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　　　　While　there　were　so　many　things　to　render　the　assumption

which　is　the　basis　of　the　mercantile　system　plausible；　there　is

also　some　small　foundation　in　reason；　though　a　very　insufficient

one；　for　the　distinction　which　that　system　so　emphatically　draws

between　money　and　every　other　kind　of　valuable　possession。　We

really；　and　justly；　look　upon　a　person　as　possessing　the

advantages　of　wealth；　not　in　proportion　to　the　useful　and

agreeable　things　of　which　he　is　in　the　actual　enjoyment；　but　to

his　command　over　the　general　fund　of　things　useful　and　agreeable；

the　power　he　possesses　of　providing　for　any　exigency；　or

obtaining　any　object　of　desire。　Now；　money　is　itself　that　power；

while　all　other　things；　in　a　civilized　state；　seem　to　confer　it

only　by　their　capacity　of　being　exchanged　for　money。　To　possess

any　other　article　of　wealth；　is　to　possess　that　particular　thing；

and　nothing　else：　if　you　wish　for　another　thing　instead　of　it；

you　have　first　to　sell　it；　or　to　submit　to　the　inconvenience　and

delay　（if　not　the　impossibility）　of　finding　some　one　who　has　what

you　want；　and　is　willing　to　barter　it　for　what　you　have。　But　with

money　you　are　at　once　able　to　buy　whatever　things　are　for　sale：

and　one　whose　fortune　is　in　money；　or　in　things　rapidly

convertible　into　it；　seems　both　to　himself　and　others　to　possess

not　any　one　thing；　but　all　the　things　which　the　money　places　it

at　his　option　to　purchase。　The　greatest　part　of　the　utility　of

wealth；　beyond　a　very　moderate　quantity；　is　not　the　indulgences

it　procures；　but　the　reserved　power　which　its　possessor　holds　in

his　hands　of　attaining　purposes　generally；　and　this　power　no

other　kind　of　wealth　confers　so　immediately　or　so　certainly　as

money。　It　is　the　only　form　of　wealth　which　is　not　merely

applicable　to　some　one　use；　but　can　be　turned　at　once　to　any　use。

And　this　distinction　was　the　more　likely　to　make　an　impression

upon　governments；　as　it　is　one　of　considerable　importance　to

them。　A　civilized　government　derives　comparatively　little

advantage　from　taxes　unless　it　can　collect　them　in　money：　and　if

it　has　large　or　sudden　payments　to　make；　especially　payments　in

foreign　countries　for　wars　or　subsidies；　either　for　the　sake　of

conquering　or　of　not　being　conquered　（the　two　chief　objects　of

national　policy　until　a　late　period）；　scarcely　any　medium　of

payment　except　money　will　serve　the　purpose。　All　these　causes

conspire　to　make　both　individuals　and　governments；　in　estimating

their　means；　attach　almost　exclusive　importance　to　money；　either

in　esse　or　in　posse；　and　look　upon　all　other　things　（when　viewed

as　part　of　their　resources）　scarcely　otherwise　than　as　the　remote

means　of　obtaining　that　which　alone；　when　obtained；　affords　the

indefinite；　and　at　the　same　time　instantaneous；　command　over

objects　of　desire；　which　best　answers　to　the　idea　of　wealth。

　　　　An　absurdity；　however；　does　not　cease　to　be　an　absurdity　when

we　have　discovered　what　were　the　appearances　which　made　it

plausible；　and　the　Mercantile　Theory　could　not　fail　to　be　seen　in

its　true　character　when　men　began；　even　in　an　imperfect　manner；

to　explore　into　the　foundations　of　things；　and　seek　their

premises　from　elementary　facts；　and　not　from　the　forms　and

phrases　of　common　discourse。　So　soon　as　they　asked　themselves

what　is　really　meant　by　money…what　it　is　in　its　essential

characters；　and　the　precise　nature　of　the　functions　it

performs…they　reflected　that　money；　like　other　things；　is　only　a

desirable　possession　on　account　of　its　uses；　and　that　these；

instead　of　being；　as　they　delusively　appear；　indefinite；　are　of　a

strictly　defined　and　limited　description；　namely；　to　facilitate

the　distribution　of　the　produce　of　industry　according　to　the

convenience　of　those　among　whom　it　is　shared。　Further

consideration　showed　that　the　uses　of　money　are　in　no　respect

promoted　by　increasing　the　quantity　which　exists　and　circulates

in　a　country；　the　service　which　it　performs　being　as　well

rendered　by　a　small　as　by　a　large　aggregate　amount。　Two　million

quarters　of　corn　will　not　feed　so　many　persons　as　four　millions；

but　two　millions　of　pounds　sterling　will　carry　on　as　much

traffic；　will　buy　and　sell　as　many　commodities；　as　four　millions；

though　at　lower　nominal　prices。　Money；　as　money；　satisfies　no

want；　its　worth　to　any　one；　consists　in　its　being　a　convenient

shape　in　which　to　receive　his　incomings　of　all　sorts；　which

incomings　he　afterwards；　at　the　times　which　suit　him　best；

