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The following diagrams illustrate the method: Les cartes ou les planches trop grandes pour Atre reproduites en un seul clichA sont filmAes A partir de Tangle supArieure gauche, de gaurhe A droite et de haut en bas, en prenant le nombre d'images nAcessaire. Le diagramme suivant illustre la mAthode : 1 2 3 1 2 3 4 5 6 /. vT A/^ X ;, .c . ^ •- /" < V. ^/^ ^ ^^... ^. I 2^. ^/. /^.:*. HISTORY OF CURRENCY IN THE BRITISH COLONIES. BT H6 "fas ^V3 ROBERT CHALMERS, b.a.. Ok Okiel College, Oxford : and of Her Majesty's Treasury. ■''V'8 utfrT 7 LONDON: PRINTED FOR HER MAJESTY'S STATIONERY OFFICE, BY EYRE AKU S POTT 18 WOO DK, printers to thf queen's most excellent majesty. Price Ten Shillings. I c t I I t y n a 1 m PEEFACE. This book, though written by an official, and based on official records, is not an " official " publication. For the statements it contains, I alone am responsible ; and the views expressed in it are my own personal views. Three or four years ago, when my official duties had led me to take a personal interest in the study of colonial currency, it was suggested to me that I should put into shape the materials I had collected. This book is the result. In its present form it has considerably outgrown my first scheme, which was simply to state existing facts respecting the currency of each colony, in law and in practice. This original scheme I soon abandoned, in view of the difficulty of making the present intelligible without constant reference to the past. I then proposed to myself to bring up to date the " Currency of the British Colonies," published (anonymously) in 1848, by James Pennington, of the Treasury. But investigation showed that, valuable as is Pennington's book with reference to the remedial legislation of 1838, of which he was in fact the author, his researches into earlier currency history were strictly limited to the practical object which he successfully accom- plished, and that it was necessary to go further afield in order to understand the origin and development of the anomalous systems of " denominational currency," which prevailed in the British Colonies prior to 1838. Moi:eover, a prominent feature in modern colonial currency is the circula- tion of Notes, by Governments or Banks ; and it would have been wholly inadequate at the present day to follow Pen- nington in dealing simply with metallic standards. India, also, though not a "colony," could not reasonably be omitted. Finally, therefore, I set myself the task of writing a 72042. 500.— 4/»3, Wt, 179. ^ 2 EG IT history, as complete as materials and space would allow, of colonial currency from the earliest times to the present day. embracing not only coin and notes, but also the monetary use of standard commodities, which was so characteristic of the early currency of the Colonies. The field is a new one ; and I have had to make my own surveys, and set up my own landmarks. This, and the multiplioity of detail inseparable from a work of this nature, I may be allowed to plead in extenuation of any errors which have found their way into the text. My materials have been drawn almost exclu.sively from official sources, supplemented by contemporary tracts and colonial histories. The main plan which I have followed in connection with each colony has been to start with the series of legislative enactments governing its currency, and to fill in this outline from ofticial despatches, for access to which I am indebted to the Honourable Robert Meade, c.B., the Permanent Under Secretary of State for the Colonies. These official despatches, now deposited in the Record Office, form several thousand MS. volumes, which are mostly unindexed, and nearly all uncalendared. The mode of arrangement which has been adopted is primarily geographical ; but, within certain great geographical divisions, I have endeavoured to introduce an historical principle. For example, in the division " America and the West Indies," the ancient colony of Barbados has been put first, followed by its daughter-colony the Leeward Islands ; whilst the Windward Islands come third as having borrowed their early system of currency from the Leewards. Similarly, the division " Africa " opens with Sierra Leone, from which the Gold Coast, Lagos, and the Gambia were successively separated ; and New South Wales naturally heads the Colonies of Australasia. It has not seemed to me advisable to adopt the more scientific classification according to " curi'ency areas." Ab the early metallic currency of the British Colonies consisted chiefly of non-British coins, I have thought it necessary, for the sake of clearness and completeness, to give in Appendix A. an account of the foreign, as well as the sterling, coins current ; and I have been at pains to compile a history of the old Spanish dollar (or " piece-of-eight ") and of its modern Mexican representative, which will, I venture to think, be found more complete than any other account of this universal coin of thi-ee centuries. For purposes of practical utility, as well as to furnish a series of pieces juetifi' natives, I have added in Appendix B. a series of the principal Imperial statutory and other provisions relating to the currency of the Colonies generally, from 1704 to the present day. To give the complete series of Proclamations and Acts in the several Colonies individualfy, no less than four or five additional volumes would have been required. Though I have written mainly for those responsible at Home and in the Colonies for the regulation of colonial currency, I have tried also to keep in view the numismatist and the student of currency in general. The numismatist will find in these pages all the detailed information which I could glean from the ofiicial records, more particularly with regard to " cut money " and coins specially struck in or for the Colonies; and it is hoped that in some respects this information may supplement Atkins' standard " Coins and Tokens of the Possessions and Colonies of the British Empire." On the other hand, though I have endeavoured to avoid general currency discussions, and have presumed a general acquaintance with the subject, yet so wide is the field of colonial currency, and so varied have been the experiments made within this field, that students of currency will find in these pages fresh materials for the history of the subject, and may not impossibly derive from colonial experience suggestions for the solution of wider problems. The three centuries of the hi.stoi ^ colonial currency have exhibited the phenomena, singly or in combination, of barter, monometallism (gold, silver, and even copper), bimetallism, and paper currency of all grades of imperfection ; there are few experiments in currency which that history does not record, and no blunders of which it does not indicate the punishment; the general lesson which it enforces, is that a 3 the ukases of governments are futile, when opposed to trade relations and the natural trend of commerce. In the quai at words of Thomas Violet in 1643, " Time, the truest Schoolmaster, hath taught all ages to know that little penalties could yet never interpose between the Merchant and his profit." The most pleasant part of my task remains to be performed. To Mr. Hubert Hall, of the Record Office, I am indebted for the pains which he has been so kind as to take in piloting me through the wilderness of the official records. And to Mr. Edward Rigg, of the Royal Mint, I have to express my thanks for expert assistance in connection with the tables of foreign coins, and many other matters. My especial thanks are due to my friend Mr. C. A. Harris, of the Colonial Office. It is through his agency that the several chapters of my manuscript have been submitted to local experts; he has himself revised my proof sheets throughout ; and he has personally contributed the three chapters dealing with the Mediterranean Colonies. In all these ways he has rendered me assistance which will be as obvious to others as it is appreciated by myself. But the encouragement and advice which he has afforded me, without stint, during the years this book has been in preparation, constitute a claim to my personal gratitude which I cannot adequately express. Robert Chalmers. London, 13 January 1893. Vll d to k the ruest little hant CONIENTS. med. i for sting id to press a,bles irns, < the d to leets ;hree 1 all >e as > the hout tion, unot IS. fix I— GENERAL. Ohapter 1. General Survey - - . . II. Mode of Legislation II.— AMERICA AND WEST INDIES. III. Barbados - - - . . IV. Leeward Islands - . - . V. Windward Islands ... VI. Tobago - . - . . VII. Jamaica - - - . . VIII. Trinidad - - - - . IX. British Guiana . - . . X. British Honduras ... XI. Falkland Islands - . . . XII. Bermudas - . - • . XIII. Bahamas - . . . . XIV, Newfoundland .... XV. Canada - - - - ni.— AFRICA. XVI. Sierra Leone .... XVn. Gold Coast .... XVIII. Lagos XIX. Gambia - - - . . XX. St. Helena .... XXI. NatJil XXII. Cape, &c. ..... IV. -AUSTRALASIA. XXin. New South Wales XXrV. Victoria ..... XXV. Tasmania ----- XXVL South Australia - - . . XXVII. Queensland and New Guinea XXVm. Western Australia XXIX. New Zealand .... XXX. Fiji v.— THE MEDITERRANEAN. XXXI. Gibraltar ..... XXXII. Malta XXXIII. Cyprus PAGE 3 38 46 60 82 94 97 114 124 139 147 160 161 170 175 ao8 212 216 219 221 228 230 242 263 269 273 279 281 286 292 296 307 325 VI.— THE EAST. XXXIV. India XXXV. Ceylon XXXVI. Mauritius - XXXVII. Hong Kong XXXVIII. Straits Settlements a 4 336 349 360 371 381 VUl APPENDICES. Appendix A.— Coins Current. (i.) Spanish and Mexican Dollar (ii.) Spanish Pistareen (iii.) Spanish Doubloon (i\.) Portuguese Moidore and Johannes - (v.) Barbary Ducat ... (vi ) Coins of France - -"' •*« (vii ) Coins of the United States - (viii.) Sterling .... (ix.) Tables of (a) Silver am '-) Gold Coins PAGE 390 395 395 396 397 397 398 400 402 Appendix B. — Imperial Lkqislation, &o. (i.) Act 6 Anne, c. 57 (1707) - - - 414 (ii.) Act 13 Geo. III. c. 57(1773) - ■ - - 416 (iii.) Act 38 Geo. lU. c. 67 (1798) - - . - 417 (iv.) Treasury Minute of 11th February 1825 - - - 418 (v.) Order in Council of 23rd March 1825 - - - 426 (vi.) Circular Letters of September 1838 ... 425 (vii.) Order in Council of 7th September 1838 - - - 428 (viii.) Order in Council and Proclamation of 14th September 1838 429 (ix.) Banking Regulations of 1840 - - - 429 (x.) Banking Regulations of 184C .... 431 (xi.) Treasury Minute of 12th October 1852 - - - 434 (xii.) Order in Council and Proclamation of 16th October 1852 - 435 (xiii.) Order in Council of 19th August 1853 (U.S. Gold) - 435 (xiv.) Treasury Minute of 22nd March 1853 - - - 436 . (xv.) Order in Council of 18th October 1854 - - - 441 (xvi.) Order in Council and Proclamation of 18th October 1864 - 441 i^tvii.) Sydney Branch Mint Act, 1863 .... 442 (xviii.) Proclamation of 3rd February 1866 - - - 443 (xix.) Colonial Branch Mint Act, 1866 - - - - 444 (xx.) Order in Council of 10th November 1866 (Sydney Gold) - 445 (xxi.) Proclamation of 7th August 1869 (Melbourne Gold) - 447 (xxii.) Coinage Act, 1870 44:^ (xxiii.) Proclamation of l4th January 1871 - - - 453 (xxiv.) Proclamation of 14th January 1871 - - - 454 (xxv.) Order in Council and Proclamation of 24th March 1876 - 455 (xxvi.) Regulations for Supply of Tokens, 1881 ... 456 (xxvii.) Proclamation of 13th May 1887 - - - - 457 (xxviii.) Coinage Act, 1889 .---.- 4.08 (xxix.) Proclamation of 22nd November 1890 - - • 460 (xxx.) Coinage Act, 1891 - - - -' - 460 (xxxi.) Order in Council of 16th March 1892 - - - 461 (xxxii.) Coinage Charges at the Sydney Mint - - - 462 (xxxiii.) Coinage Charges at the Melbourne Mint - - - 463 (xxxiv.) Proclamation of 30th January 1893 - - - 464 Index 467 [ 1 ] 414 416 417 418 425 425 428 429 429 431 434 435 435 436 441 441 442 443 444 445 447 44.'^ 453 454 455 456 457 458 460 460 461 462 463 464 G B K B R A L. 467 a 'i . vryjr '■ [ 3 ] CHAPTER I. General Survey. British colonial history covers only the last three centuries. In the 17th century, in addition to the mainland " Plantations " (now part of the United States of America), the colonial possessions of Great Britain comprised little else than the senior colony of Newfoundland and part of the West Indies. In the 18th century Gibraltar, Canada, and India were won, and the New England States lost. And in the last hundred years Australasia, South Africa, Malta, the Eastern Colonies, and numerous other possessions have been added to the British Empire. At the present day, the currency of the British Colonies is as varied as their geographical position ; and the description of their existing monetary systems would form a catalogue rather than a history. In the light of the past, however, these anomalous systems exhibit a certain unity, which renders an historical treat- ment possible. This unity results from their historical evolution ; for, past history, like a geological record, explains and correlates the divergent systems now existing. From this point of view, the ancient West Indian Colonies are the most important, inas- much as they have passed in the three centuries of their history through nearly all the normal j)hases of currency evolution. Accordingly, the West Indies will be regarded in the (bllowing pages as indicating the main line along which colonial currency has developed, until half a century ago ; and a consideration will be given to the currency of these Islands (and, where necessary, of the coeval " Plantations " on the mainliind), which, thov. j;h out of proportion to their modern importance, is justified by the fact that they furnish the key to the history of colonial currency as a whole. In 1704, and again in 1825, the Imperial Government legislated with a view to regulating colonial currency ; and these two dates may conveniently be taken a« dividing the history of the subject into three epochs, the first of which ends with 1704, the second with 1825, whilst the third epoch extends from 1825 to the pre- sent day. But, Avhilst there is a certain unity running through the history of currency in the Colonies generally, rendering a general survey possible in more than a merely chronological sense, a special word is necessary as regards India. This great depen- dency stands on a footing, and has a history, entirely distinct from British Colonies in general. The Indian Empire originated in trading- stations, not coK)nial settlements ; these trading-stations were formed, not amongst barbarous tribes like the early " Plan- a2 If 4 Colonial Cubbemot. tations/' but in the midst of highly civilised communities, tena- cious even to bigotry of a consistent tradition in curi'ency ; further, the administration of the early trading-stations in India, as of the later Indian Empire prior to 1 858, was directed, not by the Imperial Government, as in the case of the Colonies, but by a trading company ; and even in the present day the affairs of India are controlled in this country, not by the Colonial Office, as is the case with all British Colonies, but by a distinct Depart- ment of State. Indian currency, accordingly, stands so far removed from the currency of the Colonies proper that, except in connection with recent years, its history has been excluded from this general survey and conBned to the special chapter dealing with British India.* These prefatory remarks may serve to indicate the scope within which the history of colonial currency is treated under it» three periods in the following pages. I.-Prior to 1704. In theory currency followed the flag; in practice it was only the denomination, and not the sterling coin, which followed the English settlers of the 17th century to the "Plantations" of the New World. The only coins they saw were of foreign silver, chiefly Spanish ; and these foreign silver coins they rated in terms of sterling, thus originating the complexities of " denomi- national currency " which stilj survive in the quotation of Halifax exchanges.f It was not that the colonists had any quarrel with the rponetary system of the mother country ; they were only too anxious to see sterling circulating among them.| Nor ia the cause to be sought in the Imperial policy expressed (e.g.) in the words of a Proclamation of James L, thut " the treasure of gold and silver brought into the realm should be considered as an immoveable and perpetual 8tock."§ For, as Thomas Violet shows, || there were countless subterfuges and devices for smuggling coin out of the kingdom if any profit were to be made ; and the * It is intereiting, however, to note that the modern silver monometallism of India has tlie same immediate origin as the gold monometallism of the United Kingdom, both being the fruit of Lord Liverpool's classic " Letter to the King" of 1805. And, in still more recent years, the paper currency ot India has been modelled on the lines of Sir Robert Peel's Bank Actsof 1844-6. t See article on " Denominational Currency," by Mr. C. A. Harris in the "Dictionary of Political Economy" (London, 1892). \ Though the Virginia Charter of 10th April, 1600, gave the Company the power " lawfully to establish and cause to be made a coin to pass current there," no coinage was struck. (Crosby, " Early Coins of America, ' Boston, 187R, pp. 19— 22.) See also coinage powers granted in 1615 to the Somer Islands Company (in/ra pace 160). § " Surely," observes Walter Merrey in his " Remarks on the Coinage of England '' (London, 178!)), "King James thought his Proclamations were as powerful as the Pope's bulls were formerly. Had he been sovereign of the world, his prohibiting the use of foilnge would have had little effect ; but as King of a small Island, it was like ordering the people at Hull not to draw a bucket of water out of the river, lest the tide should not rise high enough in the H umber." II *'■ An Humble Declaration," by Thomas Violet of London : Ooldamitb (London, 1«43). Ch. I. General Survey. fi state of the silver currency of England in the 1 7th and 18th centuries (see p. 400^ is ample proof of the failure of this prohibi- tive legislation. It is necessary to go further afield to understand the reasons wliy only the denominations of sterling were current in the British Colonies in the M ew World. The chief reason was that the early colonists were poor men, with new countries to develope by the slow processes of agri- culture. As a consequence, they required, and received, com- modities — not coin — from England in return for such part of their exported produce as was not already hypothecated to duties and other home liabilities. Hence coined money was rare amongst them ; and the flow of such specie as they had was nut from, but to, Europe.* Staple commodities formed the normal medium of exchange. Even where coined money was plentiful, it was frequently used for external rather than for domestic pay- ments. Writing of Maryland in 1671, Ogilby, in his "Descrip- tion of the New World," says : " The general way of Trafficlr and Commerce there is chiefly by Baiter or Exchange of one Commodity for another ; yet there wants not, besides English and other foraigu Coyns, some of his Lordship's f own Coyn." And Oldmixon wrote of the same colony in 1708 ad follows: — "The Lord Proprietary had a Mint here, to coin Money, but it was never much made use of. ... . Tobacco is their Meat, Drink, Cloathin?, and Money : Not but that they have both Spanish and English Money pretty plenty, which serves only for Pocket-Expences, and not for Trade, Tobacco being the Standard of that, as well with the Planters and others, as with the Merchants." Other colonies were not so well off for coin. Excluding the prosperous colonies of Virginia, Maryland, and Jamaica, it may be said generally of the rest that commodities were the only " money " they commonly saw before the closing years of the 17th century. But with growing commerce with the Spanish main,| and the rise of the Buccaneers in the West Indies, the plantations naturally and necessarily began to form part of a currency area dominated by the silver "piece of eight" from Spanish America. Spanish coins now began to circulate to a greater or less extent in all the plantations ; and the colonists through whose hands they passed, proceeded to rate them con- " " And 'tis coiiiputed that there is exported from Great Britain and Ireland to the several Colonies nnd Plantations belonging to the Grown in America, to the value of 850,000 1., and that the Importations from them all, including silver and gold, &c.. are to the value of 2,000,000/. So that over and above what we send to our colonies nnd plantations in our manufactures, native product, and foreign commodities, we have a balance in return thereof to the value of 1,750,000/., which centres and remains among us" ('*A Survey of Tmde," by William Wood, London, 1718). The same author statei that the value of the sugar from Jamaica, Barbados, and the Lepward Islands was 1,300,000/. per annum, and of the tobacco from Virginia and Maryland, 600,001) / , or 1,900,000 /. in all out of the above 2,000,000 /. f The Lord Proprietor of Maryland was Cecil, Lord Baltimore. % " Spain being the Cistern and Receptacle of almost all the Gold and Silver Although that we do draw some drops of this Indian spring, whereof ,^pain is the Cistern, yet we do draw them at the second- hand " : Ilice Vaughan, "A Discourse of Coin and Coinage," London, 1076 (written before lGi3d). fT 6 Colonial Cubrenut. currently with the sterling of which they retained only the denomination.* The sterling value generally accepted in the 17tli century for the piece of eight was 4 s. 6 d., the rating subsequently stereotj-ped by Queen Anne's Proclamation of 1704(5«c page 14) and by Sir Isaac Newton's Tables of 1717. But side by side with this silver parity, there was a popular ratingf of the piece of eight by tale at 5«., partly due to the general resemblance of that coin to an English crown. In Jamaica, however, the rating was 4 s. (the Real, or unit, being taken as a ** Spanish sixpence ") ; and a parallel for this can be proved in the case of the ancient colony of the Bermudas, wnd may be presumed for Barbados. The strict 4 «. 6 rf. rating is said to have continued in Maryland^ and Virginia§ until 1700 (according to the memorial of 5th tluly of that year, presented to the Board of Trade and Plantations, by Mr. John Fy8ack).| But, generally speaking, the plantation rating was 5*. in the 17th century; — Massac! lusetts prescribed this rate on 8th September 1642,ir and the Bermudas in 1658; ^ The early insufficiency uf metallic currency had led to tlie monetary use of tobacco, corn, wampum, sugar, rum, cotton wool, mahogany, molasses, ginger, indigo, skins, &c. In Virginia in 161B tobacco was rated at 3 8. a pound ("and not more or less, on tie penalty of three years' servitude to the colony ") ; in Massachusetts in 1643 " wampompeag " was madea le^ai tender ; sugar, tobacco, and other commodities were the monetary standard of the West Indies in the 17th and 18th centuries (see under British Honduras, Bermuda, Barbados, and the Leeward Islands) ; and the use of dried codfish as a circulating medium has persisted to modern times in ^ewfoundland. Curious as a detail in the history of prices is the statement from Holmes' "American Annals," quoted in Hankey's " History of Bnuking in America," that the ISO " young and uncorrupt girls " imported into Virginia in 1620 and 1(521 as wives for the colonists, were rated ori(rini)lly at lOOlbs. ot tobacco (15 /.). hut subsequently at the increased i»rice of ISOlbs (22 I. 10 ».). " The Rev. Mr. VVeems, a Virginian writer, intimates that it would have done a man's heart good to see the gallant young Virginians hastening to the water- side wben n vessel arrived from London, each carrying a bundle of the best tobacco under his arm, and taking back with him a beautiful and virtuous young wife." t " The said Royal of Eight runs in account of trade at 6«. of his Majesties now English Mony." (Sir Robert Cotton's Privy Council Report of 2nd Sept. 1620, printed in " Select Tracts on Money," London, 1866). " And again say thay. the Ryall of Eight and the Rix Dollar are both of them re|tuted as equal to five shillings sterling, but hold in intrinsical value less by ten in the hundred." ( Rice Vaughan.) It will be observed that this passage is evidence both of the 6 1. and of the 4t.Qd. rating. X This is dubious (see infra, page 1 4^. When in 1«69 (Crosby, page 124) Lord Baltimore coined (a few) silver shillings, sixpences, groats, and copper pence for Maryland, the coins were to be of standard fineness, but only to " weigh above nyne pence" per shilling. This depreciation is equivalent to a 6s. rating of the Piece of Eight. Felt ('• Massacliusetts Currency," Boston, 1839) is wrong in thinking the coins were *' equivalent to English sterling." Ruding thoneht the 1 s. worth lOrf. (" Annals of the Coinage," Vol. 1, p. 417). § From 1646 to 1656 the legal rating had been (5t. in Virginia. Apparently a 6 s. rating was temporerily in force again in 1679. (jSee Crosby, pages 22-24.) 11 See page 12. _ . ^ "This Co't considring the oft occasions wee have of trading w* the hollanders at the Dutch Plantation and otherwise ; do therefore order that the holland ducatoon being worth 3 gilders shalbee current at 6s. in all paym" with'" o' jurisdiction & the rix doller being two tx. a half gildrs shalbee likewise currant at 6 s., & the ryall of 8 : shalbee also currant at ba" f the Ch. I. Genebal Survey. 7 Jamaica took the same step ia 1671 ; whilst by the close of the century in Barbados, Carolina, and the Bahamas, the same rating prevailed, continuing in Canada until recent times as the basis of •* Halifax Currency." This 5 s. rating and its relation to sterling moneys, is thus referred to in " A Discourse Concerning the Currencies of the British Plantations in America," originally printed (anonymously) in 1740, at Boston in New England, and reprinted in Lord Overstone's " Select Tracts on Paper Currency ': — "Originally, and for some years following, in all the English American colonies, 5 s. denomination was equal to an English crown sterling. After some time, Pieces of Eight being the general currency of all foreign American colonists, became also their currency ; and they remitted or gave credit to the merchants at home (by home is meant Great Britain) a Piece of Eight (value 'is.Bd. sterling) for a ere vn or 5 s. sterling. This was afi'aud of 1 1 per cent. In sundry of our colonies were enacted laws against passing of light Pieces of Eight. These laws not being put into execution, heavy and light Pieces of Eight passed promiscously ; and, as It always happens, a bad currency drove away the good currency ; heavy Pieces of Eight were shipped oiF. This current money growing daily lighter, a difference was made between heavy money which became merchandize, and light money, in which they paid their debts, gradually from 10, 15, 20, to 25 per cent., as at present In Jamaica. This was another and continued course of cheating their Creditors and Employers at home.''* But there were deeper causes than the writer of 1740 indicates for the clipping of Spanish silver and the colonial raising of Its denominational value. For the colonies, imbued as they were with the old doctrine that wealth consls^ted of money, and conscious as they were of the inconvenience of having Insufficient coin in circulation for the purposes of trade, were naturally anxious, as they became more settled, to retain, and not to export, such coins as came among them. Imitating the practices familiar to them In England, dishonest peisons traded on the desire of the young communities for a metallic currency, by circulating clipped money at the full rate ; and this malpractice was condoned by the colonies when it was found that the light money was more apt to stay with them than " broad " pieces. Moreover, with silver as the colonial standard of value, whilst In England the real standard was gold, payment by tale at the English silver-parity for the piece of eignt entailed a loss on the remittance of these coins to England, a loss which was readily avoided by reducing the weight of pieces of eight to correspond with the dominant European ratio of silver to gold. Further, " the raising of the moneys "f was an expedient well-known and * See also an anonymous Tract occasioned by the above "Discourse," and published in London in 17^1 under the title of " Observations Occasioned by Reading a Pamphlet.'* t '♦ For say they, If we do observe those States which do soonest and most raise their Money, we shall find that they do most abound with Money ; and that Trader and Manufacturer do most flourish there. As for example the United Provinces, and the Arch-Dukt-s Country nnd the Hauns Towns." (Rice Vaughan.) \ir^ 8 Colonial Cubrenct. widely practised in contemporary Europe, as was the diminution of fine content ; and clippmg by the subject was the counterpart of the debasement of coins by ihe sovereign. Hence it came about that by the middle of the seventeenth century clipping was rampant in the West Indies,* and light Spanish silver coins became the general standard of value in the British possedsions i>- the New World. So far as can be gathered now, Jamaica and New England took the lead in these proceedings. Jamaica, the home of the Buccaneers and the chief naval and military centre in the troubled years of the 17th century, enjoyed an abundance of metallic currency in marked contrast to the lack of coins in the other West Indian Islands and in the English settlements on the mainland. And it is important to note that in Jamaica, w lence Spanish coins passed to other Plantations in the second half ol the 17th century,! the Real appears to have passed popularly ao the equivalent of the sixpence which its appearance suggested, with the necessary consequence that the piece of eight passed for only 4 .«., or 6 d. under its accepted sterling value. Hence, naturally enough, there was a tendency to clip the piece of eight down to a weight representing a sterling value of 4 ^,, or more probably to a weight representing 4«. currency in the neighbouring colonies, such as Barbados, where the general 5 s. rating prevailed. In the latter case the reduc- tion would be 20 per cent., which corresponds with Chr : Codrington's Statement in J 691 (see infra) that ihe pieces of eight current in Barbados and the Leeward Islands were only worth from 3 «. 6 d. to 3*. 9 d. sterling, instead of 4 «. 6 d. This would appear to be the chief origin of the early circulation of clipped Spanish silver in America and the West Indies, aided doubt- less by the universal tendency to cut up coins in order to remedy a dearth of small change.| It is at any rate certain that by the close of the first half of t' o 17th century light Spanish coins were being circulated from the West Indies through the Planta- tions of the New World. And the predominance of these light coins (and counterfeit money), coupled with the inconvenience of barter and of an inadequate medium of circulation, § led the ** "Our vessels which traded to the West Indies took considerable quantities of light Spanish coyne, wliereby many people were concerned mid the Colony in danger of being undone thereby. ' (Felt, quoting from the Mass. Archives of .30th October 1684, cited more fully in note §, infra.) t Other West Indian Islands had previously brought coin to the mainland Plantations. For Winthrop (Journal, vol. i, page 3G9, cited by Crosby) says that on 27th August 1630, there " came a small bark from the A^^est Indies, one Captain Jackson in her, with commission from the West- minster Company to take prize, etc., from the Spaniard. He brought much wealth in money, plate, indico, an^l sugar." t See (e.g.) under V*est Indies, West Africa, and Australia § "And as for the minting or stamping pieces of Silver to pass among our selves for xiirf., v'ld., iiirf." (the twopence was struck in 1662), " we were necessi- tated thereunto, liaving no staple Comodity in our Country to pay debts or buy necessaries, but Fish & Corn; which was so curabersom & troublesom as could not be born. And therefore for some years Paper-Bills pa^ised for Eayment of Debts ; w"^ were very subject to be lost, rent, or counterfeited, : other inconveniences. Then comes in a considerable quantity of light Ch. I. General Suryet. • # colony of New England on 3l8t May 1652, boldly to set about minting money for itself" of good silver of the just allay of new sterling English mony, and for valew to stampe two • pence in a shilling of less valew than the jjresent English coyne, and the lepser pieces proportionably." Felt adds that " we have the report of a Committee, designated by the General Court in 1654, which expressly states that our coin passed abroad at the discount of one fourth of its home value." f Consequently a *' Boston, or Bay, shilling " passed for 9 d. sterling ; and as the new coins weio immediately carried out of the country {e.ff. to the Leeward Islands, % *'"<' P^g® ^'*)' ^^ follows as a corollury of their con- current circulation with the piece of eight, that the latter coin (of full weight) must liave passed at 6 s., i.e., one-third above its accepted sterling value of 4 s. 6 r/. This was indeed the rating adopted between 1670 and 1672 both in the Leeward Islands and in New England. § The stimulus given to clipping by the New England coinage speedily led to the currency of liylit pieces of eisiht at 6 *. and to the raising of the rating of coins of full weight. Jamaica in 1671 raised the local rating to 5 s., to be on a par with its neighbours and to endeavour to keep its specie in the Island; but this measure failed to check the old habit of clipping in this the bullion- centre of the West Indies. Positive evidence is forthcoming to show the lengths to which clipping proceeded, as appears from the following extract from the Minutes of the Board of Trade and Plantations for 21st April 1703: — "The gentlemen con- cerned for Jamaica informed the Board that the rate of pieces of eight of about IBjd. weight is there at 5s., and those above 16 d. weight at 5 s. 6 'iament in 1740 afford evidence of the profusion in which this vvorthless paper was circulated.! With regard to metallic money, the America Jolonies continued in * This is an error, as the Bermudas passed an Act expressly to evade the Imperial enactments. t 'See also the comprehensive article '-Banking in America," in Macleod's "Dictionary of Political Economy " (London, 1863), to which is appended a valuable bibliography. irf R i» 16 Colonial CuBREifCT. the 18th, as in the 17th, century to give the preference to silver, and the inter colonial current of bullion bore gold from the mainland to the islands and silver from the islands to the main- land in return. (iii.) Alike in the Islands and on the mainland, the' circula- tion of the " base Pistareen " in the early years of the 18th century {see i)age 395) afforded a convenient subordinate medium for internal circulation. Dollars (as Pieces of Eight began to be called after 1728, see page 392) became mere merchan- dise, and bore a varying premium for purposes of export, according to their gold price. In short, within a very few years after the passing of the Act of 6th Anne, tlie metallic currency of the West Indian Colonies rested on a gold basis, with what was practically a token silver coinage circulating internally. As the rating of the nominal standard coiri, the silver dollar, continued to advance (i) on the mainland because of the paper issues, and (ii) in the West Indies in the wake of the ratings of gold coins, complaints began to be received from merchants and others as to the losses inflicted u])on them by their debtors in the Culonies. The " humble Petition and Representation of the Merchants of London, Bristol, and Liverpool," which was referred to the Board of Trade by Order in Council of 22nd January 1735, is careful to point out that by the Imperial Act *• it is onlv Provided and Enacted at what Rates the Silver Coins shall be accounted, received, taken, or paid, within any of the said Colonys and Plantations : Whereas there are, in all the said Colonys and Plantations, foreign Coins of Cold ot several Denominations accounted, etc. at Rates equally or more above the Rate or Value, in proportion as Gold bears to silver passing in this Kingdom, than Pieces of Eight or lesser Pieces of Silver are accounted, etc. by the said Act, and this equally attended with the same or greater Inconveniencys and Uncertainty s, both public or private, as the passing of Silver Coins, and is one Cause, according to the Plenty or Scarcity of Gold or Silver, in ny ot the said Colonys and Plantations, at one time more than another, of raising or falling the Gold or Silver Coin, to the disordering of all Dealings in such Colonys and Plantations." * In consequence of the agitation on the part of British merchants and colonial officials, Parliament, on 13th June 1739, presented addresses to the Kin^, requesting information concerning paper currency, and enquiring " What rates all gold and silver coins were accounted, received, taken, or paid, and gold and silver were purchased at and sold for per ounce, in any of the British Colonies and Plantations in America in the years 1700, 1710, 1720, 1730," and at the date of the addresses. The Board of Trade wrote out to the Colonies, and presented to Parliament the replies received, on various dates beginning with 27th March 1740. These replies showed that, apart from paper issues on the mainland, gold had supplanted silver as the colonial standard. ° The petition goes on to point out the evils of the paper currt>ncie8 arisine in the Colonies on the mainland,— evils which were not appreciated an such bv the local debtor. CIj. I. General Survey. 17 On 25th April 1740 the House of Commons prayed that the Act of 6 Anne might be " punctually and bond Jide observed, and put in execution, according to the true intent and meaning of the said Act." In accordance with this Address, the Board of Trade ou 2 let May 1740, sent a circular letter to the Colonies, requiring them to obey the Statute of 6 Anne, which dealt ex- clusively with silver coins. As regards the gold coins which formed the real diflSculty, it was proposed to issue a further proclamation, and to this end the Mint was consulted. On 19th November 1740 the Mint replied, giving assays and weights of the foreign gold coins current in the Colonies,* and deducing from their Bterlinw values " current values" (i) per piece, and (ii) per oz., " one-tnird above their true value or Mint prices given for them here." On 9th April 1741 the Attorney General wps ordered to prepare a draft proclamation on the lines of the Mint Report, ' which was approved by the Treasury ; but, owing to doubts as to the ratings ot the Muidore and Johaniie8,t no action was taken. It may be here mentioned that on 2l8t June 1728 Mr. William Wood| communicated to the Board of Trade a proposal to remedy the evils arising from " the issuing of paper money and the rating of the coin." His proposal was to stnke a colonial coinage (to be stamped "America") repeating the several British coins, both of gold and of silver, but " onelourth part less in value," i.e.y following the lines of the proclamation and Act of Queen Anne. These coins were to pass by tale and to be kept in the Colonies by various futile devices which Mr. Wood suggested. Nothing came of his interested proposal. Twenty years later, as Ruding records, proposals were made to ensure the integrity of the Empire by a common currency. For, "on the 14th of July 1748 Sir Alexander Cuming^ Bart., presented a memorial to the Right Honourable Henry Pelham, Esq., &c., in which he pro- posed, that, in order to preserve the dependency of the British plantations in North America on Great Britain, the current species of Great Britain should be made the current lawful money of the said plantations, as the proper measure of property in all countries depending ou the British Crown and nation ; and that 200,000 /. sterling should be coined at the Tower for that purpose ; which sum was to be made the foundation of a pro- vincial bank for all the Britisli plantations in America, in order to abolish the paper money in New England and Carolina, and to set aside the currency of clipped Spanish money in Jamaica and elsewhere. Cuming was an enthusiast, and his proposal was considered as visionary by the Administration." In less than a * The coins were the Louis d'')r, Louis de Malt, old French guinea, Merlitoti of 1725, Fiench Pistole, Johannes of Portugal. Moilore, Spanish Pistoles and Double Doubloon, and the Barbary Ducat or Ohequin. -|- It was on this ]ioint that tht; matter was referred b ick on 10th November 1741 to the Treasury, where it would appear to have bet n shelved. X This is the Wood who obtained the patent to coin " brass " halfpeiice and faithitigs for Ireland, and was so bitterly attacked by Dean Swift in the l>rapier Letters, between 1717 «nd 1733 he had (probably) issued, under Eatent, the well-known '* K')!>a Americana" cons (wrf., Irf., and ji.), see luding, Vol. 2, page 72, and Aikins, page 260-3. These coins were as unpopular as the Irisli tokens, and with equal lack of justice. 72642. B 18 Colonial Cubbenct. century, however, as will be seen subsequently, the idea was carried out by the Imperial Government. A few words are necessary respecting the measures taken by the Imperial Government with a view to purging the currency of the mamland Colonies from paper issues. As an instance of the profusion with which this worthless " money " was circulated, it may be mentioned that in 1740 the exchange in North Carolina was *♦ 1,000 /. paper for 100 /. sterling." In 1750, as remonstrances were in vain, the Act of 24 Geo. II. was passed " to regulate and restrain paper bills of credit in Her Majesty's Colonies or Plantations of Rhode Island and Provi- dence Plantations, Connecticut, the Massachusetts Bay, and New Hampshire in America ; and to prevent the same being legal tenders in payment of money." This Act recites that the Act 6 Anne c. 57, "hath been entirely frustrated in Her Majesty's said Colonies by their creating and issuing from time to time great quantities of paper Bills of Credit ; . . . which Bills of Credit have, for many years past, been depreciating in their value, by means whereof all debts of late years have oeen paid and satisfied with a much less value than was contracted for." Consequently, the Act provided that, after 29th September 1751, no Colonial legislation was to pass, either renewing the old, or creating new, Bills of Credit (except for "the current service of the year," or " upon sudden and extraordinary emer- gencies of Government, in case of war or invasion ") ; existing paper was to be called in ; and, after the above date, no paper currency " shall be a legal tender in payment of any private bargains, contracts, debts, dues, or demands whatsoever, within the said colonies or plantations, or any of them." In 1764, pursuing the policy of 1750, the Imperial Parliament passed the Act 4 Geo. III. c. 34, declaring that, in all American Colonies, future Colonial enactments making paper issues a legal tender, should be null and void. But in 1773, in view of •' the want of gold and silver currency in several of Her Majesty's Colonies in America," and, " as well for the publick advantage as in justice to those persons who may have demands upon the publick Treasuries in the said Colonies for services performed," Parliament passed the amending Act 13 Geo. III. c. 57 {^see page 416), providing that after 1st September 1773 Colonial paper, voluntarily accepted by public creditors in satisfaction of their claims, might be made a legal tender to the Colonial treasurers in payment of taxes, &c.* During the remainder of the 18th century, up to 1798, practically no action was taken by the Imperial Government as regards metallic colonial currency, except to strike copper coins for some of the Colonies which now form the United States of ® It may be of interest here to quote the ratings, as given by Robert Morrit on 15th January 1782, of the Spnnish dollar in the several United States at the date of their Independence : s. d. . Georgia .>.6_ New York and Carolina - - - - - 8 - Virgina and the four Eastern States - - - - 6 - South Carolina (paper) - - - - - -32 6 All other States 7 8 Ch. T. General Survey. 