Itdiminishedevenmorethanhalf：letusseeinwhatmanner。
Toextractthegoldfromthemines，togiveittherequisitepreparations，andtoimportitintoEurope，mustbeattendedwithsomecertainexpense。Iwillsupposethistobeas1to64。Whenthespeciewasoncedoubled，andconsequentlybecamebyone—halflessprecious，theexpensewasas2to64。ThusthegaloonswhichbroughttoSpainthesamequantityofgold，broughtathingwhichreallywasoflessvaluebyone—half，thoughtheexpensesattendingithadbeentwiceashigh。
Ifweproceeddoublinganddoubling，weshallfindinthisprogressionthecauseoftheimpotencyofthewealthofSpain。
ItisabouttwohundredyearssincetheyhaveworkedtheirIndianmines。
IsupposethequantityofspecieatpresentinthetradingworldistothatbeforethediscoveryoftheIndiesas32isto1；thatis，ithasbeendoubledfivetimes：intwohundredyearsmorethesamequantitywillbetothatbeforethediscoveryas64isto1；thatis，itwillbedoubledoncemore。Now，atpresent，fiftyquintalsoforeyieldfour，five，andsixouncesofgold；[148]andwhenityieldsonlytwo，theminerreceivesnomorefromitthanhisexpenses。Intwohundredyears，whentheminerwillextractonlyfour，thistoowillonlydefrayhischarges。Therewillthenbebutlittleprofittobedrawnfromthegoldmines。Thesamereasoningwillholdgoodofsilver，exceptthattheworkingofthesilverminesisalittlemoreadvantageousthanthoseofgold。
But，ifminesshouldbediscoveredsofruitfulastogiveamuchgreaterprofit，themorefruitfultheymaybe，thesoonertheprofitwillcease。
ThePortugueseinBrazilhavefoundminesofgoldsorich[149]thattheymustnecessarilyverysoonmakeaconsiderablediminutionintheprofitsofthoseofSpain，aswellasintheirIhavefrequentlyheardpeopledeploretheblindnessofthecourtofFrance，whorepulsedChristopherColumbus，whenhemadetheproposalofdiscoveringtheIndies。Indeedtheydid，thoughperhapswithoutdesign，anactofthegreatestwisdom。Spainhasbehavedlikethefoolishkingwhodesiredthateverythinghetouchedmightbeconvertedintogold，andwhowasobligedtobegofthegodstoputanendtohismisery。
Thecompaniesandbanksestablishedinmanynationshaveputafinishingstroketotheloweringofgoldandsilverasasignofrepresentationofriches；forbynewfictionstheyhavemultipliedinsuchamannerthesignsofwealth，thatgoldandsilverhavingthisofficeonlyinparthavebecomelessprecious。
Thuspubliccreditservesinsteadofmines，anddiminishestheprofitwhichtheSpaniardsdrewfromtheirs。
TrueitisthattheDutchtradetotheEastIndieshasincreased，insomemeasure，thevalueoftheSpanishmerchandise：forastheycarrybullion，andgiveitinexchangeforthemerchandiseoftheEast，theyeasetheSpaniardsofpartofacommoditywhichinEuropeaboundstoomuch。
Andthistrade，inwhichSpainseemstobeonlyindirectlyconcerned，isasadvantageoustothatnationastothosewhoaredirectlyemployedincarryingiton。
FromwhathasbeensaidwemayformajudgmentofthelastorderofthecouncilofSpain，whichprohibitsthemakinguseofgoldandsilveringildings，andothersuperfluities；adecreeasridiculousasitwouldbeforthestatesofHollandtoprohibittheconsumptionofspices。
Myreasoningdoesnotholdgoodagainstallmines；thoseofGermanyandHungary，whichproducelittlemorethantheexpenseofworkingthem，areextremelyuseful。Theyarefoundintheprincipalstate；theyemploymanythousandmen，whothereconsumetheirsuperfluouscommodities，andtheyareproperlyamanufactureofthecountry。
TheminesofGermanyandHungarypromotethecultureofland；theworkingofthoseofMexicoandPerudestroysit。
