ur。　If　the　want　is　great；　and　the　means　of　labour　small；　the　interest　of　money　will　be　considerable；　if；　on　the　contrary；　there　is　much　capital　in　circulation；　and　little　employment　for　it；　interest　will　be　very　low。　It　must　always　be　regulated　by　what　is　called　the　quantity　of　money　offered　in　the　market；　because　money　is　the　sign　of　capital；　though　not　capital　itself。　Far　from　being　augmented　by　the　magical　increase　of　money　above　alluded　to；　capital　would　not　even　be　increased　by　the　arrival　of　money；　in　great　abundance；　at　a　particular　place　of　trade；　without　losing　any　thing　of　its　value　in　comparison　with　the　things　it　purchases；　and　no　change　in　the　rate　of　interest　would　result　from　this　circumstance。　　　　　Nearly　all　the　circulating　capital　of　each　manufacturer　and　trader　is　successively　presented　to　him　under　the　shape　of　money；　in　its　return　from　the　buyer　to　the　seller；　but　the　part　of　his　funds；　which　a　merchant　actually　has　in　money；　forms；　in　ordinary　cases；　but　a　small　portion　of　the　capital　employed　in　his　commerce；　an　infinitely　greater　portion　being　kept　in　its　original　state　in　his　own　warehouses；　or　in　those　of　his　debtors。　On　the　other　hand；　it　is　almost　always　in　the　power　of　each　merchant　instantaneously　to　augment　the　quantity　of　money　at　his　disposal；　by　selling　his　goods　at　a　less　profit；　or　by　discounting　the　debts　which　are　owed　him。　In　this　way；　he　has　money　when　he　pleases；　without　being　richer；　the　money；　far　from　adding　to　his　capital；　is　purchased　with　it。　If　such　operations　are　performed　at　one　time　by　several　merchants　in　the　same　town；　that　town　purchases　money　from　its　neighbours；　if　by　a　great　number　of　French；　English；　or　German　merchants；　we　say　that　France；　England；　or　Germany　purchases　money。　There　will；　in　reality；　be　found　much　more　in　the　markets　to　make　payments　with；　guineas　will　be　much　more　abundant；　but　there　will　be　neither　more　nor　fewer　deposits　offered　to　lend；　and　the　rate　of　interest　will　not　be　any　way　affected　by　the　change。　Such　as　are　acquainted　with　the　movements　of　trading　places；　know　well　that　guineas　may　abound　in　them　while　capitals　are　scarce；　or　guineas　be　scarce　while　capitals　abound。　　　　　It　is　a　gross　error；　then；　to　believe；　that；　in　all　cases；　a　considerable　importation　of　the　circulating　medium　will　make　the　rate　of　interest　fall；　or　an　exportation　make　it　rise。　Money　is　a　kind　of　wealth；　and　like　any　other　kind　of　wealth；　it　forms　part　of　the　circulating　capital。　If　the　money　imported　is　a　gift；　or　a　tribute；　if　it　costs　nothing　to　the　nation；　it　will　certainly　augment　its　circulating　capital；　and　must　certainly　contribute　to　lower　the　rate　of　interest　on　the　spot；　but　the　same　sums　paid　to　the　nation　in　goods　would　equally　contribute　to　that　end。　If；　on　the　other　hand；　this　money　has　been　purchased　with　any　other　portion　of　the　capital；　in　that　case　the　sum　total　of　the　latter　will　remain　the　same；　and　the　rate　of　interest　will　not　be　affected。　　　　　Upon　these　principles；　it　is　easy　to　see　how　mines　of　silver　and　gold　do　not　enrich　a　nation　more　than　any　other　kind　of　industry。　The　precious　metals　drawn　from　the　mine　are　goods　purchased；　like　all　other　goods；　at　the　price　of　labour　and　capital。　The　opening　of　the　mine；　the　construction　of　its　galleries；　the　establishment　of　refining　furnaces；　require　large　advances；　independently　of　the　labour　by　which　the　ore　is　drawn　from　the　bowels　of　the　earth。　This　labour；　and　its　fruits；　may　be　exactly　paid　by　the　metal　produced；　and　the　state　will　gain　by　the　operation；　as　by　any　other　manufacture。　But；　in　general；　the　profits　of　mines　are　irregular。　As　the　head　prize　in　a　lottery　seduces　gamesters；　an　unlooked　for　advantage　encourages　miners　to　continue　their　exertions；　although　the　usual　returns　be　inferior　to　those　obtained　by　any　other　kind　of　industry；　and　nearly　all　of　them　are　ruined；　just　like　gamesters；　because　they　were　at　first　successful。　　　　　From　these　principles；　we　may　also　conclude；　that　the　blame　so　frequently　imputed　to　Frederic　II　and　the　Canton　of　Berne　for　having　hoarded　up　and　withdrawn　from　the　country　a　large　portion　of　the　natural　circulating　medium；　is　without　foundation。　By　saving　a　part　of　their　expenses；　they；　of　course；　in　some　degree；　diminished　consumption　and　re…production；　by　preserving　some　millions　in　their　coffers；　they　in　some　degree　diminished　the　circulating　capital：　but　the　money　locked　up　by　them　was　soon　replaced　by　other　moneys　which　the　country　purchased；　and；　besides；　the　whole　circulating　medium　of　a　nation　is　so　small；　compared　with　its　whole　circulating　capital；　that　such　a　void　can　never　be　considered　as　a　national　misfortune；　or　counterbalance　the　immense　advantage　of　possessing　a　fund　ready；　without　new　sacrifices；　at　the　moment　of　want。　　　　　