Principium Volume II, Book 8, Quote 887, 890, and 891

887. (8-31-2010) (Balance of Trade)ATJ That when the country exported to a greater value than it imported, a balance became due to it from foreign nations, which was necessarily paid to it in gold and silver, and thereby increased the quantity of those metals in the kingdom. But that when it imported to a greater value than it exported, a contrary balance became due to foreign nations, which was necessarily paid to them in the same manner, and thereby diminished that quantity.

- Adam Smith – The Wealth of Nations, 1776


(Such simple principles that are not being followed by the leaders of our nation, what is their design?)ATJ


890. (8-31-2010) No complaint, however, is more common than that of a scarcity of money. Money, like wine, must always be scarce with those who have neither wherewithal to buy it nor credit to borrow it. Those who have either will seldom be in want either of the money or of the wine they have occasion for….It would be too ridiculous to go about seriously to prove that wealth does not consist in money, or in gold and silver; but in what money purchases, and is valuable only for purchasing. Money, no doubt, makes always a part of the national capital; but it has already been shown that it generally makes but a small part, and always the most unprofitable part of it.

- Adam Smith – The Wealth of Nations, 1776


891. (9-1-2010) And though goods (the produce of land and labour [sic])ATJ do not always draw money so readily as money draws goods, in the long run they draw it more necessarily than even it draws them. Goods can serve many other purposes besides purchasing money, but money can serve no other purposes besides purchasing goods. Money, therefore, necessarily runs after goods, but goods do not always or necessarily run after money. The man who buys does not always mean to sell again, but frequently to use or to consume; whereas he who sells always means to buy again….It is not for its own sake that men desire money, but for the sake of what they can purchase with it.

- Adam Smith – The Wealth of Nations, 1776

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