwiththemassoonastheyextendedtheircommunicationwithothercountries。Toruinthespartansitneededonlytofindrichironmines，tomakemoneyliketheirs，andtodrawinexchangetheirproductsandmerchandisewhilsttheycouldgetnothingfromabroadfortheirspoilediron。Atthattimetheydidnotconcernthemselveswithanyforeigntrade，butonlywithwar。
Leadandtinhavethesamedisadvantageofbulkasironandareconsumablebyfire，butincaseofneedtheywouldnotdobadlyforexchangeifcopperwerenotmoresuitableanddurable。
CopperaloneservedasmoneytotheRomansuntil484yearsafterthefoundingofRome，andinSwedenitisstillusedeveninlargepayments：butitistoobulkyforveryconsiderablepayments，andtheSwedesthemselvespreferpaymentingoldorsilverratherthanincopper。
IntheAmericanColoniestobacco，sugar，andcocoahavebeenusedasmoney：butthesecommoditiesaretoobulky，perishable，andofunequalquality：theyarethereforehardlysuitabletoserveasmoneyoracommonmeasureofvalue。
Goldandsilveraloneareofsmallvolume，equalgoodness，easilytransported，divisiblewithoutloss，convenienttokeep，beautifulandbrilliantinthearticlesmadeofthemanddurablealmosttoeternity。Allwhohaveusedotherarticlesasmoneyreturntotheseassoonastheycangetenoughofthemforexchange。Itisonlyinthesmallestpurchasesthatgoldandsilverareunsuitable。Goldorevensilvercoinsofthevalueofaliardoradenierwouldbetoosmalltobehandledeasily。ItissaidthattheChinese，insmalltransactions，cutofflittlepieceswithscissorsfromtheirplatesofsilver，andweighedthepieces。ButsincetheirtradewithEuropetheyhavebeguntousecopperforsuchoccasions。
Itisthennotsurprisingthatallcountrieshavearrivedatusinggoldandsilverasmoneyoracommonmeasureofvalueandcopperforsmallpayments。Utilityandneedhavedecidedthem，andnotfancyorconsent。Silverrequiresmuchlabouranddearlabourforitsproduction。Silverminersarehighlypaidbecausetheyrarelylivemorethanfiveorsixyearsatthiswork，whichcausesahighmortality：andsoalittlesilvercoincorrespondstoasmuchlandandlabourasalargecoppercoin。
Moneyorthecommonmeasureofvaluemustcorrespondinfactandrealityintermsoflandandlabourtothearticlesexchangedforit。Otherwiseitwouldhaveonlyanimaginaryvalue。Ifforexampleaprinceorarepublicgavecurrencyinthestatetosomethingwhichhadnotsucharealandinstrinsicvalue，notonlywouldtheotherstatesrefusetoacceptitonthatfootingbuttheinhabitantsthemselveswouldrejectitwhentheyperceiveditslackofrealvalue。WhentowardstheendofthefirstPunicWartheRomanswishedtogivethecopperas，weighingtwoounces，thesamevalueastheasof1poundor12ounceshadbefore，itcouldnotlongbemaintainedinexchange。Thehistoryofalltimesshewsthatwhenprinceshavedebasedtheirmoney，keepingitatthesamenominalvalue，allrawproduceandmanufacturershavegoneupinpriceinproportiontothedebasementofthecoinage。
MrLockesaysthattheconsentofmankindhasgivenitsvaluetogoldandsilver。Thiscannotbedoubtedsinceabsolutenecessityhadnoshareinit。Itisthesameconsentwhichhasgivenanddoesgiveeverydayavaluetolace，line，finecloths，copper，andothermetals。Mancouldsubsistwithoutanyofthesethings，butitmustnotbeconcludedthattheyhavebutanimaginaryvalue。Theyhaveavalueproportionabletothelandandlabourwhichenterintotheirproduction。Goldandsilver，likeothermerchandiseandrawproduce，canonlybeproducedatcostsroughlyproportionabletothevaluesetuponthem，andwhatevermanproducesbylabour，thislabourmustfurnishhismaintenance。
Itisthegreatprinciplethatonehearseverydayfromthemouthsofthehumbleclasseswhohavenopartinourspeculations，andwholivebytheirlabourortheirundertakings。
"Everybodymustlive。"
Endofthefirstpart。
