It is true that there are important differences between that money which plays the chief part in domestic trade, is the instrument of most exchanges, predominates in the dealings between consumers and sellers of consumption goods, and in loan transactions, and is recognized by the law as legal tender, and that money which is employed in relatively few transactions, is hardly ever used by consumers in their purchases, does not function as an instrument of loan operations, and is not legal tender. In popular opinion, the former money only is domestic money, the latter foreign money. Although we cannot accept this if we do not want to close the way to an understanding of the problem that occupies us, we must nevertheless emphasize that it has great significance in other connexions. Ludwig Von Mises
About This Quote

Adam Smith was a brilliant economist and a great thinker. He is best known for his book "The Wealth of Nations." This book focused on how people work together to create wealth in the world. He discusses the effects that money has on society and how it affects the economy. In this quote, he speaks about the difference between domestic and foreign money.

Of course, domestic money is money that is used within the country, such as the US dollar. Foreign money is money that is used outside of your home country, such as British Pounds or Canadian Dollars. It’s important to note that foreign money can be used in any country and domestic money can be used only in your home country (not even to another state).

Source: The Theory Of Money And Credit

Some Similar Quotes
  1. I don't care a damn about men who are loyal to the people who pay them, to organizations... I don't think even my country means all that much. There are many countries in our blood, aren't there, but only one person. Would the world be... - Graham Greene
  2. I can see how it might be possible for a man to look down upon the earth and be an atheist, but I cannot conceive how a man could look up into the heavens and say there is no God. - Abraham Lincoln
  3. Civilized men are more discourteous than savages because they know they can be impolite without having their skulls split, as a general thing. - Robert E. Howard
  4. In my many years I have come to a conclusion that one useless man is a shame, two is a law firm, and three or more is a congress. - Peter Stone
  5. You know what's truly weird about any financial crisis? We made it up. Currency, money, finance, they're all social inventions. When the sun comes up in the morning it's shining on the same physical landscape, all the atoms are in place. - Bruce Sterling
More Quotes By Ludwig Von Mises
  1. War is an ugly thing, but not the ugliest of things: the decayed and degraded state of moral and patriotic feeling which thinks that nothing is worth a war, is much worse. When a people are used as mere human instruments for firing cannon or...
  2. It is indisputable that the being whose capacities of enjoyment are low, has the greatest chance of having them fully satisfied; and a highly endowed being will always feel that any happiness which he can look for, as the world is constituted, is imperfect. But...
  3. If all mankind minus one, were of one opinion, and only one person were of the contrary opinion, mankind would be no more justified in silencing that one person, than he, if he had the power, would be justified in silencing mankind.
  4. In this age, the mere example of non-conformity, the mere refusal to bend the knee to custom, is itself a service. Precisely because the tyranny of opinion is such as to make eccentricity a reproach, it is desirable, in order to break through that tyranny,...
  5. The creed which accepts as the foundation of morals, Utility, or the Greatest-Happiness Principle, holds that actions are right in proportion as they tend to promote happiness, wrong as they tend to produce the reverse of happiness. By happiness is intended pleasure, and the absence...
Related Topics