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?©d?©ric, 1801-1850

"Essays on Political Economy"

Certainly,
looking at it, as you did just now, and as you appear to be doing still,
if it is believed that to multiply the instruments of exchange is to
multiply the exchanges themselves as well as the things exchanged, it
might very reasonably be thought that the most simple means was to
double the crowns, and to cause the law to give to the half the name and
value of the whole. Well, in both cases, depreciation is inevitable. I
think I have told you the cause. I must also inform you, that this
depreciation, which, with paper, might go on till it came to nothing, is
effected by continually making dupes; and of these, poor people, simple
persons, workmen and countrymen are the chief.
B. I see; but stop a little. This dose of Economy is rather too strong
for once.
F. Be it so. We are agreed, then, upon this point,--that wealth is the
mass of useful things Which we produce by labour; or, still better, the
result of all the efforts which we make for the satisfaction of our
wants and tastes. These useful things are exchanged for each other,
according to the convenience of those to whom they belong. There are two
forms in these transactions; one is called barter: in this case, a
service is rendered for the sake of receiving an equivalent service
immediately. In this form, transactions would be exceedingly limited. In
order that they may be multiplied, and accomplished independently of
time and space amongst persons unknown to each other, and by infinite
fractions, an intermediate agent has been necessary,--this is cash.


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