leness　gain　footing　among　the　labouring　classes；　capital　may　diminish　when　prodigality　and　luxury　become　fashionable；　and　lastly；　consumption　may　diminish　from　causes　of　poverty；　unconnected　with　the　diminution　of　labour；　and　yet；　as　it　will　not　offer　employment　for　future　re…production；　it　must　diminish　labour　in　its　turn。　　　　　Thus　nations　incur　dangers　that　seem　incompatible：　they　fall　into　ruin　equally　by　spending　too　much；　and　by　spending　too　little。　A　nation　spends　too　much　whenever　it　exceeds　its　revenue；　because　it　cannot　do　so　except　by　encroaching　on　its　capital；　and　thus　diminishing　future　production；　it　then　does　what　the　solitary　cultivator　would　do　if　he　should　eat　the　corn　which　ought　to　be　secured　for　seed。　A　nation　spends　too　little；　whenever；　being　destitute　of　foreign　commerce；　it　does　not　consume　its　own　production；　or　when；　enjoying　foreign　commerce；　it　does　not　consume　the　excess　of　its　production　above　its　exportation；　for；　if　so；　it　soon　comes　into　the　condition　of　the　solitary　cultivator；　who　having　filled　all　his　granaries　far　beyond　the　probability　of　consumption；　would　be　obliged；　that　he　might　not　work　in　vain；　partly　to　abandon　his　cultivation　of　the　ground。　　　　　The　nation　does　not　indeed　spend　all　that　it　consumes；　the　name　expenditure；　in　such　a　case；　can　properly　be　given　to　that　consumption　only　which　produces　nothing；　while　that　part　of　the　consumption　which　represents　the　wages　of　productive　workmen；　is　an　employment　of　funds；　not　an　expenditure。　Thus；　the　nation；　when　it　forms　manufacturing　establishments；　does　not　diminish　its　consumption；　it　consumes；　in　a　productive　manner；　what　it　formerly　consumed　unproductively。　Still；　however；　this　employment　of　the　national　produce　in　giving　movement　to　new　labour；　though　it　does　not　destroy　the　balance　between　production　and　consumption；　renders　it　much　more　complex。　The　new　produce　thus　obtained　must；　at　last；　find　a　consumer；　and　though　it　may　be　generally　affirmed；　that　to　increase　the　labour　is　to　increase　the　wealth；　and　with　it　in　a　similar　proportion　the　revenue　and　the　consumption；　still　it　is　any　thing　but　proved；　that　by　too　rapid　an　increase　of　its　labour　a　nation　may　not　altogether　deviate　from　the　proper　rate　of　consumption；　and　thus　ruin　itself　by　economy　as　well　as　prodigality。　Happily；　in　most　cases；　the　increase　of　capital；　of　revenue　and　of　consumption；　requires　no　superintendence；　they　proceed；　of　their　own　accord；　with　an　equal　pace；　and　when　one　of　them；　at　any　time；　happens　to　pass　the　others　for　an　instant；　foreign　commerce　is　almost　always　ready　to　restore　the　equilibrium。　　　　　We　have　designedly　carried　on　our　history　of　the　formation　and　progress　of　wealth　thus　far；　without　mentioning　a　circulating　medium；　to　show；　that；　in　fact；　such　an　instrument　is　not　necessary　for　its　development。　A　circulating　medium　did　not　create　wealth；　but　it　simplified　all　the　relations；　and　facilitated　all　the　transactions　of　commerce；　it　gave　to　each　the　means　of　finding　sooner　what　suited　him　best；　and　thus　presenting　an　advantage　to　every　one；　it　still　further　increased　the　wealth；　which　was　already　increasing　without　it。　　　　　The　precious　metals　are　one　of　the　numerous　values　produced　by　the　labour　of　man；　and　applicable　to　his　use。　It　was　soon　discovered　that　they；　more　than　any　other　species　of　riches；　possessed　the　property　of　being　preserved　without　alteration　for　any　length　of　time；　and　the　no　less　valuable　one　of　uniting　easily　into　a　single　whole；　after　being　divided　almost　infinitely。　The　two　halves　of　a　piece　of　cloth；　of　a　fleece；　and　still　less　of　an　ox；　…　though　these　are　supposed　to　have　once　been　employed　as　money；　…　　were　not　worth　the　whole；　but　the　two　halves；　the　four　quarters　of　a　pound　of　gold　are　always；　and　will　be；　a　pound　of　gold；　however　long　they　may　be　kept。　As　the　first　exchange　of　which　men　feel　the　need；　is　that　which　enables　them　to　preserve　the　fruit　of　their　labour　for　a　future　season；　every　one　became　eager　to　get　precious　metals　in　exchange　for　his　commodity；　whatever　it　might　be；　not　because　he　at　all　intended　to　use　those　metals　himself；　but　because　he　was　sure　of　being　able　to　exchange　them　at　any　time　afterwards；　in　the　same　manner；　and　for　the　same　reason；　against　whatever　article　he　might　then　need。　From　that　time　the　precious　metals　began　to　he　sought　after；　not　that　they　might　be　employed　in　the　use　of　man；　as　ornaments　or　utensils；　but　that　they　might　be　accumulated；　at　first；　as　representing　every　species　of　wealth；　and　then　that　they　might　be　used　in　commerce；　as　the　means　of　facilitating　all　kinds　of　exchange。　　　　　Gold　dust；　in　its　primitive　state；　continues；　even　now；　to　be　the　medium　of　exchange　among　the　African　nations。　But　when　once　the　value　of　gold　comes　to　be　universally　admitted；　there　remains　but　a　single　step；　much　easier　and　far　less　important；　till　it　be　converted　into　coin；　which　warrants；　by　a　legal　stamp；　the　weight　and　the　fineness　of　every　particle　of　the　prec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