The expense of manufacturing gold into coin, and that of the loss arising from wear, as well as of interest on the capital invested in it, must either be defrayed by the state, or be compensated by a small reduction in its weight, and is a far less cost to the nation than the loss of time and inconvenience which would arise from a system of exchange or barter.
(167.) These coins are liable to two inconveniences: they may be manufactured privately by individuals, of the same quality, and similarly stamped; or imitations may be made of inferior metal, or of diminished weight. The first of these inconveniences would be easily remedied by making the current value of the coin nearly equal to that of the same weight of the metal; and the second would be obviated by the caution of individuals in examining the external characters of each coin, and partly by the punishment inflicted by the State on the perpetrators of such frauds.
(168.) The subdivisions of money vary in different countries, and much time may be lost by an inconvenient system of division. The effect is felt in keeping extensive accounts, and particularly in calculating the interest on loans, or the discount upon bills of exchange. The decimal system is the best adapted to facilitate all such calculations; and it becomes an interesting question to consider whether our own currency might not be converted into one decimally divided. The great step, that of abolishing the guinea, has already been taken without any inconvenience, and but little is now required to render the change complete.
(169.) If, whenever it becomes necessary to call