1» was iby ly of 'the ited, olina ). II. Her •rovi- , and being it the Her ime to k Bills , their ti paid L &r." teraber ing the current emer- jxisting ) paper private within liament merican issues a view of ajesty's vantage pon the ormed,' 57 (.sec Colonial action of Colonial to 1798, nment as )er coins states of bert Morrit id States at d. 5 - 8 - 6 - 6 7 8 I America* But meantime, as has been pointed out above, the early years of the 18th century witnessed the establishment in the West Indies of a gold standard by weight at a varying number of " pence currency" per grain. But a currency by tale necessarily continued for all retail transactions ; and in these the Real, or " Bit," was the fixed point, passing for 7 Jd. currency in Jamaica and Barbados, and for 9 d. in the Leeward Islands, An. The base alloy of the Real of New Plate, and of the 2-ReaI piece (or Pistareen), not only established theai as the sole silver coins in general circulation, but also threatened the supremacy of gold. The " Dollar " sank to be a mere denomination, or common measure in which to express (i) gold and (ii) the Bit. The steps taken to adjust the relative values of these circulatory media, and at the same time to attract the silver dollar, were twofold. In the first place, except in Barbados, there was a feneral tendency to make the dollar a piece of' more than ten its, — most of the islands (headed by the Leewards) rating it at 11 bits. And, in the second place, a conventional weight of the Portuguese half-Johannes was fixed, whereby this popular coin passed for ^8. When this had been done, other circumstances occurred which wrought confusion in the monetary system of the West Indian Colonies, and led to the circulation of gold by tale in the majority of the islands. For, whereas all Spanish and Portuguese gold had been, of the uniform fineness of 22 carat.a in the first half of the 18th century, Spanish gold coins fell into disfavour in the second half of the century, owing not only to counterfeit doubloons, which had become current {e.g. in Jamaica in 1758), but also to the lowering of the standard of Spanish gold coinage to 21J carats fine in 1772, and again to 21 carats in 1786, — whereas the Portuguese standard of fineness remained (as did that of Great Britain) ot 22 carats. With varying fineness, uniformity of rating of gold coins was at an end ; and differential ratings of Spanish and Portuguese gold coins were necessitated. Even Jamaica, in spite of its geographi- cal position, passed an Act in 1774 favouring Portuguese gold as against Spanish; and in the other islands the like result was attained by the simple process of clipping the "Joe." In the words of a memorandum of 1802 from Tortola : " The value of the half- Johannes used to be the same in all the islands, viz., 8 Spanish dollars. In Jamaica (sic) and in Barbados the weight ** The Record buoks of the Mint refer to a proposed coinage of 1754 for North Carolina {2d. Id., Jd*)) apparently not executed (see Crosby, page 143-4), of Virginia halfpence on 20th May 1773, and to the return between 1783 and 1785) of several hundredweights of halfpence from Maryland, Philadelphia, and New York. As will be seen from Crosby (page 173 and passim) counterfeit copper coins from Birmingham flooded tlie American Colonies, " the more valuable metals daily giving place to base British half- pence." Massachusetts in 1703 had arranged to have a copper coinage from England, but tlie sclieme appears to have fallen througii in ihe end. Tokens were struck, in tne Colonies, e.(/., the Gloucester Token in Virginia 1714, and the Granby or Higley tokens in (^unnecticut in 1737-0. Copper coins were also struck in 1704 for the Bermudas. b2 20 Colonial Ccrrengt. fixed was Odwts. Sgrs.; but in all the other islands the half- Johannes passed without weighing iov f8, but theconfcquence was that the Jews and other people of s'-nilar description clipt and sweated the gold to such a degree tliat the half-Jobuiines was reduced even as low as 5 dwts. At the same time a villainous practice was introduced of importing base half-Johannes from Birmingham, Sheffield, and America. — the intrinsic value of which was not more than 3 to 3i dollars. The consequence was the silver was carried out of the Colonies to America, and nothing was to be seen but this base clipped and sweated coin. To such a pitch had this evil got that it was difficult for the inhabitants to obtain change to procure necessaries for their families, and were often compelled to give a large premium for that purpose. .... In some islands an Act of the Legislature was passed; in others— where that was not the case — an association was entered into, which had a similar effect; in all they fixed a standard weight for themselves.* And to make the half-.roan current each island had a stamp for itself, and after a certain quantity was stamped, they would allow no more." The importation of counterfeit coin into the West Indies, to which the writer of the memorandum refers, had not escaped the notice of the Imperial Government. On 21 June 1798 the Im- perial Act, 38 Geo. III., cap. LXVII. {see page 417) was passed to prevent the exportation of counterteit Johannes and dollars (as well as of base copper coins) to the Colonies. And on 26 May 1798 the Secretary of State addressed a circular letter to all the West Indian Colonies, directiner the Governors " to publish proclamations recommending .all persons to weigh the golj and silver coins current, and to state in such proclamation what weight the respective coins should be, making such allowance for reasonable wear as you with the advice of your Council shall think right." Martinique seized the opportunity to raise its ratings ; Dominica followed suit ; and the West Indies generally set about establishing retaliatory rjitingsf to prevent their coin from being drained from them. Consequently on 8th December 1798 the Duke of Portland issued a second circular pointing out that his previous letter against counterfeits had been misunder- stood, and that " no alteration either in the nominal value of the coins or in the relative values of the metals ought at any time to be made in any of His Majesty's Colonies or Plantations without express authority from hence." But the mischief had already been done, and it was found impossible to reduce ratings already raised. Except in Canada, where gold was undervalued, and where currency legislation in the 18th century was directed to the retention of gold coins in circulation, the over-valuation of gold, • The meinorandum goes on to state that the weights were 7 dwts. in the four original Leeward Islands, 7 dwts. 12 grs. in Grenada and St. Vincent, 8 dwts. in Tortola, and 9 dwts. 5 grs. in Barbados. ^ This was the reason of the raising of the dollar from 11 to 12 " bits " in the Levword Islands about 1798. Later, the Windward Islands raised the dollar to 13 bits. Ch. I. General Suevey. 21 ic half- nce was lipt and nes was iUftinous ics from mlue of jnce was nothing To euch labltantB ilies, and purpose, issed ; in s entered standard 1 current quantity Indies, to leaped the ] the Im- /as passed dollars (as n 26 May ter to all to publish ! goll and ition what owance for uncil shall ,0 raise its 3 generally t their coin December jointing out 1 misunder- ralue of the any time to ons without liad already ings already and the consequent inability to retain silver coins in concurrent circulation, had led at the close of the 18th and beginning of the 19th century to the circulation of " cut money." Dollars and their parts were cut up and the fractions circulated at their nominal value. This gave rise to fraud, five quarters being commonly derived from cutting up a dollar ; and Colonial Governments were constrained — particularly in the West Indies and on the West Coast of Africa — to &tamp all *' out money " which was to remain legal tender. And some Colonial Govern- ments resorted to the expedient of cutting a central disc out of the Spanish dollar in order to retain silver in circulation. This was the origin of (e.ff.) the ring dollar of St. Vincent, and the *' holey dollar " and " dump " of New South Wales. As in the United Kingdom, so in most of the Colonies the ^reat need was for a subsidiary or token silver coinage ; and the above measures were endeavours to secure this end. With the large increase of the British Colonial Empire at the beginning of the 19th century, the problem of colonial currency, already complex enough in the West Indies, was further compli- cated by the acquisition (from the Dutch) of Colonies with a paper currency. The Imperial standard of metallic currency was still unsettled, and the Imperial Government was not in a position to grapple with the difficulties of other currencies than its own. Consequently, a perfunctory sanction was given to the coinage of depreciated dollars for Demerara and of depreciated rix-doUars for Ceylon ; and copper coins were shipped, when Colonies asked for small change. But in 1816, when the principles of the metallic currency of the United Kingdom were finally settled on the picsent basis of gold monometallism, the Imperial Govern- ment began to turn its attention to the deficiencies of colonial currency, and circulars were sent out to the Colonies asking for particulars as to to their systems of currency. The replies, which testified to the evils under which the West Indian Colonies (with the exception of Jamaica) then laboured, were unanimous in favour of a silver dollar as the standard ; but the subject appears to have been dropped. a request from Mauritius, the the silver coins known (from their for circulation in the Mauritius. I, ^, and -j^fT parts of the dollar, 7 dwts. in the nd St. Vincent, In 1820, in response to Imperial Government struck device) as " anchor money " The coins wer^i originally and were of equal fineness and proportionate weight.* It is strange, that, after the discussions leading up to the. Imperial Act of 1816, and after four years' satisfactory experience of the new token shilling, the authorities did not decide upon a token coinage, * Tiie Mint ivcorJs show that the following weights of silver were coined : — Lbs. oz. 1,800 o into '! I dollars. 1,0R0 „ I „ 728 4 „ -. A ,. 3,008 4 T 22 ili;. Colonial Cuerency. inferior in fineness to the Spanish dollar. Had this course been adopted, the coins might hr ;e been kept in the Colonies, and much inconvenience might have been temporarily prevented. The issue of anchor money was repeated in 1822, when similar coins (^with the addition of a half-dollar for the Mauritius), were consigned to the Mauritius and the West Indies.* The experiment was not, however, made with a view to a final solution of the' currency problem in the Coloniefi, nor was its success such as to warrant a repetition. A year or two later copper fractions of the dollar were also struck for Mauritius, the West Indies, Sierra Leone, &c. ; but the coinage was melted down, before issue, at the end of 1825. As regards the circulation of paper money in the Colonies, it has already been shown that in the 18th century the Imperial Government was strongly opposed to colonial measures whereby notes of colonial Governments were made a legal tender. It was this policy which dictated (i.) the disallowance of a Barbados Bill of 1706, (ii.) the passing of the Imperial Acts 1750—1773 (see supra) forbidding the issue, as legal tender, of (unsecured) notes by American Colonies, and (iii.) the prompt pressure which was brought to bear on France in 1766 to pay off " the drifts of worthless paper in which Canada floundered " at the date of its capture by British arms. During the great war this sound policy was abandoned, in practice, under stress of the financial difficulties in which the Imperial Government was plunged both at home and abroad. With a forced paper currency in circula- tion in England, it was not to be expected that austere principles of finance could either be preached or enforced in the Colonies. It is, however, creditable to the Imperial Government of the day that, with the exception of an issue in Canada in 1811 (which was punctually redeemed a year or two later), no new paper was put in circulation in the Colonies. On the other hand, whilst the Imperial Government resisted the temptations to create new issues, its financial exigencies rendered it powerless actively to reform existing evils, in the shape of the worthless paper inherited from the Dutch in the newly acquired Colonies of British Guiana, Ceylon, and the Cape. In these Colonies existing issues, so far from being called in, were largely increased under British rule, prior to 1825. The foregoing remarks apply to Government notes. As regards issues by banks, the policy in vogue, alike in the Colonies and in the United Kingdom (with the privileged exception of the Bank of England), was the policy of laissez faire; practically, the banks established in the Colonies were allowed to control their * Tlie Mint records give the following details : — 11 For the M Eturitius : Lbs. oz. Dollars 3,20i) into i 1,283 11 )> i 1,283 11 » 1 641 11 ») T8 . Fori the West Indies Lbs. Dollars 6,640 into i 3,780 ») 1 2,620 » 1 T8 The total weight of silver coined was 19,258 lbs. oz. Ch. I. General Survey. 23 paper issues for themselves, subject only to unlimited liability. And, not only banks, but even private individuals were allowed to circulate their own notes, notably in Mritish Guinna and the new Australian Colonies. In Tasmania, for example, private notes ranjijed as low as fi d. ; and even in New South Wales in 1813 a Proclamation had to be issued to forbid the issue of promissory notes (which were not required before 1803 to be on Printed forms) " for any sum of money under the sum of 2 *. 6 rf." 'here was little or no recognition prior to 1825 of the truth expressed in Lord Overstone's dictum that notes should be " the shadow of the gold." III.— From 1825, Onwards. In dealing with this third and last period of colonial currency it will be convenient to distinguish metallic from paper money, and so to break up the history of colonial currency since 1825 into two parts, dealing first with the coin of which notes are at best only representatives. (a.) Coin. In 1825 the Home Government made its great attempt to introduce British silver into circulation throughout the British Colonies.* The shilling was to circidate wherever the British drum was heard. The causes of this revolutionary change were two-fold, arising from circumstances affecting (i.)the Spanish, and (ii.) the British currency. In the first place, the successful revolt of the Spanish Colonies in America had cut off" by 1820 the supply of the universal Spanish dollar ; while for some half a century there had been a dearth of the fractions of the dollar for subsidiary circulation in the Colonies. The Home Government was also alive to the prevalence of dishonest paper and of "cut" and " plugged"! money, which was the curse of colonial currency in the West Indies. In the second place, the Act of 1816, establishing gold as the sole standard of value in the United Kingdom, had placed the Home metallic currency on a sound basis, establishing a token silver coinage, which for the firnt time for centuries remained in circulation. And, further, the new Mint was now in full work- ing order and able to satisfy even greater demands than those made upon its resources for purpose of internal circulation. Consequently the disease seemed almost to suggest its own remedy. The new shilling was a success at home ; why should it not prove as great a success in the Colonies, and form a "111 the next year, by Royal Ordinance of France, dated St. Cloud, 30 Auffust 1826, the currency of the French Colonies was assimilated to that of France. f When a (^old) coin which had been clipped was raised again to the standard weight, the additional yold, fixed on to the clippca coin, was called the '• plug," and the "lunipisii result was plugged gold coin." Needless to say, the plugs were frequently adulterated. Tlie coin most commonly plugged was the " Joe." I ' ■\ 'l il- 24 Colonial Currency. (silver^ link between them and the mother country ? And, apart from tne interests of the Colonies, the Home Government had interests of its own to consult. The large payments to troops and officials in the Colonies, amounting to severrJ millions sterling a year, were made the heavier by continual shipments of specie, necessitated by conflicting and unsound systems of colonial currency. If British silver could be substituted once for all as the circulatory medium of the Colonies, it would not only save the expense of shipping specie, but also swell the Imperial gain by eeignorage on subsidiary silver. On grounds, there- lore, both of policy and of expediency, it seemed desirable to introduce British silver coins into circulation in the Colonies. The real justi6cation of the measures of 1825 was one which was only vaguely felt at the time, and which required the subsequent experience of half a century to demonstrate and to define. That justification is to be found in the fact that the Spanish dollar, the universal coin of three centuries, had lost its supremacy, and that its universal dominion was in process of dii^integration into rival ** currency areas," chief among which was destined to be the area dominated by British sterling. A beginning was made through the Commissariat, the Depart- ment by which the troops, &c. were paid abroad. As the pay of the troops was fixed in sterling, it was decided to pay them in sterling silver and copper coins, and so to introduce these coins into Colonies. In order to keep the money in circulation, an ingenious arrangement was devised. The bills which the Com missaries were in the habit of drawing upon the Treasury at 30 days' sight for raising funds, were to be issued (at 103/. per 100/. Bill) to any person tendering British silver. In this way it was hoped to ensure the general use of British tokens as a circulatory medium in the Colonies. These proposals, which so far had primary reference, not to the colonial public, but to the Imperial troops, &c., were embodied in the Treasury Minute of 11th February 1825 (quoted inextenso at page 417), the substance of which was communicated to the several Commissaries by circular letter of 12th February. In order to give legal currency to the British coins in the Colonies generally, an Order in Council was passed on 23rd March 1825 {see page 425), which proved as mischievous as it was intended to be beneficial. Its fundamental errors, derived from the Treasury Minute, were ^i.) its rating of the Spanish dollar for concurrent circulation with British silver, and (ii.) its omission to rate foreign gold coins. (i.) The Treasury Minute stated that " as the substitution of British silver and copper currency for the Spanish dollar, even in the paymonts from the military chest to the troops, can only be gradually effected ; and us it may, in many cases, be still expedient to employ thut coin as a medium of payment at a fixed rate as compared with British currency, my Lords are of opinion that it should (when necessary) be issued at the rate of 4«. 4 d.* the *The figure was derived from Kelly's Cambist, which gave 870*9 grains as the fine content of the Spanish dollar. Consequently, at 6 s. 2d. per ounce of standard silver (containing 444 grains fine), tne equivalent of the Spanish dollar was taken as being 61'7l> d. Ch. I. General Survey. 25 I, apart nt had troops srling a specie, colonial r all as ly save mperial , there- :able to olonies. lich was sequent . That b dollar, acy, and ^ion into jd to be Depart- le pay of them in ese coins Eition, an ;he Com iry at 30 per 100/. ly it was rculatory far had Imperial of nth tstance of Y circular icy to the uncil was n'oved as damental ting of the ilver, and titution of )llar, even an only be expedient ed rate as tinion that 4 d* the )'9 grains a» per ounce of the Spanish dollar, being a fraction of a farthing only above its intrinsic value at the rate of 5 «. 2 d. per ounce of standard silver." But as this "Mint price," which dated back to 1601, and had reference to a bimetallic standard, was 2d. per ounce higher than the gold-price of silver in the open market, the effect of its application to the opanish dollar was lo overrate that coin, as nieaaured by the gold sovereign, to which the shilling was now subsidiary. Had this blunder been confined to the mere rate of issue of the Spanish dollar to the troops in lieu of sterling coins, the evil would not have amounted to more than an unintentional fraud on the troops, &c. ; but, when the obsolete Mint price was made the basis for rating British silver for concurrent circulation with the dollar, the over-valuation of the latter coin by 3} per cent, was fatal to the Imperial scheme. By a familiar law, the over-rating of the dollar sufficed to drive out the shilling. (ii.) As has been shown above, the indirect effect of the Pro clamation and Act of 6 Anne had been to establish a gold standard in the West Indies. Here, as in Spain itself, the gold doubloon (with the Portuguese Johannes)* had practically sup- planted the silver dollar. Consequently, if British silver was undervalued 3 j per cent, as compared with the dollar, it was still further under-rated (by an additional 4J to 5 per cent.), as com- pared with the colonial gold standard. In Colonies where the doubloon (worth 64^. sterling) passed, as in Spain, for 16 silver dollars, the under-valuation of the shilling by about 8 per cent, rendered its circulation hopeless. In Gibraltar, for example, where the doubloon was supreme, the newly-arrived boxes of British silver were bought up at the price of one doubloon for 69£. 4r/., and immediately shipped back to England " unopened and with seals intact." Beyond these two fundamental errors of method, there was the minor error of fixing one uniform rate of exchange for the issue of Treasury Bills in all Colonies alike. A prfemium of 3 per cent., though, perhaps, not too high (at the time) lor the Australian Colonies, was excessive for places where the cost of shipment, &c., was less than 3 per cent. Even had the introduction of British tokens been thoroughly carried out, it is evident that no person would pay down 103/. for a 100/. bill on the London Treasury at 30 days' sight, when he could ship the coin home, or buy a private bill, at a less rate. In spite of all its shortcomings, the principle of the Order in Councd of 23rd March 1825 was brought into operation in the Colonies generally. The details will be found under the head of the several Colonies; the story of its failure is best told in the language of the remedial measures subsequently adopted. In January 1827 the Treasury complained to the Commissariat Department, that " when British money is issued from the military •Roughly speaking, Portuguese gold was unimportant as compared with Spanish gold, till the second half of the last century. About the beginning of this century the most important West Indian islands e ?ouraged the cir- culation of the doubloon, leaving the cut Johannc o ih^. ward Islands, &c. i till 26 Colonial Currency. chests to the paymasters or others, it is exchanged for dollars or other circulating medium, and the silver money is returned into the chest for hills on this Board, instead of being paid to the men, by which measure only it would gtt into circulation, and supersede the circulation of dollars iind other foreign coins, for which it is, in Their Lordshi[)s' opinion, in all respects better adapted." This practice, which was very profitaole to pay- masters, was to be discontinued, and the troops were to be actually paid in British silver. And in September of the same year, the rate at which 100/. bills were to be sold in exchange for British silver was reduced from 103 /. to 101 /. 10*. In 1834 and 1835 Kepublican dollars and doubloons of the South American .States were admitted to an equality with the Spanish dollar and doubloon ; and, also in 1834 and 183'), a proposal was nearly adopted to coin token fractions of a dollar (quarters, eighths, and sixte'enths),* to replace the cut money of the West Indies, &c., and to provide the greater volume of small cur- rency there required for the payment of wages to emancipated slaves. This proposal was abandoned when it was found that Jamaica and other islands had rated the shilling and sixpence as quarters and eighths of the dollar respectively ; and that it was in furtherance of the same scheme that Jamaica had obtained 10,000/. worth of 3 rf. and \\d. pieces from England. A definite step in advance, however, was taken in 1835 by Treasury Minute of 19th June, whereunder the Army rate of the doubloon wa^ reduced from 69 «. 4t/. to 665. This reduction was made on the ground that the "doubloon is intrinsically equivalent to about \5^^ dollars {i.e., at 4 5. 4r/. each), and, so far, marked a great advance towards a solution of the problem of rating Sj)anish coins for concurrent circulation with British coins. But, though the doubloon was placed on a just footing with regard to the dollar, there still remained the overrating of the silver dollar by 3^ per cent, with regard to sterling. Much distress having been occasioned in the West Indies by the want of properly regulated silver currency, a Committee of the Privy Council was appointed in 1838 to hold an inquiry; and the root of the evil was shown by Mr. James Pennington to be the erroneous rating of the dollar, according to the "Mint price" of 5s. 2d. per ounce standard, instead of" according to market price (then 5. v.). The representatives of the West Indian Colonies, and notably Mr. McQueen, on behalf of Jamaica, advocated the retention of the silver dollar as "the proper circulating medium and standard of value to be continued in the British West India Colonies," with shillings, &c., in subsidiary circulation up to a limit of 5 dollars. But the Government was not prepared to go further than to correct the errors of 1825. As the bullion values of a Mexican dollar and o The fineness was to he 833 -3 per mille, and the weights were to be propor- tionate to the dollar, i.e., 104 grniii8 tor the quarter, 62 for the eightli, and 26 for the sixteenth. They were to be stamped " West Indies," and not to be legal tender beyond 10 dollars in one payment. An amount representing 300,000 dollars was to be coined in the first instance. Ch. I. General Survey. n of a doubloon were found to be nearly 4 s. 2 d. and 64 s. reapeo- tively, those values were adopted as the ratings of these two coins for concurrent circulation with sterling. It was decided to do no rtiore than give a fair field to the dollar, the doubloon, and the shilling in the West Indies, and by correct adjust- ment of the three principal coins in circulation, to enable "currency" systems to be abolished without interfering with ex- ist' ng contracts. Accordingly, (i.) by On^or in Council of 7th September 1838 (aee 428 page ^ the Order in Council of '-iSrd March 1825 was revoked, so far as respected the Colonies in America and the West Indies; and (ii.), by Order in Council, and Proclamation of 14th September 1838 (see page 429), it was ordained that, through- out the West India Colonies, including British Guiana,* the doubloon and dollar should circulate and be received in payment, equally with sterling, as being respectively of the full value of 64*. and 4.s. 2d. Instructions were sent at the same date to the Governors of the several Colonies in the West Indies directing them to declare by local proclamation the "currency" values of the doubloon, the dollar, and the shilling, according to the relative values assigned to these coins in the Royal Procla- mation. The doubloon, being the real standard in the West Indies, was to be taken as the basis of the currency ratings, with a consequent levelling up of the values of the dollar and shilling. The new " currency ratings " were in most cases inconvenient for the purposes of ordinary life. The Bahamas and Jamaica at once proceeded to dispense with "currency" and adopt sterling denominations. And in this connection it is to be observed that, the reign of the Spanish dollar being over, most of the West Indian Colonies had come to form part of the rapidly widening "currency area" of Great Britain. Hence, even though in many cases the formal adoption of sterling denominations was postponed (by Montserrat till 1864), sterling coins steadily worked their way into general circulation in the West Indies. The success of the legislation of 1838 in the West Indies led in 1843-4 to its application to Colonies elsewhere, — to the Mauritius, the West Coast of Africa, St. Helena, Malta, Gibraltar, and Honjj Kong. In the two first cases French and East Indian DO ^ coins were also admitted to tender ; in Malta the doubloon was not allowed to compete with sterling; and in Gibraltar (where only the Spanish doubloon passed current, and where the silver dollar was in practice mere bullion) the rating of the dollar (as a denomination) at 4s. 2d. was allowed to be established side by side with the rating of the Spanish doubloon at 16 dollars, or 66s. 8 6?., instead of 64s. The great discoveries of gold in Australia in 1851,t following as they did on those of California, profoundly affected the * The new legislation, it will be observed, was not extended to the Colonies in North America. Apart from other considerations-, the year was unpro- pitious, as being that of the Canadian Uebellion. t According to Coghlan's Seven Colonies of Australasia, " from the date of the first discovery of payable gold, in 1861, to the end of the year 1890, the quantity of gold produced in the Australasian Colonies represeuti a total I l( I '' I m 28 Colonial Currenct. currency of the Britinh Colonies in common with the rest of the civilised world. A primary effect was to drive out the now appreciated silver dollar from circulation in places like the West Indies,* where nothing but the hitherto steady gold-price of silver had retained these coins in circulation, side by side with the gold sovereign and its token represeiil In the Bahamas this lefulte'i in the introduction of the gold dollar of the United States, and in the consequent passing of tlie Orders in Council, iS:c. of 19 August 185.3 and 9 March 1854 (seepage 435), formally rating the Engle at 41 8, and the gold dollar at 4*. 1 d. for the whole of the West Indies. ■{■The gold discoveries had furnished the Imperial Government with a favourable opportunity for introducing in 1852 the principle of a 40 «. limit of tender for silver in Australasia. And as it was then generally believed that India and the East generally would pass to a gold standard, the 40 s. limit was also applied to Ceylon, Mauritius, and Hong Kong {see Order in Council and Royal Proclamation of 16 October 1852, quoted at page 436). X Parliamentary Paper, No. 421, of 1862. Ch. I. General Survey. 29 Br Cent. 11-14 66-5() 7-61 o-;j4 o-l» 0-H5 I«-58 100-00 Master to coin gold at the charge so imposed." Under tliis Act was isHucd the Royal Proclamation of 3 February 1860 (atc page 443), (i. ) declaring Sydney gold *' a le^al tender for payments within the United Kingdom of Great Britain and Ireland," and (ii.) imposing a charge of 3 It was not until 1868, however, that, by Proclamation of 14 May of that year, Sydney gold was made a legal tender in Canada and Newfoundland. f Evidence is not forthcoming to show that the Royal Proclamation was published in any Colony except Victoria ; nor does the point seem material seeing that the Act gives statutory effect to the Pruclamation upon its istue. It will, however, be observed that the Imperial Act is precise in referring solely to "gold coins issued from Our Mint in London.'' Consequently Melbourne gold was not made a legal tender in Colonies where only Sydney, and not London, gold was a legal tender in 1861). liMiLraw 30 Colonial Currency. ductlon of sterling currency by imposing in 1852 a 40 s. limit on the tender of British silver, not only in Australia but also in such fiilver-using countries as Ceylon, Mauritius, and Hong Kong. This doctrine of the universal applicability of sterling was aban- doned, though nith reluctance, wnen it was demonstrated (in each uase by Sir Hercules Robinson) that a gold standard was imprac- ticable, and mischievous, in Colonies such as Hong Kong, the Straits Settlements, and Ceylon, where trade relations made a silver standard imperatively necessary. It was thus the East which taught the lesson of *' currency areas "in colonial curreftcy. Once recognised, the new doctrine was warmly espoused, a mint being established in 1864 at Hong Kong to coin, instead of gold sovereigns, silver dollars of the Mexican type. In 1876, Mauritius was recognised as falling, like Ceylon, within the currency area of India, and the silver rupee was accordingly established as the standard coin for the Island. And in 1887 the currency of Pritish Honduras was reformed by adopting as the standard the silver dollar of Guatemala, on the ground that it was by the nv^ighbouring Republics that the currency of this British Colony was necessarily dominated. And while the doctrine of" currency areas " was recognised and applied by the Imperial Government in the case of these lesser Colonies, the self-soverning; Dominion of Canada had in 1871 recognised the same doctrine for itself by assimilating its currency (so far as the gold standard was con- cerned) to that of the neighbouring United States, — a step which has also been taken, in practice though not in law, by the Bahamas. Alone among British Colonies, Newfoundland has maintained its (formal) independence in currency. Refusing to be drawn into the currency area either of Great Britain or of the United States, the senior Colony has the unique distinction of possessing a gold coin of its own (the two-dollar piece), which perpetuates the gold -price in 1838 of the old Spanish silver dollar. The following is a list of the several Colonies, classified from the point of view of metallic currency : — ■'<'/'\ ■ I. Sterling Standard. (a) With 40 a. limit for silver : ' Australasia.* The Cape, &c. Natal. Fiji. St. Helena. ir. Non-Sterling Standards. (a) U. S. gold dollar: Dominion of Canada. (b) Newfoundland gold dollar: Newfoundland. (c) Spanish (= Latin Union) " bimetallic" standard : Gibraltar. '((/) Mexican dollar : Hong Kong. Straits Settlements. (e) Rupee : British India. Ceylon. Mauritius. (/) Guatemalan dollar : British Honduras. • In concluding this portion of the general survey it is neces- sary to advert to the abuse of tokens in some sterling-using Colonies. In the West Indies and elsewhere* the absence of a 40 a. limit on the lejial tender of silver vitiates the local system of currency by maintaining a metallic circulation of mere tokens without a local bulwark of standard gold coins. It is true that twenty silver shillings cannot be obtained from the Royal Mint except in exchange for a cjold sovereign, and that, since the Imperial system of issuing silver coins is calculated autosratically to meet general requirements (at home) without danger of over-iosue, these silver tokens maintain their nominal value in gold. But it is to be observed that the Imperial Government h is never recognised any title on the part of holders of silver (or bronze) coins to have such token coins re-exchanged for gold. And, the practical consequence to a small Colony of a currency reduced to tokens only, is (a) to encourage the convenient, but dangerous, system of paper currency (more or less unsecured) in respect of the larger amounts represented by the displaced gold coins ; and, (b) to hand over the control of the exchanges to Banks, which are thus enabled to profit by the short- comings of the local currency system. f These results, it may be added, are directly encouraged by the liberality of the Imperial Government in paying freight, &c. on British tokens supplied to Colonies {sec page 45*>). • In the West African Colonies, where there is no paper currency and where there are no banks of issue, gold is found in concurrent oirculRtion with silver tokens, in spite of the absonce of a 40 ». limit, and in spiio of the Dative preference for silver. t This was the reason which led, at the instance of th" 'ocal merchants, and In opposition to the wisl'es of the henks, to ihe recognition hy law of the sovereign in Newfoundland in ]85(>. 82 Colonial Currency. 1 ■ There 13 also the possible danger to the Imperial Government of having to face re-siiipmenta of the vast sums in token silver which, though now circulated or hoarded on the West Coast of Africa and throughout the West Indies, may hereafter be returned into home circulation to the derangement of the sterling monetary system. It must not be forgotten that the framers of the Imperial regulations of 1816 for issuing tokens did not contemplate the use of British tokens outside the United Kinjidom. Passing from the above general considerations to tne parti- cular case of the West India Islands, it should be rememoered that, prior to 1825, gold had been their monetary standard for over a century ; and that nearly all the imjtortant Islands objected strongly in 1838, when sterling was finally introduced, to the absence of a limit of legal tender on British silver, as robbing them of their gold standard. Though, in the second half of this century, local opinion has been adverse to a 40 s. limit (largely, it would appear, under the mistaken impression that such a limit would clash with the need for relative abundance of silver wherewith to pay the negroes), yet it may be hoped, on the precedentof the spontaneous action recently taken by St. Lucia, that united action will eventually be taken by the West India islands along this obvious line of currency reform. In the first instance, perhaps, it might suffice to begin with a 5 /. limit, as in Malta. (b.) Notes. Prior to the passing of Sir Robert Peel's Bank Acts of 1844-5, the accepted theory of banking in England presumed the issue of Notes, — subject, in the London district, to the monopoly of the Bank of England, — for, deposits (now the main- stay of Banks) were until recent years of quite secondary importance in comparison with the power of Note issue, which furnished the chief inducement to establish Banks, and the chief source of banking profits. And nowhere was this accepted doctrine of •* free banking" less likely to be challenged than in the Colonies in the earlier years of the present century, when, after the close of the great war, the era of peaceful progress began and credit was demanded for the development of their resources. It was in connection with the gra it of Royal Charters, or the allowance of colonial Acts of Inccporation, for the Banks which now began to spring up in the Colonies, that the Imperial Government, influenced by the discussions con- sequent on the resumption of specie payments in England, gradually evolved a banking policy* which, by 1838, had the following definite aims, so far as Notes were concerned : — (i) To require Notes to be cashed on demand in specie at the place pf issue, as well as at the principal establishment of the issuing Bank ; (ii) To prevent the issue of Notes under 1 /. currency ; ♦ This policy was first formulated about 1831 by L«ird Aithorp, then Chancellor of the Excliequtr, and by Mr. Paulett Thomson (afterwards Lord Sydenham), who was then at the Board of Trade. Ch. I. General Survey. 33 (iii) To insist on publication of periodical returns of assets and liabilities, as an indication to the public of the financial position of Banks of issue ; and (iv) To safeguard issues by making shareholders liable for twice the amount of their shares. Afiplyinfi these principles to colonial Acts for incorporating Banks, the Treasury was constrained in 1836-8 to press for the disallowance <>f numerous measures, which failed to attain even this modest standard. And it was '" in order to prevent miscon- cejjtion of the views entertained by the Treasury and Board of Trade in regard to the regulations which should be observed in the establishment of Banks in the (Colonies," that on 7th January 1839, the Colonial Office asked tlie Treasury " to draw up, in concert with the Board of Trade, an abstract of such regulations as they may think indispensable, in order that they may be transmitted to the Colonial Possessions of the Crown for the information and guidance of the Governors and Legislative Bodies in those Colonies." Accordingly, the Treasury pro- ceeded to codify the regulations '• which they have generally considered advisable ; '' and in these the Board of Trade con- curred, — suggesting, however, {inter alia) " some check on the establishment of Companies merely for the purpose of trafficking in shares, or what are usually called Bubble Companies."' The regulations thus settled by the two Departments will be found at page 429,* Articles 16 and 17 being those which were added at the Treasury in order to meet the wishes of the Board of Trade. From the point of view of Note issue, with which alone we are here concerned, these Regulations, which carry out the four requirements specified above, are noteworthy for the absence in them of any [jrovision distinguishing Promissory Notes from other " debts and engagements of the (Company," within the maximum limit imposed by Article 4. Notes were in fact left on the same footing as all other liabilities, and it was for the note- holder to satisfy himself of the likelihood of payment of Notes, the issue of which was limited by no clear or precise provisions. On the other hand, the Imperial Government never countenanced any proposal to m.ake Bank Notes a legal tender. In 1844-5 Sir Robert Peel passed the series of Acts which have governed from then till now the issue of Notes in the United Kingdom. For present purposes, the great principles of his legislation may be stated as — (i) The withdrawal of issuing powers from the category of ordinary banking business ; and (ii) The provision of («) security and (h) convertibility by the ultimate concentration (for England and Wales) of the entire Issue in the Bank of England on a basis which was fiduciary within the minimum issue, and fully covered by deposit of specie beyond such minimum. But,^as a temporary measure, Sir Robert Peel allowed existing * They were communicated to the several Colonies by Lord John Uussell's circular letter of 4tli May 1840. 72642. , I li rr^.. i I . 34 Colonial Currency. provincial Issues to continue, subject to their never exceeding the amount at which they stood at the time when his Acts were passed. The Imperial measures of 1844-5 had an important bearing on the regulation of Note-issue in the Colonies. In the words of the Colonial Office circular of 3()th May 1846 {see page 431) " the arrangements adopted by Parliament in regard to Banks of Issue in the United Kingdom appear to Her Majesty's Govern- ment to have rendered necessary some modification of the Regulations of 1840, with a view to bring them into exact accordance with the principles on these subjects established in this country." The old liegulations were accordingly " revised with that object;" and assumed in 1846 the form in which (with an addition respecting specie reserve, mentioned below) they appear at the present day in the " Colonial Office List." Apart from improved ])rovision8 relating to banking proper, the Ke^iulations of 1846 (which will be found at page 432) intro- duced into colonial banking legislation the following important provisi(jns, fVamed mainly on the lines of the Imperial provisions relating to English provincial Notes : — (i) By Clause 5 the power ol' Issue was distinguished from " the business of a Banker." (ii; Under the same Chiuse, the jjower of Issue was to , . be exercised "in such manner o"!y as shall not be at ', variance with any general law of fhe (/olony." ;,. (iii) By Clause 16, the maximum Issue was " not at any time to exceed the amount of the Capital Stock of the Company actually paid-up." , . The Regulations of 1846 subsequently received an important addition at the end of Clause 16 in the words: " A reserve of specie always to be maintained equal to one-third of the amount of Notes at any time in circulation." This provision, however, is wholly inadequate to safeguard the Notes (as distinct from de|K)sits and other liabilities), in that it does not earmark the reserve of specie to the NoteL< alone. In the event of failure, such reserve would merely form ])art of the general estate of the Bank, and would not be hypothecated to meet the claims of note- holders in preference to other creditors. It will he convenient here to summarise the Issue provisions contained in the Banking Regulations in the form in which they appear in the " Colonial Office List: " (i) Notes, which are redeemable in specie on demand, and must not be of a less denomination than 1 /., are limited to a maximum issue not exceeding paid-up capital ; and (ii) they derive such formal security as they [jossess («) from the specie -reserve of one-third of the circulation, and {(>) from the general liability of tlie share- holders not only for the amount of their holding in shares, but also for a like additional sum. These provisions have been applied (until qnilo recent years), to practically every Bank to whicii a Jinyiil Clunti r has been granted, or lor which an Act of Incorporation lias l)eon passed in the Cplonies. Thus the influence of the Regulatiims ot' Ch. I. General Suiivey. 