TheIndiesandSpainaretwopowersunderthesamemaster；buttheIndiesaretheprincipal，whileSpainisonlyanaccessory，itisinvainforpoliticstoattempttobringbacktheprincipaltotheaccessory；theIndieswillalwaysdrawSpaintothemselves。
Ofthemerchandise，tothevalueofaboutfiftymillionsoflivres，annuallysenttotheIndies，Spainfurnishesonlytwomillionsandahalf：theIndiestradeforfiftymillions，theSpaniardsfortwoandahalf。
Thatmustbeabadkindofricheswhichdependsonaccident，andnotontheindustryofanation，onthenumberofitsinhabitants，andonthecultivationofitslands。ThekingofSpain，whoreceivesgreatsumsfromhiscustom—houseatCadiz，isinthisrespectonlyarichindividualinastateextremelypoor。Everythingpassesbetweenstrangersandhimself，whilehissubjectshavescarcelyanyshareinit；
thiscommerceisindependentbothofthegoodandbadfortuneofhiskingdom。
WeresomeprovincesofCastileabletogivehimasumequaltothatofthecustom—houseofCadiz，hispowerwouldbemuchgreater；hisricheswouldbetheeffectofthewealthofthecountry；theseprovinceswouldanimatealltheothers，andtheywouldbealtogethermorecapableofsupportingtheirrespectivecharges；insteadofagreattreasuryhewouldhaveagreatpeople。
23。AProblem，itisnotformetodecidethequestionwhether，ifSpainbenotherselfabletocarryonthetradeoftheIndies，itwouldnotbebettertoleaveitopentostrangers。Iwillonlysaythatitisfortheiradvantagetoloadthiscommercewithasfewobstaclesaspoliticswillpermit。WhenthemerchandisewhichseveralnationssendtotheIndiesisverydear，theinhabitantsofthatcountrygiveagreatdealoftheircommodities，whicharegoldandsilver，forverylittleofthoseofforeigners；thecontrarytothishappenswhentheyareatalowprice，itwouldperhapsbeofusethatthesenationsshouldunderselleachother，totheendthatthemerchandisecarriedtotheIndiesmightbealwayscheap。Theseareprincipleswhichdeservetobeexamined，withoutseparatingthem，however，fromotherconsiderations：thesafetyoftheIndies，theadvantagesofonlyonecustom—house，thedangerofmakinggreatalterations，andtheforeseeninconveniences，whichareoftenlessdangerousthanthosewhichcannotbeforeseen。
______
1。Pliny，vi。23。
2。SeePliny，vi。19，andStrabo，xv。
3。Bookvi。4，5。
4。Bookxi。
5。Diodorus，ii。
6。Ibid。，7，8，9。
7。Pliny，vi。16，andStrabo，xi。
8。Strabo，xi。
9。Ibid。
10。TheauthorityofPatroclusisofgreatweight，asappearsfromapassageinStrabo，ii。
11。Pliny，vi。17。SeealsoStrabo，xi，uponthepassagebywhichthemerchandisewasconveyedfromthePhasistotheCyrus。
12。TheremusthavebeenverygreatchangesinthatcountrysincethetimeofPtolemy，whogivesusanaccountofsomanyriversthatemptythemselvesintotheeastsideoftheCaspianSea。IntheCzar’schartwefindonlytheriverofAstrabat：inthatofM。Bathaisithereisnoneatall。
13。SeeJenkinson’saccountofthis，intheCollectionofVoyagestotheNorth，iv。
14。IamdisposedtothinkthathenceLakeAralwasformed。
15。ClaudiusC？sar，inPliny，vi。11。
16。HewasslainbyPtolemyCeraunus。
17。SeeStrabo，xi。
18。TheyfoundedTartessus，andmadeasettlementatCadiz。
19。IKings，9。26；IIChron。，8。17。
20。AgainstAppian。
21。Chapter1ofthisbook。
22。Theproportionbetweengoldandsilver，assettledinEurope，maysometimesrenderitprofitabletotakegoldinsteadofsilverintotheEastIndies；buttheadvantageisverytrifling。
23。SeePliny，vi。22，andStrabo，xv。
24。Theyaremostlyshallow；butSicilyhasexcellentports。
25。IsaytheprovinceofHolland；fortheportsofZealandaredeepenough。
26。Thatis，tocomparemagnitudesofthesamekind，theactionorpressureofthefluidupontheshipwillbetotheresistanceofthesameshipas，&c。
27。TheKingofPersia。
