new and more
productive mines may be discovered, in which, with the same labour, more
metal may be obtained; or the facilities of bringing it to market may be
increased. In either of these cases the metals would fall in value, and
would therefore exchange for a less quantity of other things. On the
other hand, from the increasing difficulty of obtaining the metal,
occasioned by the greater depth at which the mine must be worked, and
the accumulation of water, or any other contingency, its value, compared
with that of other things, might be considerably increased.

It has therefore been justly observed, that however honestly the coin of
a country may conform to its standard, money made of gold and silver is
still liable to fluctuations in value, not only to accidental and
temporary, but to permanent and natural variations, in the same manner
as other commodities.

By the discovery of America and the rich mines in which it abounds, a
very great effect was produced on the natural price of the precious
metals. This effect is by many supposed not yet to have terminated. It
is probable however that all the effects on the value of the metals,
resulting from the discovery of America have long ceased, and if any
fall has of late years taken place in their value, it is to be
attributed to improvements in the mode of working the mines.

From whatever cause it may have proceeded, the effect has been so slow
and gradual, that little practical inconvenience has been felt from gold
and silver being the general medium in which the value of all other
things is estimated. Though undoubtedly a variable measure of value,
there is probably no commodity subject to fewer variations. This and the
other advantages which these metals possess, such as their hardness,
their malleability, their divisibility, and many more, have justly
secured the preference every where given to them, as a standard for the
money of civilized countries.

Having acknowledged the imperfections to which money made of gold and
silver is liable as a measure of value, from the greater or less
quantity of labour which may, under varying circumstances, be necessary
for the production of those metals, we may be permitted to make the
supposition that all these imperfections were removed, and that equal
quantities of labour could at all times obtain, from that mine which
paid no rent, equal quantities of gold. Gold would then be an invariable
measure of value. The quantity