3« 1840-46 has ranged from Canada and the West Indies to Australasia and the Eastern Colonies ; and, even if all their provisions are scarcely abreast of current theory, yet it may be urged on their behalf that ihey have withstood the rigorous tests of practical experience throughjut half a century and in every quarter of the globe. So far, the consideration of Notes as part of the currency of Colonies has had exclusive reference to Bank paper. Though the Imperial Government had never favoured the issue of Notes by Colonial Governments, yet financial exigencies had led to the circulation of Government paper in several Colonies, e.g, in Jamaica (1822) and in Prince Edward Island (1825). But, in these Colonies, as also in the Cape, Ceylon, and British Guiana (where paper money had been an inheritance from the Dutch), the efforts of the Imperial Government were directed to effecting the withdrawal of the Government Issue. The hands of the Imperial Government were forced, though their policy remained unchanged, by Mauritius in 1849. For in that year, as the result of a Hank failure in 1847, and the consequent suspicion of all Rank Notes in the Island, the Colonial Government was finally induced by the mercantile community to substitute Government Notes for private issues. To this, as a fait accompli, the Imperial Government could offer no resistance at the time. But the views held in the middle of the century as to the limits in theory, and impolicy in practicr-, of state inter- ference, found scope in the rejection in 1854 of i)roposals for a (secured) Government Issue in Prince Edward Island, and derived moral support a year or two later from the abandonment by the Legislature of New Zealand of the system of a Govern- ment Note circulation, which had been in force for several years, under circumstances which required no compromise with any established Bank of Issue and gave the experiment free play.* Fortified in a jyriori principles by the experience of New Zealand, the Imperial Government desired in 1857-8 to restore the Mauritius Issue to ])rivate hands. Local circumstances, however, militated against this step ; and, in lieu, measures were taken in 1864 to put the Government Issue on a secure footing. It Avas then ])ro\ ided that Currency Connnissioners should hold against IT ' the Issue : — (i) Specie equal to one-third as a minimum, and one-half as a standard, of the circulation for the time being, and (ii) Imperial securities and Island Debentures to a ,^' maximum of one-half of the circulation, the limit on invest- ment in Island Debentures being fixed at one-fourth of the amount of Notes actually in circulation in 1864. Similar provisions were re-enacted in 1876, and still remain in force in Mauritius. Until 1H84, Mauritius afforded the only example of a State '•* On 1 October 186'2 a Select f'otnmittee of tlio Lecislative Council of New Soutli Wales imd reported in fiivour of a National Bank of Issue, with its Notes lully secuied by gold bullion or coin. Tlio L'ommittee held that tlie existing Banks' "power of issuing Notes is inconsistent with the public welfare." t 2 I : t 36 Colonial Currency. Issue in Crown Colonies ; and private issues were still traditionally preferred by the Imperial Government. In 18K4, however, a startlin) convertible ; that is to say, a noteholder should know that the note he holds * In the Straits, on the other hand, where the Ci)lonial Government abstained from foUowiu;? the Ceylon precedent, tlie other Baiiits in self-defence took on tliBmselves the onus of cushinjif the Oriental Bank's notes in local circulation. f An interesting paper 011 '' The History and Development of Banking in Australasia,'' hy Mr. Edwin Brett, will be found in the "Journal of the Institute of Bankets,'' vol. 4 (18S3). Ch. 1. General Survey. 37 will exchange, not ullimately, but on presentation, for tl»at amount of legal tender coin which is indicated by the Note's denomina- tion. In order to ensure the convertibility of an Issue, it is not necessary that every 1 /. in Notes shoukl have a gold sovereign behind it ; for experience shows that the circulation in note-using communities never drops below a definite minimum. This minimum, representing an amount of Notes which is never lilcely to be presented for payment, may therefore be represented by securities, ic, may be "fiduciary;" all Notes beyond such minimum should be issued against legal tender coin. Until experience has shown what is tlie minimum Issue in a given Colony, investments (which should be in high-class securitie? other than those of the ('olony itself) should not e,xceed one-third of the Notes in circulation, nor should they ever exceed one-half. These stringent safeguards, which subordinate profits (beyond working expenses) to tiie financial security of the community, point to Government Issues as the only practically sound system of paper currency. And it may be added that there is no more reason — in fact there is less reason — why Banks should issue notes at a profit than strike token coins at a profit.* But, Avhether the Issue be by the Government or by the Banks, it is of vital importance to a community that the Notes in cii'culation should be so safeguarded as to form, in no unsubstantial sense, " the shadow of the gold." ** rhe followinfj; reinark>( lire taken from the Report, in ISHJ). of a Royal Conimiiision appointeil in Soutii Austraiiii •' to consider the desirability of establishing a State Bank," &c'.: — "It may be that various objections will be raised to the issue of a State paper currency — as tliere will necessarily be a conflict of interests, and special privileges arc usually held with a tight grasp. But we take the liberty to advance theasoertion that tlie interests of the State are in all oases paramount, and that whatever increment of advantage there may result from a system supported and permitted by the people should be secured for their benefit." '! i j ; i 1 i 1 1 . 38 Colonial Cuukency CHAPTER II. ' )(<*><. .J - ', Mode of Legislation. i < ' *• " Theke is no doubt," wrote Lord Liverpool to the King in 1805, " that the Sovereigns of most of the kingdoms and states of Europe have enjoyed and exercised from time immemorial the right of declaring at what rate or value the Coins of every deno- mination, permitted to be current in their respective dominions, shall pass, and become in that respect lawful Coins, or legal tender. In this Your Majesty's kingdom. Your Royal predeces- sors have always enjoyed :ind exercised this right. Sir Matthew Hale reckons ihi^ right inter jura mujestutis, and says that it is an unquestionable prerogative of the Crown." And the same doctrine is laid down by the ('ivil Law maxim " Monetnndi jus principtim ossihus inhceret." It remains to trace the changing modes in which this ])rerogative has been exercised or superseded, so far as the British Colonies are concerned. Apart from Mint indentnres,* the recognised mode of regulating the currency in the United Kingdom has been by Royal pro- clamation. But such proclamation has for centuries been issued — like other Royal proclamations — by the Sovereign with the advice of the Privy Council. In his speech of 2nd September 1626, befiire the Privy Council, Sir Robert Cotton was " of opinion with Minor des Juslivcs, the ancient book of our Common Law, that Le Roy ne poit so. Many J'Jmpeirer ne ainender sans Vassent de touts ses Counts, \\\\\q\\ was the greatest council of the kingdom." It is true that from very early times Acts of Parlia- ment have also regulated the coinage of the realm ; nnd notably the Act of 1666 (18 Ch. II. c. 5), which extinguished seignorage as a royal right. But it appears tiiat Parliament w.ts resorted to either for the purpose of furnis;hing supplies for tlie reform of the king's currency, or else (in the wonls of Lord Liverpool) " to enforce his Majesty's authority in issuing proclamations." Of the latter character was the Act 6 .Vnne, c. 57 (see }iage°414), " for ascertaining the rates of foreign coins in Her Majesties planta- tions in America." For present purposes, therefore, the recognised mode of regu- lating the currency may be taken to have been by Royal pro- clamation issued by the Sovereign in Council. This Koyal pre- rogative, which was established before the first " Plantations " * Sec licreon the discii'^siuii in the (oiirth chapter of Lorhe shall think fitt in any of Her Planta- tions in America, as well under proprietors as under Her Majestyes iiTiediate Government, so far as doth not contradict any Law confirmed by the Crown." In view of this opinion, the Royal Proclamation of 18th June 1704 {see page 414) was issued, laying down for " Our several Colonies and Plantations in America," certain ratings of coin borrowed in the main from the New England Act of 1697. As this Proclamation was not observed, debtors and creditors alike agreeing to pay and receive the current coins at other than the proclaimed rates, the Imperial Govermnent again took the Law Officer's opinion ; and the Attorney General advised that an Act of Parliam,ent would be required to make it definitely criminal to receive money in the Colonies above proclamation rates. Accordingly the above-mentioned Act of 6 Anne was passed " for the better Inforcing the due Execution of Her Majesties said Proclamation . . & for the more effectual Remedying the said Inconveniencies thereby intended to be remedied." The Act proceeded to enact that any ])erson who should "Take or Pay any of the several Species of Foreign Silver Coins mentioned in the before-recited Proclamation at any greater or higher Kate than that at which the same is thereby Regulated . , shall suffer Siv Months Imprisonment, without Bail or Mainprize ; Any Law, Custom or Usage in any of the said Colonies or Plantations to the contrary hereof in any wise notwithstanding," As early, therefore, as 1707 the principle had been established in practice that, provided the Sovereign had not confirmed a local Act repugnant thereto, the Sovereign in Council had power ^i 40 Colonial Currency. under the prerogative to regulate by Proclamation the currency of Colonies equally with the currency of England. And an Act of the Imperial Parliament had been recognised as the supreme mode of currency regulation. In 1774, and again in 1816, the Imperial currency was regu- lated by Act of Parliament, which involves the assent of the Sovereign. These Acts of Parliament had no reference to the Colonies. It was under the prerogative that the Order in Council of 23rd March 1825 was issued (see i)age 425), declaring that a sum of 4 s. 4 d. in lirititih tokens should be legal tender equally with a Spanish dollar *' in all tho.,c Colonies where the Spanish dollar is now, either by law, fact, or practice, considered as a legal tender for the discharge of debts." Though the Order in Council of 1825 did not order a Royal J'roclamation, it was by Royal Proclamation under Order in Council (after the legis- lation of 1825 had been revoked — for America and the West Indies only — by Order in Council) that the remedial legislation of 1838 was effected. Alike in 1825 and in 1838, however, erroneous ideas prevailed as to the regulation of currency in the Colonies; it was not recognised (i) that the geld and silver coins of the United Kingdom as such, are not in the absence of some express enactment or Proclamation a legal tender in the Colonies, insomuch as the Imperi^ Statutes relating to currency do not, except by express enactment, extend to the Colonies; or (ii) that, under the prerogative, the Sovereign could only regulate Colonial currency in those Colonies where there did not exist a local Legislature to which the power of regulating currency had been surrendered by Act of Parliament or Royal Charter. In 1870, by the Coinage Act of that year {see page 448), the Imperial Parliament made formal provision for the regulation of Colonial currency. Section II. (9) of this Act directs that "it shall be lawful for Her Majesty, with the advice of Her Privy Council, by j)roclHmation to direct that the whole or any part of this Act shall apply to, and be in force, in any British possession, with or without any modifications contained in the proclamation." And the same section goes on to jirovide that " every such Pro- clamation . . shall have effect as if it were enacted in this Act." But Section 19 expressly enacts that "this Act, save as expressly provided by this Act, or by any Proclamation made thereunder, shall not extend to any British possession." In practice it is mainly the Colonial Constitution which has determined the proper mode of legislation respecting the local currency. And from the point of view of constitution, Colonies may be divided into those that have, and those that have not, responsible government. I. The Colonies of the former division possess the power to regu- late, by Colonial Act, their own currency. They are ten in number, viz. : — Dominion of Canada. Newfoundland. New South Walea. Victoria. Ch. li. Mode of Legislation. Al Queenslaiul. Tasmaiiiii. •' • Soutli Australia. Western .Vustralia. New Zealand. '' t'ape of Gocul Hope. II. — Colonies of the second division, which have not responsible government, may for the ))urpose of general legislation be divided into two classes. The legislative power, as defined by the instrument of con- stitution (viz., Letters Patent, Colonial Ordinance, Order in Council, or the Governor's Commission), is exercised — (i.) In the first class by the Governor and some legisla- tive body or bodies in \vhich there is not a majority of official membera ; (ii.) In the second classof Colonies either by the Governor alone* or by the Goveruoi* and a legislative council, the majority of which consi;;t^ of cfficial members. In the first class (i), the Imperial Goverimient has no power of initiating local legislation ; in the second class (ii), the Imperial Government can indirectly effect legislation by instruc- tions to the Governor,! or through the official majority of the Council. In both classes of Colonies the Imperial Government can either Srevent le;jislation (by instructing the Governor to refuse the Loyal Assent or by disallovving a law to Avhich he has signified such assent), or can advise the Sovereign to exercise the coinage prerogative. There is a further, direct, control over colonial currency in the hands of the Imperial Government in those Colonies (whether of class (i) or (ii), the names of which are underlined in the lists given below, since power is there reserved to the Sovereign to legislate by Order in Council. In addition, a statutory power to legislate by Order in Council is reserved to the Sovereign in the Straits Settlements (by the Act 29 & .30 Vict. cap. 115) and in the Colonies of the Gold Coast, Lagos, Sierra Leone, Gambia, and the Falkland Islands (by the Act 50 & 51 Vict. cap. 54 ; see also schedule thereto). In the following lists of the Colonies comprised in the two classes, the letter (a) denotes that local legislation as to currency has taken place ; the letter (/>) denotes that the local currency has been regulated by Order in Council without Proclamation ; and the letter (c) denotes that Proclamations as to coinage have been issued under Order in Council. * As in Gibraltar and St, Helena. •j- The Royal Instructions to tiie Governor direct that he shall not asnent to any Bill or Ordinance of certain classes, one of which is (to quote tho usual form) "any Bill affecting the currency of the Colony or relating to the issue of Bank Notes." M ' 1! 42 fi. Colonial Cukrency. (i) In the first class are — Natal. Jamaica (a) (c). Bahamas («)( ' Mauritius (c). , Bermuda (a). , . , i (ii) The Colonies comprised in the second class are Busutoland. * '■ f British Bechuanaland. ' ' British Honduras («)((?). British Guiana {a) (c). Trin* lad and Tobago (a) (c). Windward Islands (a) (c), Falkland Islands. f ' ; , St. Helena {<;) , West African Colonies (a) (c). Gibraltar (/y) (c). Ceylon (c). . • ,,n, Hong-Kong (a) (c). Straits Settlements (a) (c). . ; • New Guinea. '^' Zululand. t:' '• I , 1 1 II For all Colonies alike (whether possessed of responsible government or notj, there is the power to proceed by Proclamation under the Coinage Act, 1870 ; in which case the Proclamation has effect as if enacted in the Imperial Act. Up to the present, this Act has only been applied («) as a whole to the Cape, Natal, and Fiji, and (b) in part only, in 1891, to Barbados and the Leewi.rd Islands. * In thf Leeward Isliinds, the Leewai-iJ Islaiuls Act, 1871 (.14 4c 35 Vict c. 107. s. 10), is the instrument of constitution, ami while giving to tlie legisla- tures of tile separate islands gf-neral power to legislate, gives the central legislatuveof the Leeward Islands power to legislate on certaiu specified sub- jects, among which is " currency." Ch. II. Mode op Leoislation. 43 Consequently, there are three modes of regulating the currency for the Colonies, viz. : — (1.) Through Cohjnial Legislation. (2.) Through Legislative Order in Council.* (.3.) Through a Coinage Proclanialion (under Order in Council) which may he either — (a) Under the prerogative and witliout Statutory authority, or (I)) Under the Statutory Authority of the Coinage Act, 1870. And the Order in Council or I'roclaniation as to currency, unless it he under the Act oi" 1870 or have .stiitut(U'y force under some other Act, can be ovcn-iiled by a Colonial Ordinance which is left to its operation. Wliotluir, on the other hand, a Pro- clamation under the general Coinage Prerogative can alter a Colonial law is a moot point. It is suggested that where the currency consists of sterlinix coins, the Imperial Coinage Act of 1870 {sec page 448) should be applied in whole or part, so that Imperial Proclamations issjued from time to time thereunder, might apply not oidy to the United Kingdom, but also to all sterling-using Colonies. The same in- strument would then conveniently a))ply to sterling (where it is the standard) throughout the Empire ; and there would be no recurrence of anomalies such as that at present existing in con- nection with pre- Victorian, and light Victorian, gold coins, which remain in circulation in the Colonies, though they have been demonetised and exchanged in the United Kingdom. So far, this chapter has dealt solely with metallic currency, to the exclusion of paper money. The Royal Prerogative as to coinage does not appear to apply to Notes, a form ol' currency not contemplated in the early times from which the Prerogative dates. Apart from the formerly important, but now practically obsolete, usage of constituting Banks of Issue for tlie Colonies by Iloyal Charter, the paper currency has usually been regulated (i) in tlie United Kingdom by Statute and(ii) in the Colonies by local Act.f But where power to legislate by Ordt r in Council is reserved by the instrument of constitution, this mode of ])rocedure is also open to adoption in Crown Colonies. The intervention of the Imperial Parliament with regard to pa])er currency in the Colonies has been confined to the passing in 1750-1773 of Acts ** A distinciion is to be drawu between (i.) an Act of k';ii.slatitn wliich tlu' Sovereign in Council can perform in respect, of those Cuionies wliTe ;i jiuuei 80 to legislate lius been reserved by the instrument of cohL^titution, and (Ji.)an Act in exercise of the coinage prerogative, which the Sovereign in Council can prima facie perform in nspect of all Colonies bv Royal Proclamation under Order. ■\ e.g., Bainimas, Hong Kong, Ceylon, and Mauritius, in addition to, practi- caly, all the self governing Colonies. 44 Colonial Currency. " to prevent paper bills of credit hereafter to be issued in any of His Majesty's Colonies or plantations from being declared to be a legal tender in payments of money, and to prevent the legal tender of such bills as are now subsisting from being prolonged beyond the periods limited for calling in and sinking the same." If ' II J, .1- i.'\' [ 45 ] ..'»(.': ■\lfi-* AMERICA AND WEST INDIES. I! ' ! * 46 Colonial Currency. CHAPTER III. Barbados. (1625.) From the historical point of view, the currency of Barbados is of greater interest than that of any other existing colony. Its interest is derived not merely from the long period of nearly three centuries which it covers, but still more from the broad scojje of its early influence. For, until 1671, when the Lee- ward Islands were constituted a separate government. Barbados was the metropoi. of the British West Indies ; prior to that separation, other islands (Jamaica excej)ted), had little or no separate currency history ; it was only after the middle of the 18th century that the Windward Islands (so far as they were then British Possessions) came to have a currency system other than that of the dominant island ; and, further, it was from Bar- ba(U)s that Jamaica borrowed the ratings of her early monetary system. For these reasons, though Newfoundland is a more ancient colony, and though Jamaica for a century and a-half was the bullion centre of the colonies in the New World, Bar- bados may most fittingly be chosen as the starting point in studying the detailed history of currency in the British colonies. In Barbados, and in the other islands which followed the lead of !)arbados, exchange was ch' fly by barter during the 17th century ; and it will be convenient to treat first of the use of commoditit'S as "money," and then to pass to the history of metallic currency. (I.) BARTER.* During the first years of the history of Barbados as a British colony, cotton and tobacco, as in other colonies in the New ^\'()rld at the same date, formed the staple produce ; and, as peniilties are expressed in terms of these commodities from at least 1631 onwards, it may be assumed that they formed part, if not the whole, of the circulatory medium of the infant colony. About 1640, sugar sup[)lanted cotton and tobacco as the staple conunodity, and became the principal medium of exchangef in " See also under Leeward Islands, British Honduras, Bermuda, Newfound- land, &c. t Sec " A True and exact History of the Island of Barbados" by Richard Litioii (Londdii, l(!7;i). Uest:ril>in;^ (at p. iii) the tralHc of n, merciiant, he sa.\s, " lie iiiiiki's iii.--. oxchun;i;i'H, and rrrcircs in /lis Snpnrs'' ; and at p. jlo, \vafj;('s aie expresbed in "sterling or the value in t^iieli gmxis us grow upon the pliintiition " ! iijion says (p. 4U), " the conunodities this ishind trades in, are indieo, eotton-wool, tohacio, sugar, and fustick-wood." Ch. III. Barbados. 47 the colony during the remainder of the i7th century. Indeed, merchants reproached the islanders with having no money except brown sugar; and similarly Lord (Francis) Willoughby of Parliam, writing in 1664, states that the circulating medium of the island consisted of " goods, for they have no money."* The earliest rating appears to have been 10.?. per 100 lbs. ; of Muscovado, or brown sugar. On 16th September 1667, Lord (William) Willoughby stated that the Assembly had " raised their coin, that is Muscovado, from 10 s. per 100 lbs., to pass in pay for 16 s." By Act of *29th April 1668, Mus- covado was to pass at 2d. a pound ( =16 a. 8 d. per 100 lbs.) ; but this price was repealed by Act of 19th February 1668-9, because "it is found by experience that the consequence thereof tends to the impairing of the credit and trade of this Island." An Act of 9th November 1688, as to fees, re- rates sugar at 12*. 6d. the 100 pounds ; and the same valuation obtains under an Act of 1670, as to the secretary's fees, and under an Act of 1673, for building fortifications. It was doubtless as a penalty that the Acts of 1681 and 1685, " for coiTiuteing the Arrears of Public Leavyes into Money," reduced the rate to 10 s. The similar Acts of 1690-91 and 1691-92, restored the rating to 12 s. 6 rf., which, as will be seen under the head of Leeward Islands, was the standard rating of sugar in the West Indies during the last .30 years of the 1 7th century. Before the close of that century, coin would appear to have displaced commodities to a considerable extent.f For, writing to the Board of Trade and Plantations on 13th July 1691, Colonel Christopher Codrington, contrasting the Leeward Islands, says, " In Barbados, tis true they have a money trade, and consequently Muscovado shug'% cotten, and ginger, sella there at a tollerable price." And similar information, in more valuable detail, is given in Oldmixon's " British Empire in America " (quoted infra, p. 50), which speaks of the abundance of coin in Barbados up to 1704, and of the rela})ae to barter at that date in consequence of the Royal Proclamation of that year {.see page 14). But this relapse, of Avhich Oldmixon wrote in 1708, appears to have been tempora, / only, and not to have lasted beyond the first few years of the 18th century. About 1715 Barbados dispensed with the use of commodities as money, and finally established a metallic standard. * The penalties xinder the " Act concerning morning and evening prayer in families" (1(;4.5 ?) are exjiressed in sni;ar ; e.i/. " whosoever shall swear or curse, if a master or freeman, he shall forfeit rf. per 100 lbs.), and c(mtinued to be so leviable up to Uy.'J, being virtually repealed by the Fees Act of 10 December of that year. If I'ii r i, .., f ^ ^i; It ;I , :l 48 Colonial Currenct. ' " ' (II.) METALLIC CURRENCY. ' *'"*'' (a) Prior to 1704. Until 1715, Barbados,* like all other Bi-itish Colonies in the New World, emuloyed the S))anish Piece ol' Eip;htt as its standard coin. l>iit, unfortunately, there is not the same definite information as to the enrlicst rating of the Piece of Eight in Barbados, which is forthcoming in Jamaica and the Bermudas. A variety of Acts are recorder! as having been passed in Barbados prior to 1668, but only two are extant. The first, dated 12 September 16.')l,and signed by Lord Francis Willoughy of Parhum, after dwelling on the " good successes " elsewhere resultinii from " the rysing of the valew of severall coynes," proceeds to rate coiiis at one-third above their sterling values, e.^., " the two and twenty shilling [)eice of English money in gold^: at twenty-nine shillings & fourpence and all lesser coynes to that proportion." The Dutch Ryder was rated at 28 s., a Rix- dollar at 6 s., a cross dollar at 5 s. 8 d. ; " .a ffrench double pistoll at 20s,, a tl'rench erowne at 9 s.; in sylver a Cardecue§ at 2 s., an half Cardecue at 12(/.: (Spanish coynes in gold) adoublepistollat 20 s., in sylver a peice of eight at (i s., & the lesser of that species in proportion." But it does not appear that this Act continued long in operation, for (at some date shortly before 1662 j|| an Act "for ye advanceing & raiseing the valew of peices of eight" recites, that" it is found by experience that ye want of money is very prejudiciall to this Island ; that ye cause of soe great a want is Ibr t\vAi prices of cifj lit have not theire due valftn but passe here at too low rar,fs."% Contrary to what might be imagined from the provisions of the earlier Act of 1651, this Act enacts that, " all peices of eight of Ciuel Mexico & ye Pillar peices shall passe currant at ye rate of 4 . 5. 8 rf. a peice current money of England." There is thus evidence of early and conflicting ratings of the Spanish piece of eight ; but, in the absence of fuller documentary evidence than the Record Office and the Island archives afford, there is only analogy with - It is envious that Li'jon never me :tious any coins, anti that (perhaps forthcconveiiieiife of Ills rtaders in Kni;lumi) liissurnsftre expressrd in sterling ill coiiiiectio'i with tlic yeiirs 1(!17 to UIV) diirine; \vhicl» lie was in Hivrlmdos, Tiie word 'sterling " is coiniiioiil'^ used in •Muly Acts of Barhados even down to lCi82, when (r ff) limn-liwiirdciis were luitliorised to pay 5s. sterling, (== a piece of eif^ht) for every " wild monkey or raccoon " killed. " Current money" ap[ieai8 first in an Act of S July 161)0 respecting the Governor^ Pii'ary. t ISpc page .'^00 for the history of this important coin, which is even better known hy its later mime of tlie •■Spanish Dollar." J i.e., tiie Guinea, si'c page 400. ■•'" § See \mge ;]97. II Probably in I(i5(i. Oldinixoii refers to an Act of this title, signed (iiko the above) by Francis Lord Willoughby. ^ As the recognised sterling <(Hiivalent of the piece of eight in the 17th century was is. &d., the words in italics imply a lower rating in force. Ch. III. Barbados. 49 ich is even Jamaica* and the Bermudaa, to support the conjecture that the original rating of the ])iece of eight in Barbados was 4 s., based on a sixpenny rating of the Spanish unit, the Real. The 4 5. Sd, (over)-rating having been tried and found wanting, Barbados proceeded on 14 November 1668 to raise the piece of eight to 5 s. by an " Act for the advancing and raising the value of peeces ot eight." Like its predecessor, though not with equal veracity, this Act stated that ^^ peeces of eigkt luwe not. been fully estimated, but permitted to pass here from man to man at too mean rates ; whereupon very much coin hath been hence exported '.0 foreign uationst ; for prevention whereof for the future : Be it ordained that from and after publication hereof all peeces of eight of Sevill, Mexico and pillar peeces, shall be esteemed valued and pass current in payment between all persons within this Island at the rate of five shillings per peese current money of England. Andthat all and every the half and quarter peeces and royalls of the said coin and single royalls of all sorts of Spanish coin| in like pro- portion, any statute, law, ordinance, !■ provision heretofore made to the contrary, notwithstanding." One of the earliest r .v;>ilt8 of the 5 s. overrating of the piece ofeight(=4 5. 6 (i. sterling), established in 1668, was to encourage coimterfeits and light coins, as is shown by the passing of an Act of the 22nd December 1669, to stop the circulatiou of " several corrupt and exceeding light pieces of eight lately sent to this Island by some persons designing their own profit and advantaoe, though with the great damage and ruin of the pros- perity and welfare of this Island." The coins are also spoken of as " less in weight or of a baser alloy than is usual." Twenty-two yeai's later, in 1691, Christopher Codrington speaks of " pieces of eight generally not being worth above 'is. 6 d. and 3 «. 9rf., some 4 s., and when full weight, w*^*" one in a 100 is not, 4 s. 4i d. ; and in liarbados they pass for 5 s." Analogy with the Leeward Islands, &c., at the same date, supports the view that 'clipped Spanish silver formed the bulk of the metallic currency of Barbados, at the close of the 17th century. • It seems fair to assume that it was from Barbados that Jamaica (colonised half a-century later), borrowed its earliest ratinif of the piece of eight at 4 s., just Hs it copied in 1070 the Biirhados 5 ». r.iting of 16(58 f Evidence of the dearth of coin in Barbados of and the efforts of the early colonists to attract and retain specie, is afforded by the memorial of 11th May 1681 to the Bortrd of Trade and Plantations, which prays, " tliat his Ma'J* would bee gratiously pleased to grant a power to yht, 104 grains, ought to l)e current uncording as Pistole gold bears to silver Proclamation money, at 22 s. .'3 d., hut 1 will say 22 s. 6 d., because at that rate they are taken at Bdrbados where the Act of the 6th of Queen Ann is ohserved." (Viavell Smith, "Two Letters to Mr. Woods," London, 1740.) The rating of 22 s. 6 d. for the gold equivalent of 4 pieces of eight of 6«. each, is sufficient evidence in itself of the continued circulation of clipped gnlH coins. f Is not the word " Spanish " a mistake ? The " whole piece " suggests tho new Portuguese Johannes, the half of which at 50*. was the familiHr " Joe''of later years. It was not till the beginning of the llttli century that the Doubloon passed for 6 /. ; and it is here stated that the Quarter-Doubloon, or Pistole, continued in 17.39 to pa-ss at its 1715 rate of 22 s (>«?. X See page 395, and under Jamaica, the Bermudas, &c. It will be noted that President Dottin states here that the currency of this coin in Barlmtios was by weight in 1739, and not by tale as in other Colonies and as in this Island in Inter years. § Isle du Vent, Bits of J73L (Zay p. 68 ; and see infra, p 55.) I " In the year 1705 the Assembly, taking into consideration the great want of money in the Island occasioned by the sending away all the silver from thence, upon the Proclamation for i educing pieces of eight to a certain standard in the VVest Indies, passed an Act to allow 0.5,000 ;. paper credit, im- powering the Treasurer to give out bills for such a sum, and lend them to the 9$ Colonial Currency. wlien an act entiiuled " An act to supply the want of cash and to establish a method of credit for persons having real estates in this Island," passed here the 18th of June 1706, irapoweriug the Treasurer to issue bills of credit by way of loan, for one year, to any person who shou'd apply for the same, to the value of one- fourth of their estates, which hills were then directed to pass as current cash and be received and allowed in payments accordingly. In pursuance whereof, large sums issued ; but these bills being of little or no credit, and occasioning all the gold and silver coin to be sent off the Island, and greatly discouraging the trade thereof, her late Most Excellent Majesty Queen Anne, by her Order in Council dated the twenty-first day of October 1706, was pleased to declare her disallov/ance of the said Act, and signify ed her Royal Will and Pleasure to this Government that all possible care shou'd be taken, and the best provision made that cou'd be, that such who had been obliged to receive such bills and the persons to whom any debts were owing, and had been obliged to part with their legal securitys for such bills, should be no sufferers thereby, but be restored, as far as might be, by some new law to the same state they were in before the passing the said Act.* And to prevent a law of the like, or of any extraordinary nature Eassing in this Island afterwards, an instruction was given and as been continued to the governours not to pass any law of an extraordinary nature till the Sovereign's pleasure is first known therein, which has occasioned no other paper currency since to be established in this Island. " The foregoing detailed report of 1739 shews that the effects of Queen Anne's Proclamation of 1704 in Barbados were as follows : — :;tf I (1 .) The light silver, which had previously been current at 5 s. per piece of eight, was driven out of circulation. {2.) A gold standard was established ; the rating of the (clipped) Pistole being raised from 20 s. in 1 700 to planters, on security of land nnd negroes. John Holder, Esq., Speaker of the Assembly, was appointed Treasurer, and was to have 5 jjer cent, for mannglng these bills. Themoney'd men were generally against this project, for they found their debtors were glad of an opportunity to pay them in paper." "The Assembly who passed the Act being dissolved, the next that sat proceeded vigorously against those wiio were concerned in it, and sent an Address to England to complain of it." •*Mr. Crow arrived in Barbados in the year 1707 and according to his instructions removed those gentlemen that had been concerned in the Paper Credit Act from their places at the Council Board, and from all otiier that were in the Governor's power. This bred discontentment and occasioned more remonstrances to be sent to England." "The Treasurer, Mr. Holder, was obliged ■ i refund the .') per cent, he had received for managing the paper credit ; and he appealing, the matter depends at this time," i.e. 1708, (Oldmixon.) John Poyer, in his History of Barbados (London, 1008), states that Holder " applied to the Queen to be permitted to retain his ill-gotten gains, hut without success." • A local Act was accordingly passed in April 1707. Ch. III. Barbados. as 22 s. 6 d. in 1715, and that of the Moidore from 35 s. to '67 s. 6 d. ; & the Portuguese Johannes was begin- ning to circulate at 5 /., or 50 s. for the " Half Joe." 1 (;J.) Pieces of eight (or Spanish Dollars) passing by weight i at 6«. currency per 17J d^vts., could not be kept in concurrent circulation with gold. (4.) In Barbados, as elsewhere in the West Indies, the " base Pistareen " formed the bulk of the subsidiary coinage. For the next fifty years there is little evidence as to the facts of currency in the Island. But the evidence of a pamphlet published in 1791 in Barbados* shews that in that year a guinea was still rated at 27 s. 6 d. (though " the low rate of exchange has carried all the guineas out of the country ''), a Moidore at .^7 s. 6 rf., and a " Joe " at 50 s. Gold was still the standard ; but the gold coins of Spain had been supplanted in Barbados (and in the Windward Islands generally) by the Portu- gese (Moidore and) Johannes. " By the simple operation of the scissors the joe and the moidore have been diminished until four of the imperfect pieces will weigh only three of the perfect. A pistereen f has been divided into four parts, three of which became current, each at half the value of the pistereen, and the remaining fourth part contained bullion equal in weight to the other three. An attempt Avas made to divide the dollar, but some secret principle prevented the mutilation, or common sense rejected the imperfect coinage, as it ought to bave treated the others. " The state of the currency, both gold and silver, had in fact become a scandal. The elections of 1790 turned on the question of currency reform ; a reforming majority was returned ; and a com- mittee of the Assembly was appointed to consider the subject. In Jime 1791 an Act was passed making it penal to clip; but this was soon found to be inadequate. The real evil, so far as the gold coins were concerned, lay in the importation of light coins from America and Great Britain ; and a further com- mittee was appointed in the same month of Jmie, which recom- mended that — (i) Foreign gold should pass not by tale, but by weight ; ® " The principles by which a currency is established and a coinage formed and the money circulation of this Island may he restored and preserved." This anonymous work is believed to have been written byG.W. Jordan, " the present valuable agent for tiie Colony, whose superior intelligence Iienetrates with facility into the moat diiRcult and abstruse branches of lunian knowledge." (^Poyer) t In 1739 this coin was stated to be current by weight. It is evident that in the interval it had obtained a currency by tale as two " Bits " (or ■' Reals of new plate "), i.e. as the fifth of a Dollar. And as the fifth of the 6 s. rate laid down by the Proclamation of 1704 was an uiconvenient fraction, thePistareen passed for Is. 3d. (*ee infra), or twice the uniform rating of the "Bit" since 16G8. Hence the Dollar now passed I'orGs. 3rf. 72642. E > 54 Colonial Currency. (ii) That the following should be the weights and rates of currency for the several gold coins : — Joe ----- Moidore - - - - Double Doubloon Rider . - - . Louis d'Or - - - French and Portugal Guineas English Guineas Wei at {hing east dwti . grs. 16 10 6 5 15 4 6 22 5 22 4 16 5 8 £. t. d. 6 - — 1 17 6 4 10 _ 1 16 _ 1 13 9 1 7 6 1 10 - (iii) That 2j(/. should be allowed for every grain short of the above standard weights. After six weeks' altercation between the Assembly and the Council, each throwing out the other's Bills, Governor Parry took the matter into his own hands, and on the 4th August 1791 issued a Proclamation "lor immediate convenience, and in order to resort at once to the true and only equitable principle of fixing all foreign coins at a standard proportionate to the legal coin of Great Britain, and of keeping the different species of foreign gold coins aforesaid as nearly as may be to their known weight and standard." It will be seen that in the following ratings the Governor, whilst careful to retain the familiar currency equivalents, avoided the (conscious) error of the above Committee, and, instead of " reducing the standard of all foreign gold coins in circulation about 10 per cent, below their real value " ( Poyer), laid down the legal weights as the standard. His rates and weights were — I V ..) • !i divts. grs. £. s. d. Joe _ - - weighing 18 10 : I, Moidore - - „ 6 21 Doubloon - - „ 17 8 £. - 5 - - 1 17 - 4 10 and 2|rf. was to be allowed for every grain deficient. This reform put an end to the evils attending the standard gold coins of the Colony, by establishing a currency by weight, instead of by the abused system of tale. Further, on 19th March, in a Proclamation against clipping and debasing gold coins, the Governor had called attention to the old provisions of Queen Anne's Proclamation of 1704, and had forbidden the passing of foreign silver coins at illegal rates, i.e., at more than 6 *. f or 1 7 i dwts. As practically the Avhole of the silver in circulation was found to be light, the inconvenience of making retail payments by weight resulted in the passing of the Act of 19th March 1799, providing that after the 5th April of that year no clipped money should be a legal tender, but that it might be paid in by weight to the Colonial Treasurer up to 5th July. The immediate expense of the transaction was met by paying for the old silver in Treasury Bills of eight months' date. Ch. Itl. Barbados. 55 rates of £. s. d. 6 - — 1 17 6 4 10 — 1 15 — 1 13 9 1 7 6 1 10 - n short of Y and the lor Parry igust 1791 1 in order 'inciple of 1 the legal species of leir known following B familiar the above all foreign their real standard. £. s. d. 5 - - 1 17 6 4 10 - lent. This gold coins stead of by pping and ion to the 4, and had ates, I.e., at )f the silver of making the Act of if that year t might be July. The ing for the The Treasmrer was further directed to select good round pieces for "a currency to jmss by talc." A ])ain])hlet of 1S16 by the Colonial Agent (.lordan) states that "since that period the silver money has been as good as could be Avishcd, the pieces being generally perfect. The silver coinage consists of dollars current at 6 s. 3 d. currency (or 10 bits) ; half-dollars current at ',is. 1.J d. currency, or five bits ; quarter-dollars at 1 s. 6|r/. currency, or 2 J bits; pistereens current at Is. 3 rf., or two bits; ])i8tereen bits current at 7 iee p. 28 (note). Local Proclamation was made on 11th October 1863 and Uth April 1854. Intrinsically the gold dollar of the United States is worth 4«. raUid., and the eagle ten times that sum, so that these coins, being undervalued, were handicapped as against the sovereign and doubloon. r I: f ! 56 Colonial Currency. the Order in Council and Proclamation o£ 10th November 1866, declaring the gold coins struck at the Sydney Branch of the Royal Mint to be legal tender in certain coU)nies.* But these provisiona for the currency of United States and Australian gold were nuga- tory in a colony where token silver was an unlimited tender.f Dating from the gold discoveries about 1850, the silver dollar had ceased to circidate, as its gold-price had risen till it was profitable to export the coin. Like the rest of the West Indian Colonies, therefore, Barbados was left with a circulation composed exclusively of British tokens and the notes of the Colonial Bank. But a quarter of a century later, the increased production of silver and the consequent fall in its gold price, made it possible to lay down the Mexican dollar in the West Indies at a total cost of about 3 s. 10 d., or 4 d. less than the unrepealed rating of this coin under the Order in Council of 1838. It does not appear that Mexicau dollars were, as a matter of fact, imported by speculators into Barbados, as they were into British Guiana. But as a result of the general scare at the possible restoration of the silver dollar as a standard of value, the Act of 26th March 1879 was passed in Barbados demonetising Spanish, Mexican, and Columbian dollars, and ^u'oviding that for three days after the publication of the Act, these coins might be exchanged at the Colonial Treasurer's Office at their former rate of 4 s. 2 d. each. By Order in Council and Royal Procinmation of 9th May 1891 (sef^ the 22nd Mint Report) a colonial " groat or fourpencc " was legalised for Barbados (and certain other West Indian Colonies). The Royal Proclamation was published in the colonial Gazette of 15th June 1891, and ordered by local Procla- mation of 29th June 1891, to come into force on and from that day. (See also under British Guiana for this " groat.") The circulatory medium of the Colony has long been confined in practice to British tokenaj and notes of the Colonial Bank.§ The amount of specie in circulation|| on 31st December 1891 may be estimated at 100,000/., and the amount of the Bank's notes at the same date at (perhaps) 32,000 /., making together a total in coin and notes of 132,000/., which, taking the population at 182,000, gives an average of about 14«. 6■■ ' '•■•I- ■ \e j-i ■■' ',. •■, '■/ (•■■■)■,,•■, ;•■■'■''. >i . ;■;•.< j'' • '*/( I "ii ; j; ' • '1 iL' 1, ' ■■'.,!• . •) "" '1)'-" ' ' ■ .' ;>•)■".••; , I'-,' U *' . .:'>(••■;■, > j>'i,*,'5X)^i . M a . ■ ityfiyt ■> ■ ■•>.*'. > i.\ ,< :/ A' ii » < «G Colonial Currency. CHAPTER IV. Leeward Islands.