THE WEALTH OF NATIONS.

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Paper money would then, probably, confine itself, in everypart of the kingdom, to the circulation between the differentdealers, as much as it. does at present in London , where nobank notes are issued under ten pounds value; five poundsbeing, in most parts of the kingdom, a sum which, thoughit will purchase, perhaps, little more than half the quantityof goods, is as much considered, and is as seldom spent allat once, as ten pounds are amidst the profuse expense ofLondon .

Where paper money, it is to be observed, is pretty muchconfined to the circulation between dealers and dealers, asat London , there is always plenty of gold and silver. Whereit extends itself to a considerable part of the circulation be-tween dealers and consumers, as in Scotland , and still morein North America , it banishes gold and silver almost entirelyfrom the country; almost all the ordinary transactions of its.interior commerce being thus carried on by paper. Thesuppression of ten and five shilling bank notes, somewhatrelieved the scarcity of gold and silver in Scotland ; and thesuppression of twenty shilling- notes will probably relieve itstill more. Those metals are said to have become moreabundant in America , since the suppression of some of theirpaper currencies. They are said, likewise, to have beenmore abundant before the institution of those currencies.

Though paper money should be pretty much confined tothe circulation between dealers and dealers, yet banks andbankers might still be able to give nearly the same assistanceto the industry and commerce of the country, as they haddone when paper money filled almost the whole circulation.The ready money winch a dealer is obliged to keep by him,for answering occasional demands, is destined altogether forthe circulation between himself and other dealers, of whomhe buys goods. He has no occasion to keep any by him forthe circulation between himself and the consumers, who arehis customers, and who bring ready money to him, insteadof taking any from him. Though no paper money, therefore,was allowed to be issued, but for such sums as would confineit pretty much to the circulation between dealers and dealers ;yet, partly by discounting real bills of exchange, and partlyby lending upon cash accounts, banks anil bankers mightstill be able to relieve the greater part of those dealers fromthe necessity of keeping any considerable part of their stockby them, unemployed and in ready money, for answering