PartTwoChapterOneOfBarterInPartIanattemptwasmadetoprivethattherealvalueofeverythingusedbymanisproportionatetothequantityofLandusedforitsproductionandfortheupkeepofthosewhohavefashionedit。Inthissecondpart，aftersummingupthedifferentdegreesoffertilityofthelandinseveralcountiresandthedifferentkindsofproduceitcanbringforthwithgreaterabundanceaccordingtoitsintrinsicquality，andassumingtheestablishmentoftownsandtheirmarketstofacilitatethesaleoftheseproducts，itwillbeshewnbycomparingexchangeswhichmaybemade，wineforcloth，cornforshoes，hats，etc。andbythedifficultywhichthetransportofthesedifferentproductsormerchandiseswouldinvolve，thatitwasimpossibletofixtheirrespectiveintrinsicvalue，andtherewasabsolutenecessityformantofindasubstanceeasilytransportable，notperishable，andhavingbyweightaproportionorvalueequaltothedifferentproductsandmerchandises，necessaryorconvenient。Thencearosethechoiceofgoldandsilverforlargebusinessandofcopperforsmalltraffic。
Thesemetalsarenotonlydurableandeasilytransportedbutcorrespondtotheemploymentofalargeareaoflandfortheirproduction，whichgivesthemtherealvaluedesirableinexchange。
MrLockewho，likealltheEnglishwritersonthissubject，haslookedonlytomarketprices，laysdownthatthevalueofallthingsinproportionabletotheirabundanceorscarcity，andtheabundanceorscarcityofthesilverforwhichtheyareexchanged。ItisgenerallyknownthatthepricesofproduceandmerchandisehavebeenraisedinEuropesincesogreataquantityofsilverhasbeenbroughtthitherfromtheWestIndies。
ButIconsiderthatwemustnotsupposeasageneralrulethatthemarketpricesofthingsshouldbeproportionabletotheirquantityandtothatofthesilveractuallycirculatinginoneplace，becausetheproductsandmerchandisesentawaytobesoldelsewheredonotinfluencethepriceofthosewhichremain。
If，forexample，inamarkettownwherethereistwiceasmuchcornasisconsumedthere，wecomparedthewholequantityofcorntothatofsilver，thecornwouldbemoreabundantofcorntothatofsilver，thecornwouldbemoreabundantinproportionthanthesilverdestinedforitspurchase；themarketprice，however，willbemaintainedjustasiftherewereonlyhalfthequantityofcorn，sincetheotherhalfcanbeandevenmustbe，sentintothecity，andthecostoftransportwillbeincludedinthecitypricewhichisalwayshigherthanthatofthetown。Butapartfromthecaseofhopingtosellinanothermarket，I
considerthatMrLocke’sideaiscorrectinthesenseofthefollowingchapter，andnototherwise。
ChapterTwoOfMarketPricesSupposethebutchersononesideandthebuyersontheother。Thepriceofmeatwillbesettledaftersomealtercations，andapoundofbeefwillbeinvaluetoapieceofsilverprettynearlyasthewholebeefofferedforsaleinthemarketistoallthesilverbroughttheretobuybeef。
Thisproportioniscomeatbybargaining。Thebutcherkeepsuphispriceaccordingtothenumberofbuyershesees；thebuyers，ontheirside，offerlessaccordingastheythinkthebutcherwillhavelesssale：thepricesetbysomeisusuallyfollowedbyothers。Somearemorecleverinpuffinguptheirwares，otherinrunningthemdown。Thoughthismethodoffixingmarketpriceshasnoexactorgeometricalfoundation，sinceitoftendependsupontheeagernessoreasytemperamentofafewbuyersorsellers，itdoesnotseemthatitcouldbedoneinanymoreconvenientway。Itisclearthatthequantityofproduceorofmerchandiseofferedforsale，inproportiontothedemandornumberofbuyers，isthebasisonwhichisfixedoralwayssupposedtobefixedtheactualmarketprices；andthatingeneralthesepricesdonotvarymuchfromtheintrinsicvalue。
Letustakeanothercase。Severalma顃red’h魌elshavebeentoldtobuygreenpeaswhentheyfirstcomein。Onemasterhasorderedthepurchaseof10litronsfor60livres，another10
