general welfare of the community that fluctuations in its value should be rendered as small, and as gradual as possible.
The evils which result from sudden changes in the value of money will perhaps become more sensible, if we trace their effects in particular instances. Assuming, as we are quite at liberty to do, an extreme case, let us suppose three persons, each possessing a hundred pounds: one of these, a widow advanced in years, and who, by the advice of her friends, purchases with that sum an annuity of twenty pounds a year during her life: and let the two others be workmen, who, by industry and economy, have each saved a hundred pounds out of their wages; both these latter persons proposing to procure machines for calendering, and to commence that business. One of these invests his money in a Savings' Bank; intending to make his own calendering machine, and calculating that he shall expend twenty pounds in materials, and the remaining eighty in supporting himself and in paying the workmen who assist him in constructing it. The other workman, meeting with a machine which he can buy for two hundred pounds, agrees to pay for it a hundred pounds immediately, and the remainder at the end of a twelvemonth. Let us now imagine some alteration to take place in the currency, by which it is depreciated one-half: prices soon adjust themselves to the new circumstances, and the annuity of the widow, though nominally of the same amount, will, in reality, purchase only half the quantity of the necessaries of life which it did before. The workman who had placed his money in the Savings' Bank, having perhaps purchased ten
