Currency fallacies refuted, and paper money ... - University Library

20 CURRENCY FALLACIES REFUTED.that quantity of corn. This value remains undisturbed,till some greater abundance or scarcityof silver or gold discomposes the average rate oftheir exchange against corn, and against eachother.For the greater part of the last century,the price of corn throughout Europe, in goldand silver, did not greatly vary, being on theaverage about Gloz, of silver, or 33^. Qd. thequarter. It is still about this price on theaverage in France, Holland, Belgium, and thenorthern ports nearest England ;but if we wereto allow as much as 40,?. per quarter or 5.9. perbushel, we should probably give the utmostvalue that could be assigned it in England atthis time, were corn and the precious metalsfree to exchange against each other.Comparing then this price in gold or silverwith the present price of wheat in England, wemust calculate on a further fall of one-fifth, orof 20 per cent, in our currency before it reachesthe standard. To come down to that, ourmoney must be reduced in quantity : the pricesof all articles will fall accordingly ; rents andtaxes must be abatedone-fifth to keep in proportionto the increased value of money; andall persons will suffer loss in that degree, exceptthe receivers of fixed incomes, who willgain as much as others lose by the change.Wehad nearly come to this rate of price in 1 822,when for a time corn was 37^. per quarter andthe average price for the year was 44.?. per quar-