litronsfor50livres，athird10for40livresandafourth10
livresfor30livres。Iftheseordersaretobecarriedouttheremustbe40litronsofgreenpeasinthemarket。Supposethereareonly20。Thevendors，seeingmanybuyers，willkeepuptheirprices，andthebuyerswillcomeuptothepricesprescribedtothem：sothatthosewhooffer60livresfor10litronswillbethefirstserved。Thesellers，seeinglaterthatnoonewillgoabove50，willlettheother10litronsgoatthatprice。Thosewhohadordersnottoexceed40and30livreswillgoawayempty。
Ifinsteadof40litronstherewere400，notonlywouldthema顃red’h魌elsgetthenewpeasmuchbelowthesumslaiddownforthem，butthesellersinordertobepreferredonetotheotherbythefewbuyerswilllowertheirnewpeasalmosttotheirintrinsicvalue，andinthatcasemanyma顃resd’h魌elswhohadnoorderswillbuysome。
Itoftenhappensthatsellerswhoaretooobstinateinkeepinguptheirpriceinthemarket，misstheopportunityofsellingtheirproduceormerchandisetoadvantageandarelosersthereby。Italsohappensthatbystickingtotheirpricestheymaybeabletosellmoreprofitablyanotherday。
Distantmarketsmayalwayseffectthepricesofthemarketwhereoneis：ifcornisextremelydearinFranceitwillgoupinEnglandandinotherneighbouringcountries。
ChapterThreeOftheCirculationofMoneyItisthegeneralopinioninEnglandthatafarmermustmakethreerents。（1）Theprincipalandtruerentwhichhepaystotheproprietor，supposedequalinvaluetotheproduceofonethirdofhisfarm，asecondrentforhismaintenanceandthatofthemenandhorsesheemploystocultivatethefarm，andathirdwhichoughttoremainwithhimtomakehisundertakingprofitable。
ThesameideaobtainsgenerallyintheothercountriesofEurope，thoughinsome，liketheMilanesestate，thefarmergivesthelandlordhalftheproduceinsteadofathird，andmanylandlordsinallcountriestrytolettheirfarmsatthehighestrenttheycan；butwhenthisisaboveathirdoftheproducethefarmersaregenerallyverypoor。IdoubtnotthattheChineselandownerextractsfromhisfarmermorethanthreefourthsoftheproduce。
Howeverwhenafarmerhassomecapitaltocarryonthemanagementofthisfarmtheproprietorwholetshimthefarmforathirdoftheproducewillbesureofpaymentandwillbebetteroffbysuchabargainthanifhelethislandatahigherratetoabeggarlyfarmerattheriskoflosingallhisrent。Thelargerthefarmthebetteroffthefarmerwillbe。ThisisseeninEnglandwherethefarmersaregenerallymoreprosperousthaninothercountrieswherethefarmsaresmall。
TheassumptionIshallmakeinthisenquiryastothecirculationofmoneyisthatfarmersearnthreerentsandspendthethirdrentonlivingmorecomfortablyinsteadofsavingit。
Itisinfactthecasewiththegreatestnumberoffarmersinallcountries。
Alltheproduceofthecountrycomesdirectlyorindirectlyfromthehandsofthefarmersaswellasallthematerialsfromwhichcommoditiesaremade。Itisthelandwhichproduceseverythingbutfish，andeventhenthefishermenwhocatchthefishmustbemaintainedontheproduceoftheland。
Thethreerentsofthefarmermustthereforebeconsideredastheprincipalsourcesorsotospeakthemainspringofcirculationinthestate。Thefirstrentmustbepaidtothelandownerinreadymoney：forthesecondandthirdrentsreadymoneyisneededfortheiron，tin，copper，salt，sugar，clothandgenerallyallthemerchandiseofthecityconsumedinthecountry；butallthathardlyexceedsthesixthpartofthetotalorthreerents。Asforthefoodanddrinkofthecountryfolkreadymoneyisnotnecessarilytoobtainit。
Thefarmermaybrewhisbeerormakehiswinewithoutspendingcash，hecanmakehisbread，killtheoxen，sheep，pigs，etc。thatareeateninthecountry：hecanpayincorn，meatanddrinkmostofhisassistants——notonlylabourersbutcountryartisans，valuingtheproduceatthepricesofthenearestmarketsandlabourattheordinarypriceofthelocality。
