29

last century, in consequence of the universal circulation chapter
of paper, exceeded the depreciation of any former period   ^^
of history.

From this outline it is evident that the leading errors
of Dr. Adam Smith on the subject of circulation, exclu¬
sively arose from his inability to attain to a just perception
of the functions of money. But though he failed to ac¬
quire a correct knowledge of these functions, he greatly
contributed to the improvement of the science by the
difflision of more enlightened principles than had previ¬
ously obtained. To Locke, (a) Davenant, and Sir James
Steuart he was eminently superior ; and if he reached not
the extended views of Mr. Hume, he greatly surpassed
him in consistency, justness, and precision of reasoning,
as in most of the instances where he was least successful,
he was rather inconclusive than erroneous, and rather
fell short of the truth than -deviated from it. But much
as he contributed to enlarge the science, and much as its
various tenets have been lately discussed, it must still be
admitted to be wholly in its infancy : no satisfactory
argument has been yet framed to effect the explosion of
the old system, and no approximation to success has been
made in the attempts to develope a new one ; but what¬
ever progress it may hereafter make, to v/hatever per¬
fection it may attain. Dr. Adam Smith will ever be re¬
garded the great founder of the economical school of
England.
 

(a) I -wish not to detract from the great name of Locke, but on the
subject of money he imbibed all the prejudices of his time.