We have seen that the circulation of money is merely a manifestation of the metamorphosis of commodities，or of the transformation which accompanies the social metabolism.The total quantity of gold in circulation must therefore perpetually increase or decrease in accordance with the varying aggregate price of the commodities in circulation，that is in accordance，on the one hand，with the volume of their metamorphoses which take place simultaneously and，on the other hand，with the prevailing velocity of their transformation.
This is only possible provided that the proportion of money in circulation to the total amount of money in a given country varies continuously.Thanks to the formation of hoards this condition is fulfilled.If prices fall or the velocity of circulation increases，then the money ejected from the sphere of circulation is absorbed by the reservoirs of hoarders；if prices rise or the velocity of circulation decreases，then these hoards open and a part of them streams back into circulation.The solidification of circulating money into hoards and the flowing of the hoards into circulation is a continuously changing and oscillating movement，and the prevalence of the one or the other trend is solely determined by variations in the circulation of commodities.
The hoards thus act as channels for the supply or withdrawal of circulating money，so that the amount of money circulating as coin is always just adequate to the immediate requirements of circulation.If the total volume of circulation suddenly expands and the fluid unity of sale and purchase predominates，so that the total amount of prices to be realised grows even faster than does the velocity of circulation of money，then the hoards dwindle visibly；whenever an abnormal stagnation prevails in the movement as a whole，that is when the separation of sale from purchase predominates，then the medium of circulation solidifies into money to a remarkable extent and the reservoirs of the hoarders are filled far above their average level.
In countries which have purely metallic currency or are at an early stage of development of production，hoards are extremely fragmented and scattered throughout the country，whereas in advanced bourgeois countries they are concentrated in the reservoirs of banks.Hoards must not be confused with reserve funds of coin，which form a constituent element of the total amount of money always in circulation，whereas the active relation of hoard and medium of circulation presupposes that the total amount of money decreases or increases.As we have seen，gold and silver articles also act both as channels for the withdrawal of precious metals and latent sources of supply.
Under ordinary circumstances only the former function plays an important role in the economy of metallic currency.[17]
FOOTNOTES
[1.]"Not only are precious metals tokens of things ...but alternatively things ...are also tokens of gold and silver."A.Genovesi，Lezioni di Economia Civile ，1765，in Custodi，Parte Moderna，t.VIII，p.281
[2.]Gold and silver are "universal wealth".Petty，Political Arithmetick ，p.242
[3.]E.Misselden，Free Trade，or the Means to Make Trade Florish ，London，1622."The natural matter of Commerce is Merchandize，which Merchants from the end of Trade have stiled Commodities.The Artificiall matter of Commerce is Money，which hath obtained thc title of sinewes of Warre and of State....
Money，though it be in nature and time after Merchandize，yet forasmuch as it is now in use become the chiefe"(p.7).He compares the position of commodity and money with that of the descendents of "Old Jacob"，who "blessing his Grandchildren，crost his hands，and laide his right hand on the yonger，and his left hand on the elder"(I.c.).Boisguillebert，Dissertation sur ia nature des richesses ."Thus the slave of commerce has become its master....The misery of the peoples is due to the fact that the slave has been turned into a master or rather into a tyrant"(pp.395，399).
[4.]"These metals (gold and silver)have been turned into idols，and disregarding the goal and purpose they were intended to fulfil in commerce，i.e.，to serve as tokens in exchange and reciprocal transfer，they were allowed to abandon this service almost entirely in order to be transformed into divinities to whom more goods，important needs and even human beings were sacrificed and continue to be sacrificed，than were ever sacrificed to the false divinities even in blind antiquity..：'(Boisguillebcrt，o.p.cit..p.395)
[5.]Boisguillebert suspects that the first immobilisation of the perpetuum mobile ，i.e.，the negation of its function as the medium of circulation，will immediately render it independent in relation to commodities.Money，he says，must be "in constant motion，which is only the case so long as it moves，but as soon as it becomes immobile all is lost"(Boisguillebert，Le détail de la France ，p.213).What he overlooks is that this inactivity is the prerequisite of its movement.What he actually wants is that the value form of commodities should be a quite insignificant aspect of their metabolism，but should never become an end in itself.
[6.]"The more the stock ...is ...encreased in wares，the more it decreaseth in treasure."E.Misselden，op.cit.，p.23
[7.]E.Misselden，op.cit.，pp.11-13passim .