Thethingsnecessarytolifearefood，cloths，andlodging。Thereisnoneedofcashtoobtainfoodinthecountry，asIhavejustexplained。Ifcoarselinenandclothsaremadethere，ifhousesarebuiltthere，asisoftendone，thelabourforallthismaybepaidinbarterbyvaluationwithoutcashbeingneeded。
Theonlycashneededinthecountryisthatfortheprincipalrentofthelandlordandforthemanufactureswhichthecountrynecessarilydrawsfromthecity，suchasknives，scissors，pins，needles，clothsforsomefarmersorotherwell-to-dopeople，thekitchenutensils，plates，andgenerallyallthatisgotfromthecity。Ihavealreadyobservedthatitisreckonedthathalftheinhabitantsofastateliveinthecities，andconsequentlythecitizensspendmorethanhalftheproduceoftheland。Cashisthereforenecessary，notonlyfortherentofthelandlord，correspondingtoonethirdoftheproduce，butalsoforthecitymerchandiseconsumedinthecountry，whichmayamounttosomethingmorethanonesixthoftheproduceofthesoil。Butonethirdandonesixthamounttohalftheproduce。Thecashcirculatinginthecountrymustthereforebeequaltoatleastonehalftheproduceoftheland，bywhichmeanstheotherhalforsomewhatlessmaybeconsumedinthecountrywithoutneedofcash。
Thecirculationofthismoneytakesplacewhenthelandlordsspendindetailinthecitytherentswhichthefarmershavepaidtheminlumpsums，andwhentheundertakersofthecities，butchers，bakers，brewers，etc。collectlittlebylittlethissamemoneytobuyfromthefarmersinlumpsumscattle，wheat，barley，etc。Inthiswayallthelargesumsofmoneyaredistributedinsmallamounts，andallthesmallamountsarethencollectedtomakepaymentsinlargeamounts，directlyorindirectly，tothefarmers，andthismoneylargeorsmallalwayspassesinreturnforservices。
WhenIstatedthatforthecountrycirculationthereisneededaquantityofmoneyoftenequalinvaluetohalftheproduceoftheland，thisistheminimum；andinorderthatthecountrycirculationshouldbeeasilyconductedIwillsupposethatthereadycashwhichconductsthecirculationofthethreerents，isequalinvaluetotwooftheserents，ortwothirdsoftheproduceoftheland。Itwillbeseenlaterthatthissuppositionisnotfarfromthetruth。
Letusnowimaginethatthemoneywhichconductsthewholecirculationofalittlestateisequalto10，000ouncesofsilver，andthatallthepaymentsmadewiththismoney，countrytocity，andcitytocountry，aremadeonceayear；andthatthese10，000ouncesofsilverareequalinvaluetotwooftherentsofthefarmersortwothirdsoftheproduceoftheland。
Therentsofthelandlordswillcorrespondto5000ounces，andthewholecirculationoftheremainingsilverbetweenthecountrypeopleandthecitizens，madebyannualpayments，willcorrespondalsoto5000ounces。
Butifthelandlordsstipulatewiththeirfarmersforhalfyearlyinsteadofyearlypayments，andifthedebtorsofthetwootherrentsalsomaketheirpaymentseverysixmonths，thiswillaltertherapidityofcirculation：andwhereas10，000ounceswereneededtomaketheannualpayments，only5000willnowberequired，since5000ouncespaidtwiceoverwillhavethesameeffectas10，000ouncespaidonce。
Furtherifthelandlordsstipulatewiththeirfarmersforquarterlypayments，oriftheyaresatisfiedtoreceivetheirrentsfromthefarmersaccordingasthefourseasonsoftheyearenablethemtoselltheirproduce，andifallotherpaymentsaremadequarterly，only2500ounceswillbeneededforthesamecirculationwhichwouldhavebeenconductedby10，000ouncespaidonceayear。Therefore，supposingallpaymentsmadequarterlyinthelittlestateinquestion，theproportionofthevalueofthemoneyneededforthecirculationistotheannualproduceofthesoil（orthethreerents），as2500livresisto15，000livres，oras1to6，sothatthemoneywouldcorrespondtothesixthpartoftheannualproduce。