* (1623.) Down to 1670-71, these Islands, " so far as they were English, were part of a general government of the Caribbean Islands " ; and their early currency history Avill be found under Barbados, the centre of the general government. The dearth of coin, and the consequent prevalence of barter in the Leeward Islands down to within a century of the present day, lends an antiquarian interest to the study of their currency ; whilst the multiplicity of their early Acts, &c., furnishes a record of early colonial currency more complete than that of any other British " Planta- tions in America." " In y" Leward Islands," wrote Governor Chr. Codrington from Antigua on 13th July 1691, " tliere is very little money, and y® trade drove in them almost wholly by way of Truck of the severall Especies of y" produce of the Islands in Exchange for other and of all these for such goods and commodities as they want, nor is money soe much as the standard of Trade, ye March'^ keeping all their books and ace" in Shugg'' (i.e. Sugar) or other y" produce of y" Islands, and in these doe state all y® Debts due to or from them." And so too in 1740 the Secretary of the Leeward Islands wrote, " Wlien I speak of ' currency ' without the addition of ' coin,' you will please to observe, I always mean the Value that is put on Sugar, Rum, Cotton, and other Commodities, the groAvth of the Leeward Islands, which is called Currency there, in contradistinction to Gold and Silver ; for there is no such thing as Paper Currency in the Leeward Islands." It is necessary, therefore, to recognise at tlie outset that in these Islands exchange was chiefly based on standard commodities. There was, in fact, a dual standard (istablished by law, consisting primarily of commodities, and secondarily of coin. It will be convenient to deal first with the non-metallic currency. I. Barter. A >' ! J>. In the earliest years it was tobacco which formed the monetary standard here, as in Barbados. " One thousand pound of good Marchantable tol)acco in Role " was tlie fine for commerce with "the heathen " under the curious Antigua Act of 20th November 1644 ; and a like fine was imposed by a Montserrat Act of 1668 for Sabbatli-l)reaking by "unlawful gaming, immoderate and uncivil drinking ... or any other prophane and illicious • St. Kitts, Antigun, Montserrat, and Nevis were the fi)ur original Leeward Is-unds, — Dominica and the Virgin Islands being added about a century ago Ch. IV. Leeward Islands. 61 Labours of the Week-days, as digging, houghing, baking, crab- bing, shooting, and such like indecent Actions." About 1H70-71, when the Leeward Islands were formed into a separate Government, sugar supplanted tobacco as the general staple;* and because (as a Nevis Act of 1672 recites) "many contests daily doe arise for that there hath not beene any certaine prefixed rate put upon Sugar Avhereby it might passe between party and party at a currant price in lieu of Money Sterling," sugar was concurrently rated with coin. From 1670 to 1700 the regular rating enacted in the four Islands was 12*. Brf.f for "five score poiuid weight of good, dry well-cured merchantable Muscovado Sugar." This over-valuation,^ of sugar discouraged the im})ortation of coin, and, in spite of the several Acts of the 17th century in the Leeward Islands, little metallic currency was seen till after the beginning of the 18th century. The Colonial Acts levy taxes, prescribe fees, and impose fines (e.g. on the militia) in sugar ; and private property was measured by the same standard of value. The following instances will exemplify the early conditions of currency in these Islands : — (U When in 1668 Montserrat decided that "by the first con- veniency that may be, an able preaching Orthodox Minister be procured," the local Act prescribed that " for the maintenance of such able preaching Minister, the just and full Quantity of fourteen thousand pounds of Sugar, or the value thereof in Tobacco,§ Cotton Wool, or Indigo, be yearly raised or levied." (The Minister was not to demand payment for the Baptism of Infants, for reading the Burial Service, or for Churching of Women. For solemnising marriiiges, " no such Minister shall demand any more than one hundred pounds of sugar, or the value thereof in Tobacco, Cotton Wool, or Indigo.") (2.) "Whatsoever Person," says a Nevis Act of 1680, "shall kindle any Fire or Firct' in the Street or Streets, or other I'laces of Danger aforesaid, for boiling and dressing of Victuals shall be forthwith fined one hundred pounds of Muscovado sugar." And, to guard against " small-pox, spotted fever, or other contagion," a like fine was imposed in 1680 on Masters of Ships landing passengers in Nevis without the Governor's license. (3.) An estimate of an estate in St. (-hristopher (1698) contains the following item : " 600 akers of good manurable land att least att 1,000 li. Sugar" {i.e. per acre), "the usual price the Sugar att 1 2 s. 6^/. per hundred - - - . £.3,750," •In Brtrbndos, sugar had supplanted tobicco, &c. bs early as 1()40 {see page 40). t But 15s. in Montserrat from 1G08 to 1670, and in Nevis from 1072 to IfiSO. J The same Piece of Eight which passed for (>>. in tlie I.eeward Islands, pa'-sed for only f).?. in Barbados ; and yet, from l(i7" onwards. 12.v. (W/. was the ratiiijr of one liundred pounds of auuar both in l)ar])ados and in the Leeward Islandf. Hence, as Chr. Codrinifton observed in UiOl, Barbados had "a money trade " when the latter l8buid!> had " very little nuMU'V." § Whicli was to be paid " in leaf," and not in roll, unless so agreed by both parties. 92 Colonial Currency. It may be concluded that up to 1700 commoditiea formed the 8i)le internal currency, and the major part of the remittances, of the Leeward Islands. About 1699 (see the Antigua Act, page 66 infra) there would appear to have been for some un- explained cause an influx of metallic money, and the Islands proceeded to raise their denominational ratings of current coins. J'his step deposed sugar from being the standard, as is shown in the case of Nevis. For, when by Act No. 44 (probably of 1699) specie was formally introduced as the Nevis standard of value, the " disputes and controversies which have lately happened by the payment of money in Leiw of Coinodityes " led to the passing in 1700 of a further Act, which runs as follows: — " Whereas of late Sugar and other Commodities of the produce and Mitnufacture of the Island are advanced in their vallew much more than formerly, by reason whereof the Marchants and Traders (who were wont to be very well content to receive money instead of the several Coinodityes produced and made by the planter, to say 12 s. 6d. for every hundred pounds of Sugar, 2 s. for a pound of Indico, and so proportionably for the seuerall other Commoditys) do now thinke it a greuiance and complaine that they are oblidged to take money for their dets ; . . . and on the other side the Planters do insist on their ould* custome and are dubious that they shall be presently ruined by their creditors seuerily, should the said custome be infrindgit and they not have the Liberty of paying money at the usuall price when they have no possibility to procure the Cornoditys of y® Island. To put an end and determination to all such disputes . . . . it is hereby enacted " that money might be tendered at the following rates measured by the standard, and subsidiary, commodities, viz. : '* 12*. 6d. currant money for every 100 lbs. of Muscovado. 1 „ „ Indico. 1 „ „ Cotton wool ginn'd. 1 „ „ Tobacco or Ginger." At the beginning of the 18th century, as a result of the Proclamation and Act of Queen Anne and the change of the metallic standard from silver to gold as hereafter detailed, sugar lost further ground as the circulatory medium, though it continued to be current. The fixed rate per 100 lbs. was 20s. in St. Kitts in 1717, and in Nevis in 1746. But the more usual currency was not at a fixed rate, as in the 17th century, but "at the then current i)rice." In case of dispute, each side appointed a "Viewer" to value the commodity tendered in payment, and in case of disagreement the Viewers called in an umpire. For purposes of internal circulation, sugai*, &c. long continued to have monetary importance. On 15th May 1750 the Council 2s. ■D» ,. ' w 9d. ' I r » lid. »» >» Montserrat was mainly colonised from Ireland. Ch. IV. Leeward Islands. 68 of Nevis* recommended the " present Levey to be in Money ; the Perpetual Deficiency of Sugar Payments keeping the Country always in low Credit, as is too obvious to us all." The Assembly of the same Island on 15th June 1752 arranged for " the appraisment of all Sugars, Rum, and Molasses paid for Debts" {i.e. to the Colonial Government). And on the 24tli August 1753 the same Assembly suggested " An Act to make the (./ommodities of the Country legal tender. The great scarcity of money of late, and the advantages thereby taken by the Merchants in not taking the produce of the country in barter, but at their own prices, makes such an Act absolutely necessary." A request by the Council for more precise information as to what was meant by " legal tender," drew the following reply from the Assembly on 30th August 1753 :— " The intended Hill will be calculated to make the Commodities of this country (as mentioned in the Bill) legal tender merely for goods, wares, and merchandise sold in this Government, but not for any debts contracted in England, nor to extend to any specifick contract whatever. The nature of ascertaining the value of such country Commodities will be by two persons to be chosen by the parties in dift'erence." The Council agreed, but no legislation seems to have been effected. In Antigua in 1756, taxes were to be paid " onethird part thereof in gold or silver current money of this Island, and the other twothird parts in good Marchantable Muscovado Sugar." But on 22nd May 1760, it was enacted that taxes should be paid " by discount of the public debt, or in gold or silver current money of this Island." As late however as 13th June 1770 (at least; sugar could still be paid at an agreed price for not keeping the full quota of white servants required by an old Act. Still later evidence of the internal circulation of commodities as money is afforded by a Revenue Act passed in St. Christopher in 1784: — "And whereas it may be burthensome and oppressive to the Inhabitants of this Island to pay the amount in specie, be it enacted that the payment of the taxes aforesaid may be in cash, sugar, or rum, at the option of the person or persons liable to pay the same." By the close of the 18th century metallic money would appear practically to have driven commodities from circulation ; and so ended this interesting, if confusing, phase of colonial currency. ** "As to the product of the country, and its tr.ide, what has been said of Hiiil)iidos, Antego, and the other (Jlwribbee Islands, will also serve for this, bugar is the staple commodity here, as well as there, and serves for all tlie USPS of money. For all the trade of the Island is niiinaped by su^^1^•. Pounds uf sugar and not poundti of sterling is the balance of all their accounts ; and exchanging that commodity for others did the inhabitnnt:^' business an well as if they had silver." — Oldmixon's British Empire in America, 2nd Edition; London, 17-il. ! iil I 64 Colonial Currency. II. — Coin. (i) Prior to 1704. The first enactment relating to the metiilHc currency of the Leeward Islands was that passed in " Mountseratt " on 29th September 1670, entitled " An Act for Rateing Sugger, Kaiaing of fferreigne Coyne, and Preventing ye Plague." It runs as follows : — " Whereas y® Authority aforesaid having seriously considered y" greate Necessity of money in this Island, for y® Better Manadgement of Trade and to encourage all Sure person or persons that shall for y'' future bring any sum or sumes of fferreigne coynes unto ye Island aforesaid, or any others now on this Island that have any desire to imploye any sure coyne in their custodye : It is therefore enacted and bee it hereby enacted by y° Authority aforesaid, y»' for y"^ future all Moneys of y" King of Spaines Coynes, shall pass and be received by all manner of persons resideing upon this Island, or which hereafter shall com upon y^' same at y" full Allowance hereafter signified and expressed, that is to say every Ciuill, Mexico, and Pellare, Peice of eight at Sixe shillings, and every old Peru* and new at five shillings y'^ Peice, and halfe Peices and Quarter peices proportionably, and all New England moneyf at its full vallue in New England." The above Act of Montserrat, which superseded an earlier rating of 5 s. for the Piece of Eight (dating back to before the separation from Barbados in 1670-71), was copied two years later in AntiguaJ and Nevis, though (apparently) not in the remaining Island of St. Kitts The Nevis Act of 1672 is in- teresting, as specifying in greater detail than does the Montserrat Act, the "pine-tree" coins ("Boston or Hay shillings," &c.) which were received from New England in payment for rum, &c. It concludes as follows : *' All Money coyned in New England by his Majesties Authority§ and there called shillings, sixpences, threepences, twopences, and pence, shall alsoe, after the Publica- tion hereof, passe currant in this Island, in all payments, for the like value as the same is in New England." 'id »»i « These coins, being "of uncertaiii allay," accordincr to Sir Isaac Newton, would appear from this pvohitiiiive rating to have been foistei upon the local merchants to the exclusion of the more reliable Mexican coins. ASeealao under Jamaica, page 99. f See page 8 (note). + The Antigua Act was "dated at the Court hous in ifalmouth (the 14th) day of August 16":^." § This mis-statement of facts was doubtless intentional. This coinage (see page 9), which commenced m 1()52 and continued until 1(588, was viewed with royal displeasure. The cf)in8 were to be struck "of good silver of the enau Ch. IV. Leeward Islands. 65 i now on Some 20 years later the actual state of the metallic currency 18 touched upon in Governor Christopher Codrington'a letter of 13th July 1691 to the Board of Trade and Plantations. Hia words are: "Our peices of eight generally not beinj; worth above 3 s. 6 d. and 3 s. 9rf., some 4«., and, when full weight (wcl" one in a 100 is not), 4 s. 4^ d. . . . they pass in these Islands for 6 s. Its but of late y' we have had lease y" a Rial, which passes for ninepence, and y'" least we have now is a French Sole mark, w^^ passes here for three-halfpence, y*^ is six of them to a Kial.'' * Speaking of a large consignment of farthings (apparently some 3,000/. in all) wliich had been made to him by the " mere motion " of the Plantations lioard, he remarks, " I have given each Company 100 /. of farthings, and y" remaiud"" I shall endeavour to dispose of to y" best advantage of y" Reigm' for provisions and other necessaries. I must here observe to y"^ Lordships y' farthings cann be of noe manner of use in these Islands for change, there being nothing to be bought here for soe small a coyne, and a quantity of tliem are troublesome to carry. Tbo' they are sterling money, yet 6 *. of y" " {i.e., your farthings) " will purchase no more here y"* a \)e'\ce of eigiit ; tho' had y' 6 s, bin disposed of in England, it would have purchased a peice of eight and a-half " {i.e., of the clipped kind). The 6 s. rating of the Piece of eight had apparently not been enacted in the English half of St. Kitts; and moreover the occupation of part of , the Island by the French introduced into circulation the silver Ecu, or Louis d'argent, probably as a result of the costly colonial administration of France. Consequently, in order to establish uniformity of rating for the Piece of Eight, and in order to admit the " French Crown" f to legal lender in the four islands, the General Assembly of the l^eeward Islands passed an Act in 1694 of which the folio ;ving are the two first sections: — " And it is hereby enacted by the authority aforesaid, That each Piece of Eight of Sevill, Mexico, and Pillar, and each French Crown shall be current and pass for Six Shillings current Money ; a Perue Piece of Eight at Five Shillings, and all Moneys whatsoever of those coins aforesaid shall in all Pay- ments whatsoever be proportionably rated (except the Eighth part of a Perue Piece of Eight, commonly called a Sevenponce halfpenny, [which] shall be current and pass for Ninepence), any Law, Custom, or Usage to the contrary notwithstanding. Whosoever shall, for base lucre, by any ways or means, coin, falsify, impair, diminish, seal, wash, clip, file,, or lighten any of the Money aforesaid, or any other Money current in these Islands, shall be guilty of felony, and shall suffer death for the same without benefit of Clergy." °Appare-tly the French colonial foin of rj -sols, or perhaps tlie Double, struck in !(>/») (p. 17<>)' f See also under Jamaica. w Colonial Currency. I •:| i It will be observed tbat in this Act there is no mention whiitpoever of" fiold coins, and that specific reference to the New England coins is omitted, perhaps because of their occurrinj)^ less frequently in 1694 than a quarter of a century earlier. Itis also to be noted that clipped and light coins were already familiar, but that, whilst it was a capital offence to clip coins within the Leeward Islands, no penalty was imposed on the imj)ortation and circulatioii of clipped coins, nor^was a least' current weight fixed for the Piece of Eight and the Ecu, which two coins, being practically of equal content of fine silver, were correctly valued at the same currency rate. The shortcomings of the General Act of 1694 soon made them- selves felt. The commercial rivalry of the four Islands readily disposed each to take any real or supposed advantage of the others. Nor did any one Island regard the passing of the Act of the Genei'al Assembly of the Leeward Islands as precluding it from further legislation on currency upon its own account* Consequentl}^, five years later, Antigua i)assed the quaint local Act of 26th March 1699. This Act, the greater part of which is given below, is notable as first introducing in the Leeward Islands (i) a rating of silver coins by weight, and (ii) a con- current rating of gold coins ; the influence of trade with the Dutch will be observed in the admission to tender of such coins as the Cross and Lion (or "dog") dollars, imd, perhaps, the Bar- bary Ducat, which grew so familiar in later years : — " Whereas notliing is more obvious than that plenty of money in all countryes is what gives a great encouragement to trade, and that where it most stands the inhabitants of that place are very easy in all their dealings, which, for these many yeares past, by the dull methods of bartering ()n(e) commodity for another in this Island, and the brisk advantages (we) have had by some mony of late happening among us, we have sufficiently experienced. And forasmuch as the continuing the passable coins appointed by this Act in the Island, and the speedy encouraging the importation of more, is what will mainly contribute to the effectuall propa- gation of this collony ; and in reguard also the infancy of the settlement will not at present adiaitt of bringing down the said coine so nere its intrinsick vallew as we could wish ; yet by the importation of a quantity sufficient to circulate plentyfully in trade (tho'atahigh vallew), we are sensible will not only be a present advantage but enable us also to bare the loss of a strict regulation for the future ; . . . . Be it enacted tliat all mony, both gold and silver, shall hereafter pass from man to man at the rates and proportions as are hereafter sett down at large, and no otherwise. And no mony defaced by plugging! shall pass from party to party, to prevent the adulteration commonly used in the said pluggs. <* But see hereon the Leeward Islands Act of 7th June 1705, printed at page 17 of the Antigua Collection of Lawy, 1734. j- aSec page 23 (note). • »•■ ■ Ch. IV. Leeward Islands. A Table for Mony intended to pass by this Act. SILVER. Pieces of Eight* of Moiico Tillar and OlTill and all others esteemed of tlie £. i. d. same fluess, containing 17 pcny weights, to paaa at - - ■ - - 7 - The same, from 17 to 16 dwts. in- clusive - - 8 All other of the same sort under 16 dwts. - 6 - Cross t and Lyon J dollars, and all Peru Pieces of Eight, without weighing - - • - - .-5- Frcnch Crown - - - - - - 7 - English Crown - 7 6 Blaclc Doggs J or French Sous marks ■ - 1^ •The weight given by Sir Isaac Newton in 1702, &c., was 17idwt8., and the value 53'88J., corrected to 64ii In 1717. The rating of the Act is almost exactly id. \>eT dwt. ; hen ;, at 16 dwts., tlic rating shoulil have been 6s. 2d., and at 14 dwts. is. 9d. Thus a premium was put on liglit coins. t i. c, the Patagon, or Cross dollar of Flanders, worth 52'91d. at 8.!. 2d. per oz. standard. Ji.c, The Lion (or Dog) dollar of Holland, or jrda of tiie Ducatoon ; wortti about 43'7d. at 8j. 2d. per oz. standard. § " Dogs," rated at IJii., existed in these islands in the present century. In the French Ishinds tlii'y were called " Noirs." Codriiigton spealcs of thcni (11)91) lis new importations; he terms them "Sole Marks" and " Solz Marques." (In connection with tlieae "Black Dogs" tlie following extract from the Antigua Act of 1767 regulating the Assize of llreiid is of interest : — " Tlie l(Hvf of wheaten l)read commonly called a Dug lua/ or three-halfpenny lonf, and which HOLD. Spanish Double Double Loonos,* con- £. s. d. taining 17 dwts. - - - - 5 12 - French PlstoU or Lewis d'Oro - - 1 8 - Arabiano Chcquinef and M other small pieces of like weight - - - 14 - English Guinea X 13 - English Jacobus 2 - - English Carolus 1 10 - is the sixth part in value of the silver piece ot money, now usually current in this island by the name of a Hit, or 9(/., shall weigli, after being baked, IGif oz. av." On 12tli De- cember 1825 tlie " Dog Loaf" in St. Kitts was to weigh only 3 oz. av.) In Connecticut, in 1721, " An Act sent from the Lower House that tlie coin called Hlack Doggs pass at 2d. p, {ice. was dissented to." (Crosby, "Early Coins of America," Boston, 1878, page 2U3.; Crosby could " gain no clue as to what coins were here referred to." .Sec Note • on JKige fi5. ''Taken in connection with the rating of the dollar of like weight and lineiiess at 7s., the ratio adopted was that of Spain, viz., 16 : 1. fThe Barbary Ducat of 1740. .See page 72. JTlie current of specie remittance being/rom the West Indies, and gold being over-valued relatively to silver in England at this time, those ratings of the English gold coins are immaterial. " For every grain of gold short of the above weights, 4 d. is to be deducted." As regards silver coins, haWes and quarters were " to pass in proportion to the whole piece, both in weight and vallew .... but all others of less weight, together with Ryalls and lialC- Ryalls, (to) go in payment as formerly " ; i. e., the Real was to continue to pass by tale for 9d. Provision was made in the other Leeward Islands on the same lines as those laid down in Antigua.* "When, therefore, Sir Gilbert Heathcote wrote to the Treasury in 1700-1 that " A peece of 8 in ye Leeward Islands is called 6 s., and 3 J ps. of H make 1 /.," it may be concluded that, though the rating of 30 years before was retained in name, in substance tlie " peece of 8 " actually rated at 6 .v., had shrunk from 17i to under 1.5 dwts. These light coins, passing by tale, and being over-valued with regard to those of full weight, may be taken as forming the metallic standard of value for internal circulation. * In 1608 there had been passed in Nevis " An Act to ascertain the value of Foreign Coin to pasa current in this Island." No copy ol' this Act (which is stated to have been continued by an Act of the following year) is to be found ill the Record Office; but it may he concluded, on analogy with the action taken in 1672, and in view of the statement of the Council of St. Christopher in 1716 {see infra) that its provisions were practically the same as those of the contemporary Act in Antiiiua. There is also indirect evidence of similar legislation in Montserrat ; for it would appear, from the St. Chris- topher statement of 1716, that the 7s. rating of the Ecu and the weightier Pieces of Eight was in force in tiiis island in common with Antigua and Nevis. , i' U I' ^ 68 Colonial CuuiiENcr. But for making specie paymenta outside ihe Island, heavier undipped coins were preferred. For, it appears from the .lournals of the Council of Antigua for 27th April 1713 that •' great {i.e. whole) pieces-of-eight, &c., have been, and still are, alwnys taken by weight."* This view is supported by the evidence as to the currency facts of 1700, furnished to the Board of Trade in 1739. With regard to St. Kitts, it was siiid that ** in the year 1700, and for some time before, almost the only coin passing among us were Spanish dollars or pieces-of-eight, and all the lesser species of that co' Mge. But they were for the most part dipt and passed in tu' ^'\ without weighing at the rate of 6 *. this currency per do' 'a gold or other silver coin being hardly ever seen; but a . , i.uh pistole of 4 pennyweight was then deem'd worth 24 s. This currency continued untill the year 1704." (ii.) 1704-1825. Prior, therefore, to 1704, the metallic currency of the Leeward Islands consisted practically only of light silver (pieces (»f eight and smaller Spanish coins), whi(!h passed by tale. Queen Anne's Proclamation of 1704 {sec jmge 14) had the effect of changing the metallic standard of value from silver to gold. The course of the change is fully, if naively, described in the following extract from a letter of Governor Jos. Estridge, dated St. Chris- tophers, the l'2th December 1739: — "In less than six months after there was no such thing as a piece of eight of any weight to be seen. The Difficultys which we soon found ourselves falling under for Want of some sort of Coin to supply even the Ordinary Occasions of Life made every one unanimously willing • The exchanges are of interest in this connection. In 1700-1 the price in London of " liills of Exchange that will be punctually paid," is stated in Treasury Papers as " 125 /. for tlip Leeward Islands,'' i.e. 125 /. local currency for 100^. sterling paid for the hills in London. On 7th August 1701, Joseph Maityn of Lomlon, nieichiint, offered to "supply what money theyr Lordships (so. ot the Treasury) please in y« Leeward Islands," at 125 Z. current money m Nevis. At the date of the ca|)ture jf Nevis the Messrs. Haistwell, in March l70ii-7, made the Treasury the highest utFer they received for the placing of " money" in these Islands, viz., 20 p»r cent, premium. This rate, which they declined to continue, and which they proposed in I70J) to reduce to 112/,, throws a prima facie suspicion on tlie following insinuation of Mr. James Parke, in his letter to the Earl of Sunderland of I5th Fehruary 170(5-7 : " The officei-s complain the Coll. {i.e. Colonel) allows them but l.*) per cent, for the difference of money, whereas tiie mercliant allows 50 and Writing from Nevis in 17'^4, Governor Hart says, '• this money is one- third worse than sterling," taking the dolhir at is. 6d. sterJing, and at 6*. in local currency. j-i.e., from 6s. lOid. to 7 »• 2§rf. (probably 7s.) per piece of eight of IT^dwts. I According to Mr. Wavell Smitli's anonymous pamplilet (" Two letters to Mr. Wood," London, 17^0) a Bill was passed in Antigua on 30th April 173(5 ((ind was copied in JMontserrat) rating (1) Eiitish gold at 75 per cent, over its sterling value, (2) foreign gold at S^ d. per grain, on analogy with British gold, and (3) all silver coins at Ms. 3rf. per oz. (This last is apparently a mistake on Mr. Smitli's part, and is copied into the second edition (1741) of Oldmixon's "British Empire in America.") The Bills (which frankly recite that the Act of Queen Anne " has long been found useless and impracticable in this island ") did not receive tiie Royal Assent. But in March 1738, at a meeting of the governor, (Council, and Assembly of Antigua at Parham, " an Instrument of Association " was signed, undertaking to pay and receive gold at 3} Islands. n 7 /. per ounce,* 7 s. per dwt., and 3Jr/. per grain, and peices of 8 (which formerly pase'd at 6 a. per peice, or 6 1. lO^rf. per oz., according to I^roclamation, with the advances thereon already mentioned) are now advanced to 9«.t per ounce and upwards." The steps of the change are thus clear : first, the gold coins were raised, and then as the Spanish pistole and Louis d'or purported to be equal to four dollars, or ecus, respectively, these silver coins followed suit and were raised from 6 s. to 7 *. each. The latter step was taken before 1715, as is proved by the case of St. Christopher'sl ; for on 23rd August 1715, the Council of this island " were of opinion that it would be of Benefit to this Island to raise the value of French crowns to 7«." ; and on the same day the governor ordered in council that " French crowns pass current, and be taken in payment, after the rate of 7 *. a- piece, and all French Half Crowns and Quarter Crowns in proportion." The point having been raised whether this was not in defiance of the j)roclamation and Act of Queen Anne, the Council on 15th January 1716, observed that these French crowns had passed current at 7 s. for several years in ihe other Leeward Islands, and consequently argued, with much ingenuity, that the action taken in St. Christopher's in 1715 "could not be said to alter the coin, but only followed the practice of the other islands " ! The council proceeded to state that " the said order has proved to the advantage of this island, and the recalling it would be very prejudicial!, as it would carry all such crowns (which is the only species of coin we now have current) to the other islands where they pass for so much. It is stated by Mr. Wavell Smith that, in 1740, the French crown formed "One-half of the silver money current in St. Christopher's," and that the Spanish pistole, reduced by clipping in London and Barbados from 104 to 9Q grains in weight (or bv 1 s. 4rf. sterling in value), still passed for four of these current Ecus. Governor Estridge, who corroborates Mr. Wavell Smith's statement as to the currency of gold pistoles of 4 dwt. passing at 28 s., contradicts him as to the silver Ecu by saying (with greater probability, on analogy with other West Indian colonies at the same date) that " our chief or only silver currency at present areSpanish piastres^ at 18 d. a piece, French Isle du Vente|| at 9d., Spanish Ryalls at 9 d., and the half pieces of French and Spanish at 4 J f/." Thus before the year 1740 all four Leeward Islands had arrived at uniformity of price for gold per ounce, and at uniform ratings of the several gold and silver coins current among them. The J *> The same is stated lo have been the case in 1739-40, in Montaerrat and St. Christopher's. It appears from the ratings jiiven on 17th January 1739- 40, that the same price obtained also in Nevis. f In the other islands it was only 8 s. The Antigua rate was 75 per cent, advance on the English Mint price of 5s. 2d. per ounce, standard. XSee iilso note to page 69 as to the maintenance of proclamation ratings in Antigua till about 1712. § i.e. Pistareens (see page 395); cf Jamaica at the same date (page 102). II Called " French or Crimbal Bits" in Barbados (q.v.). ■ * F 2 ■. of 4(lwts.) 1 ZefiUfiuii (i>. of 2 (Iwts.)" - . - - PoruiKueac Moydoru (I.e. of 6 dwts.) - 2 French Moyilors (Louis ile Mult) - 2 French Le'wisilorc (of lliR, " Mlrli- ton") 1 Portu^niosc Johaiii.es (l.e. of 18 dwts.) 6 Portnt;ucBe Crnsiido .... 1 EnnHsli Guinea 1 French Guinea ..... 1 I. 12 8 14 2 -t • Kespcftinf,' these "Bnrlrarv Duc.its " Mr. WavcU Smith wrote to his deputy about 1740 wariiiiif; him against taking them, seeiiij; that they 'v< re "dipt of five grains of their weip:lit and yet uttered at 14 s. each when the real value (full weiKht too) was but 7.«. lllf.). (now cry'd down.) man at Nevis, Tobias Wall, and .Teremiah Brown, another very ri(-h man at St. CTiiistopher. The lattOT had the good luck to escape an indictment iieing found against him, by one of the (iraiid .Tury withdrawing, not leaving a competent number to find the bill." t Wuvell Smith states tliat the St. Kitt's currency of tlie " Johannes" ((.»'. half the abova coin, wliich is the dobni of 12,800 , 'is) was 3 /. 12,1., y.('. double the valuation glvei. in thi» table to the " Crusado." X i.e. the Isle du Vent coin referred to lupra. " Lesser peices such as half and quarters in proportion." There is a break after 1740 of nearly 60 years in the detailed history of currency in ;;he Leeward Islands ; and the close of this long period sums up a series of changes of which the folloAving is necessarily only a conjectural record. • The starting point is the statement of 1739 that in 1739 the price of coined gold was 7 /. per ounce, and that of silver " 9 s. per ounce and upwards." It will be seen that this is equivalent to a ratio between gold and silver of 1 : 15*5, or an under-valuation of silver by about IJ per cent, as compared wUh the market rate of 1 : 15"3. Conse lently, as suggested by the words "or upwards," the price of .. Ivcr as measured by the gold standard tended to rise above 9*. an ounce, which is equivalent to 8 s. per dollar. And, pari passu, in the Leewards as in other West Indian Islands, there waa a tendency to depart, as regards the over-valued gold coins, from the strict observance of currency by weight, and to pass by slow degrees to currency by tale for gold (as for subsidiary silver coins). Thus, the original under-valuation of silver was increased hy the debasing, through clipping, of the gold standard. And this view harmonises with the fact that in 1766 Antigua passed an Act " to prevent Frauds and Abuses in exacting Sums of Money fo-- changing Gold Coins into Silver Coins.'" This Act (viewed in the light of subsequent facts) may be regarded as an indication of the prevalence of tlie Tortuguese Johannes, rated at eight dollars and passing by tale. As this coin was clijiped and sweated, it drove out the Spanish and other gold coins, and formed the standard of the local currency throughout the Loeward and VVindwarcl lelauda iq the aecoiid Cli. IV. Leeward Islands. n half of the last century. And one important result of the esta- blishment of the light ilohannes as the standard was the necessity, as its weight diminished, of raising the ratinj; of the silver unit and nominal standard, viz., the dollar. Since the early years of the eighteenth century, as has been seen, the dollar, subdivided into 10 "bits" of 9 d. each, had been driven from circulation, the subsidiary circulation consisting of old worn and clipped token bits. It is probable that the Nevis rating of 1740 (viz., 7 s. for tlie Spanish dollar) soon gave way to a rating of 7 s 6d., being the proper equivalent of 10 bits at 9^/. each. And it is an ascertained fact that, before the close of the century, the lightness of the current bits led to the rating of the dollar at 11 bits of 9rf. each, or 8 s. 3 ^. per ^. Thus the dollar, which had originally been rated at eight, and subsequently at 10 bits, had now been raised to 1 1 bits ; before the close of the century it was to be further raised, except in the Virgin Isla ds, to be equivalent to 12 bits. By 1798 the Leeward Islands were left witli a circulatory medium consisting exclusively of light Joes and a minute quantity of worn .and obsolete silver coins. The next few years are marked by endeavours to keep silver coins in circulation, and by the transition from the Joe to the doubloon. Early in 1798 Martinique* passed an Act raising the rating of the dollar, on the ground that " the dollar passing in Antigua and Grenada at 9.'?. (when it passed here only at 8s. 3rf.) drained all the silver away." Hence, *' of necessity and not of choice," Martinique copied its neigiibour-j in the rating of the nominal unit, and then proceedeil to " raise the gold in turn." In the autumn of 1798 Dominica likewise passed a Currency Act, "following the standard established in Martinique, between which and this Island the relation is so great and the com- munication so easy, that any difterence in the values established in the two colonies must make gold and silver the subject instead of being the medium of trade between them." The' final result was that wit" n a few montl j tlie:e wa3 one uniform rating of the dollar at 9s. thix .ghout the Leeward Islands, with the exception of the Virgin Islands,! where the old 8 s. 'id. rating was retained, and where the dollar wj;s still subdivided into 11 bits. Elsewhere, the dollar was equal to 12 bits, and the doubloon was uniformly rated at 16 dollars. _ , The action taken by Martini(pie and Don^inica was severely censured from home, and the Governors were instructed to restore the original currency. The Governor of Dominica, misunderstanding his instrn'-ticns, issued on 30th January 1799 'I '/I i I P im f ;| ' ' ! 'J ' 'i •! ft « *> At this (late Martinique was temporarily a British possession, f On 11 Marcii 1801 a Virgin Islands Coniinittee, appointed to " take into consideration tlie propriety of raisint; the value of the Mexican milled dollar," reported that, as the Commander in Ciiicf of the Ltteward Isl.iiuls had no jJowKr to aasent to sueh a ineasmv, the dollar " ought to remain at its present vilue." Colonial Currency. a proclamation in which, with fancy weights, he embodied the earlier ratings of the common coins of the Island: — £. 6 6 d. Portugal Johannes - - . - Spanish quadruple or doubloon - Pillared dollar - - - , - - - - , Piece of eight " weighing 13 dwts. 18 grs." * - " Quarter piece of eight" {i.e. the pistareen) - 12 6 8 6 1 _ ii'-- 6 ■ . On 20th February a strong remonstrance was addressed to the Governor by the Assembly, asking for the withdrawal of the retrograde Proclamation, pending an appeal to the Crown in favour of "the law now in force." The merchants went further; two days after the Assembly's remonstrance they agreed in public meeting to pay and receive money at the rates prescribed not by the Governor's Proclamation, but by the Island Act ; and the " Dominica Journal " counselled the vigorous boycott of dissentients (as having " sinister motives in view "). Thus the Proclamation became a dead letter. By the close of the 18th century the several Leeward Islands had established, either by legislative or conventional action, a standard weight for their standard coin, the half-johannes. Whilst this coin continued to be rated throughout the Leewards, and, indeed, all the British West India Islands, at 66 «., its weight was fixed, (i). At 7 dwts. in the four original Leeward Islands. > (ii). At 8 dwts. in the Virgin Islands. But, at the same time, in the words of the Council of Antigua in 1799, " as the standard value of gold coin in circulation in this island by weight" (,i.e. excluding the "joe " which was current by tale ) " is now, and has been for a great number of years, at the rate of 7 s. currency the pennyweight, and as it never has been customary in this island to weigh the silver coin in circula- tion, to recommend by proclamation any alteration in the former, or to adopt the latter, would be nugatory, as the inhabitants could not be compelled to pay any regard thereto, there being no legal standard for the weight of gold or silver coins." Having attracted dollars by its enhanced rating, Dominica proceeded to take measures to keep them In the island. From the Council Minute of 14th Se])tember 1798, It appears that *• whereas the scarcity of silver coin for change has long '>eeu a subject of great complaint," the Council ordered 4,000 '• of the •i.e., the residue of the old coins struck helore 172G which still passed o,t the old Let .vard Islands rating ot (3»., even thouLrh tiie weight had diniinishecl to IJ ), where, as in the Leeward Islunds, the 17th century rating waa aimi'ariy preserv d, Ch. IV. Leeward Islands. 75 newest pillared dollars " to be handed over to " an ingenious silversmith," for the purpose of having a piece not exceeding 2 d wta, cut out of the centre of each dollar." It was at the same time provided that " such cut dollar shall circulate at the rate of 8s. 3rf., and every piece cut out of such dollar weighing 2 dwta. shall be paid at the rate of Is. Ijr/." If the "cut dollar," or ring, did not weigh 15 dwts. after issue, it was to pass at 6d. per dwt. Writing of the new cut money on 12th February 1799, the Governor of Dominica says : " the silversmith in this Island cuts them for 4^rf. each dollar.* The piece cut out is a scolloped round; on one side of each the letter D is stamped within a circle." On 3rd February 1801, the Assembly of the Virgin Islands passed " an Act for stamping half dollars, quarter dollars, and shillings, pistreens, bitts, half bitts, also the coin commonly called black dogs, and rendering the same current at their accustomed values." After reciting " the great inconveniences which have arisen to all classes of the community for want of an established current coinage for the internal traffic of these islands," the Act proceeds to direct that all holders of " round or cut pieces of money, such as have for some time been in circulation {viz., halves and quarters of dollars, &c.), do bring in the same to a committee to be appointed . . . tliat the same be stampt under their inspection and re-issued." The committee were to provide a " proper stamp," and the stamped coins were to pass " at the same rates and values as heretofore accustomed." The stamp adopted was *' Tortola," and from the Council Minutes of 1 1th March 1801, it appears that the committee had "caused to be stamped the sum of 2,000 /, currency," and that they were further authorised to stamp a further sum of 500 /. currency. This Act was disallowed by Order in Council of 15th August 1802, though by Proclamations of the Governor (^ending with Lord Lavington's of Ist October 1804) its provisions were allowed to continue temporarily in force until the autumn of 1805. After this latter date the cut-money passed current by convention only, but continued up to 1889 to circulate in the Virgin Islands. .1,5 .:, ; As regards cut money in other Leeward Islands, there is not forthcoming the same direct evidence as exists for Dominica and the Virgin Islands. Atkins f describes stamped black dogs in connection with St. Kitts and Nevis, and he also describes a " thin piece of silver stamped with Nevis 6," which probably represents a " 6-dog piece," or bit, and suggests the procedure of Dominica. And at the same date as the Virgin li^lands, St. Kitts passed an Act for rutting and stamping silver and copper coins, the title of which is identical with that of the Virgin Islands Act. Unfor- tunately, the Record Office has preserved nothing but the title. °i.e. Tlie " ingenious silversmith" absorbed the whole of the profit arising from ihe division of a 9 «. dollar into two pieces, rated at 8 ». 3 d. and 1 ». IJd. respectively. f " Coins and Tokens of the Possessions and Colonies of the British Empire " (London, IH89). 1 fi 76 Colonial Currency. « I Lastly, as regards Montserrat, it is stated in Porter's Tables that " dollars and other Spanish coin were cut by order of the Legis- lature," and many of the coins stamped in the Virgin Islands are stated to have been previously cut and stamped in Montserrat. It may well be, that in all the Leeward Islands (with the possible exception of Antigua) the same action was taken as has been above described in connection with the Virgin I&lands. As regards Antigua, the inconvenience of an insufficient subsidiary coinage led the Colony in 1796 to ask for an insular coinage of 5,000/. in small silver. The matter having been shelved by the Imperial authorities, a Colonial Committee in 1803 asked again that the coinage might be supplied, with the device of a windmill and the legend Antigua* A copper coinage was also asked for, but nothing was done in the matter of either the silver or the copper coinage. The dearth of small change led Antigua, about the year 1817, to supply its own wants by raising the rating of the pistareen from \s. 6d. to 2.etuate tiiese bar- barous denominations. In 1838 (xee page 27) a just value of 4s. 2d. for the dollar, ° But in Nevis, in 1857, h Prociaiiiiition (ieclared the pistareen, better known lieie as a ''shaedv," to be a lei^al tender at tlie rate of 10 the Colonial (luveiTiinunt collected a large quantity of sheedies, but unfortunately paid them out again. In 1871) the Ciovernor gave instructions that the sheedy should he exthnnfjed for British silver, and finally on H October IH7!) a PioclamaUoii was issued, decrying the coin as from that date. The result was that at a cost of l,Ot»i /, sterlinir, the Colonial Treasury received 21,79(5 sheedies, 11,942 half-sbeeiiies, and 111 double sheedies " and others." The loss on the sale of these coins as bullion was 20U /. t There is an exact parallel for this in the case of Upper Canada, Janmicu, and British Honduras. II 1 i; I u 'i L M %$ Colonial Currency. and of 64 s. foi the doubloon, was fixed for their concurrent circulation with stt^ling. Retaining the doubloon as the stan- dard of the local currency, and retaining its existing currency ratings, local proclamations prescribed the following concurrent ratings for the several Islands : — Colony. Virgin Islands - Antigua Moiitserrat • 6t. Kitts Nnvis . • - Dominica I)atp of Proclniniition. 