necessary or convenient for them to do so. 
The scarcity of those metals, therefore, must 
be the effect of choice, and not of necessity. 
It is for transacting either domestic or foreign 
business, that gold or silver money is 
either necessary or convenient
The domestic business of every country, it 
has been shewn in the second book of this Inquiry
may, at least in peaceable times, be 
transacted by means of a paper currency, with 
nearly the same degree of conveniency as by 
gold and silver money. It is convenient for 
the Americans, who could always employ with 
profit, in the improvement of their lands, a 
greater stock than they can easily get, to save 
as much as possible the expense of so costly 
an instrument of commerce as gold and silver
and rather to employ that part of their 
surplus produce which would be necessary for 
purchasing those metals, in purchasing the instruments 
of trade, the materials of clothing, 
several parts of household furniture, and the 
iron work necessary for building and extending 
their settlements and plantations; in purchasing 
not dead stock, but active and productive 
stock. The colony governments find 
it for their interest to supply the people with 
such a quantity of paper money as is fully 
sufficient, and generally more than sufficient
for transacting their domestic business. Some 
of those governments, that of Pennsylvania
particularly, derive a revenue from lending 
this paper money to their subjects, at an interest 
of so much per cent. Others, like that 
of Massachusetts Bay, advance, upon extraordinary 
emergencies, a paper money of this 
kind for defraying the public expense; and 
afterwards, when it suits the conveniency of 
the colony, redeem it at the depreciated value 
to which it gradually falls. In 1747,[80] that 
colony paid in this manner the greater part of 
its public debts, with the tenth part of the 
money for which its bills had been granted
It suits the conveniency of the planters, to 
save the expense of employing gold and silver 
money in their domestic transactions; and it 
suits the conveniency of the colony governments
to supply them with a medium, which, 
though attended with some very considerable 
disadvantages, enables them to save that expense
The redundancy of paper money necessarily 
banishes gold and silver from the 
domestic transactions of the colonies, for the 
same reason that it has banished those metals 
from the greater part of the domestic transactions 
in Scotland; and in both countries, it is 
not the poverty, but the enterprizing and projecting 
spirit of the people, their desire of 
employing all the stock which they can get, 
as active and productive stock, which has occasioned 
this redundancy of paper money
In the exterior commerce which the different 
colonies carry on with Great Britain, gold 
and silver are more or less employed, exactly 
in proportion as they are more or less necessary. 
Where those metals are not necessary, 
they seldom appear. Where they are necessary, 
they are generally found. 
In the commerce between Great Britain and 
the tobacco colonies, the British goods are 
generally advanced to the colonists at a pretty 
long credit, and are afterwards paid for in tobacco
rated at a certain price. It is more 
convenient for the colonists to pay in tobacco 
than in gold and silver. It would be more 
convenient for any merchant to pay for the 
goods which his correspondents had sold to 
him, in some other sort of goods which he 
might happen to deal in, than in money. Such 
a merchant would have no occasion to keep 
any part of his stock by him unemployed, and 
in ready money, for answering occasional demands
He could have, at all times, a larger 
quantity of goods in his shop or warehouse, 
and he could deal to a greater extent. But 
it seldom happens to be convenient for all the 
correspondents of a merchant to receive payment 
for the goods which they sell to him, in 
goods of some other kind which he happens 
to deal in. The British merchants who trade 
to Virginia and Maryland, happen to be a 
particular set of correspondents, to whom it is 
more convenient to receive payment for the 
goods which they sell to those colonies in tobacco
than in gold and silver. They expect to 
make a profit by the sale of the tobacco; they 
could make none by that of the gold and silver. 
Gold and silver, therefore, very seldom 
appear in the commerce between Great Britain 
and the tobacco colonies. Maryland and 
Virginia have as little occasion for those metals 
in their foreign, as in their domestic commerce. 
They are said, accordingly, to have 
less gold and silver money than any other colonies 
in America. They are reckoned, however, 
as thriving, and consequently as rich, as 
any of their neighbours. 
In the northern colonies, Pennsylvania, New 
York, New Jersey, the four governments of 
New England, &c. the value of their own 
produce which they export to Great Britain 
is not equal to that of the manufactures which 
they import for their own use, and for that of 
some of the other colonies, to which they are 
the carriers. A balance, therefore, must be 
paid to the mother-country in gold and silver
and this balance they generally find
In the sugar colonies, the value of the produce 
annually exported to Great Britain is 
much greater than that of all the goods imported 
from thence. If the sugar and rum 
annually sent to the mother-country were paid 
for in those colonies, Great Britain would be 
obliged to send out, every year, a very large 
balance in money; and the trade to the West 
Indies would, by a certain species of politicians
be considered as extremely disadvantageous.