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THE NATURE AND CAUSES OF

nally a half; it soon afterward fell to a third, then to a fifth,and at last to a tenth, at which rate it still continues. In thegreater part of the silver mines of Peru , this, it seems, is allthat remains, after replacing the stock of the undertaker ofthe work, together with its ordinary profits; and it seemsto be universally acknowledged that these profits, which wereonce very high, are now as low as they can well be, consist-ently with carrying on their works.

The tax of the king of Spain was reduced to a fifth of theregistered silver in 1504,* one-and-lorty years before 1545,the date of the discovery of the mines of Potosi. In thecourse of ninety years, or before 1C3G, these mines, the mostfertile in all America , had time sufficient to produce theirfull effect, or to reduce the value of silver in the European market as low as it could well fall, while it continued to paythis tax to the king of Spain . Ninety years is time sufficientto reduce any commodity, of which there is no monopoly, toits natural price, or to the lowest price at which, while itpays a particular tax, it can continue to be sold for any con-siderable time together.

The price of silver in the European market might perhapshave fallen still lower, and it might have become necessaryeither to reduce the tax upon it, not only to one-tenth, as in1736, but to one-twentieth, in the same manner as that upongold, or to give up working the greater part of the American mines which are now wrought. The gradual increase of thedemand for silver, or the gradual enlargement of the marketfor the produce of the silver mines of America , is probablythe cause which has prevented this from happening, andwhich has not only kept up the value of silver in the European market, but has perhaps even raised it somewhat higher thanit was about the middle of the last century.

Since the first discovery of America , the market for the pro-duce of its silver mines has been growing gradually more andmore extensive.

First, The market of Europe has become gradually moreand more extensive. Since the discovery ol America , thegreater part of Europe has been much improved. England,Holland, France, and Germany; even Sweden, Denmark , andRussia , have all advanced considerably both in agricultureand in manufactures. Italy seems not to have gone backwards.The fall of Italy preceded the conquest ol Peru . Since that

* Solorzano, vol. ii.