In　proportion　as　this　quantity　is　great　or　small；　so　are　his　real
  riches；　his　real　weekly　revenue。　His　weekly　revenue　is　certainly
  not　equal　both　to　the　guinea；　and　to　what　can　be　purchased　with
  it；　but　only　to　one　or　other　of　those　two　equal　values；　and　to
  the　latter　more　properly　than　to　the　former；　to　the　guinea's
  worth　rather　than　to　the　guinea。
  If　the　pension　of　such　a　person　was　paid　to　him；　not　in
  gold；　but　in　a　weekly　bill　for　a　guinea；　his　revenue　surely　would
  not　so　properly　consist　in　the　piece　of　paper；　as　in　what　he
  could　get　for　it。　A　guinea　may　be　considered　as　a　bill　for　a
  certain　quantity　of　necessaries　and　conveniencies　upon　all　the
  tradesmen　in　the　neighbourhood。　The　revenue　of　the　person　to　whom
  it　is　paid；　does　not　so　properly　consist　in　the　piece　of　gold；　as
  in　what　he　can　get　for　it；　or　in　what　he　can　exchange　it　for。　If
  it　could　be　exchanged　for　nothing；　it　would；　like　a　bill　upon　a
  bankrupt；　be　of　no　more　value　than　the　most　useless　piece　of
  paper。
  Though　the　weekly　or　yearly　revenue　of　all　the　different
  inhabitants　of　any　country；　in　the　same　manner；　may　be；　and　in
  reality　frequently　is　paid　to　them　in　money；　their　real　riches；
  however；　the　real　weekly　or　yearly　revenue　of　all　of　them　taken
  together；　must　always　be　great　or　small　in　proportion　to　the
  quantity　of　consumable　goods　which　they　can　all　of　them　purchase
  with　this　money。　The　whole　revenue　of　all　of　them　taken　together
  is　evidently　not　equal　to　both　the　money　and　the　consumable
  goods；　but　only　to　one　or　other　of　those　two　values；　and　to　the
  latter　more　properly　than　to　the　former。
  Though　we　frequently；　therefore；　express　a　person's　revenue
  by　the　metal　pieces　which　are　annually　paid　to　him；　it　is　because
  the　amount　of　those　pieces　regulates　the　extent　of　his　power　of
  purchasing；　or　the　value　of　the　goods　which　he　can　annually
  afford　to　consume。　We　still　consider　his　revenue　as　consisting　in
  this　power　of　purchasing　or　consuming；　and　not　in　the　pieces
  which　convey　it。
  But　if　this　is　sufficiently　evident　even　with　regard　to　an
  individual；　it　is　still　more　so　with　regard　to　a　society。　The
  amount　of　the　metal　pieces　which　are　annually　paid　to　an
  individual；　is　often　precisely　equal　to　his　revenue；　and　is　upon
  that　account　the　shortest　and　best　expression　of　its　value。　But
  the　amount　of　the　metal　pieces　which　circulate　in　a　society　can
  never　be　equal　to　the　revenue　of　all　its　members。　As　the　same
  guinea　which　pays　the　weekly　pension　of　one　man　to…day；　may　pay
  that　of　another　to…morrow；　and　that　of　a　third　the　day
  thereafter；　the　amount　of　the　metal　pieces　which　annually
  circulate　in　any　country　must　always　be　of　much　less　value　than
  the　whole　money　pensions　annually　paid　with　them。　But　the　power
  of　purchasing；　or　the　goods　which　can　successively　be　bought　with
  the　whole　of　those　money　pensions　as　they　are　successively　paid；
  must　always　be　precisely　of　the　same　value　with　those　pensions；
  as　must　likewise　be　the　revenue　of　the　different　persons　to　whom
  they　are　paid。　That　revenue；　therefore；　cannot　consist　in　those
  metal　pieces；　of　which　the　amount　is　so　much　inferior　to　its
  value；　but　in　the　power　of　purchasing；　in　the　goods　which　can
  successively　be　bought　with　them　as　they　circulate　from　hand　to
  hand。
  Money；　therefore；　the　great　wheel　of　circulation；　the　great
  instrument　of　commerce；　like　all　other　instruments　of　trade；
  though　it　makes　a　part　and　a　very　valuable　part　of　the　capital；
  makes　no　part　of　the　revenue　of　the　society　to　which　it　belongs；
  and　though　the　metal　pieces　of　which　it　is　composed；　in　the
  course　of　their　annual　circulation；　distribute　to　every　man　the
  revenue　which　properly　belongs　to　him；　they　make　themselves　no
  part　of　that　revenue。
  Thirdly；　and　lastly；　the　machines　and　instruments　of　trade；
  etc。；　which　compose　the　fixed　capital；　bear　this　further
  resemblance　to　that　part　of　the　circulating　capital　which
  consists　in　money；　that　as　every　saving　in　the　expense　of
  erecting　and　supporting　those　machines；　which　does　not　diminish
  the　productive　powers　of　labour；　is　an　improvement　of　the　net
  revenue　of　the　society；　so　every　saving　in　the　expense　of
  collecting　and　supporting　that　part　of　the　circulating　capital
  which　consists　in　money；　is　an　improvement　of　exactly　the　same
  kind。
  It　is　sufficiently　obvious；　and　it　has　partly；　too；　been
  explained　already；　in　what　manner　every　saving　in　the　expense　of
  supporting　the　fixed　capital　is　an　improvement　of　the　net　revenue
  of　the　society。　The　whole　capital　of　the　undertaker　of　every　work