29 July 1839 - 20 November 1838 28 November „ 7 December „ 22 July 1839 - 7 February and - 25 July 1840 - Doubloon. £. s. tl. 6 8- 4 - 4 - 4 - 4 - Dollar. t. d. 8 4 9 4} 9 4i 9 4J 9 4} 10 6 British Shilling. s. d. 2 - 2 3 2 3 2 3 2 3 2 6 All these proclamations were approved and confirmed by Order in Council on various dates, beginning v/ith 3rd May 1839. The next step was to assimilate the money of account to sterling and dispense with " currency " ratings. This step was taken by Acts of the local Legislatures on the following dates : — Dominica, 13th June 1842; Antigua, 13th January 1847; St. Kitts, 20th August 1849; Virgin Islands, 25th October 1852; Nevis, 18th ITovember 1858 ; and Montserrat, Ist December 1864. The raesper 100/. sterling for converting "currency," were 200/. for ihe Virgin Islands, 250/. for Dominica, and 225/. for the four original Leeward Islands. The subsequent history of currency in the Leeward Islands is simple. British tokens were supreme before 1838 (at least in all the islands except Dominica and the Virgin Islands), and have since retained their supremacy. In 1853, by Order in Council and Royal Proclamation of 1 9th August of that year, the gold coins of the United States were made legal tender in the Leeward Islands, as in other Colonies in the West Indies {see jiage 28), at 41s. the eagle and 4». \ d. the gold dollar. In 1866 currency was given (see page 29) to the gold coins struck by the Sydney Mint. But neither of these measures had any practical eifect in the absence of a limit of legal tender on silver tokens. In 1876 (1877 in Dominica) Acts were passed in each of the several Leeward Islands demonetising the silver dollar, the low gold-price of which now threatened to reduce the currency of the ^ st Indies to a silver standard. On 9th May 1891, Section 10 of the Imperial Coinage Act was applied to the Leeward Islands by Royal Proclamation; and under that section, by Royal Proclamation of the same date, currency was given to a new "groat, or fourpence," (the modern equivalent of the earlier "bit"), struck for British Guiana and the West Indies. The Royal Proclamation was published in the " Leeward Islands Ch. IV. Leewakd Islands. 79 Gazette" of 18th June 1891, and brought into operation locally as from lat August 1891 by the Governor's Proclamation of 25th July. It is impossible to state the amount of coin now in circulation in the several Leeward Islands, liut it may perhaps be con- jectured that the amount does not exceed 5 s. per head of the f)opulation. The amount of notes of the Colonial Bank in circu- ati(m in the Leeward Islands* on the same date may perhaps be taken at 22,000/. (mainly in St. Kitts). Taking the total population at 130,000, the above figures give an average of 3«. -id. in notes per head of the population of the Leeward Islands. In conclusion, reference must be made to the cut-money of Dominica and of the Virgin Ishmds, and to the exceptional con- ditions affecting the metallic currency of the latter islands. (i.) The cut money of Dominica being " found by experience to be productive of great loss and mischief to the C'olony," a Proclamation was issued on 17th October 1862 ordering all holders of these mutilated and defective coins to exchange them at the public Treasury at the following rates, " 25 s. sterling for 7 ring dollars, for 14 six-bit pieces, and for 56 mocoesf respectively, and 1*. sterling for every 20 dogs." (ii.) The case of the Virgin Islands is interesting,! There were no troops in the Isl?;. ds to attract sterling coins, and the commerce of the little c '■ -^'ty was mainly with St. Thomas and the neighbouring D- < "*iids. Moreover, as a result of the cutting and stamping of dollars in 1801, the Virgin Islands possessed a circulatory medium which from sheer badness could only disappear if dc^monetised, or if driven out by a currenc}' still worse. Although in 1852 the Viigin Islands duly passed an Act to assimilate their currency to sterling, its provisions amounted in practice merely to this, that instead of calling a " dollar " 8 «. 3 d. currency/, the Islanders now rated their accustomed coins in terms of sterling. As the Act declared 100/. sterling to be equivalent to 200/. currency, and as further the Islanders disregarded the Proclaination which rated the dollar at 8 «. 4 d. instead of 8 s. 3 d., they simply halveil the latter figure, and accordingly rated at half their old currency values the familiar Spanish and Mexican coins. The result was a " dolhir " popularly rated at 4 s. 1^ d. sterling, and consisting of 99 " cents." This anomalous result was convenient to a cunimunity which reckoned mainly by " dogs," 66 to the dollar. Subsequently, since the currency of the Danish Island of St. Thomas practically dominated all Virgin Islands currency, and since the standard coin in St. Thomas was the gold doubloon divided into 16 "dollars," the Virgin Islands reduced their rating of the " dollar " to one-sixteenth of the sterling equivalent of a doubloon, i.e., to ' • ( vif h . I " '1, * Notes are unraniiliar in the British Virgin Islands, and iire not issued hy the Colonial Bank in ail the otlier Li-eward Islands. f For a pttiallel use ot this term, hm: umier the Windward Islands. I I am indebted tor my information resjteeting the curious currency oi'tlie Virgin Islands to the Commissioner, Mr. fcdwarJ Cameron. m 80 Colonial Currency. 'if Hi' 4.'*, The Danish coins current some 30 years ago were base, '.r,. ''■■' J-;^ I i P U U' >' fi ,1 '.'■■ f •!■ CHAPTER V. ... „ 'i>t ^. J Thk Windward Islands.* . ., • • (1763.) •'■•'"• • ' ••"- Until the closinj? years of last century, the currency of the three Windward Islands (Grenada, St. Vincent, and St. Lucia) was derived from, and identical with, that of the Leewards ; the unit of account was the dollar containing U " Bits " (of 9 d. each), and, therefore, rated at 8 s. .3 d. currency. But the characteristic feature of the Windward Islands was the prevalence of the Portufifueae Johannes as the standard coin. The under-rating of this coin at $ 8, lead to the circulation of light " Joes," and to the mal-practices of clipping, sweating, &c. In order to escape from the evils of a currency composed of light gold, with little or no silver in circulation, the Windward Islands resorted to " cut money " and to the frequent raising of denominational values, with the final result that the dollar rose by 1838 to a currency rating of 10 5. It will be convenient to divide the history of Windward currency into two periods (the first ending with 1825 and the second beginning with that year), and to treat of the currency of each of the three islands separately within the two periods, up to the middle of the present century, when their currency history becomes identical throughout the group. I. Prior to 1825. (i.) The devices to which the dearth of silver led may be in- stanced by the words of the Grenada Act of 21st March 1787 : — " Whereas by reason of the great scarcity of British silver coin in this Colony, a certain foreign coin called a dollar, at the rate of 8 5. 3 d. current money of Grenada, and a certain piece of silver called a " Bitt " (being the eleventh part of a dollar, marked with the letter G) at the rate of 9d., like current money, have, for purposes of commerce and public convenience, been by general consent suffered to circulate and pass in payment ; and whereas a practice hath lately prevailed amongst divers evil-disposed per- sons of cutting, for wicked gain's sake, dollars into a greater number of parts than eleven, and marking each of such parts with a G, and then imposing the same on the public for a Bitt, and also of cutting, clipping, or filing such Bitte, as were originally equal in value to the eleventh part of a dollar, by which means the intrinsic average worth of the Bitts now circulating is diminished nearly one-third." It was enacted that no private person should cut dollars or stamp Bits " with the letter G" <* For much information respecting the currency of the Windward Inlands, I am indebted to the kind agency of the Honourable Sir Walter Hely- Hutchinson, k.c.m.g., the piesent Goveinor-in-Chief. i- I Ch. V. Windward Islands. 8» and that Bite should pass by tale for only 6 d. (instead of 9 (l.\ though by weight they might pass in the scale on an equality with whole dollars. It was, however, provided that in no case need a Eayee receive more than one-fifth of a payment in Bits, whether y tale or weight. The mode of payment by weight proved mischievous, as "ill-disposed persons introduced into the common packages (of Bits, by weight, passing for one Johannes, or eight dollars) Bits made of lead, tin, and other base metals." Conse- quently, Bits were ordered by the local Act of 9th December 1790 to pass by tale only, at Qd. But, subsequently, it appears that the rating of stamfied Bits was again fixed, by Proclamation, at 9r/. On 3l8t July 1 798 President Mitchell issued a Proclamation, in view of " the present impaired and diminished state of the several coins usually current," and in order to prevent Grenada being flooded with the light Portuguese gold coins then being decried in neighbourinj; colonies. !'he following were his main ratin<;8 Silver dollar, of at least 17 dwts., "at 12 Bits or 9s. currency,* and its aliquot parts at the same proportional weight and value." Johannes, weighing not less than 7 dwts. 12 grs., at 3 /. 6 «. currency {i.c f 8 at the old 8 s. 3 d. rating). Johannes, weighing not less than 8 dwts. 12 grs., at 3/. 12*. currency, or 8 dollars {i e. at the new 9 s. rating). Guinea, weighing not less than 5 dwts., at 21. 5 s. currency, or 5 dollars. Moidore, weighing not less than 6 dwts., at 2 1. 9 s. 6 rf. currency. Spanish quadruple, or double doubloon, weighing not less than 17 dwts., at 7 /. 4 s. currency, or 16 dollars ; parts in proportion. As " great inconvenience and obstruction to trade may arise from the small number of Johanneses now in circulation equal to the foregoing prescribed weight of 7 dwts. 12 grs^" it was ordered that "the Johannes of 6 dwts. and upwards may be plugged" by prescribed oflScers up to the standard weight. And, " in order to facilitate the currency of the Johannea and its aliquot parts, as well those at present of the prescribed weights as those which are allowed to be plugged, the Johanneses weighing 8 dwts. 12 grs. or more, and the alicjuot parts of a Johannes shall be stamped with the letter G in the centre of the face side, and the Johannes weighing 7 dwts. 12 grs. with the like letter in three places on the face side and as near the edge as possible." In 1814 such was the scarcity of small coins in Grenada that * The Preamble of the Proclamation speaks of " estimntiiit? the silver dollars at the increased value hereiniifter annexed tliereto." Hence 17!)(J may be taken as the beginning of the i) s. rating in Grenada ot the clnliHinow raised to 12 Bits. It should be added that, in this increase of the deiiominiitional value of the dollar, Grenada was only keejiing pace with the Leeward Islands and was not as yet taking the lead in the race of denominational currency. It will be seen subsequently that St. Vincent was not slow to follow in adopting the new 9 s. rating. ft <^ V .** IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I 1.25 l^m 12.5 |50 "^"^ ut 121 m us ■ 40 1.4 22 1.6 ^ ^ % V ^ \\ ^^ lV ^^^ 84 Colonial Currency. " housekeepers and the community in general find many impedi- ments and much difficulty in procuring change to enable them to purchase the common necessaries of life." Accordingly the Governor's Proclamation of 2nd November 1814, ordered that 7,920 Spanish dollars, which had been expressly imported for the purpose, should be cut up and put in circulation. And by Pro- clamations of 23rd March and 1st August 1818, excessive values (which cannot be traced now) were given to the Spanish Pistareen {sec page 395;, which was strangely assumed to be a Sicilian " shield quarter- dollar.*' (Probably the rating was 2». 3 l!) in I! I 88 Colonial Currbscy. "Moco" (or side piece)* was to be reduced from 3 escalins to " 2 escalins et qiiatre noire (' Black Dogs ') ou 40 sous." In other words, the cut money was reduced in value one-ninth all round. It may here be noted that on 10th August 1825 Governor Blackwell estimated the cut money at between thirty and forty thousand dollars. He added that it was " liable to be cut and filed down." The relation in St. Lucia of the livre to the dollar is interest- ing. An Ordonanceof Ist June 1818 (giving currency to British pence) rated these sterling coins at 1 08 to the " Gourde Courante,t ou neuf livres." A« has been already seen, the Spanish dollar had been raised the previous year from 9 livres (12 bits) to 9^ livres (13 bits). And since a bit was 9d. currency, the Act of 1817 gave to the Spauis;h dollar in St. Lucia a currency value which was expressed in terms o/ £. s. d. as 9 s. 9 d., a rating which marked the fi^rst rise of a Windward, as opposed to a Leeward, currency. The next step was the convenient one of decimalizing the dollar in terms of livres, a step which was taken before 1823, doubtless by popular agreement, and in imitation of St. Vincent's action oi 1818. The Act of Ist April 1823, which gave currency in St. Lucia to the British "Anchor money" (sec page 21), rated the quarter dollar at 2 livres 10 sols, i.e., 10 livres to the dollar. Thus, as a livre was identical with a " shilling cdrrency," St. Lucia had established by 1823 the final Windward Islands rating of the dollar at 10*. IL From 1825 onwards. In pursuance of the measures taken by the Imperial Govern- ment in 1825 (sec page 23) for introducing British silver and copper coins into general circulation throughout the Colonies, steps were taken in the three Windward Islands to fix ratinijs in " currency " for the sterling coins. These ratings were based on the (mistaken) Imperial rating of the Sj)anish dollar as the equivalent of 4 s. 4 rf. (instead of 4 a. 2 rf.) sterling ; and, as the " dollar " was rated at 9 s. in Grenada, at 9 s. 9 d. in St. Lucia, and at 10 s. in St. Vincent, no uniform currency ratings for sterling coins was possible throughout the three islands. (i) In Grenada a local Proclamation was issued on 19 Sep- tember 1825J rating the British shilling at 2 4. 1 h d., and declaring the pound currency equal to 9 s. 7 81-100 d. And the opportunity was taken to reduce the excessive ratings of " Anchor money " • " Moco" seenijjto be an abbreviation of the word maccoclnno, of which liie forms maccaroni and macuquina were einployeil in Junmica and Trinidad respectively to denote cut money. {See note under Jamaica, page 10!i). f Cf. Mauritius for u parallel to this survival of a " current dollar " (of account) retaining an li'^jsolute rating outgrown by the specie dollar. (See also under Malta). X Subsequent Proclamations of 12th October 182t) and ()th May 1827 were iraued with reference to the currency of the half-crown. Ck V. Windward Islands. I Sep. iring inity ^h tlie Inidtid (of |« also and of the " peseta or pistereen, commotily called the shield quarter-dollar, ' coins which " at present form the chief part of the circulating medium." It was provided that the pistereen should thenceforward pass for 2 s. currency only, and Anchor money at the rate of 9 s. per dollar, with a 50 /. limit of legal tender. Finding, however, that the underrated British silver was eagerly bought up by shrewd merchants at a premium of from 2^ to 5 per cent, as soon as it was imported by the Com- missariat, the Colony of Grenada passed an Act in 1827 over- rating the British shilling at 2 s. 6 d. currency. " From that time the dollars and doubloons have all disappeared " (wrote an official in 1827), "together with every description of coin except British silver." An effort appears to have been made to retain the familiar coins; for, the Governor stated in 1836 that " usage arising from premium has rendered the doubloon current at 8 /. and the dollar at 10 s. currency," i.e., at the enhanced ratings already ^n force in St. Vincent. (ii.) Writing in 1831, Charles Shepherd, in his " Historical Account of the Islandof St. Vincent," gives the following account of the currency of that island : The gold coins in circulation are exclusively Spanish and Portuguese, the doubloon at the value of ^16 with tne aliquot parts in proportion. The Johannes passes by weight at 9 s. the dwt. ; formerly this coin was the most common throughout the islands, each Colony multilating their own by plugs and various marks, to prevent exportation ; from these practices the coin became so deteriorated that in 1818 it was called in at a considerable loss, and doubloons came into m /re general circulation. The silver coins are the dollar which passes for 10 s. currency, and the Colonial coins (i.e. Anchor money) of one-fourth, one-eighth, and one-sixteenth; the British silver occasionally forms part of the Commissariat issues (from which source nearly all the bullion of the country arises), but it is speedily collected by the merchants for remittance to Europe, and is therefore of little benefit as a gciheral circulating medium. The English copper money and a barbarous Colonial coin, with the equally barbarous names of stampees and Black Dogs, com- pletes the catalogue." It has not been found possible to trace the St. Vincent Procla- mation of 7th September 1825, rating British silver coins.* But it was stated officially, with reference to the legislation of 1818 above mentioned, that there existed in St. Vincent " a distinction in value between the perfect and the mutilated Spanish dollar, the perfect dollar having an increased value of 1 s. currency, and a corresponding greater value in currency has there been given to British coins.' As the Spanish dollar (10*. currency) was rated at 4*. 4 Oldmixon says : "The Island be^ran to nbound in Money, wliich was brought thither by the Buccaneers, as the Py rates in the Spanish West-Indies are called. And the Government of Jamaica, tlio' they were far from encouraging such wicked courses, yet winked at tliem, in consideration of tlie Treasures they brougtit thither and squandered away there." He adds curious details of the Buccaneers' reckless extravagance with "the Load which they had scraped together with so much Hazard." (British Empire, in America, first published in 1708.) See also the Accouut of Jamaica, by Francis Hanson, written in 1G82. In observing that the Island of Jiimaica " is most commodiously seated in the midst ot the Spaniards" (''the very belly of commerce," according to C. Reynel in his True EmiUih IntereM, 1074), " so that we drain the benefits of their gold and silver mines without their labour and expences," — Francis Hanson observes : " And whereas mo!>t other plantations ever did and now do keep their Accounts in Sugar, or the proper commodities of the place, for want of money, it is otherwise in Jamaica ; for in Port Royal there is more plenty of running cash (prop;)rtionably to the number of its inhabitants) than is in London, which (among other worthy acts) we chiefly owe to the provident care of his Excellency Sir Thomas Lynch, our present & former governour, who about ten yeare ajjo (by advise ot his majesties council there) raised tiie value of our current coyns about one fifth more than tliey will yield in any part of Christendom, to that none care to carry money off, but bring great quantities thither." t See infra for the similar rating of an English sixpence and a Spanish real in 1738, notwithstanding the depreciation of this latter coin from thu eighth to the tenth of a " Piece of Eight " See also under Gibraltar X The rating retjiined for the Peru Piece of Eight in 1681, vide infra. ! I 98! Colonial Currency. iC ] s. or more under its current rating in neighbouring Colonies. This led to clipping in Jamaica, and was the chief cause of the successive raisme of the " currency " ratincrs of the Piece of Eight throughout the New World.* (i.) Prior to 1704. From a letter of Governor Sir Thomas Lynch to the Board of Trade and Plantations, dated 10th March 1671 (i.e., only IGy.ears after the capture of the island), it appears that, at some time between the 'tst and 15th February 1671, the Assembly "dis- patched an Act for making peeces of 8 Currant at 5 s." In the autumn of the same year the Council took the matter up, and passed the following Oi'der : — " By the Governour and Councill. " Whereas I have with the advice of his Majesties Councill, taken into serious Consideration the great Want of mony in this Island, nieerly occasioned by makeing it currant below the Intrinsick value, and so much beneath the Standard of all our NeighbourSjf who thereby use all advantage to draw it to them, because it advances clearly 20''- ^ Cent, when they bring it home, and by that meanes our goods and other Produce of this Island are not so much in demand, whereby the Planters have been very much discouraged from the makeing of them, wc** hath infinitely obstructed and retarded the Settlement ot this Island, for y« prevention of which great mischeif and inconveniency, and for ye better encouragement of bringing mony hither and causeing plenty of it to be kept amongst us, wherein the Interest of this Island doth so much consist. Its therefore ordered by and with the advice and Consent of his Majestyes Councill, that fieices of 8, and half pieces of 8, being Pillar, Sevil, or Mexico, )e raised to five shillings, and two* and six'', and all other Spanish mony of that Coin proportionably : and that DoublonsJ now passing at 16': be reed, currant at 20*: This advance to begin within 6 months after the date of this order." This order was " read and published at the Grand Court held at St. J ago the last Tuseday in October 1671." The six months' notice given by this Order defeated the object of this early legislation in currency, much to the pained astonishment of its authors. Hence, two months later (on 21st December 1671), the Governor in Council was forced to issue an amending Order, of which the following is an extract : — " Whereas it hath since appeared that severall upon the hopes of making 25 ^ cent, by this advance liord up their Spanish mony, whereby Trade is very much lessned and abated, and mony not being currant the Merchants are enforced to sue the * See page 8 et iteqq. t Barbados htnl raised the rating to 5*. in 1668, and Jamaica was foUowing suit in self-defence. J This is one of the earliest extant records of gold coins in Colonial enactments, and is a proof of the metallic wealth of Jamaica at this early date. The "Doublon" referred to, is, of conrse, the "Pistole," or gold equivalent under the Spanish monetary system of ;J4, whence its Jamaica rating at IGa. before 1671, aud at J /. afterwards Ch. VII. Jamaica. 99 Planters, who not haveing ready mony to answer y" Demands will be compelled to make disadvantageous Contracts, infinitely to their prejudice and Loss : To ye Intent therefore that a con- venient Remedy may be applyed to both these Inconveniences, and that mony may for the present more freely pass, the better to support our Trade, It's therefore ordered by and w"" y* advice and Consent of his Majestyes Councill That the former order imediately take place, and that Doublons and all Spanish mony being either Pillar Sevill or Mexico be received and paid currant at y' rates thei'ein mentioned : but that ' all Debts formei'ly " ' of a. p of both." contracted be discharged and paid at the rate of 4 s. 6 d. 8, or in Doublons at 14*. 6d. being the intrinsick value In 1678 the Lords of the Committee for Trade and Planta- tions advised Charles II. to establish a Mint in Jamaica for the encouragement of trade, the coins to be current only in Jamaica. But this advice was not taken, the feeling against the un- authorised mints in New England and Maryland militating against any proposal for a colonial mint. It may be added that a Mint report to the Treasury of 19th January 1691 states that *' the great and repeated applications which t;re made to their late Ma"*'" (i.e. Charles II. and James 11.) for obtaining of such a Priviiedge were ineffectual!." In 1681 the Act 33 Car. II. cap. 19, was passed in the Islam', and subsequently approved by the King in Council on 23rd February 1682, for the purpose of " ascerteyning ye value of forrain coyns and establishing interest." The first section runs as follows : " Be it enacted that each single Spanish Dubloon or iFrench PistoU shall be Currant, and passe for twenty shillings Currant Money, each single peice of eight of Sevill, Mexico, or Pillcr, and each ffrench Oowne at five shillings, Currant Money, a Peru Piece of Eight at Four shillings, and all monies whatsoever of those Coynes aforesaid, shall in all payments whatsoever be proportionably rated, any Law, Custome, or Usage to ye contrary notwithstanding." The rating of the Peru Piece of Eight at 4 s. is an indication of the early prevalence, and subsequent distrust, of this coin of " uncertain allay {see page 391). Action similar to that taken in 1681 by Jamaica had been previously taken in 1670 in the Leeward Islands, and was followed throughout the Plantations generally, so that the Peru Piece of Eight was practically demonetized in the British colonies. It is interesting to note the early familiarity of Jamaica with the Pistole and silver Ecu of France, which is shown by its formal inclusion in the Act of 1681. It was not until 1694 that the Leeward Islands (which, through St. Kitts, were more intimately connected with the French colonies), formally rated the ICcu on a par with the standard Piece of Eight. In 1683 a " Supplemental and Explanatory Act" was passed, providing {inter alia) that "when any sugar, ginger, anotto, indigo, cocoa, cotton, or picmento, being the production of this island, shall be taken upon Writt of Venditioni expenses, — the same shall be carried to Port Royall and there be appraised by the churchwardens . . & the said goods so taken and appraised i W^ 100 Colonial Currbnct. shall by the Provost Marshall be forthwith delivered to the Plaintiff for so much money as the same shall be appraised . . and accepted by the Plaintiff as so much money effectually paid him, any former law to the contrary notwithstanding." This is the only approach in Jamaica to the system of barter which pre- vailed in other West Indian cohmies. There is now a considerable gap in the legislative history of the currency of Jamaica ; but there are incidental references which partly supply the deficiency. From the minutes of the Board of Trade of 2l8t April 1703 it appears that "the gentleman concerned for Jamaica informed the Board that the rate of pieces of eight of about 13^ dwts. is there at 5*.,* aud those above 16** weight at 5 5. 6rf." This precise uud definite statement is of value as proof of the practice of clipping which had its quarters in this entrepot of specie. And it will be observed that the statement quoted shows that the heavier coins were unfavourably rated ; so that it may safely be concluded that at the beginning of the 18th century the standard coin of Jamaica was a silver " Piece of Eight" diminished by nearly a quarter of its weight (17^ dwts.). (11.) From 1704 to 1825. The provisions of the Royal Proclamation of 1704, and of the subsequent Imperial Act 6 Anne, cap. 57 (sec page 414) were at first nominally observed in Jamaica by the 5 s. rating in force, though the maximum rating of 6*. per piece of eight of full weight under the Proclamation and Act was exceeded in fact, since a coin of full 17^ dwts. was worth in Jamaica ubout 6 s. 6d. currency at the 5s. rating. But a few years later, at some time between 1707 and 1722, "notwithstanding a positive law " (i.e. the Act o£ 6 Anne) " to ascertain the Value of money, the people of Jamaica raised their money by agreeing to tender and receive it at 6s. 3d. the Piece of Bight." Oldmixon (from whom the above statement is quoted) goes on to record that " several mer chants sent home a representation against it, and the Government was so far from giving the least countenance to the least disregard of this law, that the Lord Carteret, then Secretary of State, wrote to the Duke of Portland (then Governor of Jamaica) by His Majesty's command, in a letter dated 22nd October 1722, wherein his Lordship tells his Grace, 'that the articles of complaint in the representation deserve his Grace's most serious consideration, and the King directs liis Grace to use his utmost care to see proper remedies applied. That the trade and credit of he island will be lost if the valuation of the coin be not rectified. It is (adds his * In 1700-1 Sir Gilbert lleathcote liad informed the Treasury that "a peece of 8 in Jamaica is called 6»." The regular price in London of " Bills of Exchange that will be pimctually paid." is stated at 116/. in local currency at this date. On 31st July 1701, Sir Bartholomew Gracedieu offered tlio Treasury 120 1. " for the exciiange of money from London to Jamaica for the services of his Majes" Forces there." But on 25th July 1701 Laurency Galdy tendered only IS-'/o nominal premium, observing, " si nous ne nietons pas un pris au dessus de IS^/o, c'est parce qu'avec le bruit de guerre il ce fait moinga de negoce, ce qui rand I'argent plus rare a la Jamaica." Ch. VII. Jamaica. lOl Lordship) a bold attempt, that those who have advided it have undertaken, being expressly contrary to the Act of the 6th of Queen Anne and your 47th Instruction, which I am commanded to repeat to you, should be strictly obeyed.' The Duke of Portland restored the currency to the tenure of the Act." The explanation of the new and conventional rating of the piece of eight at 6 «. 3 (/. mentioned above is furnished by the history of the real. When this coin represented only the eighth of a piece of eight, it had been rated in Jamaica since 1671 at 7jrf. cur- rency. And the same rating was retained when the circulation of the pistareen (" ])rovincial peseta " of Spain, see page 395), intro- duced into Jamaica, among other British colonies, the currency of" reals of now plate," two of which went to the pistareen, and 10 to the piece of eight (or " dollar," as the coin began to be commonly called early in the 18th century). With the adoption of the new real as a basis, Jamaica raised the currency value of the multiples of the real ; and so the " piece of eight," or dollar, passed not for 5 s. (7^ d. x 8) as heretofore, but for 6 s, 3 d., i.e., 7^ d.x 10. But, accepting Oldmixon's statement that the Duke of Portland restored the currency " to the tenure of the Act," this rating of 6 s. 3 d. must have been confined to the new real, and to its mutiple the pistai-een, leaving the standai'd piece of eight and its old Mexican fractions of a half, a quarter, and an eighth, to pass by weight according to the provisions of the Pro- clamation of 1704. Apart, however, from the fact that Oldmixon merely quotes a pamphlet of 1740*, and apart from the fact that a gap in the records makes it impossible to refer to original testi- mony to substantiate his statement, there is evidence that the 6 s. 3 d. rating was in force a few years later, not only for the pistareen (as the fifth of a dollar), but also for the dollar itself. And, as will be seen subsequently, in connection with the year 1772, the old light pieces of eight continued to pass current (as tokens) for many years at the 5 s. rating of 1671. The evidence as to the subsequent 6 s. 3 d. rating of the new dollar is derived from an anonymous and undated tract (probably of 1738), entitled, *' The Importance of Jamaica to Great Britam," which supplies the following scheme of the ratings in force in Jamaica by 1738 — £. s. d. 1 ryal or bittf - - - _ _ _ n 1 sixpencel - - - . _ _ _ n 1 shi lingj _ _ _ _ - - 1 3 10 ryals or 1 dollar§ - - - - - 6 3 30 „ 3 dollars or one pistole || - 1 3 9 46 „ 1 guinea - - - - 1 8 9 62 „ 1 moidoro - - - - 1 18 9 * By Mr. Wavell Smith, secretary of the Leeward Islands, and entitled " Two Letters to Mr. Wood." f By an indelicate anecdote the writer explains that this name was in vogue among the Creoles. JThese ratings of sterling coins are interesting, in connection with the rating of the real, as relics of the original equivalence of the real and a sixpence. § i.e. the new coins of l72i). fl Properly 1 pistole=4 dollari*. This anomalous rating indicates clipping of the gold coin. 72642. H 102 Colonial Curkency. k& is The anonymous author observes that, " no part of the money they get from the Spaniards, except pistorines, a base coin, stays with them." And, later on, he says, " Besides its commodities great quantities of Spanish coin have been returned from this island, the planters not reserving a bit for their own use except pistorines, nicknamed by them Don Patiflo^s* Money" Unfor- tunately, Jamaica would not appear to have reported to the Board of Trade and plantations in 1740 as to its currency, and no precise evidence is forthcoming to show the extent to which clipping prevailed as regards gold coins. But, as may readily be inferred 11' >m the above rating of a pistole ut only 23 «. 9 >i 10,000 » .pistoles. ti 12*. 6d. » if 8,000 JJ half-pistoles. n 6 s. Sd. t> » 11,072 JJ quarter-pis- toles. n 6 s. 8 d. J» JJ 60,000 JJ dollars. »> 3 s. 4: d. J5 >5 60,000 JJ half-dollars. *) 1 s. 8 d. J> » 120,000 JJ quarter- dol- lars. » 10 d. » if 320 000 »> rials. )» 5d. » 5> 320,000 JJ half-rials. » 2^d. »» J» 147,840 j> quai'tiles or quarter-rials." " In order to ascertain the 8«,: J number of each species ; Be it further enacted tliat each of the said pieces be stamped or marked with the letters GR on both sides of each piece, and after such stamp or mark be put on them they shall be deemed current money of the island." The Act proceeds to appoint commis- sioners for the superintendence of the stamping, and concludes by providing that, " All debts now due in this island shall be paid in such manner as if the exchange between this island and Great Britain were at the time of such payment 40 /. per cent., that being the present rate of exchange. The statement in the preamble of the above Act as to the " trade witli the northern colonies " (of America) is explained by Long* as follows : " The island was drained extremely low by the sudden current the silver took to Hispaniola on opening their porta there, and the harbour of Monte Christi, to our illicit traders " ; and Alderman Heckford stated in evidence before the Board of Trade and Plantations in 1760, that "the nature of the trade with the northern colonies exhausted their cash, the traders from which, in return for their lumber, take only a small part in ])roduce, but chiefly cash, with which they go and purchase a cargo at the French or Dutch islands at 50 per cent, advantage. This cannot be prevented by raising the nominal value of the History of Jamaica, 8 vols. London, 1774 (published anonymously). h2 104 Colonial Curremct. i coin, for all commodities will rise in proportion. Tiie marks {i.e. the stamp G.R.) will certainly be counterfeited." From the evidence of Mr. Elletstone before the same board, on 29ih Feb- ruary 1760, it appears that " the effect of the Bill has been to raise the price of dollars to 6 s. 6 d., at which they are now passed and taken by common consent, so that no more than 12,000/. has been stamped." The evidence taken by the Board of Trade, and the advice of the law officers, led the board to recommend the disallowance of the Act. But its provisions were conventionally observed not- withstanding — (1) the dollar passing thenceforward not, it is true, at the full rate of 6 *. 8 rf., but at 6 £. 6 d., whilst (2), in the words of Long, " the milled double doubloons having been raised by an act of assembly 5 s. each above the hammered, have con- tinued over since at this advanced rate by general consent of the inhabitants." Long adds that " a gi-eat temptation therefore offered to the debasers of coin ; this was naturally to be expected, and accordingly happened. Mints were set at work in the Northern and in the Dutch and other colonies, to say nothing of the industrious coiners of Jamaica, who to gain these per cents, and as much more as they could, poured in so great an abundance of base doubloons as to interrupt the commerce of the island." The statements of Long in 1774 as to the circulating currency of Jamaica prior to 1773, is summed up in the following tabular form : — Gold. Spanish « double doubloon," milled Ditto ditto hammered • Ditto "doubloon," milled Ditto ditto hammered Ditto pistole, milled Ditto pistole, hammered - (half and quarter pistole proportion ately.) English guinea - - - - Portuguese moidore Weight. Current Value. Dwts. grs. 17 8 8 16 4 8 £. ». d. 6 - - 4 15 - 9 10 - 2 7 6 1 5 - 1 8 9t I 8 9t 1 18 Of * " I have not noticed the weights of the hammered gold or silver pieces* their alloy being difl'erent from the other marketable milled pieces, and so much clipped, tiled, and depreciated, aa to be greatly below the value at which they are suftered to pass current." — {Long), I i.e., the ratings mentionod in ITdti. €h. VII. Jamaica. 10ft Silver. Weight. Current Value. Dwts. grs. ». d. Spanish milled, or Mexican, dollar* (half, quarter, and ciglith !a propor tion). 17 8 6 " Cob8,t or hanunered pieces of 8 " • • 5 -t «Piece8of4ryals"§ • • 3 G Ditto 2 „ or pistorins - ■ * 1 3 " R^al or bit " (also, *♦ old ryal or bit piece.") a • - n Reviewing the eilver|| currency of Jamaica prior to 1773, Long (who observes that the current silver was diminished 21 percent, in weight by " clipping villains ") states that " the pistorins and half })istorins, if of full weight, are not fit for a remittance to Europe, as they are coarse silver ; their baseness is iuficiently dis- tinguished by their black complexion. For this reason they have escaped the fate of the better coins, and are permitted to remain in the island, where, together with the old hammered dollars, pieces ol' eight, and ryals, which are so much diminished by wear, clipping, and sweating, as not to be exportable,1[ they form the chief part of the silver in present circulation. . . There are in- dustrious Jews in this island, who carry on a profitable business by i)urchasing dollars with ryals of the old plate, which are of bad quality. According to the present denominations of the currency, a single dollar of 6 s. 6 d. passes in exchange for 10 ryals, which, at l\d. each, amount to no more than 6 s. 3 d., or 3 d. per dollar loss to the person wlio changes for these ryals. . It is not sur- prising that the dollars should eagerly be bought up with these f»istorins or ryals for exportation, but rather, as the profit is so arge, we should wonder that a single milled dollar, of full weight, remains in the island ; for 624 of these ryalt;, intrinsically not«worth more than 17 /. 14 s. 4d., will buy 60 dollars intrinsi- callv worth here 19/. 10 s. currency. There is no country, perhaps, where the coins in circulation are more in need of a strict examen and reformation than in this island." o "Generally of full weight." ■f >' From co'ba, Spanish cant word for real," X i.e the old rating of 1G71. § i.e. half dollars of ' new plate.' Il The trade with the northern colonies of America, and with the Dutch of Cura,ort for mules, " drains away much of tlie olil hammered silver, and the milled ryals." ^ "The course of exchange hetween Jamaica and Britain, was formerly 35 per cent., but since raised to 40 per cent., at which it has remained for many years." nir 106 Colonial Curuenct. The amount of coin in circulation in Jamnica in 1772 was esti- mated l)y Long at 65,000 /. only. This inadequate volume of metallic currency was supplemented by " the annual orders issued by the Council, amountin*; to near 10,000/., and the custom of passing Ijonds and notes, but chiefly the former. These bonds, It must be observed, are as well a cause as an effect of the scarcity of coin. From being used at first in lieu of very considerable siuns, as from 1,000 /. to 10,000 /,, they have, since their more general application to the purposes of commerce and to loans or debts from 50 /. upwards, gradually supplied the place of gold and silver, and allowed the latter a freer scope to pass out of the country." He goes on to say that, even though they bore 8 to 10 per cent, interest, these bonds were not cashed excei)t at a discount on their par or face value, and that this showed a want of specie on the island. The conventional rating of Spanish gold at 5 /. the doubloon was legalised in 1773, and the currency of Portuguese gold encouraged by the important. Act, 14 Geo. III., c. . 18, which was probably framed in connection (i.) with the lowering in 1772 of the Spanish standards of fineness, {sec page 396), and (ii.) with the importation from America of counterfeit coins. The following table gives the weights and currency values of the chief gold* coins to be current in Jamaica as from 1st January 1774:— DESCniPTION. Weight. Currency Value. Spanish : Dwts. Gre. £. *. Double doubloon, or 4 pistole piece 17 8 6 - Doubloon, or 2 pistole pi* . 8 IG 2 10 Pistole (half and quarter pistoles iu proportion) - - - - 4 8 1 5 Portugal : Johannes . - - - - 18 13 6 10 Half Johannes - - • - 9 6 2 16 Moidore 6 22 2 - " and so in proportion for each greater or smaller piece of said coin." ^ will be observed tliat the above ratings of full • Nothing is said of silver coins in the Act, French gold pifces of 2, IJ, 1, and 4 pistoles were to be current at the same rates as the Spanish coins of the same weights. But as the Frencli slnndarJ was 22 carats tine, whilst Spanish coins were only 21 i, French j^old could not circulate in competition with thej' tld coins of S^ain. Ch. VII. Jamak A. 107 weight coinB work out to 2*884 d. per grain for Spanieh gold, and to 2*973 d. for Portuguese gold. Taking the millesimal fineness (by assay) of the Spanish coin to be 893, and of the Portuguese 916*<{, a premium of •159 d. per grain was set by the Act of 1773 on the latter, as between coins oi full weight of the two nationalities. Further, an important provision was laid down in 1773 for the first time in Jamaica by the deduction of " threepence for every grain weight so deficient." This pro- vision, it will be seen, imposed a relative penalty on tight Spanish gold as compared with li(/tit Portuguese coin. After passing the above Act it was fiund necessary, before the close of 1773, to call in the clipped unmilled Spanish gold, which formed the bulk of the internal circulatory medium at this time. The Act of Slst December 1773 prescribed that the old light gold should be received by special commissioners, who were to weigh the coin and to exchange it at the rate of 4 /. 15 s. for a doubloon weighing not leas than 13 dwts.*; thus incidentally indicating to what a length clipping and sweating had gone in reducing the weight of ihe internal cui'rency. It will also be observed that this weight of the clipped gold doubloon is prac- tically that to which it was stated, 70 years before, the weight of the old piece of eight had been reduced in Jamaica. It may not be too much, perhaps, to infer that, as in the seventeenth century, so in the eighteenth up to 1 773, clipping of the standard coin reduced the weight by 25 per cent. Experience justified Long's anticipation in 1774 that "this measure . . . will be the means of introducing o large quan- tity in particular of the Portuguese coin." But the incon- venience of under-i'ating Spanish coin, as com])ared with Portu- fuese, in an island which at that date was necessarily included, oth by geographical position and by trade relations, in the currency area of Spanish America, speedily led to the conven- tional raising of the currency price of the Spanish doubloon and Spanish dollar to 5 1. 5 s., and 6 s. 8d. respectively. And this 5 per cent, advance in the local rating of Spanish gold was enhanced over 3^ by a subsequent change in the monetary system of Spain. For, in 1786, though the gross weights were left unaltered, the standard fineness of the Sjianish gold coins was reduced from 21| to 21 carats. But, notwithstanding the relative premium thus placed on Spanish goldf, Jamaica pro- ceeded at some date between 1803 and 1H08 to adopt in the local currency system the Spanish ratio of ;Jfl6 = 1 doubloon. Retaining as the basis the convenient rating of the dollar at * In order to " sink and divide in the iroat easy .id equitaMe mnnner tlie loss that will 1)6 sustained " ill calling in the old light gold at its current valuation, and in re-issuing it " at a certain and reasonable value agreeable to their respective weights," only three-fourths of the agreed value was payable in cash, the remaining quarter being exchanged for tickets in a lottery (10,000 tickets at 5/.), which otfered "1,086 fortunate tickets," qudlitying tor prizes which ranged as high as 5,0U0/., but were subject to a 20 per cent, deduction l>y the Colonial Government. ■j- It is the maincenance of Spanish gold as the standard in Jamaica which distinguishes the currency historv of the island from that of the West Indies .generally, in which light " Joes ' formed almost the entire circulation. L 108 Colonial Currency. nt 6 s. 8(1. (which admitted of the rating of the Mexican real at I()(/., and nmdo $li equiil lo the £. currency), Jamaica raised the local price of its standsird coin the doubloon, from five guineas to 5 /. 6 s. 8 d. For the details of the above traneitionfl, there is the evidence (i.) of Bryan Edwardcs in his " Hirttory of the British West Indies," writing with reference to 1788, (ii.) of R. C. Dallas, whose "History of the Maroons" is dated 1803, and (iii.) of an anonymous " Account of Jamaica," pub- lished in 1808. Their statements are summarised in the fol- lowing comparative Table* : — Description of Coin. 1773. 1788. 180». ieo8. Long. Etlwardes. Dallas. Anon. Spanish : £. «. d. £. ». d. £, .. d. £. *. d. Heal or Bit - - - 74 — - - n I'iitHieen - I 3 — ^. - 1 3 Dollar - 6 - 6 8 - 6 8 - 8 Pistole ... 1 5 - 1 6 3 I 6 3 1 6 8 Uoutiloon - . - 6 - - 6 6- 6 6- 6 6 8 Portupuege : " Half Johannes " (so callrd) - 2 15 - 2 15 - 2 16 - 2 15 - Kntflish giiinen • ~ 1 Pi G — 1 12 6t The net result of the Act of 1773 had been to pui'ge the island of its old mutilated gold coin, whilst the conventional rating of the doubloon at a /. 