28。OntheAthenianRepublic，2。
29。SeeStrabo，viii。
30。Iliad，ii。668。
31。Ibid。，570。
32。Strabo，ix，p。414。
33。Strabo，xv。
34。Herodotus，Melpomene，iv。44。
35。Strabo，xv。
36。Ibid。，xv。
37。Pliny，vi。33，Strabo，xv。
38。Theysailednotupontherivers，lesttheyshoulddefiletheelements——Hyde，ReligionofthePersians。Eventothisdaytheyhavenomaritimecommerce。ThosewhotaketotheseaaretreatedbythemasAtheists。
39。Strabo，xv。
40。Herodotus，Melpomene，iv。44，saysthatDariusconqueredtheIndies；
thismustbeunderstoodonlytomeanAriana；andeventhiswasonlyanidealconquest。
41。Strabo，xv。
42。ThiscannotbeunderstoodofalltheIchthyophagi，whoinhabitedacoastoftenthousandfurlongsinextent。HowwasitpossibleforAlexandertohavemaintainedthem？Howcouldhecommandtheirsubmission？Thiscanbeonlyunderstoodofsomeparticulartribes。
Nearchus，inhisbookRerumIndicarum，saysthatattheextremityofthiscoast，onthesideofPersia，hehadfoundsomepeoplewhowerelessIchthyophagithantheothers。IshouldthinkthatAlexander’sprohibitionrelatedtothesepeople，ortosomeothertribestillmoreborderingonPersia。
43。Alexandriawasfoundedonaflatshore，calledRhacotis，where，inancienttimes，thekingshadkeptagarrisontopreventallstrangers，andmoreparticularlytheGreeks，fromenteringthecountry。——Pliny，vi。10；Strabo，xviii。
44。Arrian，DeExpedit。Alex。vii。
45。Ibid。
46。Strabo，vi，towardstheend。
47。SeeingBabylonoverflowed，helookedupontheneighbouringcountryofArabiaasanisland。——Aristobulus，inStrabo，xvi。
48。SeeRerumIndicarum。
49。Strabo，xvi。
50。Strabo，xvi。
51。Thesegavethemanaversiontostrangers。
52。Pliny，ii。67，vi。9，13；Strabo，xi。，p。507；Arrian，DeExpedit。
Alex。，iii，p74，v，p。104。
53。Arrian，DeExpedit。Alex。，vii。
54。Pliny，ii。67。
55。SeetheCzar’sChart。
56。Pliny，vi。17。
57。Bookxv。
58。ApolloniusAdrumatinusinStrabo，xi。
59。TheMacedoniansofBactria，India，andAriana，havingseparatedthemselvesfromSyria，formedagreatstate。
60。Bookvi。23。
61。Ibid。
62。Sigertidisregnum，xi。
63。Themonsoonsblowpartoftheyearfromonequarter，andpartfromanother；thetradewindsblowthewholeyearroundfromthesamequarter。
64。Bookvi。23。
65。Herodotus，Melpomene，iv。44。
66。Pliny，vi。23。
67。Ibid。
68。Bookxv。
69。Pliny，vi。23。
70。Bookxv。
71。Hewasdesirousofconqueringit。——Herodotus，iv。42。
72。Pliny，ii。67；PomponiusMela，iii。9。
73。Herodotus，Melpomene，iv。43。
74。AddtothiswhatIshallsayinchapter11ofthisbookonthenavigationofHanno。
75。InthemonthsofOctober，November，December，andJanuarythewindintheAtlanticOceanisfoundtoblownorth—east；ourshipsthereforeeithercrosstheline，andtoavoidthewind，whichistheregenerallyeast，theydirecttheircoursetothesouth：orelsetheyenterintothetorridzone，inthoseplaceswherethewindiswest。
76。TheseatowhichwegivethisnamewascalledbytheancientstheGulfofArabia；thenameofRedSeatheygavetothatpartoftheoceanwhichbordersonthisgulf。
77。Strabo，xvi。
78。Ibid。ArtemidorussettledthebordersoftheknowncoastattheplacecalledAustricornu；andEratosthenes，Cinnamomiferam。
79。Strabo，i。7；iv。9；table4ofAfrica。
80。ThisPeriplusisattributedtoArrian。
81。Ptolemy，iv。9。
82。Bookiv。7，8。
83。SeewhatexactdescriptionsStraboandPtolemyhavegivenusofthedifferentpartsofAfrica。TheirknowledgewasowingtotheseveralwarswhichthetwomostpowerfulnationsintheworldhadwagedwiththepeopleofAfrica，tothealliancestheyhadcontracted，andtothetradetheyhadcarriedonwiththosecountries。
84。Bookvii。3。
85。SeehisPeriplus，underthearticleonCarthage。