converts　into　the　forms　in　which　they　can　be　useful　to　him。　Great

as　the　difference　would　be　between　a　country　with　money；　and　a

country　altogether　without　it；　it　would　be　only　one　of

convenience；　a　saving　of　time　and　trouble；　like　grinding　by　water

power　instead　of　by　hand；　or　（to　use　Adam　Smith's　illustration）

like　the　benefit　derived　from　roads；　and　to　mistake　money　for

wealth；　is　the　same　sort　of　error　as　to　mistake　the　highway　which

may　be　the　easiest　way　of　getting　to　your　house　or　lands；　for　the

house　and　lands　themselves。

　　　　Money；　being　the　instrument　of　an　important　public　and

private　purpose；　is　rightly　regarded　as　wealth；　but　everything

else　which　serves　any　human　purpose；　and　which　nature　does　not

afford　gratuitously；　is　wealth　also。　To　be　wealthy　is　to　have　a

large　stock　of　useful　articles；　or　the　means　of　purchasing　them。

Everything　forms　therefore　a　part　of　wealth；　which　has　a　power　of

purchasing；　for　which　anything　useful　or　agreeable　would　be　given

in　exchange。　Things　for　which　nothing　could　be　obtained　in

exchange；　however　useful　or　necessary　they　may　be；　are　not　wealth

in　the　sense　in　which　the　term　is　used　in　Political　Economy。　Air；

for　example；　though　the　most　absolute　of　necessaries；　bears　no

price　in　the　market；　because　it　can　be　obtained　gratuitously：　to

accumulate　a　stock　of　it　would　yield　no　profit　or　advantage　to

any　one；　and　the　laws　of　its　production　and　distribution　are　the

subject　of　a　very　different　study　from　Political　Economy。　But

though　air　is　not　wealth；　mankind　are　much　richer　by　obtaining　it

gratis；　since　the　time　and　labour　which　would　otherwise　be

required　for　supplying　the　most　pressing　of　all　wants；　can　be

devoted　to　other　purposes。　It　is　possible　to　imagine

circumstances　in　which　air　would　be　a　part　of　wealth。　If　it

became　customary　to　sojourn　long　in　places　where　the　air　does　not

naturally　penetrate；　as　in　diving…bells　sunk　in　the　sea；　a　supply

of　air　artificially　furnished　would；　like　water　conveyed　into

houses；　bear　a　price：　and　if　from　any　revolution　in　nature　the

atmosphere　became　too　scanty　for　the　consumption；　or　could　be

monopolized；　air　might　acquire　a　very　high　marketable　value。　In

such　a　case；　the　possession　of　it；　beyond　his　own　wants；　would

be；　to　its　owner；　wealth；　and　the　general　wealth　of　mankind　might

at　first　sight　appear　to　be　increased；　by　what　would　be　so　great

a　calamity　to　them。　The　error　would　lie　in　not　considering；　that

however　rich　the　possessor　of　air　might　become　at　the　expense　of

the　rest　of　the　community；　all　persons　else　would　be　poorer　by

all　that　they　were　compelled　to　pay　for　what　they　had　before

obtained　without　payment。

　　　　This　leads　to　an　important　distinction　in　the　meaning　of　the

word　wealth；　as　applied　to　the　possessions　of　an　individual；　and

to　those　of　a　nation；　or　of　mankind。　In　the　wealth　of　mankind；

nothing　is　included　which　does　not　of　itself　answer　some　purpose

of　utility　or　pleasure。　To　an　individual　anything　is　wealth；

which；　though　useless　in　itself；　enables　him　to　claim　from　others

a　part　of　their　stock　of　things　useful　or　pleasant。　Take；　for

instance；　a　mortgage　of　a　thousand　pounds　on　a　landed　estate。

This　is　wealth　to　the　person　to　whom　it　brings　in　a　revenue；　and

who　could　perhaps　sell　it　in　the　market　for　the　full　amount　of

the　debt。　But　it　is　not　wealth　to　the　country；　if　the　engagement

were　annulled；　the　country　would　be　neither　poorer　nor　richer。

The　mortgagee　would　have　lost　a　thousand　pounds；　and　the　owner　of

the　land　would　have　gained　it。　Speaking　nationally；　the　mortgage

was　not　itself　wealth；　but　merely　gave　A　a　claim　to　a　portion　of

the　wealth　of　B。　It　was　wealth　to　A；　and　wealth　which　he　could

transfer　to　a　third　person；　but　what　he　so　transferred　was　in

fact　a　joint　ownership；　to　the　extent　of　a　thousand　pounds；　in

the　land　of　which　B　was　nominally　the　sole　proprietor。　The

position　of　fundholders；　or　owners　of　the　public　debt　of　a

country；　is　similar。　They　are　mortgagees　on　the　general　wealth　of

the　country。　The　cancelling　of　the　debt　would　be　no　destruction

of　wealth；　but　a　transfer　of　it：　a　wrongful　abstraction　of　wealth

from　certain　members　of　the　community；　for　the　profit　of　the

government；　or　of　the　tax…payers。　Funded　property　therefore

cannot　be　counted　as　part　of　the　national　wealth。　This　is　not

always　borne　in　mind　by　the　dealers　in　statistical　calculations。

For　example；　in　estimates　of　the　gross　income　of　the　country；

founded　on　the　proceeds　of　the　inc