Such being the demand for money, what is the supply? It is the total
number of units of money in circulation (actual or potential) in any
country.
The force of the demand for money operating against the supply is
represented by the earnest, incessant struggle to obtain it. All men, in
all trades and occupations, are offering either property or services for
money. Each shoemaker in each locality is in competition with every
other shoemaker in the same locality, each hatter is in competition with
every other hatter, each clothier with every other clothier, all
offering their wares for units of money. In this universal and perpetual
competition for money, that number of shoemakers that can supply the
demand for shoes at the smallest average price (excellence of quality
being taken into account) will fix the market value of shoes in money;
and conversely, will fix the value of money in shoes. So with the
hatters as to hats, so with the tailors as to clothes, and so with those
engaged in all other occupations as to the products respectively of
their labor.