Chapter 6: Why Interest was lowered one half after the Conquest of the Indies

GARCILASSO informs us, that in Spain, after the conquest of the Indies, the interest, which was at 10% fell 5%.

From this time they were unable to bring interest to its ancient standard, because the quantity of specie brought to Europe has been annually increasing.

Chapter 7-8: How the Price of Things is fixed in the Variation of the Sign of Riches

MONEY is the price of merchandizes or manufactures.

If we compare the mass of gold and silver in the whole world, with the quantity of merchandizes therein contained, every commodity or merchandize in particular, may be compared to a certain portion of the entire mass of gold and silver.

Thus, the prince can no more ascertain the value of merchandizes, that he can establish by a decree, that the ratio of 1:10, is equal to 1:20.

THE negroes on the coast of Africa have a sign of value without money.

Let us for a moment transfer to ourselves this manner of valuing things, and join it with ours.

The quantity of goods increases by an augmentation of commerce.

Chapter 9: The relative Scarcity of Gold and Silver

BESIDES the positive plenty and scarcity of gold and silver, there is still a relative abundance and a relative scarcity of one of these metals compared to the other.

The avaricious hoard up their gold and silver.

It is then a rule: that gold is common when silver is scarce, and gold is scarce when silver is common.

Next Chapter 10