86。SeeHerodotus，Melpomene，iv。43，ontheobstacleswhichSataspesencountered。
87。SeethechartsandrelationsinthefirstvolumeofCollectionofVoyagesthatContributedtotheEstablishmentoftheEastIndiaCompany，parti，p。201。Thisweedcoversthesurfaceofthewaterinsuchamannerastobescarcelyperceived，andshipscanonlypassthroughitwithastiffgale。
88。Pliny，v。i，tellsusthesamething，speakingofMountAtlas：
Noctibusmicarecrebrisignibus，tibiarumcantutimpanorumquesonitustrepere，nemineminterdiucerni。
89。Mr。Dodwell。SeehisDissertationonHanno’sPeriplus。
90。OfWonderfulThings。
91。Bookvi。
92。Bookiii。
93。Monsargentarius。
94。Hehadsomeshareintheirmanagement。
95。SeeFestusAvienus。
96。Strabo，iii，towardstheend。
97。HewasrewardedbythesenateofCarthage。
98。Freinshemius，SupplementtoLivy，dec。2，vi。
99。InthepartssubjecttotheCarthaginians。
100。Justin，xliii。5。
101。SeeStrabo，x。
102。HeconfirmedthelibertyofthecityofAmisus，anAtheniancolonywhichhadenjoyedapopulargovernment，evenunderthekingsofPersia。
LucullushavingtakenSinoneandAmisus，restoredthemtotheirliberty，andrecalledtheinhabitants，whohadfledonboardtheirships。
103。SeewhatAppianwritesconcerningthePhanagoreans，theAmisians，andtheSynopians，inhistreatiseOftheWaragainstMithridates。
104。SeeAppian，inregardtotheimmensetreasureswhichMithridatesemployedinhiswars，thosewhichhehadburied，thosewhichhefrequentlylostbythetreacheryofhisownpeople，andthosewhichwerefoundafterhisdeath。
105。SeeAppianOftheWaragainstMithridates。
106。Ibid。
107。Helostatonetime170，000men，yethesoonrecruitedhisarmies。
108。IntheConsiderationsontheCausesoftheRiseandDeclensionoftheRomanGrandeur。
109。AsPlatohasobserved。Laws，iv。
110。Polybius，v。
111。SeetheConsiderationsontheCausesoftheRiseandDeclensionoftheRomanGrandeur。
112。Ibid。
113。Leg。5，§2，ff。DeCaptivis。
114。Qu？mercimoniispublicepr？fuit——Leg。1，Cod。denatural。
liberis。
115。Leg。adbarbaricum。Cod。qu？resexportarinondebeant。
116。Leg。2，Cod。decommerc。etmercator。
117。Procopius，WarofthePersians，i。
118。SeetheConsiderationsontheCausesoftheRiseandDeclensionoftheRomanGrandeur。
119。Pliny，vi。28，andStrabo，xvi。
120。Ibid。
121。ThecaravansofAleppoandSuezcarrythitherannuallytothevalueofabouttwomillionsoflivres，andasmuchmoreclandestinely；theroyalvesselofSuezcarriesthitheralsotwomillions。
122。Bookii，p。181，ed。1587。
123。Bookvi。23。
124。Hesays，bookii，thattheRomansemployedahundredandtwentyshipsinthattrade；and，inbookxvii，thattheGreciankingsscarcelyemployedtwenty。
125。Booki，2。
126。Booki，13。
127。OurbestmapsplacePeter’stowerinthehundredthdegreeoflongitude，andaboutthefortiethoflatitude。
128。Suetonius，LifeofClaudius，18；Leg。7。Cod。Theodos。denaviculariis。
129。Bookviii，tit。4，§9。
130。Tototitulo，ff。deincend，ruin。etnaufrag。；Cod。denaufragiis；
Leg。3，ff。adleg。Cornel，desicariis。
131。Leg。1，Cod。denaufragiis。
132。Bookxi，tit。3，§2。
133。SeeAristotle，Politics，i。9，10。
134。SeeinMarcaHispanica，theconstitutionsofAragon，intheyears1228and1231；andinBrussel，theagreement，intheyear1206，betweentheKing，theCountessofChampagne，andGuyofDampierre。
135。Stow，SurveyofLondon，iii，p。54。
136。TheedictpassedatBaville，4thofApril，1392。
137。InFrancetheJewswereslavesinmortmain，andthelordstheirsuccessors。Mr。Brusselmentionsanagreementmadeintheyear1206，betweentheKingandThibaut，CountofChampagne，bywhichitwasagreedthattheJewsoftheoneshouldnotlendinthelandsoftheother。