5 ?. rc'Cstablished S[)anisli gold before 1788 as the local standard of value, a ])osition which was further strength- ened within the next twenty years by the equally conventional incrcas-e to 5 /. G .*, 8 d. of the local rating of the new, and intrin- sically less valuable, doubloon. Prices, it is true, were uniformly quoted in dollars; but a *' dollar " in payments meant one-six- teenth of a gold doubloon. Scarcely had the local system of currency been adjusted on this basis, when events outside Jamaica combined to drain the island of its specie, and to cut off fresh supplies. " Ever since the great increase of the value of bullion in Great Britain," wrote the agent for Jamaica in 1817, "the small silver coinj have composed nearly the entire of the circulating species in the island (say 200,000/.), the gold coins and dollars having nearly all got out of circulation, being remitted to England and a neighbouring island for commercial purposes ... In commerce dollars are purchased in Jamaica to tho extent of millions per '^ So also Stewart's " View of tlie Past and Present State of the Island of Jamaica " (1823), and Kelly's " Universal Cuinbist " (1826). Stewart states that th« pistareen and bitt were rare in 182.". f Stated to be of rare occunence in Jumaicn. J It became the custom to make up paper parcels of Mexican silver coins, rn«iorsed as containing a specified sum ; and these parcels passed from hand to hand, without counting, for considerable sums of money. Naturally, inferior coins wpie seltcted for these parcels. In 1824 the Commissary refused to accept them, as he found them to contain " bits not worth half 7^«?, together with plain pieces of base silver retembling old shillings and sixpenses, of no coinage whatever, French coins, and bad dollars." (Cf. Zay pp. 67 and 84), Ch. VII. Jamaica. 109 annum ns bullion and exported. For this object a higher and fluctuating rate is occasioniilly given by merchants for them."* After statinir that " coins in Jiimaicu form a prime article of trade," and that there was a constant stream of coin into and out of the island, the agent observes that " the coins current in Jamaica are rarely or never much worn, damagecl, or reduced in weight below their original value." The bit, or 7^^/. piece, which was rapidly disappearing before the Mexican fractions of the dollarf (rated proportionately Ui the latter), was an excep- tion. But Stewart, who also states, in 1823, that " very few of the Spanish coins are deficient in weight," records that the Portuguese gold coins in circulation were light. The obvious explanation of the latter statement is that, after encouraging the importation of '• Joet ' in 1773, Jamaica had left their rating unaltered, whilst incrcn.Ring the relative rating of Spanish gold ; and this penalty, augmented by the reduction in the Spanish standard for gold coins in 1786, actually ])ut a ])remium of about i d. currency per grain on clipping such Portuguese gold as had not been driven from the island. Such, then, was the state of currency in Jamaica in the early years of the present century. With the outbreak of the revolutionary war in Mexico, the bullion trade, which had kept the island plentifully supplied with coin, was stopped ; and Jamaica was reduced to a circulating medium composed mainly of small Mexican silver coins, the worst of which passed in parcels, whilst the better specimens circulated by tale.| By 1822, for the first time in the history of Jamaica since its cajjture in 1655, the metallic currency of the island had proved in- adequate to meet the requirements of trade. In this year the Assembly resorted to the ruinous system of issuing unsecured paper money in order to carry on the Government. And under annual Acts further issues were made, with the natural result that, as early as 16th April 1825, the Receiver General wrote : "Gold I have not; nor has a single doubloon, or any other gold coin, been paid to me for many weeks." ( . * So, too, in 1815, the Island Government wrote that " Spanish gold coins are seldom exported when dollars can be procured.'' t Tlie agent remarks that the Mexican quarter-dollars were called " Maixaroni pieces." Can this be a negro corruption o( Mejkani'i Or is it a representative of tnaccocJdnn, a word still used in Venezuela lo mean "cut money"? In support of this latter view is the use of "macuquina" in Trinidad (y.v.) for the local cut-money. It will be seen subsequently that the name Maccaroni was transferred to the British shilling 'rated as a quarter- dollar), and was in vogue in British Honduras. Apf. .ently, the word '* moco'' (used for cut-monoy in the St. Lucia) is an abbreviation of the same w^ord. J Consequently, when, in 1822, " anchor .noney " was struck in England for the West Indian Is. in pieces of i, ^, ar ^ ^'j of a dollar {see page 21 ), the Governor of Jamaica pointed out that theb, coins were not wanted in this island, as " there is at present the greatest abundance of this .iption of coin under the denominations of * maccaronies ' (viz., 20 d. pieces, i.Od. pieces and bd. pieces), and almost all paynienta which are not of magnitude are paid in such coins." 110 Colonial Currency. \ i. (iii.) From 1825 onwards. It was at this juncture that the Order in Council of 23r(l jVIarch 1825 (see page 23) was brought into operation in Jamaica, and the other British colonies, for the purpose of intro- ducing British silver and cop5)er* coins into general colonial circulation. A stun of 35,000 f. in British silver was imported into Jamaica in 1825-8 by tlie Commissariat ; ard further con- fusion was thereby introduced into Jamaica currency. Owing to the scarcity of coin in the island, the shilling by common consent passed — from the ])liinter to his negroes in the first instance — not at its proclaimed rate of three thirteenths of a dollar (1 5. 6"47 rf. currency) but as a " quarter-dollar "f (or 1 5. 8 d. currency), and other British coins in proportion. It is true that a judicial decision CStevenson v. Smith) affirmed it illegal to pay debts of 1 /. currency with 1'2, instead of 13, sterling shillings ; but none the less the Kingston merchants, and people generally, agreed to receive the shilling as a quarter- dollar. Thus, by convention, the dollar J was under-rated at 4*. sterling, and the ( Mexican) real at 6 ri. ; and it is interesting to note that these conventional ratings of the 19th century were identical with the equallv conventional ratings with which the currency of Jamaica originally started nearly two centuries before. In 1832, taking advantage of the popular over-rating of the shilling, the Colonial Government established the local supremacy of stening by obtaining the Imperial loan of 200,000 /., granted in that year, in British silver. The result was that in 1836 the local Commissary reported that " the only small change which can be ])rocured is the British shilling and its sub-division3,§ the small Spanish coins having nearly disappeared." To return to the question of paper money, the issue of the island cheques outstanding on 27th October 1828 «as over 350,000/. ; and this sum had grown to about 400,000/. in 1837, according to the local Committee of that year on the monetary system of the island. On 8th July 1838, the Governor wrote that " the demand for money has occasioned a heavy run on both banks, and these have resorted to the Receiver General to get the Government checks cashed ; but he having no cash, a com- * The aversion of the negroes to copper coins led to the profitable export by speculators of the cunsiu^nuients of 1825 and later yeiirs. Up to 1825 no baser metal than sil"er hav. been current in Jamaica, and the smallest silver coin was a half-real or '• fivepence " t Hence the negroes transferred the name "maccaroni" to the British shilling (cf. British Honduras, page 141). Tiie term " mac" for a shilling is used by the negroes at the present day ; e.ff., " a mac and fipence " (currency) denotes \s. Sd. sterling;. X By Local Proclamation of 26th June IBIU, the dollars of the South American Mints, " new dollars," were placed on the same footing as the old pilliir-dollars of Spain. But this step was ineffectual so far as the general currency of Jamaica was concerned. § Jn accordance with a Resolution of the Assembly of 4th July 1834, British silver, 3d. and IJrf. pieces, were imported in thaf year. Further supplies of the latter coin, which, under the name of "a qiiatty," still remains popular in Jamaica, were made on several sulisequent occasions, the last coinages having been 1,000/. in i860 and 1,600/. in 1862. Ch. VII. Jamaica. Ill promise has been come to, allowing 6 per cent, interest on those checks. fVe are, in fact, in a stale of hankrupta/.^^ The bankruptcy of the local Government, and the curi'ency of British silver coins, the only metallic circulating medium remaining, * led to pressing appeals to the Imperial Government for currency reform, and to the passing of a liocal Act on 15th November 1837 (i) limiting the tender of British silver to 5 /. currency, t and (ii) formally rating the shilling at its conven- tional value of 1*. 8d. currency. This Act was disallowed in 1839, as in 1838 the general policy of the Order in Council of 1825 had been reviewed by a Board of Trade Committee, with the result that by Order in Council and Proclamation of 14th September 1838 (see piige 27), the doubloon and dollar were rated (for the West Indies and British Guiana) at G-in. and 4«. 2d. sterling respectively. Accordingly, under the Local Pro- clamation of 5th November 1838 (approved by Order in Council of 3rd May 1839), the following currency ratings were prescribed for Jamaica, viz.: — Shilling, Is. 8 d. ; dollar, 6 s. ll^d.; doubloon, 51. 6 s. Sd. The currency basis chosen was the doub' on at its old conventional rating ; and from this, the true metallic standard, the relative ratings of the dollar and shilling were deduced, a trifling over-valuation being given to the shilling. But instead of retaining the needless complications of "currency," Jamaica, in 1839, passed an Act (3 Vic. cap. 39) enacting — 1.^ That, as from 31st December 1840, thecuiTcncy of the United Kingdom should be that of Jamaica.^ That existing contracts in local currency should be settled at the rate of 166 /. 13 *. 4 d. Jamaica currency for every 100 /. sterling ; and That from the same date " the doubloon shall be deemed a legal tender at and after the rate of three pounds four shillings ; the silver dollar shall be a legal tender at and after the rate of four shillings and twopence, and the several sub-divisions of those coins at and after the same rates, and the gold and silver coins of Great Britain and Ireland shall be legal tenders to . . ;,, * any amount at and after the rates they pass current at in Great Britain and Ireland." * In his evidence before a Board of Trade Committee in 1838, Mr. Colville staled that "the dolhir bears a premium, beyond that upon the doubloon, of 2 to 3 per cent.; but tlie premium upon dollars has l)een as high as 7 per cent., as compared with the paper ; that is, when you possess your- self of )»aper, and you require dollars or doubloons to carry abroad for foreign payment, vou could only get them at that premium." And he added "the only currency to be seen now in Jamaica is the island cheques, the banknotes, and the British shillinur and sixpences." Similar testimony will be found in McQueen's " Letter to Lord Glen^lg " on West Indian Currency (London, 1838). f )S''« also under Barbados and Trinitlad for similar evidence of the far- sighted objections entertained lit this date to admilting silver tokens to un- limited tender. J The term " Bit " is still, however, in constant use among the negroes to denote 4i d. ; " nine," as has been noted above, is their name tor the shilling ; and the old currency denominations are preserved by them in speaking ot {e.ff.), a threepenny piece as " tipence." Cf. Honduras and the Bah»ma8, (2.) (3. J; n 112 Colonial Currency. i^ w \i The last provision (3) is important, as it temporarily entailed difficulties with regard to the dollar in later times, and as it has pei-manently left Jamaica stocked with British token silver, and denuded of gold. In 1841, the local Act 5 Vict. c. 28 repealed so much of the 10th Section (quoted above) of the 1839 Act as declared the sub-divisions of the dollar* a legal tender. In the following year, by the Act 6 Vict. c. 40, currency was formally given to British copper coin, within the limit of 1 s. legal tender. In 1841, by the Act 7 Vict. c. 5, the original Act was further modi- fied, so as to limit to 40 s. the legal tender of British silver coins smaller than the sixpences, "to wit, four-penny, three-penny, two-penny, and ])enny-half-penny pieces," though " the crown, half-crown, shilling, and sixpence shall continue and be in this island a legal tender to any aniount." All these three steps, though inadequate, were steps in the right direction towards perfecting the currency system of the island. In 1852 the Colonial Bank represented that the whole amount of British silver in circulation in Jamaica was about 391,000/., of which only some 17,000 /. (net) had been imported by the bank.f On 19th August 1853, a Royal Proclamation {see p. 28) authorised the circulation of the gold coins of the United States conciuTently with sterling at tne following rates : — Eagle, 2 /. 1 s. ; Half-Eagle, 21 s. 6 d. ; Quarter-Eaj;le, 10 s. 3d. ; Gold Dollar, 4 5. 1 rf. The Royal Proclamation was brought into force in Jamaica by the Governor's Proclamation of 19 October 1853. Multiples of the Eagle were to be rated proportionately to the Eagle by Order in Council and Proclamation of 9 March 1854, brought into operation in Jamaica on 12 May 1854. Considerable sums in United States gold are introduced into the island by ship- ments from the Isthmus of Panama and South Ar- erica generally. This gold, which passes at the legal rates, speedily finds its way into the Bank's hands, and thence to New York — frequently in August and September, when sterling bills are cheap, it is such exports of United States gold that make up nearly the Avhole of the exports of bullion from Jamaica. The gold coins jf the Sydney Mint were made leiial tender in Jamaica under the Royal Proclamation and Order in Council of 10th November 1866 {see page 29). Dating from about 1850, dollars had ceased to circulate to any considerable extent ; but, a quarter of a century later, the fall in tlie gold-price of silver made it profitable to import Mexican dollars into the West Indian Islands; and in 1876 the question became acute in Jamaica. To obviate the danger of re-establishing tlie silver dollar as the local standard of value, the * See also the Royal Proclamation of 180,3, brought into operation in Jamaica by the Governor's i'roclamation of 23rd October IHO J. t See page 10 of Parliamentary Paper No. 268 of 1853. Ch. VII. Jamaica. 113 Island Legislature passed Law No. 8 of 1876,* demonetising the dollar and its sub-divisions. Thus the shilling was finally re- established as the practical standard of value in Jamaica. As copper and bronze coins were far from popular in an island unaccustomed to a baser metal than silver, nickel pence and half- pence were authorised to be struck for Jamaica by the Order in Council and Royal Proclamation of 11th November 1869, and by the Local Acts Nos. 35 and 49 of 1869. Their limit of legal tender was fixed at 1 s. for the pence, and 6 d. for the half-pence. And by Law No. 13 of 1880, nickel farthings were authorised. Finally, by Lr.w No. 11 of 1882, confirmed by the Order in Council of 17th May J 882, all copper and bronze coins were demonetised in Jamaica, and in the Turks and Caicos Islands, and the nickel coins substituted exclusively.! The amount of silver coin in general circulation in Jamaica on 31ft December 1891 was estimated at 320,000 /.,:{: the amount of notes of the Colonial Bank^ in circulation at the same date being (perhaps) 160,000 /. Taking the population at (in round figures) 640,000, this gives a total of (say) 10 s. in coin, and 5 s. in notes, or 15 s. in all, for the " active " circulation per head. • Tlu8 Act was extended to the Turks Islands by the Law, No. 10, of 1880. In these latter ishmds, as a result of tiieir earlier connection with the Bahiiinas, the United States silver half-riollHr is current at 2 s., and the quarter-dollar at I 8., under Proclamation of 14th September 18ri6. The sterling; system was introduced into the Turk* Islands by the Act of the Bahaniai», 2 Vict- c. 4. t According to page 106 of the Twenty-second Annual Report of the Deputy Master of the Mint, the total nominal values of the nickel coins struck from 1869 to the end of 1801 have been as follows : Pence, ^,200/. ; half-pence, 3,450/.; farthings, 1,600 /.; Total, 8,-260;. Thus, the nickel coinage is equal to a trifle over .") d. per head of the total population. J Irrespective of the reserve held by tiie Colonial Bank in the island, and of the probably considerable hoards buried by the negroes. These further items would perhaps equal, together, the amount of coin estimated in the text as being in general circulation. § Notes do not circulate among the coloured population, who only use coin : they And their circulation exclusively with the commercial and well-to-do classes. 114 COL.0 lAL CUUBENCV. CHAPTER VIII. I Trinidad. 1. (1797.) Accopi/iNG to Governor Picton, writing on 23rd March 1802, the re' enue of Trinidad under Spanish rule was " noways equiva- lent to the expenses ; but the deficit was intended to be supplied by the mines of Mexico, from whence an annual subsidy* was assigned to the Colony of ^200,000 to defray the expenses of its Government, civil and military. But the remission of this money was very uncertain even in time of peace. . . Government was defrayed by the natural expedient of Pajjcletus or Treasury notes, payable to order, which the inhabitants and officers, civil and military, were obliged to receive as cash, although they publicly discounted them at a loss of from 20 to 50 per cent. ; and, shameful to relate, they were often bought up by emissaries of the officers of the King's Treasury, supplied with the King's own money for that purpose." With regard to coin, it would naturally be expected that up to its transfer from Spanish to British rule in 1797, the island would have conformed to the monetary system of Spain, and have rated a gold doubloon at ^16, and a dollar at 10 bits, or reals of new plate (see p. 392, note). But, as a matter of fact, neither these ratings was in force in 1797. All calculations were expressed either in " pesos sincillos " (== dollars of new plate, see paue 392), or in "dollars and bitts;" but nine bits were regarded as the equivalent of a peso fiierte, or Spanish doUar.f The explanation of this anomalous rating is affi)rded by the further anomaly that (in the words of a memorandum of 1802), in Trinidad " all gold passes for one dollar per dwt. As a doubloon weighs 17 dwts. 8 grs., its value is 17^ dollars, from which circumstance that coin flows into the colony, as its value in the other islands never exceeds 16 dollars, in some less." In other words, the gold doubloonj worth only 15-^ dollars in the open * This subsidy was dispntched in silver ilollms from San Domingo by the Citmida every yiar. f 'i'lie lociil name for tlie Spanish dollar, umona; tlie French Battlers in Trinidad when a Spanish Colony, was ** pt-no fforrlo," an interesting adniixtnre of the French tcnn " guurde'' with the Spanish peso diiro. X I have followed the C()nten)porarv memorandum rather than the Currency Committee of 1H38 {see the Trinidad Standard of 23id November 1838), who opined that '* the Portuguese soon supplanted every other description oi Ch. VIII. Trinidad. 115 . market, was over-rated 13 per cent, in Trinidad as compared with the silver dollar, and consequently drove out the latter coin ; but, in order to retain in circulation the smaller silver coins required for the retail transactions of every-day life, the price of the bit was raised from the tenth to the ninth of a dollar, with the result that, though the dollar (as such) was under-valued with regard to the gold doubloon, only 156 bits (as against 160 under the Spanish monetary system), were paid as the equivalent of the doubloon ; consequently, whilst maintaining a gold standard (by weight), Trinidad had conventionally adjusted the rating of the bit so as to ensure the circulation of a subsidiary currency of small silver coins. With the first few years of British occupation, the denomina- tion of the money of account was assimilated to that of other British colonies in the West Indies, sums being expressed in " £. s. d. currency," as well as in " dollars and bits." And for the local rating of the dollar, Trinidad adopted the convenient '* Leeward Islands currency," which prevailed at this time throughout the British West Indies, with the exception " of Jamaica and Barbados. This change was introduced in 1804 ; after that date, the words " Leeward Islands currency " are found commonly in connection with the bills of the local commissary. The basis of the Leeward Islands currency {see under Leeward Islands) was the rating of the dollar at 9 s. currency* by the beffinning of the present century ; and the " Prices Current" of Trinidad ( <'.^. of 31 August 1809) uniformly speak of the " Spanish milled dollar at 9 s. currency." But it must be carefully borne in mind that a " dollar '' in Trinidad really meant not the Spanish silver coin of that name, but the 3-52nd part of a gold doubloon (or perhaps one-eighth of a Johannes). And it was this anomaly which prompted Colonel Fullarton in 1805 to claim from the Imperial Government a sum in respect of " loss on being paid one year's salary by the Treasurer of Trinidad in doubloons at 17^ dollars each, which sold in London for 3 /. 5 *. each."t In order to carry out the change in the local system of cur- coin." But, at tlie sanie time, the conclusion of the Committee is in direct accord willi tlieir subsequent statement, thai, after tlie conquest, "large contracts were frequentl^v made in joes." On the other hand, see Colonel FuUarton's statement in 1805, quoted infra. • Hence the old real ov bit (Escaliu) was known in Trinidad as a shilling. An obscure diBtinction seems to iiave arisen i)etween the " silver hitt " (tiie old real;, and the " hitt of twelve pence " (the ninth part of a round dollar). ■j- At this price in London tiie doubloon, rateil in Trinidad at ^17 would point to a gold par of 'J-IO/. currency per 100/. sterling ; but (i) gold was at B premium Jit this time in London, owinj; to the forced currency of paper, and (ii.) tlie exchanges on London in Trinidad, which fluctuated violently between IHo and 210 per cent., were complicated by two causes (a) the dangers attending remittance in time of war, and (b) the tact that, owing to the large military expenditure by the Imperial Government in the island (defrayed by the sale of bills), the exchanges were highly fnvouraffle to the buyers of such bills. It is also to be remembered that the local commissaries adv'ertised their bills for doubloons." one third iu dollars and the remainder in rtuMk 116 Colonial Currency. 5 \ rency General Hislop* proclaimed on 9 February 1804 the following values of coins then in circulation : — Currency. s. 8 d. 3 or 8i bitts. Gold, per dwt. - - - - Silver : Round silver Mexican milled dollar 9 - or 9 „ {h 4» h' ^^'^ i J i" proportion). Round silver piece of money called a pistareen - - - - -2-or2„ Round silver piece of money called a bitt 1 - Round silver half bitt, or the cut silver half bitt ----- 6 Cut silver quarter of a bitt - - - 3 The Currency Committee of 1838 observes that "this procla- mation was intended to have, and had, the effect of reducing the valueof the Johannes in proportion to its actual weight. . . The current valueof the doubloon at this time was 16 pesos fuertcs, or 7 /. 4 s. currency. . . Notwithstanding the great over-valuation of the doubloon in proportion to the Johannes, the latter still continued to keep their ground in circulation," owing to — (i.) The adulteration of the plugs in the " plugged joes," such plugs " amounting to from 20 to 25 per cent, of the whole weight of the coin." (ii.) " The facility of transmitting the plugged joes to Grenada and St. Vincent where they passed current in the purchase of bills at the rate of 66.s. of the currency of those islands ; " and — (iii.) " The great demand for specie in Europe during the years of war seems to have materially interfered with its transmission to other parts of the world." " Loud complaints," continued the Committee, ** were con- stantly made as to the exportation of all the dollars ; and these complaints at last became so importunate as to induce the Government to adopt certainly one of the most singular devices for the prevention of the evil which could be imagined." " From the great rise in the value of silver at home (w rote the Governor in 1811) the merchants here have been making their reuiittances in dollars in preference to purchasing bills," i.e.y from the Commissary. It was to put a stop to this export of the undervalued silver coin that the Governor in Council • He had previously appointed a Committee of Council, which reported on 16 October 1803, "to consider the inconvenience arising from the want of change, and to regulate the value of coins in this island," Ch. VIII. Trinidad. 117 issued his Proclamation of 19 June 1811, the preamble of which recites that " a great scarcity of current silver specie prevails in this colony, arising from the large exportations of dollars made from hence ; and that the only effectual mode of diminishing such exportation and of retaining in the island a quantity of such specie sufficient for the accommodation of its inhabitai'ts will be to permit the circulation of a certain number of cut dollars."* The Pro- clamation goes on to direct that an oflicial should be appointed " to cut from the centre of all such dollars as shall be tendered to him for that purpose (not exceeding |25,000) a piece of silver equal to the value of one shilling current money of this island" (i>., one bitt), and that such piece of silver shall be delivered to the person tendering the dollar to be cut, and shall pass current for the sum of one shilling. And each and every such dollar which shall have been cut in manner and under the directions hereintofore for that purpose contained, shall continue to pass current throughout the colony for the sum of nine shillings ; and the said pieces of silver so to be cut therefrom are hereby declared to be a legal tender throughout this Government."t " The colony," wrote the (iovernor on 30 July 1811 to Secre- tary the Earl of Liverpool, "has already experienced great benefit by this measure, and I am confident it will be ultimately of the greatest advantage to the mercantile interest." Unfortu- nately, the records do not show what criticism the noble author of The Coin of the Realm passed on this fatuous anticipation of the Governor. The central disc J cut out of the dollar under the above Pro- clamation of 1811 was circular with a crenated§ edge, and with the colony's initial " T " stamped upon it. Hence it was known as the " T Bit " ; another name was ** Macuquina "|| (which, however, grew to be an elastic terra covering the fragments of the silver coins of all nations not current by tale in the colony). As is shown by the " Prices Current " of the day, the above measure of 1811 did not at first aflfect the current rating of the whole or " round " dollar at 9 s.; there appears to have existed <* It should be noted that the Commiitee of 1803 had recommended that the dollar should be cut into 2, 4, 8, and 12 parts under the directions of a Committee of Council. But the governor of the day disregarded this advice, which was acted on by private individuals, as evidenced by the mention of cut fractions of a bit in the above Proclamation of 1804. f Mention is frequently made of "stampees" or " estamp^s" in Trinidad in the early years of the colony, its vnlue being 3 d. currency, or a "quarter- bit." The statnpee was a " dog " stamped by a colony as a defence ogainst counterfeits, and circulated as " a dog and a half." But there is no extant evidence that Trinidad stamped its own dogs ; the stanipees may have been importations. J " Many persons, not content with the extraction of a regular or moderate Croportion of the dollar, as practised at the Colonial Treasury, employed the lacksmiths, who cut out one half of the metal in holes of all sizes and all dimensions." Report of Currency Committee of 1838. § See Buding hereon, under the year 1811. According to Atkins {Coiru and Tokens of the Possessions and Colonies of the British Empire, London, 1889) there are 14 crenationa, and the piece is " countermarked with a T radiated (pa^e 324). No evidence is forthcominc; to support his suggestion that in addition there were heart-shaped " cut-bits." II See note under Jamaica, page 109. 72642. I 118 Colonial Currency. the anomaly of rating on equal temia (i) the " round " dollar, and (ii) the " cut " dollar, which had been diminished by a ninth of its weight. But, in the course of a few weeks, the " round " dollar asserted its claim to equality of rating with the " cut " dollar ;7/ms the "T Bit," and was raised by Proclamation of 28 August 1811 from 9 s. to 10 a. currency value ; and at the same time the doubloon, the standard coin of the ishind, was rated by tale, according to the Spanish monetary system (and general custom in the West Indies), at ^16, or 8/, currency. But this Proclamation of 28 August was suspended on the Slst. On 4 Sep- tember the Council voted that the cut dollar should pas- at 9 .v., and all other gold and silver coins at their former value, i.e., the "round dollar*' was to pass like the "cut dollar" for only 9s. This decision was embodied in a further Proclamation of 14 September of the same year. But, notwithstanding the Proclama- tion, the unnuitilated dollar continued to pass at 10 s. currency, and the doubloon at 8 /. by popular agreement. It was not till 1814 that Sir Ralph Woodford's Proclamation of 14 .September of that year fixed the legal value of the silver dollar at 10 «. cur- rency. The same Proclamation provided that, after a limited period, the cut dollars and T Bits should cease to pass by tale and be current only as bullion at the rate of ^1, or 10 s. currency, for 17 dwt. 8 grs., the accepted weiglit of the dollar. In 1813, in spite of the " T Bit," the Governor of the day applied to the Home Government fur " a small coin for the Island currency, which is very seriously wanted here. The alloy " (he adds) "might be graduated by the calculation of the silver in the Spanish dollar at 4 s. 6 d. (its sterling value being onlv 4 s. 2 d.) so as to render the exportation of it a disadvantage.' But, as the new Royal Misit was only in course of construction, the Board of Trade wj>8 constrained to regard tlie proposal as "impracticable under present circumstances." Trinidad, there- fore, failed to obtain a local token coinage, and continued to suffer under the inconveniences entailed upon it by the short- comings of the Spanish over-valuation of gold. Nor was the ex- periment of the Imperial Government successful a few years later when British coj)per coins were imported into the island.* " After a trial of six years," wrote the Governor in 1825, "the use of copper coins is limited to the transactions of the soldiers' pay and the Commissariat Department." This experience is in accord with that of other islands {e.g., Jamaica), where it was similarly found impossible to secure the circulation of copper coins among the negroes. After a currency of 12 years, the " T Bit" was decried, owing to the manufacture of counterfeits. For, in 1823, as appears (rom the preamble to the Governor's Proclama- tion of 29 October 1823, " some wicked and daring person or persons have imported and endeavoured to circulate a large quantity of base and counterfeit coin in imitation of the T Bit now current in the said island, by strewing the same in large " Under proclamation of 28 Way 1819, by which 66 Tower pence (or 112 hali-pence) were ordered to pabs as the equitalent of "a Spanisli round dollar," with a $i limit of legal tender. The undervaluation ot the cupper coins would in any cass have debarred tbem from circulation. Ch. VIII. Trinidad. U« quantities in tlie public streets, 8cc., in the Town of the Port of Spain." Con:jequently, it was ordered by the Proclamation that from nnd after 1 December 1823 the " T Bit shall not pass cur- rent ill the said island either by tale or as bullion ; and as a protection to all holders thereof" the oinnial treasurer is hereby ordered to take and receive, until the said first day of December all legal T Bits that are in circulation, aiid that are of the proper standard weight, that is, at the rate of 10 T Bits to a Spanish dollar, a\A to give other current money in lieu thereof." The colony shipped the decried discs* of silver to England, asking that the silver might be co'in-Qd i.ito 20,000 bits or •' shillings," 40,000 half-bits, and 80,000 quarter-bits, or "estampes." But in 1824, as in 1813, the oolony failed to obtain the local coinage for which it asked ; the reason in 1821 being that the Imperial Treasury was maturing its general scheme for the introduction of sterling coins into the colonies genenlly. Writing in 1824 as to the temporary withdrawal of the " T Bits,"f the Governor says " the want of this coin and of a smaller denomination of money is much felt, and although great convenience h;is been found from the quartors,J and even the eighths, of dollars now circulated in piyment of the Troops (i e. the British ' Anchor money ' coined for the West Indies in 1822 see page 21), the smaller coin of a sixteenth of a dollar does not correspond with the decimal division of the do'lar in use in this island, and occasions a loss to the party receiving or paying it," the '• Anchor sixteenth '' passing as only a half-bit (2 stampees), or one-twentieth of a dollar (6 d. currency) In 182j, when Trinidad was thus suHlering from the lack of small silver, the Imperial Government issued the Order in Council of 23rd March 1825 (see page 23), aiming at the introduction of British silver and copper tokens into general circulation throughout the British Colonies. The Order was brought into local operation in Trinidad as from 1st January 1826, by the Governor's Proclamation of 26th October 1825, whereunder Trinidad was subjected to the following concurrent ratings : — Island Currency. s. d. - 2 3i and 10/13th8 of a farthing. - - 2 6 - 1 3 - - 7i (2i stampees.) British. Shilling Anchor ^1/4- ^1/8- ^1/16 • Cut-JoUiirs weigliinj^ niiie-tentlis of an unttiutiUted dollar were re- issued, and ordered to pass by weight on an equnlity wifi the uncut coins. f It may be here stated that "cut dollars" and sonae " T Bits" were tuiTcntly rtcceitted, and in cir.ulation, in 1857. Since that date they have been worked into bangles &c , by the Easi Indian immigrants on account of the (supijosed) purity of the silver. t Tile Governor's proclamation of 2rth March !8i3, rated the quarter dollar at 2». (id. currency, the one-eighth dollar at Is. 3rf., and the one- sixteenth at 74 d. currency j " tlie same shall be a legal tender in all cases " 12 120 Colonial Currency. Spanish. £. Doubloon - - - - 8 8. d. or 160 in pro|Jortion.) Dollar, or Peso Duro - 10 - 10 Pe9eta Mexican (= |l/4) - 2 6 2J Real of Mexican Plate 1 - 1 Half ditto .... — 6 -i Peseta Provincial (Pistarcen) 2 - 2 Bit (Provincial Real) - 1 - 1 Real Vellon, or half-bit - 6 -i It will be observed that Mexican fractional coins, other than the quarter-dollar, were under-rated in the colony, beint; taken as equivalent to the corresponding provincial coins. This pro- hibitive rating necessarily kept the Mexican real and half-real out of the island, leaving the field to the provincial coins. Hence, in the words of the Governor in 1825, " the decimal division of the dollai, and its nominal value of ten shillings (or bits), cor- responds both to the money of account and the money of circulation." The rating of the dollar at 10 bits, and the rating of the doubloon at ^16, were the most important changes which had taken place since 1797. Instead of 13 per cent., the doubloon was now over.valned only some 4 J per cent., as compared with the dollar; and the dollar, as the equivalent of 10 bits, had a fairer chance of circulation than at its former rating of 9 bits. But, as the dollar (the proper gold-price of which was only 4 s. 2d.) was rated by the Order in Council of 1825 at 4.?. 4 rf. sterling, for concurrent circulation with sterling coins, and as further the doubloon (worth intrinsically 64«.), was rated at ^16, or 69 «. 4assed for 22 of these gudders, or norins. And, as the guilder was rated at 1 «. 8 d. sterling, and was at the same time regarded locally as equivalent to a third of the Spoi/tsh dollar,* the local rating of this dominant coin of the day was 5 s., a rating which, though identical with the Halifax rating, was not derived from it. But with the departure of the Dutch, the guilder became purely a money of account. The characteristic feature in the currency history of the several Colonies which make up the modern British Guiana is not sa much their ratings of coin, but their issues of paper money. Both in Berbice, and in the United Colony of Demcrara and Essequibo, the local currency was dominated by depreciated paper, which was irredeemable in both case&, and was in addition unsecured in Berbice. The profligate issue of paper marks the currency history of all the three Colonies which passed from the Dutch into British hands about the year 1800 ; ft was the scourge of" the currency of the Cape and of Ceylon no less than of British Guiana. The paper of Berbice was a heritage from the Dutch, like the paper of the Cape and Ceylon ; but in the United Colony of Demerara and Essequibo it originated under British rule, and, though originally issued with laudable motives, proved equally baneful in its effects. British Guiana stands, or stood^until recently, alone among the British Colonies in retaining in ordinary circulation a local token coinage in silver dating back to the days of its unreformed currency. The analogous coins struck early m this century for Ceylon, Mauritius, and Sierra Leone, have long since been withdrawn ; but a few of the guilder-tokens of British Guiana are still * Originally the guilder had been one-third of the riz-dollar, which was practically eouivalent in value about the year 1700 to the Piece of Eight, or early Spanish dollar (we page ;}0I). Ch. IX. British Guiana. 125 retained in circulation in the Colony by reason of their deficiency in intrinsic value. As the ascertained facts regarding the early history of Herbice are at once simple and scanty, it will be convenient to treat first the history of currency in that Colony, and then to treat of that of Deinerara and Essequibo, which leads naturally on to that of modern British Guiana. (i.) Bekbice. On 20th August 1797 the Governor wrote that " the Colony, though settled long before Demerary had been in a declining state lor some time " (since the insurrection of 1762), " but in the last few years had become prosperous." Since 1789 the slaves had been trebled and 60 new estates brought into cultivation. The paper money of this Colony had its origin in the issues under Articles 5-7 of the Capitulation ; it replaced bills for salaries, &c., on the Dutch Berbice Association, which were found in circuhition at the time of the capture, and for which certain estates of the Association were held to be liable. The amount of this piiper appears to have been 173,349 guilders. By a deplorable oversight, when the hypothecated estates were restored to the Association in 1815, no stipulation was made for the redemption of the paper issued against them, though the Colonial Office directed that the debt should be recovered. Consequently, after 1815 there was no definite fund earmarked against the local paper, which had the two cardinal shortcomings of being at once irredeeeniable and unsecured. The beginning of the purely Colonial issues seems to have been in 1809, on the 1st of August of which year the Court of Policy, being informed by the Receiver General that in consequence of the failure of the crops the Treasury was bankrupt, "judged fit to order that notes shall issue to the amount of 80,000 guilders from the Treasury, signed by. . . ., the two eldest members of this Court. The notes shall be in the same form as those issued on the 6th June 1800"; and they ranged in denor:jination from 10 to 500 guilders. After making the notes a legal tender in the Colony, the Court went on to " bind the ordinary and extra- ordinary public revenue of this Colony to be and remain a security for the withdrawing and cancelling of the said paper, and the Receiver General is hereby ordered not to re-issue any of the notes issued by virtue of this Ordinance after the last d ly of December of the year 1810." But«the idea of redemption was abandoned, and more paper was issued; so that in 1816 the Colony reported that there was in specie " only about 200 /. sterling in circulation." It was stated at the same time that " the denominations of the silver coin which occasionally appears, tho' very seldom, and then only in small quantities," were — a. Spanish dollar of standard wt., valued in currency at 5 Dutch guilder „ 6 dwt. 12 gr. „ l 10 stiver piece „3dwt. 6gr. „ 6-8tiver „ „ 1 dwt. 15 gr. 2i-stiver n 18igr. » If d. 8 10 5 126 Colonial Currency. ** The general established currency of the Colony of Berbice is paper, and consists of ' goods ' or notes of various amount in guilders, issued by the authority of the Court of Policy, the present value in exchange of which it< at par, i.e., 12 guilders per £. sterling." By 1829 the paper issues of Berbice amounted to 365,416 guilders, of which 173,349 had been issued (as shown above) in connection with the capitulation, whilst 97,160 was the balanceof issues prior to 1815, and the residue (94,907) repre- sented issues of 1826. Side by side with tae Government issues, there was a circulation of private promissory notes, issued by individuals and locally current '' in consequence of the want of a sufficient circulating medium of small silver." On 20th November 1833 the Governor, by proclamation, ordered that the public offices in Berbice should refuse to receive this private paper. He also notified that he was in communication with the Imperial Governnient as to introducing a metallic currency. In 1831 Berbice had been united with DemeraraandEssequibo to form the modern Colony of British Guiana, and its further currency history will be found thereunder. ii r (ii.) Demerara and Essequibo. " These Colonies," wrote Governor Beaujou, " had no usual trade with any part of Europe besides Holland, and to that country the whole was confined with the exception of allowing vessels from the United States and foreign plantations to import the artich s indispensably required, and which could not be brought from Holland. In the latter part of 1794, from consideration of additional necessity, produce was allowed to be exported to the amount of the commodities so imported. (New negroes also in 1795 were admitted temporarily in foreign bottoms.) Previous to the year 1794 no produce was allowed to be sent to foreign plantations or the United States of America, but the clandestine exportation was considerable." And, as was the case in all Dutch Colonies, accounts were kept in guilders and stivers. At the date of the surrender (1796) there was found in the States' chest a sum in specie of 22,270 florins (or under 2,000 /.) in Demerara, and a smaller sum in Essequibo ; but there is no evidence as to the coins composing these balances. Whatever may have been the earlier circulation of Dutch or other coins, in 1 798 the Portuguese Johannes was the standard of value, and indeed practically the sole circulating medium. It appeals that in the middle of this year there was a great quantity of light and clipped Johanneses in circulation, and the Governor had " reasons to apprehend a further importation." Upon his motion the Court of Policy, on 2nd August 1798, passed an Ordinance* relating to these light coins, and on 29th October stated that " there are none, or very few other coins than joes in circulation here." This (Dutch) Ordinance directed that "no other Johanneses shall be ® This step was manifestly taken in consequence of the Colonial Uffice circular of 26 May 1708 (tee page 20). Ch. IX. British Guiana. 127 legal tender for 22 30,604 34,092 16,984 10,728 Total value in guilders 122,999 Writing to tlie Colunial Office on 15th October 1825, the Governor says of the colonial tokens : " The greater part, I believe, still remains in these colonies, and it may, indeed, be called the only silver coinage in circulation (for the dollars have almost disappeared)." But he adds that " a base coin has for many years been in circulation in this colony, but of late years has greatly increased - viz. the Danisli one and two bitts. lu the Danish Islands thev pass at the rate of 15 or 16 bitts to the dollar, whereas here they are current at the rate of 12 for a dollar or 3-guilder piece. They are imported here by individuals who make a profit by it of between 30 and 33 per cent. Most of this currency is no longer really the Danish colonial money, which contained some silver, but a counterfeit coin containing no ® The original iasue of paper amounted to nifi,840 guilders. ■^ Ch. IX. British Guiana. 