From　confounding　money　with　capital；　has　arisen　the　general　mistake　of　attempting　to　increase　the　national　capital　by　a　fictitious　capital；　which；　not　having　been　created　by　an　expensive　labour；　is　not；　like　gold　or　silver；　a　pledge　of　the　values　it　represents；　and　which；　after　having　delighted　nations　with　the　illusions　of　wealth；　has　so　frequently　left　them　in　ruin。　　　　　It　will　be　more　easy　to　follow　the　operation；　by　which　so　many　states　in　our　time　have　endeavoured　to　replace　their　money　by　paper；　if　we　previously　direct　our　attention　to　the　manner　in　which　one　of　the　most　ancient　trading　cities　of　France　made　a　few　crowns　perform　the　functions　of　a　considerable　circulating　medium。　At　Lyons；　it　was　agreed　upon　in　trade；　that　all　payments　should　take　place　only　at　four　fixed　periods；　quarterly。　During　the　three　days　which　the　payments　took　up；　all　the　accounts　of　the　city　were　settled　at　once。　Each；　at　the　same　period；　had　much　to　receive　and　much　to　pay。　But；　on　the　days　immediately　preceding　the　payments；　all　the　merchants　used　to　meet　on　the　exchange；　to　make　what　they　called　viremens；　in　other　words；　to　assign；　one　to　another；　such　sums　as　would　settle　their　accounts。　A　owed　B；　who　owed　C；　who　owed　D；　who　owed　E；　himself　indebted　to　A；　and　the　five　accounts　were　settled　without　any　payment。　If　E　was　not　indebted　to　A；　it　was　agreed　that　A　should　pay　E；　and　the　other　four　were　acquitted　by　a　single　payment。　Every　merchant　bought　but　to　sell　again；　received；　therefore；　but　to　pay；　and　if　those　assignments　were　extended　to　their　utmost　limits；　one　single　sum　of　ten　thousand　pounds　would　probably　settle　all　the　transactions　of　a　city；　though　these　amounted　to　several　millions。　　　　　But　all　mutual　debts　are　not　equal；　and　bankruptcies　occasion　difficulties；　and　sometimes　errors　in　the　assignments。　The　invention　of　banks　has　supplied　this　deficiency。　The　Bank　of　Amsterdam　is　a　kind　of　open　bar；　where　assignments　may　constantly　be　made。　Every　trader　pays　or　receives；　by　a　line　which　is　written　down　in　the　bank's　books；　on　the　debtor　or　creditor　side　of　his　account；　without　any　money　being　disbursed。　Among　merchants；　who　have　all　an　open　credit　with　the　bank；　the　operation　of　the　book…keeper　supplies　with　the　utmost　ease　that　of　cashier；　and　no　difference　of　amount；　or　day　of　payment；　prevents　sums　from　being　reciprocally　balanced。　　　　　A　bank　like　that　of　Amsterdam；　however；　is　of　use　only　to　such　as　have　a　current　account　in　it。　Many　traders　may　have　no　account；　and　few　or　none　who　are　not　traders　ever　have　any；　though　called；　as　well　as　others；　to　pay　and　to　receive。　To　extend　the　advantage　of　assignments　also　to　the　business　of　such　persons；　those　note…banks　were　invented　which　have　since　become　so　common　in　all　parts　of　Europe。　Their　notes　are　assignments　on　the　bank；　payable　to　the　bearer　on　demand。　Each；　by　combining　several　notes；　may　make　his　odd　payments　himself；　and　hence　it　is　generally　most　convenient　for　him　to　transmit　them　to　others；　as　he　received　them；　without　having　drawn　any　money；　and　even　though　each　may　require　payment　at　his　pleasure；　no　one　thinks　of　it；　just　because　each　feeling　that　he　may　do　it　any　time；　feels　always　that　it　will　be　soon　enough　afterwards。　　　　　Up　to　that　period；　banks　had　done　nothing　but　simplify　payments；　and　save　the　employment　of　money；　and　render　circulation　easy　with　a　smaller　sum　than　would　otherwise　have　been　required。　But　some　one　must　profit　by　this　saving。　In　arranging　the　assignments　at　Lyons；　each　profited　according　to　his　share　in　trade；　each　needed　to　have　money　in　his　coffers　only　four　times　yearly；　for　three　days。　He；　of　course；　gained　interest　for　the　remaining　353　days；　and　as　those　assignments　simplified　all　his　operations；　a　smaller　sum　performed　for　him　the　office　of　a　greater。　When　banks　were　established；　it　was　they　that　profited　by　this　saving　of　money。　They　received　interest；　not　for　the　money　really　given　by　them；　but　for　the　money；　which　every　bearer　of　notes　had　it　in　his　power　to　demand　from　them；　at　a　moment's　notice。　This　interest　of　notes；　reckoned　equal　to　gold；　was　a　pure　advantage　for　bankers；　since　the　money　promised；　far　from　being　drawn；　had　not　even　remained　at　the　bank；　where　it　would　have　been　barren。　Bankers；　reckoning　on　the　confidence　of　the　public；　had　caused　it　to　labour；　and　recalled　it　for　their　payments　only　as　they　needed　it。　　　　　It　was　by　discount　on　such　of　the　proceeds　of　trade　as　were　payable　at　long　dates；　that　banks　pushed　their　notes　into　c