138。ItisknownthatunderPhilipAugustusandPhiliptheLong，theJewswhowerechasedfromFrancetookrefugeinLombardy，andthattheretheygavetoforeignmerchantsandtravellerssecretletters，drawnuponthosetowhomtheyhadentrustedtheireffectsinFrance，whichwereaccepted。
139。SeeNov。83oftheEmperorLeo，whichrevokesthelawofBasilhisfather。ThislawofBasilisinHermenopulus，underthenameofLeo，iii，tit。7，§27。
140。SeetheaccountofPirard，partII，15。
141。This，inthelanguageoftheancients，isthestatewhichfoundedthecolony。
142。ExcepttheCarthaginians，asweseebythetreatywhichputanendtothefirstPunicwar。
143。Polybius，iii。
144。TheKingofPersiaobligedhimselfbytreatynottosailwithanyvesselofwarbeyondtheCyaneanrocksandtheChelidoneanisles。——
Plutarch，Cimon。
145。Aristotle，OfWonderfulThings；Livy，dec。2，vii。
146。Bookii，p。170。
147。Thishasbeenalreadyshowninasmalltreatisewrittenbytheauthorabouttwentyyearsago；whichhasbeenalmostentirelyincorporatedinthepresentwork。
148。SeeFrezier，Voyages。
149。AccordingtoLordAnson，EuropereceiveseveryyearfromBraziltwomillionssterlingingold，whichisfoundinsandatthefootofthemountains，orinthebedsofrivers。WhenIwrotethelittletreatisementionedinthefirstnoteofthischapter，thereturnsfromBrazilwerefarfrombeingsoconsiderableanitemastheyareatpresent。
BookXXII。OfLawsinRelationtotheUseofMoney1。TheReasonoftheUseofMoney。Peoplewhohavelittlemerchandise，assavages，andamongcivilisednationsthosewhohaveonlytwoorthreespecies，tradebyexchange。ThusthecaravansofMoorsthatgotoTimbuctoo，intheheartofAfrica，havenoneedofmoney，fortheyexchangetheirsaltforgold。TheMoorputshissaltinaheap，andtheNegrohisdustinanother；ifthereisnotgoldenough，theMoortakesawaysomeofhissalt，ortheNegroaddsmoregold，tillbothpartiesareagreed。
Butwhenanationtrafficswithagreatvarietyofmerchandise，moneybecomesnecessary；becauseametaleasilycarriedfromplacetoplacesavesthegreatexpenseswhichpeoplewouldbeobligedtobeatiftheyalwaysproceededbyexchange。
Asallnationshavereciprocalwants，itfrequentlyhappensthatoneisdesirousofalargequantityoftheother’smerchandise，whenthelatterwillhaveverylittleoftheirs，thoughwithrespecttoanothernationthecaseisdirectlyopposite。Butwhennationshavemoney，andproceedbybuyingandselling，thosewhotakemostmerchandisepaythebalanceinspecie。Andthereisthisdifference，that，inthecaseofbuying，thetradecarriedonisinproportiontothewantsofthenationthathasthegreatestdemands；whileinbartering，thetradeisonlyaccordingtothewantsofthenationwhosedemandsarethefewest；
withoutwhichthelatterwouldbeunderanimpossibilityofbalancingitsaccounts。
2。OftheNatureofMoney。Moneyisasignwhichrepresentsthevalueofallmerchandise。Metalistakenforthissign，asbeingdurable，[1]
becauseitisconsumedbutlittlebyuse；andbecause，withoutbeingdestroyed，itiscapableofmanydivisions。Apreciousmetalhasbeenchosenasasign，asbeingmostportable。Ametalismostproperforacommonmeasure，becauseitcanbeeasilyreducedtothesamestandard。
Everystatefixesuponitaparticularimpression，totheendthattheformmaycorrespondwiththestandardandtheweight，andthatbothmaybeknownbyinspectiononly。TheAthenians，nothavingtheuseofmetals，madeuseofoxen，[2]andtheRomansofsheep；butoneoxisnotthesameasanotheroxinthemannerthatonepieceofmetalmaybethesameasanother。
Aspecieisthesignofthevalueofmerchandise，paperisthesignofthevalueofspecie；andwhenitisoftherightsort，itrepresentsthisvalueinsuchamannerthatastotheeffectsproducedbyitthereisnottheleastdifference。