So far as our own understanding of this subject goes we take it to be proved that the only difference in the changing proportions of the money in circulation to commodities in existence, as compared with the changing proportion in one nation is, that the amount required by individual nations will fluctuate according to circumstances, while the whole currency of the world which is in use will simply shift its place according to its varying redundancy in each country.

A nation requires so much currency to circulate a given quantity of commodities and no more, and no power on earth can keep in circulation in that country more currency than is required for that purpose for reasons which are generally well known, and which, therefore, we need not enter upon here, our object being to endeavour to investigate what we conceive to be the impending changes in the character of the circulating mediums than to inquire into the elementary principles. The movements of the currencies of the different nations of the earth depend consequently upon one fixed law which governs the convertible currencies of all countries upon the same immutable principles. That law is expressed in the word Redundancy. If no more than a certain quantity of currency can be kept in circulation in a country according to the activity of its domestic and international commerce, it follows that the amount required will rise and fall in proportion as the two factors in combined action, the quantity of commodities in existence and the activity with which they are being circulated, call for more or less currency.