131 silver at all." By proclamation of the Governor on 4th August 1825, it was ordained that " the spurious coin known by the name of Danish bittw and two bitts, which have never been formally sanc- tioned by any competent authority and proclaimed a legal tender, shall provisionally and until further notice constitute a legal tender to the amount of 11 guilderd and no more in one payment." And on 2nd September of the same year these Danish coins were demonetised altogether in the united colony of Demerara and Essequibo, a step which was followed on 7th October by Berbice. On 8th September 1825 the Governor proclaimed in the Colony, and so brought into local operation, the Imperial Order in Council and Royal Proclamation of 23rd March 1825 (see page 23), the object of ivhich was to introduce British silver into general cir- culation throughout the colonies. This instrument assumed the Spanish dollar as the pre-existing standard of value generally, and rated it for concurrent circulation (as a temporary measure) as the equivalent of 4« 4rf. sterling, whereas the gold-price (or sterling equivalent) of the coin was only 4s. 2d. When the Order was received in the Colony, the Governor stated that " by fact and practice the Spanish dollar is current for 3 guilders of the colonial money of account, and at this rate, accepting the standard determined by His Majesty's Government of 4 s. 4rf. for the Spanish dollar, a British shilling amounts to 13^^^ stivers. The exchange for several years has generally continued between 13J and 14^ stivers, the medium being therefore 14." Con- sequently, the Governor's Proclamation of 8th September rated the British shilling at 14 stivers, and the penny at 1 stiver 4 pen- nings, the halfpenny being rated at 10 pennings, and the farthing at 5. As a matter of fact, the Spanish dollar was not made a legal tender at this date, though conventionally it was supposed still to be the equivalent of 3 guilders of the money of account. As a result of large shipments of sjjecie, the Commissariat issued the pay of the soldiers half in British silver and half in Spanish dollars. The over-rating of the Spanish dollar by 4 per cent., relatively to the sterling coins, naturally drove out the latter. " The British silver," wrote the Governor in 1831, " has successively disappeared as fast as it has been issued. Since the re-opened intercourse with the United States the Spanish dollars have disappeared also, and there is now no silver currency in the colony but the colonial silver coinage of 1809 and 1816, which has alone remained because its intrinsic is not quite equal to its nominal value." It was for this rea.«>on, and to meet the inconvenient deficiency in the circulating medium, that the Court of Policy, on 8th June 1831, asked for "the following quantity of silver colonial coin or tokens similar to the coinage last executed for the colony in the year 1816," viz. : — 5,000 3-guilder pieces 10,000 2-guilder „ 15,000 1 -guilder „ 30,000 i-gnilder „ 30,000 |-guilder „ 30,000 4-guilder „ Guilders. s - - - e qual to 15,000 - - _ 20,000 - - - 15,000 of 10 stivers each 15,000 of 5 „ „ 7,500 of 2i „ 3,750 ^^^^ i; ^ 132 Colonial Currency. After stating that, at the current exchange of 1 5 guilders per pound, the proposed new coinage amounted to " a little more than 5,000 /. sterling," the Court went on to observe that the measures of 1825 "have totally failed, as none of the British silver coin is now in' circulation, owing to the high rate of exchange between the Colony and Great Britain, which induces the merchants to purchase at a considerable premium for remittance all silver coin equal to or above the standard of Spanish dollars." The Imperial Treasury represented to the Colonial Office that the proposed coinage of more tokens could only provide a tem- porary remedy ; that the real evil was the irredeemable paper of the Colonial Government ; and that the Court of Policy " ought to sell out the Consols which it held, and so cancel the notes it had issued." Eventually, however, at the close of 1831, sanction was reluctantly given for the coinage, and the new tokens were issued in 1832. It will be observed that, though Berbice had been added to Demerara and Esseauibo in 1831 to form the modern colony of British Guiana, tne coins ordered in 1831, and issued in 1832, bore the old stamp of " United Colony of Demerary and Essequibo.'' Further coinages of the Colonial tokens, from 1 guilder to Jth of a guilder, were struck in 1833 and 1835, — the following table, showing the numbers of each denomination in 1832 as well as in the two latter years : — Year. 3.GS. 2-G8. Guilders. J-Gullders. i-Guiders. j-Guilders. Nominal Value. Guilder t. 1832 - 2,156 4,108 8,031 8,344 8,548 - 29,024 1833 - - 24,440 48,384 97,040 67,776 81,647 1836 • - 21,925 36,450 72,844 70,872 67,220 All these coins were struck for, and put into circulation in, Demerara and Essequibo ; none were for Berbice. The Demerara Blue Book for 1835 gives the (colonial) coin in circulation as : — 38,626 pieces 45,202 „ 135,029 „ 221,085 „ 374,592 „ 168,624 „ of 3 guilders each 2 „ „ - 1 .„ „ - 10 stivers „ 5 „ „ - 2i „ „ ■ Guilders. - 115,878 - 90,404 - 135,029 - 110,542-10 - 93,648 - 22,078 FL 566,579-10 "or 40,469/. 19«. 3ii cents. 4 8 24 32 96 of 1840, was to declare the values of the Colonial tokens in dollars and cenla, ae follows : — a. d. I bit (i.e. ^ guilder) - - - - - 2 or 1 „ (i., s. d. 5 6 8 - 6 Hi - 1 8 f'\ The Imperial Government took some umbrage at the title given by the Governor's Proclamation tothe Imperial shilling,and pressed for an amended Proclamation. But there is no evidence forthcoming that the amendment was carried out. And it is certain that, whether or not the designation of the shilling was Sterling. £. s. (I. Doubloon 3 4- Dollar - - 4 2 Maccaroni - 1 - ; I ■■ 148 Colonial Cubrenct. R, ii altered in a subsequent Proclamation of the Governor, the in- convenient and unworkable rating assigned to the dollar was never observed at any time in the history of British Honduras. Nor did the community at any time recognise any other rating than the old one which they had borrowed from the popular usage of Jamaica, viz., 4 s. per * dollar ' ( = » doubloon).* In the next decade the only fact in the currency history of the Colony was the passing of a local Act (12 Vict. c. 6) declaring the copper coins of Great Britain a legal tender within the limit of 1 s. It was recited in the Act that " doubts existed relating to the circulation and currency of British copper coins within this Settlement," a doubt which probably had taken its origin from the refusal of the natives to take copper in 1827, and which was in harmony with the assurance subsequently given that copper would rust in the climate ! The middle of the century witnessed the great diecoveries of gold in California and Australia, which led to the issue, under Order in Council, of the Royal Proclamation of 19th August 1853, rating the tlnited States gold dollar at 4 j. 1 d., and the eagle at 41 s. This Proclamation was brought into local opera- tion by the Superintendent's Proclamation of 23rd November 1853, as from 1st December following. The measure was only so far observed as to rate the eagle at f 10.25, the gold dollar itself being rated at ^ 1 , i.e., 4 *. On 21st February 1855 the Colony passed the Act 18 Vict, c. 16, " to alter and define the currency of this Settlement." This Act, which recites that "it is expedient to substitute a more convenient legal currency for that at present in use," prescribed tliat — (i.) Public accounts rials. were to be kept in dollars and (ii.) All legal process should so state all sums of money. (iii.) " Such dollars shall be computed at the rate of 4«. of sterling money of Great Britain for each dollar, and such rials at one-eighth part of the said sum.'' " Provided that this Act shall not be taken to affect the value of any particular coin or coins, decl£\red of greater than its or their nominal value by any Proclamation of, or by Order of. Her Majesty, nor have the effect of depreciating or raising the value or any specific coin or coins of any foreign country, circulated under the name of dollars or rials, but being of greater or less intrinsic and commercial value than is hereinbefore nominally afBxed to dollars and rials, commonly current in this Settle- ment." A further provision of the Act abolished the old Jamaica cur- rency, which was by this time obsolete. * In the case of Carter t>. Brodie the Supreme Court of the Colony decided, on 20th April 1885, that there was no evidence forthcoming (in the Colony) of a local Proclamation having been published, rating the Mexican dollar at 4s. 2d. Ch. X. Bbitish Honduras. 143 The denomination of rials was abolished in the money of .locount thus established by the passing of the Act 27 Vict, c. 20, which directed that the local currency should be reckoned in " dollars and cents." In 1870 the currency consisted in practice (i.) partly of gold doubloons current at their legal rote of 64 «., but (li.) chiefly of silver coins. These silver coins included (i.) British tokens, (ii.) United States half and quarter dollars, (iii.) halves and quarters of Spanish, Mexican, and Columbian dollars, and (iv.) the silver coinage of Guatemala and other Central American States. An average sample of silver in two parcels of 4U /. each gave the following results in 1870: — British silver - . - - £. 28 *. d. 4 - Spanish, Mexican, or Columbian dollars and parts. 11 16 - United States half and quarter dollars. 21 17 - Guatemalan dollars and p».rt8 18 3 - Total - - - £. 80 - - It was stated at this date that much of the coinage, especially the old Spanish, and the British tokens, was much worn and defaced ; and that the Guatemalan dollar had gradually crept in, though unauthorised. In a similar sum of 80 /. examined in 1876 the following were the proportions : — British silver Spanish, Mexican, or Columbian dollars and parts. United States silver - - - Guatemalan tloKars and parts Peruvian dollars- - _ . Total - £. £. s. d. 8 8- 12 16 9 29 10 - 18 13 3 10 12 - 80 - - By 1876, when the gold price of silver had fallen to a low figure, the amount of gold in circulation was practically nil ; it had all been shipped out Of the country for remittances. And the result was the more marked in its effects in British ■^r 144 Colonial Currenct. ols. cents. S7h 93J 16 37i Honduras because the rating of 4 *. per dollar had previously kept out the Mexican dollar (the only dollar, other than the Spanish, which was really legal tender). The new so-called dollars of the neighbouring Republics had been intrwluced with a facility which was reaculy explicable by the fact that they were intrinsically mere re))lica8 of the five-franc piece, with- out any standard gold coin behind them to give them a representative value higher than the gold-price of their fine content. And as the gold-price of silver continued to fall, the Guatemalan dollar sank to be worth scarcely 'S s. Ad. sterling. By 1878 it was stated that there was not in the Colony a single doubloon or other gold coin of full weight. The currency consisted exclusively of silver coins, and no silver dollars in the Colony were worth in sterling more than 3 «. 4 rf. The controversies which now raged round the question of the Colony's currency arc too recent to be discussed in detail. The local merchants (bv advertisement dated the 1st of April 1879) published their agreement to receive coins at the following rates : — Peruvian, Guatemalan, and Chilian dollars at Mexican dollars at - - - - - Doubloons of full weight at - American (i.e.. United States) gold coins at 5 per cent, premium, i.e., per dollar - English gold coins at 2 J per cent, premium, i.e., the sovereign at - - _ _ Under this " double standard " the currency of the Colony would have passed from silver to gold whenever the gold price of silver rose to 53'5d. per ounce, and would have fallen again to a silver standard whenever the price of silver fell below the same figure. And among the gold coins the sovereign would have been driven out under any circumstances by the doubloon and the eagle. Moreover, to repay seven Guatemalan dollars, borrowed on 3 1st March 1879, would have required on Ist April no less than eight of the same coins. Such was the merchants' original proposal for remedying the evil " and influencing the introduction of a standard gold currency in place of a depreciated silver currency." Subsequently, by an agreement among the merchants, to which the Governor became a party, it was arranged that, whilst the Mexican dollar should be taken as 100 cents, the Guate- malan and Chilian dollars, with the Peruvian sol, should pass for only 87 i cents, but that all half and quarter dollars should continue to pass as 50 and 25 cents respectively. Hence, in a very little time, the unfortunate Colony was flooded with fractions of Guatemalan and other dollars of the five-franc type. On 7th May 1885 twelve of the principal mercantile houses advertised that they would receive and pay the Peruvian and Chilian and Honduras dollars at 100 cents. A public meeting endorsed this new policy, and rated the Mexican dollar at 106i cents, with the liberal limit of ^500 on the tender of fractions of dollars. 1 05 5 12i Ch. X. British Honduras. 145 J) V ( And 80 distinct was the public opinion of the day in favour of silver monometallism that nobody voted, except the proposer and seconder, for an amendment in favour of the British gold sovereign as the standard. British Honduras had, in fact, recognised that, as almost the entire commerce of the Colony lay with countries to the south, the coins of the Central American Republics must necessarily dominate British Honduras also. It only remained to pass the necessary legislation. (iii.) 1887 onwards. By Royal Proclamation under Order in Council of 15th Sep- tember 1887— (i ) all previous legislation was revoked; '\ (ii.) the Guatemalan dollar was made the standard of value ; (iii.) the Venezuelan, Chilian, Columbian, and Uru- guayan dollars, with the Peruvian sol, were rated as equal to the Guatemalan dollar ; (iv.) the Mexican dollar was rated at 108 cents ; (v.) fractions of the above coins were rated propor- tionately, with a 50-dollar limit of legal tender; and (vi.) the bronze cent, which had been authorised for the '' Colony bv Order in Council of 19th May 1885, was made a , legal tender up to half-a-dollar. The Colony also proceeded to legislate on its account, by passing, on the 24th November 1887, Ordinance No. 8 of 1887, which (i.) repealed the Acts 12 Vict. c. 6, 18 Vict. c. 16, and 27 Vict. c. 20, and (ii.) re-enacted that accounts should be kept in dollars and cents. And as the statutes were being consoli- dated at this stage, the above re-enactment was combined with the provisions of the Royal Proclamation of 1887 to form Chapter LXVIIi. of the Consolidated Statutea. As difficulty was experienced in connection with the currency of the Mexican dollar at eight cents above the standard Guate- malan dollar. Ordinance No. 1 of 1889 was passed on 8th January 1889, demonetising this coin and its parts. The Ordinance also demonetised (as not being in popular favour) the Venezuelan, Uruguayan, Columbian, and Honduras dollars, with their parts; but provided that up to 12th January any of the demonetised coins could be exchanged at their old legal values. So great had been the influx of Mexican dollars from neighbouring countries (where they were undervalued), that no less than 245,737*5 of these coins were exchanged, the premium amounting to nearly $ 21,000. Some dissatisfaction having been expressed at the demonetisation of the whole Honduras dollar, the Colonial Government undertook to receive this coin as before ; and the Honduras dollar is consequently current, though not a legal tender. Legally, only the Guatemalan dollar, the Chilian dollar, and the Peruvian sol (with their fractions) remain a legal tender in the Colony. ,f, J 146 COLOl^IAL CUBBBNCT.' The only coin peculiar to the Colony is the bronze cent., of which the following amounts have been struck at the Royal Mint for the Colony, viz., j|720, in 1885 ; $ 1,000, in 1888 ; $ 600, in 1889, making $ 2,220 in all in nominal value. It may here be mentioned that it has long been the custom in this Colony to make up paper packaged of $50 and $ 100, and bags of ^250, ^500, and itl,000, initialed by the issuing firm, and marked with the weight ; and that such packages and bags pass current without being opened. A mistake discovered is always rectified. So far as could be estimated, the total amount of coin in cir- culation in the Colony on :^lst December 1891 was about $ 500,000, of which (roughly) 35 per cent, may be taken to have been in Guatemalan dollars (and their parts) ; 55 per cent, in Chilian Dollars, and Peruvian Sols (anr* their parts) ; and the balance in Mexican and Honduras Dollars (and their parts) in equal proportions. Taking the population on the same date at 32,000, tne average amount of coin per head was therefore ^15-62.* There is no Bank in the Colony, and no paper money f at the present day. In the words of the Annual Report on the Colony for I892,J " the inconvenience of this bulky coinage (silver dollars) is considerable, and the payment of large sums can only be made by mule-cart, or by the employment of robust porters. The Colonial Government accordingly contemplate taking steps for the issue of silver certificates, based on a specie reserve and investments, which it is believed will be ol very great con- venience to the public." At the moment of going to press, information has been received that of late the trade with the Central American Republics has been dwindling, whilst that with New Orleans has been increasing. It is represented that, practically, all imports now come from New Orleans, whilst all exports go the United Kingdom. Consequently, it is stated, the experiences of a silver standard are stimulating currency discussion ; and there is a growing agitation in favour of chopping round again and of adopting as the standard the gold dollar of the United States. * With regard to the Corosal district, the "Colonial Guardian" of llth June 1892 says: "This district has a currency all to itself, viz. 'holey' money, i.e., dollars (which onlv pass for 88 cents), half-dollars, shillings, sixpences, and ' fippences ' (= threepenny bits, as in Jamaica), all with one or sometimes two holes in them. As the Yucatectns never bury these, we've always got a good supply of counters to deal with." f The only paper issues of which there is any evidence to be found, con* sisted of paper-tokens put in circulation some ten or twelve years ago by the Chinese, at a time when great inconvenience was felt from the dearth of small change. t Colonial Reports— Annual No. 19. British Honduras (0. 6563,— S). Ch. Falkland Islands. 147 CHAPTER XI. Falkland Islands. (1842.) The history of currency in these obscure islands is comprised within the last half century, and aHPords an exact parallel to that of the West Indies in its existing conditions. When the British Government was formerly established, it was stated that the " paper dollars " of M. Vemet (a subject of the Argentine Kepublic, who was expelled the islands prior to their final occupation by the Imperial Government) were in general circulation, but were unpopular among the Gauchos, and " great difficulty was experienced in procuring cash for Govern- ment Bills." Sterling denominations of money were in vogue ; but dollars and doubloons, imported from Rio de Janeiro or received from ships, were the chief coins seen by the 78 inha- bitants of the Falklands. On 3l8t March 1842, the Governor reports having received " 1,183 dollars and 8 d., equal at 4 «. 4 d, the dollar " (the old rate of 1825) " to 256 /. 7 «. " ; and on 6th April of the same year " one bag, containing 44 doubloons and 247 J silver dollars," was received by the Island Government from Rio. Owing to the dearth of specie, the Governor, in 1844, issued a temporary paper currency, to the nominal value of 1,000/., in the following denominations : — Description of Note. Number Issued. Total Amount in Dollars. £. t. d. 4-doUar notes ... One „ ,, ... FlTe,, „ . . - Ten „ „ ... Twenty-five dollar notes - Fifty One shilling and eightpenoe 210 130 170 43 64 30 1 One hundred and Ato • One hundred and thirty Eight hundred and fifty Four hundred and thirty Sixteen hundred - Fifteen hundred . One shilling and eightpence - £. 22 15 - 28 3 4 184 3 4 93 3 4 346 13 4 3S» - - - 1 8 The dollar being at4<.4(/. 1,000 - - With regard to these notes, the Governor furnished the follow- ing explanation on 2nd April 1844: — "Had I not issued them there would have been no circulating medium whatever in the Colony, and in fact the whole machinery of government must mmmmmmmm 148 Colonial Currency. i i: have stopped. I endeavoured to proceed without resorting to such a step as long as possible, but the confusion and difficulty increased to that degree that I hesitated no longer. The notes are of the mos't primitive character, written by hand at some trouble ; they are signed by myself, ' on the part of the Colonial Government,' and made payable to be.irer. but all the circum- stances were well understood in the Colony. No specie payment was expected, and, contrary to my fullest expectations, very little dissatisfaction has been expressed. No doubt the appearance of these notes and the character of their negotiation may be different to anything of a similar nature in England or elsewhere, but everything here is at present of the most primitive character. When a trader arrives he is informed that upon leaving the Colony, if he brings any of these notes which may be in his possession to the G-overnment office, he will receive a Treasury bill in exchange, which is accordingly done. £. 1,000 is thus in circulation, and will be called in immediately that I receive specie, though very many will not be forthcoming, as I know of many being accidentally, and on one occasion a large number being thoughtlessly, destroyed. As I hope to receive specie in about five months, I propose to give until Slst of March 1845 to individuals to present these notes and close the accounts, passing to the credit of Government the balance* of notes not presented." A year or two later, as coin was still scarce, orders were received from home to pay salaries by bills on the London Treasury. This occasioned much discontent among the officials. [Jp till 1849 the dollar had passed in the Falklands at its 1825 rmis-)rating of 4 s. 4 d. sterling. On Slst July 1849, however, the Governor, acting on instructions, issued a Proclamation declaring the Spanish doubloon and dollar worth 64 a. and As. 2d. sterling respectively, but providing that none but perfect coins should be received or paid. It was about this date, when the rising gold- price of silver finally banished silver dollars, that sterling coins were introduced (chiefly by the Government in the first instance), and established as the normal circulatory medium of the Falkland Islands. In 1860 the Governor represented that "the specie lately received, viz., 1,000/., has been all absorbed in general circulation ; and it is now with much difficulty that sufficient cash can be procured in exchange for bills to meet the advances required monthly for the pay of the garrison and for the neces- sities of the Civil Government." As he had "advertised for specie in the Colony in the most public manner, but had not received any tenders in reply," he asked, after an abortive attempt to import Spanish dollars from Monte Video, that " a sum of 2,000 /. may be sent from England, chiefly in old Crowns or Half-crowns, for the service of the ensuing financial year. . . . Old Half-crowns are the coins least likely to be sent away from the Colony in the course of trade, on account of the heavy loss attending the exchange." Ten years ago, though sterling coins formed the main circula- tion, foreign coins were commonly seen at Stanley : — U.S. gold * AH the notes, except about 30 /. worth, were presented and redeemed. Ch. XI. Falkland Islands. 149 and silver coins passing at 4 s. per dollar ; Mexican, Uruguay, Monte Video, Chilian, and Peruvian silver dollars, with French 5-franc pieces, at 4 s. each ; together with Portuguese gold and Brazilian silver at like rates of 4 «. per dollar. With the exceptions (i.) that in 1863 counterfeit Chilian and other coins were found in circulation, and (ii.) that on 30th January 1867 the Imperial Order in Council and Proclamation of 1866 relating to Syaney gold (see page 29) was publisher and brought into local operation, there has been no change in the currency of the Falkland Islands in law. lentil the last few years the circulating medium of the Falk- lands consisted almost entirely of British gold, and silver was scarce ; but the exportation of 2,000 /., raised on sale of bills by a British ship of war, reversed these conditions. Now, the only coins seen are British silver and bronze tokens.* Gold, is very rarely found in circulation. If a gold coin finds its way into private hands, the holder retains it for the profitable purpose of exchanging silver for shepherds emigrating to Patagonia as sheep-farmers, who arc ready to give as much as 7 J per cent, premium for gold to carry with them to the mainland. The fact that the Royal Mint pays freight and insurance on tokens imported, encourages the importation of silver and bronze rather than gold. And, further, since British silver is practically useless at Sandy Point and Monte Video, the absence of gold coins, ensured by the unlimited legal tender of silver, fortifies the local monopoly for the sale of stores. There are no banks or paper currency. It is estimated that the total stock of coin in the Colony is about 5,000 /., of which only some 2,000 /. is in " active " circula- tion, or perhaps 1 /. per head of the total circulation. * At the pvesept time the only foreign silver coins are some 20 or 30 U.S. half-dollars, together with a solitary Portuguese 2<'0-reis piece, which is unpopular. 72642. 150 Colonial Currency. CHAPTER XII. TH£ BERMUDAS. (1609.) This Colony (** a connecting link between the British C'olonies in North America and the British Colonies in the West Indies ") has the distinction of having been the first of existing Colonies to strike a separate coin for its own exclusive use. In the Commission of the Virginia Company* to Richard Moore, dated the 27th April 1612, there is contained a promise that " by the next supplie there shall be h Coyne sent unto you •w"" all convenient opportunitie, together w*"" the rates and value thereof." But there is no evidence to show that any money was actually struck by the Virginia Company. On the re-grant of the Islands to the ISomer Islands Company by James I., the Letters Patent of the 29th June 1615 expressly " give and grant to the said Governor and Company and theire successors, that they shall and lawfully may establish and cause to bee made a Coyne to pass currant in the said Somer Islandes betweene the Inhabitants there, for the more ease of commerce and bargaining betweene them, of such mettall and in such manner and forme as the said Governor and Company in any of the said generall Courts shall liraitt and appoynt. ' Action was speedily taken under these powers by the new Company. For, the Instructions to Governor Daniel Tucker of the loth February 1616, state that the Company had "appointed a base coyue, w<=h we send rated w**" our prouisions, whereby you may give to such men there (sc, as declined profit-sharing) weekly wages when they worke, w"* w*^*" coyne y* shall be lawfuU and free for them to buy any jjrouisions out of the Store or any fiishe come tooles, or any othe'r thinge in the Islands where they can gett the same. And to that end you shall proclaime the said Coyne to be currant to pass freelye from man to man only throughout the Islands and not otherwise." The currency of these coins, and their descrip- tion, is stated (with reference to the years 1616-9;* in the following passage of '' The Historye of the Bermudaes " : "A certaine paye of base-mony (deliuered unto the Governour by the Com- • For tliis and other particnlnrs of the history of the Bermudas up to 1607 Bee the elaborate " Memorials of the Bermudas," by General Sir J. Henry Lefroy (London, 1877), and the same author's " Historye of the Bermudaes," edited for the Hakluyt Society in 1882 from a MS. attributed to Captain John Smith. t " The Bermooda is the most plentiful place that ever I came to, for fBshe, Hogget, and flFowles." (Letter of Sir George Somers to the Earl of Salisbury 20th June 1610). From Oldmixon's "British Empire in America " it appears that " some have fancied the Islands derived their name from the Uogi, JJermuc^at signifying in the old Castiliian dialect a Black Hog," ill Ch. XII. The Bermudas. 151 pany), and which hauelng a hogge starapt upon it on the one Bide (in memory it ahouhd seeme of the great number of wild swinef found vpon the Hands at their first discouery) was, in a ecofF, tearmed by the people hogge mony." Such was the origin of the ancient and rare brass* hog money of the Bermudas, having (i) on the obverse a wild boar in a beaded circle, with the inscription Sommer Islands, and (ii) on the reverse a ship under sail with the Cross of St. George flying from four mastheads. Above the " hog " is a numeral XII., VI., III., and II.,t representing tlie denomination in pence. Sir J. Lefroy is of opinion that these .nteresting, if flagitious, coins " can never have been issued to any extent, or they would not now be so exceedingly scarce." This view is supported by the words of Captain tr()hn Smith in 1624, that "beside meat, drinke, and cloatlis, they had for a time a certaine kinde of brasse money with a hogge on the one side, in memory of the abundance of hogges was found at their first landing." (" The Generall Historic of Virginia, New England, and the Summer Isles," Loudon, 1624.) Barter. Apart from the insignificant supply of "hog money" the currency of the Bermudsis under the domination of the Somer Islands Company (i.e. until 1684), was principally tobacco. It was in this commodity that the " Martial Officers at the Towne" (St. George's) were i)aid from 1620 onwards, and artificers^ in 1623; in 1627 the acting of interludes, &c., was subject to a penalty of 20 lbs. of tobacco, a fine of 10 lbs. being at the same date imposed on the " sale of any figgdrinke to apprentices " ; in tobacco housewives reckoned their marketings, and tenants paid their rents ; § and with tobacco fines, eked out by lashes, the Government battled against the social irregularities of the islanders. At the beginning of the second half of the 17th century the currency of tobacco appears to have been at its height. From 1658 onwards coin tended to supplant tobacco for external, if not for internal, payments, as will be seen, infra, from the legislation relating to coined money. There remain to be noticed the following enactments as to the currency of tobacco in the closing years of the 17th century. Ii 1670 it appears that "payment in tobacco for Accommo- dation of persons at the Assizes not haveing given content to some persons in St. George's; It is unanimously Ordered, That tobacco in all cases be the payment, and not to be refused for ** Brass was a term for what we should now call mixed metal or bronze. f Possibly there was a penny also, on analogy with (e.p.) the coinage of Maryland (see p. 6). I Who soon raised " a generall complainte that they have been paid with base tobacco for their labours, being such as they could put off for no commodities thy stood in need of." 8 " Such is the Mould that the blest Tenant feeds On precious Fruits, and pays his rent in Weeds." — Waller, " The Battle of the Summer Islands." L2 152 Colonial Currenct. current payment, according to such value or estimate as it shall be pitched uppon at the tyme of Division.* And the goodness thereof to be Judged (if occasion require) by two subetantiall men of the Tribe where it is paiable, or at St. George's." And in 1694 the pay of the Guard of the Castle and " Pagitt's Fort" was fixed in " current money or tobacco at price current." A retrograde step was taken in establishing a fixed rating of tobacco on 31st October 1698, when, under keen stress of Virginian competition, the despairing planters of the Bermudas passed the following Act : " for settling a Current Value on Tobacco of the growth of these Ishinds ; — " Forasmuch as the Incouragement of the Planting of Tobacco is of great Use and Advantajje to these Islands?, and has been a Prnicipal Manu- fncture here, for Imployment and Improving of Navigation, Promotion of Freight, and also the proper Medium of Trade and Concern : Now to the intent the Planter may not be totally Discouraged and the aforesaid Ends, plainly tending to the Promotion of the Publick Good and Interest, wholly Frustrated; Be it therefore Enacted by the Governor, Council, and Assembly, and hereby it is Enacted by the Authority of the same, That a fixed and settled Value and Price Current be set and put on all Tobacco of the growth of these Islands (that is to say) That all Tobacco being JSIerchantable, of the growth aforesaid, shall an(' may go and pass Current Payment to pay and fully to satisfie all Debts Contracted from and after Publication hereof, at the Rate and Current Value of Three Pence per Pound ; only excepted all and sineular other Contracts made to the Contrary thereof." i Coin. Side by side with Tobacco, Spanish f silver circulated in the 17th Century in the Islands. For the most j)art, this metallic curreijcy appears to have been derived, in early years at all events, from wrecks and wrecking.^ Tho occrrrence of the Piece of eiijht and its early underrating at 4 s. (cf. Barbados and Jamaica) are shown by the following Council Minute of April 1653 : — " It was then taken into consideration what inconve- niences doth insuc by reason that Spanish moneyes do not pass betweene party and party as formerly y' hath done. And (bcmg) debated, y'' was ordered that pieces of Eyght should pass for 4«. per piece for current payment betweene man and man, so they do * When nn annual rating wiis struck. \ Some British coin circulated in the earliest yeare, for, in lfil8. — "Thomas Fosbrooke, gouldsmith of Smith's Tribe, did not forbear to melt the King's Mat" Coyne of Gould & Silver into Bodkins, Eare-wyres, and such like unprofitable and unnecessarie commodities." + "Wte the grand Incjuest doe jtresent that whereas it comes to passe that conietymes Shipps fall ujmn these Coasts and are distressed, w'h when our Inhiibitants doe ])erceive they presently goe iiboarde them & then by It'orce & in a voyelent way Take & carry a«aie what they can come by and fall A cutting & haleing down the Higging ttaring down the Sailes even to the Amazement & tho astonishment of the shippes Companyes." 7th Dec : 1062. (" Memorials," II. ;j5.). Ch. XII. The Bermudas. 153 not appear to be apparent brasee or copper.* And alsoe all other Spanish to passe as formerly without refusal by any manner of persons." This Minute, which led to a Governor's Proclamation on 26th April 1653, is valualjle as indicating (i) that, like Barbados and Jamaica, the Bermudas based their first " deno- minational currency" on a sixpenny rating for the Real, making 4 s. for the Piece of Eight, and (ii) that the latter coin, being worth 4«. Gd. sterling, could not be retained in concurrent circu- lation with tobacco. The underrating of Spanish silver forced the local Government, five years later, to raise its denominational value ; and, as in Barbados and Jamaica, the rise was 25 °Iq. For, at the Assizes of June 15-17, 1658, " it was presented for consideration of the Gouernor and Counsell that some course might be taken for restreyning men from putting off pieces of eight to seamen, who ought by o'' orders here to lay y* out amongst vs, and to continue still in comfortable commerse one w**" another as yt was fformerly. Yt was lierevpon ordered that all peeces of eight w"^"* formerly passed current for 4 s. per peece shold hence- forward pass current betweene party and party at 5 s. per peece, provided they are silver; and that this be immediately published throughout the Tribes." The same enhanced rating was re-enacte J in greater detail in January 1663, as appears from the following: — "Wee the generall Assembly finding great preiudice to our Inhabitants, and much decay in Trade by reason of the want of monie which of late years haue bin carried and conuaied away both by Inhabitants and strangers. It is therefore enacted Etc. That all peeces of coyne commonly called and knowne by the name of pec t of eight being good silver shall bee of the full value ot (fine shuiings sterling per peece. And euery half peece of eight shall bee of the full value of two shillings sixpence sterl. and euery Spanish shilling or quarter-peece of eight shall bee of the full value of ffiueteene pence sterl. And every Spanish sixpencef or eighth part of a peece of eight shall bee of the value of seuen-pence nalfepenie. And they shall soe passe from person to person in buying or selling or payment of Debts for the time to come. Alwaies provided that what debts haue bin heretofore contracted shall bee paid in peeces of eigi at ffoure shillings per peece. And bee it enacted Etc. That Noe commander of ships or (Barques carrying) Passengers for the time to come shall trans- port or carie away with them in their ships or Barques aboue the value of ffiue pounds, vppon doble ♦^he forfeiture of all auch some or somes of monie then afore expressed that shall bee found or discouered to be imbarqued : one half to the Informer, the other halfe to bee expended in publique vses." The export of coin still continuing, the Company on lOth February 1668 passed the following " Law for raissing y* value of Spanish Coines " : — " The Company takeing in consideration * As to the prevalence of counterfe ins on the mainlunil at this date, see page 9, with reference to tlie estahlishnient of the New England Mint in l(i6'2. f A» ispointed out above, this is the key to the early 4 <. rating of the Pi«ce of Eight. 154 Colonial CuhrEncy. the great prejudice wrought to the Plantation of the Soiner Islands by export of y* money there by Strangers tradeing for provisions, hides, oyle, iron, Etc., for prevention whereof Bee it enacted and ordained that all peices of Spanish Coynes coiiionly called or knowne by the name of peeces of Eight (that is to say) Sevill, Mexico and piiler peeces snail from and after the publica- tion hereof be of the full value of ffive shillings & of fower pence sterl : y* peece and ordinary piiler peeces of eight called peine peeces shal be of the full value of tfower shillings eight pence sterl : y' peece and the halfe peeces and quarter peeces of either 3ort to be of the value in like proportion and shall soe passe from pson to pson in the buying or selling of any Coinoditye, or the paym' of any debt or in any other manner of way wherein money may be used within the said islands. And the Governo' and Councell in the said Islands are ymediately upon the receipt of this Law to cause a Proclamation to be made thereof in all places as is usuall in the like case throughout y* Islands and take care that the Inhabitants doe duely observe and pforme the same accordingly." From 1668 to 1707 there is no evidence forthcoming as to currency. But analogy with Jamaica and other Colonies sup- ports the following conjectural nistory of the changes leading up to the undermentioned Act of 1707. In the first place it will have been seen that silver passed by tale, weights not being specified,* and that the rating of the piece of eight had always been correlated with a proportionate rating of the real. When the latter coin was 6rf., the piece of eight was 4«. ; the raising of the piece of eight to 5 «. in 1658 entailed the raising of the real to l^d. ; and the foregoing Law of 1668 gave a rating of 5 s. 4 d. to the piece of eight which presumes the 8 d. rating for the real.f At each step, it will be observed, the rating was so fixed as to allow of a valuation of the real in a round number of pence and halfpence. Consequently, when m 1686 Spain made 10 reals of "new plate" equal to the piece of eight, the Bermudas, retaining the old 8 d. rating for the new real, raised the denominational value of the piece of eight from (8x8)f/. to (8xlO)(/. And the new currency value of the piece of eight at 6 *. 8 d. was the reason why the Islanders' practices conflicted with Queen Anne's Proclamation of 1704, limiting the currency value of the piece of eight of 17 J dwt«. to 6 8.% To get over the difficulty, the Bermudas decided in 1707 to adopt a gold, instead of a silver standard, but only so long as the obnoxious Proclamation was in force ! The Bermudas have the distinction of being the first to defeat the Royal Proclamation by legal weapons. There was a local Act passed in 1704 prohiliiting the clipping of Spanish money, which is proof of light sliver cuculHtin;f here, as eisewliere in the British "Plantatioac,'' at the beginning of the 18th Century. f This may also be inferred from Governor Popple's rating of the pistareen (of two new reals) at 1 «. 4d. in the beginning of the next century. (See infra) . \ See paga 14. ... fli Ch. XII. The Bermudas. 155 a The following is the text of the liermudaa Act of 1707 " for settling a Current Value upon Foreign gold in these Islands " : — * " Whereas there hath been no Current Value as vet set upon Gold, which manv times causeth Disputes and Differences, in passing the same ; and for prevention whereof for the future, we, therefore, Your Majesty's most dutiful and Loyal Subjects, the Assembly of these your Majesty's Bermuda or Summer Islands in America, Do most humbly beseech Your Majesty, that it may be Enacted ; and be it Enacted and Ordained by the Authority of the same, That from and after publication hereof, all Pistoles of gold weigliing Four Pennyweight and Six grain8,f shall pass current in these Islands at Twenty-four shillings ; and Half Pistoles and ChicquinsJ of gold weighing two Penny weight and Three grains at Twelve shillings, and all Double Pistoles, weighinij Eight Penny Weight and Twelve grains at Forty eight shillings each ; and for every grain the said several Pistoles, Double Pistoles, Halves, and Chicquins, shall weigh more or less than is afore expressed, shall be allowed Three Pence ; and that this Act be and remain in full force, for and during the con- tinuance of Her Majesty's Proclamation for Settling and Ascer- taining the Current Rates of Foreign Coin in Her Majesty's Colonies and Plantations in America, and no longer." It will be seen that the weights set down for all but the smallest of these gold coins is less than the standard ; but that the provision of 3 d. per grain (of difference) placed a premium of some 12 per cent, on heavier coins. It will also be observed that the Act takes as its basis the Proclamation rate of 6 s. per (heavy) piece of eight, making the (light) pistole worth four times 6 s., or 24 s,, in accordance with the Spanish monetary system. With the formal adoption of a gold standard, silver was driven out and inconvenience experienced in minor traffic. The latter evil, here as elsewhere in the West Indies, was met by the appearance of the pistareen {see page 16), which served as the chief subsidiary coinage for internal purposes,, whilst gold formed the medium of external exchanges. The following review of Bermuda currency from 1700 to 1739 was furnished by Governor Alured Popple to the Board of Trade and Plantations on 20th December, 1739: "There never has been any Paper Money current here. I beg leave to acquaint your Lordships that all Spanish, French, or other foreign Coin sh Ihe pen *> This Act passed the Assembly and the Governor in Conncii on 9th May 1707, and was " |)ub!ished on the Town Bridge in St. Gtorge's'' on the same day. f This corresponds to the weight of 17 dwts. assigned in 16!t9 to the doubloon or quadruple pistolu in Antigua, where a piece of eight of 17 dwts. was rated at 7 s. As the proper weight of a pistole on issue was 4 dwts. 8 ^rs., according to Sir Isiuic Newton, it may be presumed that Os. in the Bermudas would purchase a piece of eight of about IGdwts. only, which tallies with a rating of (>«. 