The Simplified Wealth of Nations of Adam Smith, Book 5, Chapter 3: International Barter Taxation

Chapter 3g: International barter taxation

Translator's note: On this page, I will add links to Keynes' International Clearing Union which is consistent with Smith's proposal below
79 It has been said that the Americans have no gold or silver money.   80 The current scarcity of gold and silver money in America is not the effect of the inability of the Americans to buy those metals.  

81 Gold and silver money is necessary or convenient for transacting domestic or foreign business.


82 Book 2 has shown that the domestic business of every country may be transacted through paper currency as conveniently as by gold and silver money, at least in peacetime.

  83 In the commerce between Great Britain and the tobacco colonies, the British goods are generally advanced to the colonists at a pretty long credit.   84 In the northern colonies, the value of their own exports to Great Britain is more than the value of their imports.   85 In the sugar colonies, the value of exports to Great Britain is much greater than the value of all the goods imported.   86 The difficulty and irregularity of payment from the colonies to Great Britain have not been proportional to the balances due from them. 87 It is not the poverty of the colonies which creates the present scarcity of gold and silver money.   88 It is just fair that Ireland and America contribute towards discharging Great Britain's public debt.   89 By a union with Great Britain, Ireland would gain the freedom of trade and other much more important advantages.   90 No oppressive aristocracy has ever prevailed in the colonies.   91 The East India Company's territorial acquisitions is the right of the British people.   92 If it is impractical for Great Britain to increase its revenue from the resources mentioned, her only remaining resource is to reduce her expence.