  is　necessarily　divided　between　his　fixed　and　his　circulating
  capital。　While　his　whole　capital　remains　the　same；　the　smaller
  the　one　part；　the　greater　must　necessarily　be　the　other。　It　is
  the　circulating　capital　which　furnishes　the　materials　and　wages
  of　labour；　and　puts　industry　into　motion。　Every　saving；
  therefore；　in　the　expense　of　maintaining　the　fixed　capital；　which
  does　not　diminish　the　productive　powers　of　labour；　must　increase
  the　fund　which　puts　industry　into　motion；　and　consequently　the
  annual　produce　of　land　and　labour；　the　real　revenue　of　every
  society。
  The　substitution　of　paper　in　the　room　of　gold　and　silver
  money；　replaces　a　very　expensive　instrument　of　commerce　with　one
  much　less　costly；　and　sometimes　equally　convenient。　Circulation
  comes　to　be　carried　on　by　a　new　wheel；　which　it　costs　less　both
  to　erect　and　to　maintain　than　the　old　one。　But　in　what　manner
  this　operation　is　performed；　and　in　what　manner　it　tends　to
  increase　either　the　gross　or　the　net　revenue　of　the　society；　is
  not　altogether　so　obvious；　and　may　therefore　require　some　further
  explication。
  There　are　several　different　sorts　of　paper　money；　but　the
  circulating　notes　of　banks　and　bankers　are　the　species　which　is
  best　known；　and　which　seems　best　adapted　for　this　purpose。
  When　the　people　of　any　particular　country　have　such
  confidence　in　the　fortune；　probity；　and　prudence　of　a　particular
  banker；　as　to　believe　that　he　is　always　ready　to　pay　upon　demand
  such　of　his　promissory　notes　as　are　likely　to　be　at　any　time
  presented　to　him；　those　notes　come　to　have　the　same　currency　as
  gold　and　silver　money；　from　the　confidence　that　such　money　can　at
  any　time　be　had　for　them。
  A　particular　banker　lends　among　his　customers　his　own
  promissory　notes；　to　the　extent；　we　shall　suppose；　of　a　hundred
  thousand　pounds。　As　those　notes　serve　all　the　purposes　of　money；
  his　debtors　pay　him　the　same　interest　as　if　he　had　lent　them　so
  much　money。　This　interest　is　the　source　of　his　gain。　Though　some
  of　those　notes　are　continually　coming　back　upon　him　for　payment；
  part　of　them　continue　to　circulate　for　months　and　years　together。
  Though　he　has　generally　in　circulation；　therefore；　notes　to　the
  extent　of　a　hundred　thousand　pounds；　twenty　thousand　pounds　in
  gold　and　silver　may　frequently　be　a　sufficient　provision　for
  answering　occasional　demands。　By　this　operation；　therefore；
  twenty　thousand　pounds　in　gold　and　silver　perform　all　the
  functions　which　a　hundred　thousand　could　otherwise　have
  performed。　The　same　exchanges　may　be　made；　the　same　quantity　of
  consumable　goods　may　be　circulated　and　distributed　to　their
  proper　consumers；　by　means　of　his　promissory　notes；　to　the　value
  of　a　hundred　thousand　pounds；　as　by　an　equal　value　of　gold　and
  silver　money。　Eighty　thousand　pounds　of　gold　and　silver；
  therefore；　can；　in　this　manner；　be　spared　from　the　circulation　of
  the　country；　and　if　different　operations　of　the　same　kind　should；
  at　the　same　time；　be　carried　on　by　many　different　banks　and
  bankers；　the　whole　circulation　may　thus　be　conducted　with　a　fifth
  part　only　of　the　gold　and　silver　which　would　otherwise　have　been
  requisite。
  Let　us　suppose；　for　example；　that　the　whole　circulating
  money　of　some　particular　country　amounted；　at　a　particular　time；
  to　one　million　sterling；　that　sum　being　then　sufficient　for
  circulating　the　whole　annual　produce　of　their　land　and　labour。
  Let　us　suppose；　too；　that　some　time　thereafter；　different　banks
  and　bankers　issued　promissory　notes；　payable　to　the　bearer；　to
  the　extent　of　one　million；　reserving　in　their　different　coffers
  two　hundred　thousand　pounds　for　answering　occasional　demands。
  There　would　remain；　therefore；　in　circulation；　eight　hundred
  thousand　pounds　in　gold　and　silver；　and　a　million　of　bank　notes；
  or　eighteen　hundred　thousand　pounds　of　paper　and　money　together。
  But　the　annual　produce　of　the　land　and　labour　of　the　country　had
  before　required　only　one　million　to　circulate　and　distribute　it
  to　its　proper　consumers；　and　that　annual　produce　cannot　be
  immediately　augmented　by　those　operations　of　banking。　One
  million；　therefore；　will　be　sufficient　to　circulate　it　after
  them。　The　goods　to　be　bought　and　sold　being　precisely　the　same　as
  before；　the　same　quantity　of　money　will　be　sufficient　for　buying
  and　selling　them。　The　channel　of　circulation；　if　I　may　be　allowed
  such　an　expression；　will　remain　precisely　the　same　as　before。　One
  million　we　have　supposed　sufficient　to　fill　that　channel。
  Whatever；　therefore；