Butseeingthateachbranchofthecirculationinthecitiesiscarriedoutbyundertakers，thattheconsumptionoffoodismetbydaily，weeklyormonthlypayments，andthatpaymentfortheclothingpurchasedonceortwiceayearbyfamiliesismadeatdifferenttimesbydifferentpeople；andwhereastheexpenditureondrinkisusuallymadedaily，thatonsmallbeer，coal，andathousandotherarticlesofconsumptionisveryprompt，itwouldseemthattheproportionwehaveestablishedforquarterlypaymentswouldbetoohighandthatthecirculationofalandproduceof15，000ouncesofsilverinvaluecouldbeconductedwithmuchlessthan2500ouncesofsilverinreadymoney。
AshoweverthefarmershavetomakelargepaymentstothelandlordsatleasteveryquarterandthetaxeswhichtheprinceorthestatecollectsuponconsumptionareaccumulatedbythecollectorstomakelargepaymentstotheReceivers-General，theremustbeenoughreadycashincirculationtomaketheselargepaymentswithoutdifficulty，withouthinderingthecirculationofcurrencyforthefoodandclothingofthepeople。
Itwillbeseenfromthisthattheproportionoftheamountofmoneyneededforcirculationinastateisnotincomprehensible，andthatthisamountmaybegreaterorlessinastateaccordingtothemodeoflivingandtherapidityofpayments。Butitisverydifficulttolaydownanythingdefiniteasregardsthisquantityingeneral，astheproportionmaydifferindifferentcountries，anditisonlyconjecturalwhenIsaythat"therealcashormoneynecessarytocarryonthecirculationandexchangeinastateisaboutequalinvaluetoonethirdofalltheannualrentsoftheproprietorsofthesaidstate。"
Supposingthemoneyincirculationequaltothethirdofalltherentsofthelandownersandtheserentsequaltothethirdoftheannualproduceoftheland，itfollowsthat"themoneycirculatinginastateisequalinvaluetotheninthpartofalltheannualproduceofthesoil。"
SirWilliamPetty，inamanuscriptof1685，supposesfrequentlythatthemoneyincirculationisequaltoonetenthoftheproduceofthesoil。Hegivesnoreason。IsupposeitisanopinionwhichheformedfromexperienceandfromhispracticalknowledgebothofthemoneycirculatinginIreland（agreatpartofthelandofwhichcountryhehadmeasuredasasurveyor）andoftheproducewhichheestimatedroughlyfromobservation。Iamnotfarremovedfromhisconclusiontothelandlords’rentswhichareordinarilypaidinmoneyandeasilyascertainablebyauniformlandtax，ratherthantotheproductsofthesoil，thepricesofwhichvarydailyinthemarkets，andalargepartofwhichisconsumedwithoutenteringintothemarket。InthenextchapterIshallgiveseveralreasons，supportedbyexamples，toconfirmmyconclusion。Ithinkituseful，evenifnotmathematicallyexactineachcountry。Itisenoughifitisnearthetruthandifitpreventsthegovernorsofstatesfromformingextravagantideasoftheamountofmoneyincirculation。Thereisnobranchofknowledgeinwhichoneismoresubjecttoerrorthanstatisticswhentheyarelefttoimagination，andnonemoredemonstrablewhentheyarebasedupondetailedfacts。
Somecitiesandstateswhichhavenolandbelongingtothemsubsistbyexchangingtheirlabourormanufacturesfortheproduceofthelandofothers。SuchareHamburg，Dantzig，severalothercitiesoftheEmpire，andevenpartofHolland。Inthesestatesitseemsmoredifficulttoestimatethecirculation。Butifwecouldestimatetheamountofforeignlandwhichfurnishestheirsubsistence，thecalculationwouldprobablynotdifferfromthatIhavemadefortheotherstateswhichlivechieflyontheirownproduceandarethesubjectofthisessay。
Astothecashneededtocarryonforeigntradeitseemsthatnomoreisrequiredthanwhatisincirculationinthestatewhenthebalanceofforeigntradeisequal，thatiswhentheproductsandmerchandisesentabroadareequalinvaluetothoseimported。