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# Public Generosity in Coinage

## Definition

The government practice of defraying the entire expense of coinage without charging seignorage, representing a subsidy to those who bring bullion to the mint. This policy provides no economic benefit to the public while incurring unnecessary costs for the government.

## Source Chapter

Book IV, Chapter 6

## Context

Smith criticizes the government's practice of paying for coinage as an unnecessary public expense that benefits private individuals who bring bullion to the mint. He argues that this "generosity" provides no public benefit while costing the government revenue that could be generated through appropriate seignorage.

## Economic Domain

Regulation

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