Page:The Present State of Peru.djvu/142

116 These evident reflections with respect to other kingdoms, bear still more forcibly on South America, where silver may be regarded as the principal produce. In the same way as it would be absurd in an agricultural nation, to endeavour to augment industry and the productions of the soil, by locking up the seeds in the granaries, and introducing, as equivalents, others calculated for the subsistence of man; so is it a palpable error to suppose, that the introduction of a copper or paper currency, would be useful to Spain and her possessions in America.

What has been done, with a view to remedy the inconveniences arising from the want of small coins, to give vigour to the circulation, and to extend it to each of the classes and quantities, has been better contrived, by the new expedient of the quartillos, or fourths of reals, which are now coining. Their employment will constantly maintain that precious metal in its real estimation, at the same time that the returns will become more rapid and extensive, by the introduction of tokens representing the smaller values.

The idea entertained by several writers, that commerce is produced and supported by scarcity, is erroneous. If, for instance, by several unexpected events, there should be a destruction of the one half of the productions of both hemispheres, it is certain that the necessities would be immense; but it is equally so, that trade would be greatly diminished. In the viceroyalty of Lima, silver appears to be in a less proportion, because it does not come in contact with the articles which are not marketable, and which remain stagnant, without sale or price, because the true principle of the vendible estimation and value does not reside in the numerical and stract