8 d. for a piece of eight of full 17i dwts. \ 8o, too, the Virginia rating of tiie " Arabian " chequins was two pieces of eiglit of 16 dwts. each, as stated by Oldmixou in 17UB. Ste page 897^ with regard to this coin. 156 Colonial Cuurency. Mil lllii! "Gold and follows, Viz*, from 6 s. 10 rf. have always, and are now accounted, recetv'd, taken or paid at the rate of 6 s. lOJ rf. p Ounce, but being often scarce, the Merchants do sometimes give a premium of 5, 6, or 8 p Cent, in order to obtain Silver to make Remittances Home. Spanish Pistereens have for some time pass'd, been receiv'd and paid by Tale at the Rate of 16 pence each, some of them weighing more, but more of them weighing less. This has been done for the ease of the Inhabitants, who by general Consent for the more easy Circulation of Money have agreed to take them from one to the other at the above Rate. " All Spanish, Portuguese, and other foreign gold coins, are accounted, received, taken or paid, and have ever since the passing the Act for settling a current value upon foreign gold, at the rates therein mention'd. This Act was pass'd here in 1707 and is to continue in Force so long as the Proclamation enacted by an Act of Parliament Pass'd in the 6ih year of Queen Anne entltuled ' An Act for ascertaining the Rate of foreign coin in her Plantations in America,' shall continue in force and no longer. silver has always been purchas'd and sold, as — Gold for 5 1. to 4 I. 10 *. p ounce, and silver to 5 Shill. p Ounce. " An English guinea passes Current here for 1 /. 8a. 8r/." {i.e., ^rd above the old rating of the guinea at 21 s. 6d.), " an English crown at 6 s. 8 rf., and half-crowns, shillings, and six-pences in the same proportion."* In the second half of the 18th century the Bermudas wei'e constrained to issue paper money. The origin of this issue appears to be traceable to an Act of 1761 " for raising a sum of money for the use of His Majesty, his Heirs and Successors, as well as for tlie immediate arming and fitting out of two private vessels of war, &c." The " certificates " issued for this purpose, and subsequently for other public purposes (such as salaries, &c.), bore interest after six months, and were legal tender by and to the Public Treasurer " in the same manner as gold and silver * Interesting as throwing \\\<\\t on the general commercial conditions of the Bermudas in the first half of the 18th century is the following extract from n Report of the Hoard of Trade and Plantations to the House of Lords on 23rd January 1733-4 : " By the Heturns made to U* from the Governors of the Bermuda and Baliama Islands in the year 1730, We find that tlie only Manufactures set up in those small (Jovernments are the Huildiu}^ of Sloops, the making Hats ot a Production called l^lat, and a little Joiner's Work. But their Sloops, especially those of Bermuda, make the principal Article of their Commerce, and are Sold or Bartered for Piovisions & Negroes in the other Parts of America and the West Indies." This is corroborated by Oldmixon in 1741 ; hut both industries are stated to he moribund. He add.'i (with reference to 1708), " This Colony produces no considerable Commodity by which the Inhabifanfs may be enriched, & tlieir commerce consists chiefly in Timber and Provisions, which they send lo the other Parts of America that stand in Need of them, and some Tobacco imported to Kiigland. There is a sort of pedling Retail Trade between England & these Islands, by whicli neither the inhabitants of the one place or Uie other grow much the richer. Our diet is hut ordinary ; the People are generally poor, & I observe that poor People are most healthful," Ch. XII. The Bermudas. 157 monies now are." The absence of definite information as to Bermuda currency, and as to the amounts of " certificates " out- standing from time to time, makes it matter of conjecture how far this paper money affected the rates of gohl coins retained in concurrent circulation. It may well be that it was to forbid the exacting of a premium on gold, as against paper money, as well as to legalise the currency (i) of Portuguese moidores and "joes " (which were unknown in 1707) and (ii) of Spanish gold coins of the 1786 issue (when the standard was reduced to 21 -carats fine) that in 1787 the colony passed an Act "for settling a value on all Foreign Gold Coin current in these Islands." This Act, which recites that " inconveniences have arisen from the want of a certain Value being fixed on the Foreign Gold Coin circulating in these Islands," enacts that " each and every Grain contained in any Piece of Foreign Gold Coin current in these Islands may be estimated at, and [)ass current in Payment for, 3 d. current Money of these Islands." As tliis Act rated all current gold coins alike at 3 /. per grain, notwithstanding their varying degrees of fineness, the Spanish doubloon (and its parts), being only 21 carats fine, necessarily held the field as the metallic standard. The equivalent of local currency in sterling (standard gold being 22 carats fine) is found as follows : — 3 X 22 As the legal value of 1 grain of standard gold = —^-j — d. . ' . 123*275 grains, or 1 /. sterling,* = 1 /. 12 s. 4 d. (about), or, in other words, the " pound currency " in gold was worth nearly 12 s. 5 «?. sterling and 161*55/. currency was equal to 100/. sterling. In order to supplement the small change of the Islands, a supply of Bermuda pennies was obtained in 1793 from England and made current by the following Act : — " Whereas His Majesty has been graciously pleased by his Order in Council of 1st February 1793 to authorize Matthew Bolton, Esquire, of Birmingham, in England, to strike for the use of the Inhabitants of these Islands a quantity of copper coin, not exceeding the value of £ 200 sterling ; and whereas it is deemed essential to the welfare of the community, that such part of the said Coin as is already received be put into immediate circulation, be it enacted. Sec, that the Treasurer be authorized to pay in any Copper Coin that is or may be in the Treasury, in consequence of the said Order in Council, to any person having a demand on the Public, 2i"/o on the amount of such demand at the rate of 12 coppers for 1 s. currency, and that the person having such demand be obliged to receive such Copper Coin in payment, at such rate, in the same manner as gold and silver monies are by law or custom made payable in these Islands, until the whole quantity of Copper Coin shall have been emitted from the Treasury, either by payment, exchange, or otherwise. " And be it further enacted by the Authority aforesaid, that in any other payments, after the passing of this Act, no person •The sovereign was of course not coined until 1016, but its weight is ?^ of the guinea, and represeuts the gold pound of account of the 18th century. 158 Colonial CuruencV* It i; I be obliged to receive more than eleven Coppers in any payment whatever, and that on all occaaions a tender of a less number of Coppers than twelve be deemed as payment at the rate aforesaid, in the same manner as gold and silver monies are by law or custom made payable within these Islands."* These copper coins had an unlucky fate. On the voyage out, " a part was captured and carried to France ; and about the sum of ^ 600 was received in the Colony, which appeared to be adequate to the demand for it ; but in consequence of the relative value of that coin with the Spanish Dollar becoming greater than in change, it was mostly taken off." On 29th February 1816 a Committee of the Council and House of Assembly furnishud the following particulars to the Board of Trade as to the currency of the colony : — Current silver coins were the Spanish milled dollar and its parts, together with " Quarter pieces of-eight,t commonly called Pistareens, the eighths of pieces of eight, commonly called Bits, equal to tenths of Dollars, and the sixteenths of pieces of eight, commonly called Groats, e(|ual to twentieths of Dollars.' As is indicated by the last particular, the dollar passed as 6 s. 8 d- currency. The quantity of circulating specie was " extremely fluctuating." " As to gold, the general rate of currency is 6 s. currency per pennyweight " {i.e., 3 d. per grain, or 6 l. per oz.), " the par of exchange being 150 /. currency for 100/. British sterling." It will be observed that this " par " is incorrect ; but it was approximately true in practice since, in the words of the Governor in 1816, "coins of the basest nature circulate at precisely the same value as those of the utmost purity. I am not indeed aware," he adds, "that any very sensible incon- venience has yet been sustained from this circumstance, probably from its not having been elsewhere sufficiently known." It may consequently be concluded from the above facts, and on analogy with other colonies at the same date, that the Bermudas, prior to 1825, enjoyed a gold standard (the Spanish doubloon); that silver dollars could not be retained in concurrent circulation ; and that the pistareen and its parts formed the sub- sidiary currency of the colony. When in 1825 the Imperial Government sought to establish British silver as the currency of the colonies {see page 23), the endeavour failed, here as elsewhere, owing (i) to the over- valuation of the dollar at 4 s. 4 d. sterling, and (ii) to the popular over-valuation of the gold doubloon as the equivalent of sixteen dollars. Buf eventually, in ihe Bermudas, as in Jamaica and British Honduras, though the Colonial Government required the full ISs. in British silver for every " pound currency," consisting of three dollars, the shilling passed generally, as between individuals, * This Aft passed the Assembly on tht* 24th, the Council on tlie '2.5th, and the Governor on the 2Gth day of April 1794. This curious limit still sur\ ives, it will be seen, in the monetary system of the Bt'rmuda" at the present day. fThe "piece ot eight" here referred to is not the early Spanish-American dollar, but the (provincial) piece of eight reals of " new plate" («ee page S92j.i Ch. XIl. The BEttMUDAS. 159 as a quarter-dollar (or l-12th of a pound cui'rency), making 100/. sterling equal to 166 /. 135. 4rf. currency. As a doubloon was worth 64*. sterling, and was regarded as equal to 16 dollars, this popular rating correctly adjusted the relative values of the doubloon and the British shilling, whilst it entirely barred the silver dollar from circulation. After the publication of the Royal Proclamation of 1838 {see page 27), whereby the values of the doubloon and dollar were (for the time) correctly adjusted both to one another and to sterling, the colony in 1841 wisely dispensed with its old system of denominational currency by enacting that on and after Ist January 1842 the currency of the United Kingdom* should also be the currency of the islands, and that 166 /. 13 s. 4d. in currency should be the equivalent of 100/. sterling. Provision was made at the sLme time, on the lines of the ratings of 1838, for the concurrent circulation of doubloons at 64 s., and of dollars at 4 «. 2 d., provided every doubloou or dollar weighed 17 dwt. 8 grains. About 1874 there was a great and increasing import of the gold and silver coins of the United States, particularly silver jf but the merchants unanimously agreed among themselves to decline receiving this currency except at a heavy discount, and it was soon exported again. In 1876, in view of the deprecia- tion of the gold-price of silver, the Currency Act (1841) Amend- ment Act 1876 was passed, repealing the provision of 1841 as to the currency of dollars, and restricting the Itigal tender of copper or bronze coins to lid. in any one payment. At various times endeavour? have been made to limit the legal tender of British silver to 40 s., but without success. The trading community generally appears to be, or at least to have been, opposed to this salutary change, though they are familiar in practice with the extra ^ per cent, premium which they have to pay for bills on London if purchased with silver. The last Bill imposing a 40 s. limit was introduced into the local legisla- ture in 1882, but was shorn of its limiting provision before becoming law as the Legal Tender Act 1882. This Act is indeed confined to a single operative clautif-,i: aimed at prevent- ing the import of light British gold (from the United States and elsewhere), which was rapidly debasing the local currency. As there is no "least current weight" for British silver coins, * See also the amending Act of 1801. I Cf. the Btiliamas for a similar phenomenon at this date. J Section II. — "A tender of payment of money, if made in gold or silver coins wliich iiave been issued by Her Majesty's Mint, or which, having been issued by any brancli mint in tier Majesty's colonial possessions, have under any proclamation of Her Majesty been made current and legal tender in the United Kingdom, and whicli gold or silver coins have not been called in by any l^roclamation, and have not become diminished in weight by wear or otherwise, so as to be of less weight than the current weight at which the same respectively are legal tender or legally current in the United Kingdom, shall be a legal tender ; and no other money or coin tiian such coin a» is hereinbefore mentioned shall be legal tender in these islands except copper or bronze coin as far as the same is made legal tender by the Act passed in the year 1876, entitled ' An Act to amend the Law relating to the Currency aud Value of certain Foreign SiJlver Coins and other purposed. " 160 Colonial Currei»cy. the provision as to light coins is of course operative only as regards eovereigns and half-sovereigns. The net effect of the section appears to be to assimilate the currency of British coins in the Bermudas to that prevailing at the time being in the United Kingdom. And it will be observed that by this section the doubloon, the last foreign coin to retain legal currency, was demonetised, leaving British coins the sole legal tender in the colony. It would naturally have been expected that oo large a trade with the neighbouring United States would have led, as in the Bahamas, to the adoption in practice, if not at law, of the U.S. gold currency as the insular standard. But, as a matter of fact, the Bermudas have never allowed themselves to be drawn into the U.S. currency area. li was estimated at the beginning of 1892 that the total amount of coin in circulation (there is no paper) was 90,000 /. (30,000 /. being in silver), or about 5 /. per head of the population (18,000 in round figures, including the troops). But it is difficult, on analogy with other Islands, to believe that the " active " cir- culation of the Bermudas can amount to more than one-fifth of this sum. Ch. XIII. The Bahamas. 161 CHAPTER XIII. The Bahamas.* (1666.) Prior to the year 1750 there is little evidence of the state of the currency in these islands ; but there are chance references to the subject which, considered in the light of fuller knowledge concerning the currency of neighbouring colonies, make it possible to reconstruct m part the history of currency in the Bahamas during its earliest years. Under the Proprietaries of Providence, according to Oldmixon's ''British Empire in America " (1708), " the most considerable profit made by the inhabitants of Providence was by the mis- fortune of poor adventurers ; either such as were shipwrecked, or such as m a winter-voyage for the continent of America, were driven to the Bahama Islands and put into Providence for provisions. As for wrecks, the people of Providence, Harbour Island, and Eleuthera, dealt in them as it is said the good men of Sussex do : All that came ashore was prize, and if a sailor had, by better luck than the rest, got ashore as well as his wreck, he was not sure of getting off again as well. Wrecks and Pirates were the only hope of Providence, there being no product to trade with except brasiletto wood and salt, which the people exported to the continent and other islands. Carolina being the nearest colony to this, the people of Providence traded most thither." Even the Governor of 1691 " highly caressed those pirates wlio came to Providence," as to a congenial resort. It is further stated that about the year 1700 Governor Hasket " found an unruly people, and they were the more so, for few wrecks had happened lately, and the pirates began to spend their money elsewhere." And it is in the same year that Mr. Fysack's Memorial {see page 12) furnishes the earliest specific informa- tion as to the currency system of the Bahamas. The occurrence of the universal coin of the day in these islands had already been instanced by Samuel Smith's confession in the Bermudas that he had "hidden 1,000 peeces of eight in the Bohemia (52c) Islands"; and Fysack's Memorial gives specific information as to the local rating of this coin ; " a peice of eight in the Bahamy Islands being about five shillings." The rating was stated to be " the same in Carolina," and it is probable that it was trade-relations with the latter colony which had established this common seven- teenth-century rating in the Bahamas also. From 1703 to 1717 the Bahamas were a pirates' stronghold ; in the words of an Address of the House of Lords to the King in the latter year, " the usual retreat and general receptacle for the pirates are at Providence." This led to the expulsion of the pirates by Captain Woodes Rogers, which is commemorated by * For information respectingexisting conditions of currency in the Bahamas, I am indebted to Captain Jackson, c.h.q., tlie Colonial Secretary. 162 Colonial Currency. I* the motto, rxpnlais piratis restitutu commercin, both on the Colonial Seal and on the copper coins struck for the colony a century later. Whatever currency legislation may have been effected prior to 1734 is now lost, for reasons best explained in the Governor's words of 10th February of that year : " After the death of Mr . Rogers, all the Acts of Assembly of these islands were secreted or conveyed away by some person to prevent their being put in execution, except an Act for levying divers sumh of money, &c., which was in the dead of night left at my door wrapt in n sheet of clean paper without any direction." It is, however, certain that these troubled years witnessed that change from a silver to a gold standard of value, which was characteristic of the currency history of all the West Indian Colonies in the early part of the eighteenth century. And, further, that light gold coins circulated, a i th;it it was found necessary in 1744 to fix by law minimu' ights and current ratings for the foreign gold coins w .ormed the local circulatory medium, may be gathered fro u the preamble of the Act of 1750 "for settling and ascertaining the current rates of foreign gold in this Government," which runs as follows : " Whereas an Act, intituled an Act for settling and ascertaining the current rates of foreign gold in this Government," passed at an Assembly begun and held at Nassau the 21st day of February 1744,* is liable to objections for want of a proviso that the same shall not restrain his Majesty from regulating and settling those coins in any other manner, and of a clause for suspending the execution thereof until his Majesty's pleasure shall have been known : Be it therefore enacted, &c., that the before-mentioned Act be, and is hereby, repealed. And, forasmuch as it is necessary that the value of foreign gold should be ascertained, to prevent the disputes and inconveniences which may arise by reason of the same being clipped and otherwise diminished," &c., ratings were prescribed by the Act (which presumably merely re-enacted, with a suspending clause, &c., the irregular Act of 1744) as follows : — Description. Current Money. Portugal Pieces, commonly called .fo- annas (halves, &c., proportionably) - Spanish 4-Pi8tole Pieces {i.e., " Doub- loons") _ - - - _ Spanish 2-Pistole Pieces - - - Spanish and French Pistoles Half-Pistoles and Chequins* Moydores of Portugal - - _ (Halves and quarters proportionably.) £ . s. d. 6 1 6 * Neither in the Record Office nor in the Island Archives can a copy of this Act now be found. f See page 397 for the currency of this "Arabian gold " in the BermudM, Leeward Ulsnds, &c , at the same date. Ch. XIII. The Bahamas. 163 " and for every grain which tlie several species of coins before- mentioned shall weigh more or less than is afore-expressed, there shall be allowed 4 J d." As all these gold coins are rated alike, irrespective of fineness, at one uniform rating of 3*37 rf.per grain of their specified weight, it is clear that the above legal allowance of 4^ d. per grain of difference from the prescribed weights, encouraged the circulation of full- weight coins. And, as the Spanish gold coins were at least one per cent, inferior in fineness (even before 1772) to the gold coins of France and Portugal, it is equally clear that a further premium was placed by the Act on heavy Spanish gold. The further lowering of the Spanish standard to 901 per raille in 1772, and to 875 in 1786, tended to establish even more firmly the supremacy of Spanish gold coins of full weight in the Bahamas. This supremacy of Spanish gold, and the lowering of the Spanish standard of fineness for gold in 1786, explain why in 1788 the Colony found it necessary to pass the Act 28 Geo. III., cap. I., " for regulating and ascertaining the value of the current com in the Bahama Islands," which recites that the Acts of 1744 and 1750 "are from the alteration of the circumstances of these islands become almost useless." The new Act provided that '* all mill'd gold not clipp'd, ])lugged, or otherwise defaced," should thenceforth pass at the following rates: — Description. Weight. Currency. English Guinea - . - _ French Double Guinea - - - ., Single „ Whole Johannes - - - , Half „ - . - . Moydore ------ Spanish Milled Doubloon - - - dwts. grs. 5 -4 10 4 5 2 18 - 9 - 6 16 17 8 £. s. d. 1 18 - 3 12 - 1 16 - 6 8- 3 4- 2 8- 6 4 - Fractions of the above coins were to be rated proportionately ; and " for every grain short a deduction oi Zl d. shall be made " ; clipped, plugged, and other defaced gold to pass likewise at Z\d. a grain. The Act then proceeded to rate silver coins as follows : — s. d. Spanish Milled Dollar - - - - 8 - iii i» h> ' th, in prop'- -"ion). English Shilling 19 (Sixpence proportionately). Pistareen - - - - - -16 (J and ^th in proportion). 164 Colonial Currenct. TheBC ratings of silver coint) are the first, it will be observed, which arc recorded for the Bahamas since 1700. Conjecturally, on analogy with the aacertiiined facts of currency during the same period in other West Indian Colonies {e.q., Jamaica), it may be premised that (i.) by the change from ii silver to a gold standard, and (ii.) by the introduction of the " base Pistareen " and the Real of "new plate" (10 of which went to the dollar, as against eight Mexican Reals), the 5 s. rating of the silver dollar was raised first to 6 s. .'} d. { ■=. 5 a. x '/ ), and thence by successive stages to 6«. 9r/. (the 1750 rating of the " gold dollar," or sixteenth of a doubloon), but more probably to 6«. 8^/., the convenient Jamaica rating, admitting of division both by 8 and by 10 for the Mexican and "new plate" Reals, respectively. The 1788 rating of the silver dollar at 8 «., or threepence more than the " gold dollar," indicates an endeavour to retain Spanish silver in circula- tion ; and it will be observed that the Pistareen was (wisely) valued in 1788 at less than its Spanish proportion of a fifth of a dollar. Like the earlier Acts, the Act of 1788 erred in rating all gold coins ahi.e uj i/ross weight, irrespective of relative fineness, and may therefore be taken to have left Spanish gold with the supre- macy over other gold coins. And as the ratings in the Act proceeded on the basis of somewhat over 3J rf. per grain, it follows that heavy coins continued to have the preference for payments. And, taking the sterling values of the dollar and the doubloon at A s. 2d. and 64s. respectively, it will be seen that, in order to correctly adjust the ratings of the two coins, the doubloon ought to have been rated, not at 124.«., but at 122 s. 10 J (I. (on the basis of 8 s. for the dollar). In other words the gold doubloon was over-rated 1'68 per cent., as against the silver dollar. Having thus regulated the currency of gold and silver coins, the local legislature of the Bahamas proceeded in the following year to pass the Act 29 Geo. III. cap. 2, to obviate " the inconveniences from the want of a well-regulated copper currency, " and to demonetise all silver coins other than those specified in the Act of 1788. As appears from the preamble of the Act 42 Geo. III. cap. 9, nothing was done from 1789 to 1802 in the matter of the copper tokens (pence) proposed for the Colony. But in the latter year the Act last mentioned provided that 12 of these should contain in pure copper only 4 d. sterling, instead of 6^ t^^ quantity in circulation for common use was but small, but the quantity of dollars to be found in the islands was very great, as Ch. Xill. The Bahamas. 165 \ there were frequent importations of silver into the colonj and great exportations thence to Great Britain. The result, said the Agent, was that the current silver was of full weight. In 1825 the Imperial Government endeavoured to introduce British silver and copper coins into general circulation throughout the colonies (.v^^ p. 23). In proclaiming locally the provisions of the Order in Council of 23rd March 1825 the Governor on 23rd August of that year declared 10 <. \0d. in sterling coins to be equivalent to 1 /. currency. Or, in other words, the pound sterling was to be equivalent to 1/. 16 s. ll-^^d. But, as the silver dollar was rated in the Order in Council at 4 s. Ad., instead of 4 s. 2 d., for concur nt circulation with sterling, and as the doubloon was further ^ver-rated in this colony nearly two per cent, relatively to the dollar, the British coins were driven out as fast as they were introduced by the Commissariat. Though the dollar could hold its own against the shilling, its currency was menaced soon after 1825 by the competition of the new Spanish pistareen, or peseta of the Peninsula. In 1828 it was found necessary to pass the Act 9 Geo. IV. cap. 18, reciting that since 1788 this novel coin, purporting to be an "unpillared quarter " was being proBtably imported in great quantities and was driving out all other coins, both gold and silver. The Act goes on to enact that the Spanish peseta, the Spanish real (or half-peseta, known in this colony hitherto as a " shilling ") and the half-real (or " sixpence "), should pass current at the rate of only five pesetas, or 10 reals to the dollar, and that these coins should not be legal tender for more than 1 1. currency in any one payment. When, on 7th September 1838, the Imperial Government passed the remedial measures {see page 27) whereby the dollar was cor- rectly rated at 4 s. 2 d., and the doubloon at 64 s., for concurrent circulation with sterling, the Bahamas legislature, recognising that the day of Spanish currency was over, hastened to enact in November of the same year, that stei'ling should thenceforth be the local money of account, and that old debts should be paid at the rate of 4 s. 2 d. sterling for every 8 *•. (^1) of the old currency. The Bahamas have the credit of being the first among the Colonies to take this sensible step. A few years later the peseta again gave trouble, as " in conse- quence of the recent reduction in the current value of the said peseta in the neighbouring Island of Cuba, and the lesser rate at which the said peseta obtains currency in the United States of America, the said coin is again being introduced in considerable quantities into these islands." The Act 8 Vict. c. 49, accord- ingly reduced the rating of the peseta from 10 d. to 9d. sterling, and provided that after one year the coin should cease to be a legal tender in the Colony. "In private transactions," reported Governor Gregory in 1850, " the community seem determined to adhere to the old currency. Prices are all stated either in dollars and cents, or in Bahama currency, 1 /. sterling being equivalent to 2 /. old currency." The latter words are of interest as showing that, at some date 72642. M 166 Colonial Cuurency. I :J; between 183H and 18r>0, there liad grown up a popular and con- ventional ratinpr of ^1, or 8.?. currency, at 4 s. flterlinw, inptead of 4 s. 2 (I. This overrating of British coins explains why Governor Gregory reports that " a considerable proportion of the coin in circulation consistfl of Bovereigns, hnlf-crowna, shilling, and sixpenny i)iece8," merely adding that " American and Spanish dollars are also a legal tender." In connection with the palt industry a currency had for some time been given conventionally to the French five-franc piece. \.nd, as it appeared that, fre(iuently, the inhabitants of the salt- producing islands could only dispose of their salt by taking French coins in j)ayinciit, the Act, 13 Vict. c. 2.3, was passed in 1850, providing that the five-franc piece should " pass currently and be lawfully paid and received within and throughout these islands at and after the rate and value of 3 *. 10| d. oT the lawful money of these islands, and in the like jiroportion for the other French .silver or gold coins of the same denomination." It will be observed that this enactment gives unlimited tender not only to the stardard coins of France, but also to the token franc and two-franc piece. The 4 s. rating of the silver dollar stimulated the export of these coins when their gold-price was enhanced by the gold discoveries of 1849 and the following years. "In consequence of the exportation of dollars and other silver coins," wrote the Commissary on 15tli June 1853, "the gold coins of the United States of America have become the circulating medium through- out these Islands, and pass at the rate of 4 s. 2 d. sterling jier dollar, but by convention only ; and, as they are now the only coins of value that appear, and as they must in my opinion cro long form the basis ot the currency of the Colony, the sooner an established sterling value is fixed on them, the better it will be for trade and for the community in 'general." The Commissary added that the 4 s. 2 d. i-ate obtained " at the Bank and for all mercantile transactions; but persons receiving small sums . . . are compelled to part with their gold for household pur- poses, or in exchange for silver coins, at the rate of 4 s. jjcr dollar, being a loss to them of 4 per cent." Accordingly, legal currency was given to coins of ihe United States, the eagle bemg raied at 21. 1 *., and the gold dollar at 4 *. 1 d., by the Order in Council and Proclamation of 19th August 18/53 (see page 435), which was brought into operation locally ' y the Governor's Proclamation of 15th October of the snn. yar. Not till 11 years later were silver coins of the United States admitted to tender, Followirg the conventional rating of a " dollar " as 4 s. sterling, the Order in Council and Proclamation of Ist March 1864 (brought into operation in the Bahamas by the Governor's Proclamation of 6th April of th^ same year) gave ratings of 2 s. and 1 s. rcBj)ectively to the token half and (luarter dollar of the TJnlted States. But though these fractional i)arts of the pilvcr L.S. dollar \fOve thus admitted to tender, no action was taken then, or has been taken since, to give legal currency to the whole silver dollar. Ch. XIII. The Bahamas. 167 Im 1873 it became profitable to ship away all the U.S. gold coins, and practically all the British token silver; whilst half and quarter U.S. dollars, purchasable in New York for Ss. 9d., were jmured into the Bahamas at 4 s. per dollar. Consequently, by 1876, the circulating medium of the Colony consisted practi- cally of the above token fractions of the U.S. silver dollar, with British fourpcnny and threej)enny bits and a miscellaneous collec- tion of copper coins for small change. At this date there were only a few Mexican dollars in the Colony, i)opularly rated at 4 s. With the passing of the Bland Act in 1878, and the con- sequent restoration of the silver dollar as a standard coin in the United States, the merchants and shopkeepers of the liahamas hastened to ship off the U.S. silver coins in settlement of their liabilities on the mainland. And the Mexican dollar, worth at the time only 3 s. 9 d. sterling, flowed in, to puss current at 4 .V. (legally 4 s. 2 r/.). By the neginning of 1881 the circulatory medium was reduced to these Mexican coins. The first idea of the C\)lony, in 1879, was to legalise the currency of this dollar at 4 s. ; next it was proposed to rate it at 3 s. 9 d. ; and there was also a proposal to have a special coinage of florins, shillings, &c., stamped " Bahamas" for I -cal circulation exclusively. But, instead, the wiser course was taken in 1881 of demonetising " the Spanish, Mexican, and Columbiau silver coins, called " dollars " after six months' notice (44 Vict. c. 7), the coins to be exchangeable during the same j)eriod at 4 .••■. each at the Public Bank. And at the same time the local legislature imposed an import duty of 50 .v. on every 100 of the above dollars introduced into the islands. No less than ^90,306 were paid into tlie bank for exchange, their place being filled by the importation of 18,000 /. in British silver. • And it may here be noted that on 9th Mar'-h 1881 the Governor submitted to the Council the question whether silver, as a legal tender, should be limited to 40 s., and whether the Council thought that such a measure would be desirable or would meet with favour in the Assembly. The Council were " unanimously of opinion that it would not." With 1881 ends the currency history of the Bahamas, so far as it relates to metallic currency and the regulation of such metallic currency by law. The coins legally current are British and French gold and silver, U.S. gold coins, and U.S. silver half and quarter dollars. If the currency of the colony were governed i" practice by the severr.I enactments above mentioned, no Uniteu States coins would remain in circulation; and the Bahamas, like the \\ est Indian colonies generally, would be reduced to a circulatory medium, consisting mainly, if not exclusively, of British tokens. The law, however, has been superseded by popular convention. Instead of the legal rating of the U.S. gold dollar at 4 «. 1 d,, the convenient (1838) rating of the silver Snanish dollar at 4 * 2 d. has tacitly been adopted for the gold dollar, and consequently the eagle nas been rated at ten tmies 4 s. 2 d., or 21. ] s. 8 d. And us these U.S. coins are intrinsically worth only 4«. 1.316 (/., and 2 1. Is. l.lCyd. M m 168 Colonial Currenct. V : H sterling respectively, the popular over- valuation* has turned the scale in their favour, and U.S. gold is the local standard of value. The reason is not far to seek; for, the commercial relations of the colony are mainly with the neighbouring United States, New York alone practically monopolising the trade with the islands. And the majority of the visitors \^no flock to the Bahamas as a sanatorium also come from the United States. The colony, therefore, necessarily forms part of the U.S. " currency area," and this relation has been at once recognised and strengthened by the conventional over-valuation of U.S. gold coins. As this over-valuation has not been extended to the silver coins of the United States, which, with their fractions, pass at the old legal rate of 4 s. per dollar, these latter, when introduced by visitors, &c., are collected for profitable export to the United States. British silver coins form the bulk of the subsidiary currency, but of late years inconvenience has been felt from the dearth of change. The metallic currency of the Bahamas has recently been supplemented by paper. In 1888, under the Act 52 Vict. c. 1 (see also the amending Act 5.3 Vict. c. 1), the Bank of Nassau was incorporated with power to issue notes (of 5 s, and upwards) to be secured before issue by the deposit in the hands of the Colonial Government of either (i) "interest-bearing securities of the United Kingdom, or the United States of America, or of any British possession, to be approved by the Governor in Council ; or (ii) gold or silver coins lawful money of the Bahama Islands for the amount of the notes intended to be issued." It will be observed that the issue may be wholly fiduciary ; and consequently, though secured, might conceivably not be imme- diately convertible. But, in respect of legal sateguards, the Bahama Issue is sounder than any Indies.f The amount of the bank's 31st December 1891 was 5,000 /., and the total amount of coin in circulation at the same date was estimated at about 15,000 /., of which (roughly) 8,000/. was in U.S. gold, and the balance in British tokens. Taking the population at 50,000, the above figures give an average of 8 *. in notes and coin per head of the population. One result of the bank's note issue has naturally been to drive out gold. So scarce had gold become by the beginning of 1892, as practically to have disappeared froit' general circulation. Another result has been to partially remove by its 5 s. notes the previous inconvenience of dearth of change. In conclusion, it may be well to point out that, superior as the Bahamas system of currency is to that of the West Indies ** A «' dollar " is invariably calculated at 4 5. 2 d. sterling in all large morcan tile transactions anil at auctions, but in tbe shops a "uollar'' is uniformly reckoned as 4. v. only, unless otherwise stated. f Compare the modern note issue of the Cape Banks, The Bahamas note, it will be observed, rests on a broader and sounder basis of ultimate security, since the investments are not in local stocks, which would neces- sarily shrink in value precisely at the time when a local crisis would lead to the prenentation of notes for payment. other issue in the West paper in circulation on Ch. XIII. The Bahamas. 169 generally, and workable aa it may be in practice, it has the grave drawback cf resting not upon law, but upon convention ; and further it is (happily) unique at the present day in reproducing those anomalies of *' currency " which were the bane of colonial monetary systems prior to 1838. The scientific remedy would be the adoption in the Bahamas, as in Canada, of the gold U.S. dollar for the legal, as it is already the practical, measure and standard of value. • The remark of Governor Gregory in 1850 (xce page 1()5) that "the com- munity seem determined to adhere to the old currency," applies very widely to-day among the market-folk, pedlarc, and the negroes generally, who invariably use the words " shilling " and " sixpence " to denote 6d, and 3d. sterling respectively. The only other terms used by these classes in calcula- tions are " a check " (IJ d.), "a big copper" (1 "The inhabitants have not much land, and no money. They truck with one another tor what they want und have." — Oldmixon's British Empire in America, vol. I., page lU (2nd edition, London, 1711). Ch. XIV. Newfoundland. 171 £. 3. d. 3 16 n currency. 1 4 >» - 6 - >j - 5 - j» - 1 2! jj good and valid as a tender or payment of monies of the Coin of the Realm now is or would be." This Act was not confirmed, owing to the issue of the 1838 Order and Proclamation. On 22nd April 1845, the Assembly of the Island passed an Act in which, whilst the 5 s. currency rating of the dollar was retaineci, the doubloon and sterling coins were correctly, if inconveniently, rated for concurrent circulation, as follows : — Doubloon _ - - Sovereign . _ - Crown - - - - Dollar - - - - Shilling - - - - But, as the same Act further provided that 115 /. 7*. 8 4-13 rf. currency should discharge existing contracts of 100/. sterling, the Royal Assent thereto was refused. For, under the new ratings of the Act, the " currency pound," which had formerly been equivalent to il s. 4 J. sterling, had now been reduced to 16 5. 8d. sterling; or, in other words, 96/. 3 s. 12-13 MiVi. •'■ .::• Ch. XV. Canada. 175 re 5h n, a m CHAPTER XV. Canada.* (1763). Old Canada, as ceded to Great Britain in 1763 by the Treaty of Paria, was divided in 1791 (by the Imperial Act 31 Geo. III. cap. 31) into the two provinces of Upper Canada (now Ontario) and Lower Canada (now Quebec). These two provinces, re- united in 1840 by the Imperial Act 3 & 4 Vict. cap. 35, were amalgamated in 1867 with New Brunswick and Nova Scotia (thereby forming the " Dominion of Canada ") by the Imperial Act 30 Vict. cap. 3; Rupert's Land (Manitoba) was added to the new Dominion in 1870, British Columbia in 1871, Prince Edward Island in 1873, and certain other territories in 1876 and 1880. Broadly speaking, the currency-history of Canada consists in lhe transition from the French 6cu to the silver Spanish dollar, and from the Spanish dollar to the gohl dollar of the United States. But this transition has reference exclusively to the standard coin ; the characteristic feature of Canadian currency, both in the 17th century and at the present day, is paper. As the detailed history of currency varies considerably in the several constituent colonies, it is necessary to trace the monetary system of each separately, prior to their being merged in the Dominion. I. Old Canada (Quebec and Ontario).! The currency under French rule was nominally tliat of France. Just as sterling was in theory the original currency of the British Colonies of New England, so in theory the French monetary system prevailed in French Canada. In practice, however, alike in Canada and in the New England Colonies, dearth of coin led to the prevalence of barter in early year>3. The commodities used as currency were mainly furs and grain in both cases, " In the absence of coin," states Mr. Francis Parkman in his Old litgime in Canada (London, 1884), " beaver-skins long served as a currency. In 1G69 the Council declared wheat a legal tender at four francs the minot^ or three French bushels; J and, five years later, all creditors were ordered to receive moose- • For valuable iiiformntion 1 am indebted to tlie kind agency of Mr. J. Mortimer Courtney, Deputy Minister of Finance of tlie Dominion, t See on this subject the exhaustive articles of Mr. James Stevfenson in tlie Transactions of the Literary and Historical Society of Qluehec for 187.5 (" The Card Monev of Canada") ; for 187), Names of Coins. Weight. Currency. Silver: Dwts. Grs. £. s. d. Seville, Mexican, pillar dollar 17 12 - 6 - French crown or 6 livre piece 19 4 - 6 8 French piece passing at present at 15 16 -56 4 s. 6 d. Halifax (currency). British shilling - - - - - - - 1 4 Pistereen ----- - - - 1 2 French ninepenny piece - - - I - Copper : 20 British coppers - - - • - - 1 - The provisions of this Ordinance were made retrospective by a further Ordinance of 15th May 1765, so as to cover engagements outstanding which had been entered into before the beginning of the year ; and it was also made compulsory to use the new denominations or money of account. This latter provision being found unworkable, was repealed by a later Ordinance of 5th April 1768. The main feature of the above ratings was the undervaluation of gold coins, the characteristic of the mainland colonies in the last century as compared with the West Indies. The sanie principle was followed in 1777 when ** Proclamation Money" gave way to " Halifax C'urrency " in Old Canada, the rating of the dollar being reduced from 6 s. to 5 «. currency. By the Ordinance 17 Geo. III. c. 9, it is enacted that "the following species of coins shall pass current throughout this province, at and after the rates hereinafter mentioned, that is to say : Gold.* Currency. The Johannes of Portugal weighing „ MoiJore _ . - _ „ Doubloon, or four pistole piece „ Guinea _ - - - „ Louis d'or - in ^n " paying two pence one farthing for every grain of gold under weight." * It will be observed (i.) that the weights are unifurntly increased except for the Johannes and the Louis d'or, and (ii.) that the currency ratings are five-sixths ot those of 1704, except for tlie liouis d'or (^which is 8 cl. lower than its proportionate rate), and for the doubloon (which » some 6d. higher than its old proportion after allowing for increase of weight). fThis being the lowest weight at which the guinea was allowed by English law to pass current. 180 Colonial Currengt. s. d 5 — 5 6 5 6 4 2 1 8 1 ) 1 1 1 — Silver. The Spanish dollar - _ - _ _ „ British crown _ _ _ - _ „ French crown, or piece of six livres tournois „ French piece of four livres ten sols tournois „ French piece of thirty-six sols tournois „ French piece of twenty -four sols tournois - „ British shilling - - - - _ „ Pifltereen .-___- " And all the higher or lower denominations of the said gold and silver coins shall pass current in their due proportions. And the said species of coins or any of them, at the said rates, shall be deemed a legal tender in payment of all debts whatever." But it was provided that " no person shall be obliged to receive at any one payment above the value of one shilling in copper money." The result of this Act was to banish gold and to establish silver monometallism. It remains to be considered which of the silver coins was now constituted the local standard of value. As the Spanish dollar, containing, from 1772 to 1808,371*75 grains of fine silver, was worth (at 5 s, 2 d. per oz. standard) only about 4 s. 2d. sterling, the British crown, when rated at 5 «. 6 d. ciu'rency, was undervalued about 4 d. currency, and so was debarred from circulation. And a like fate attended the Spanish dollar itself, as a con« sequence of the 5 s. G d. rating of the French crown, containing (when of full weight) only 403 grains of tine silver. For, when 5 s. 6 d. currency could be legally paid in Canada by a French coin, containing 403 grains fine, debtors naturally abstained from making payment in 1 1-10 Spanish dollars, containing 408*87 grains fine. But, as 5 J pistai*een8* were legal tender for 5 s. 6 d., and as, from 1772 to 1808, the pistareen contained only 69*105 grains of fine silver, it was possible by tendering pistareens to fi-y a debt of 5 «. 6 d. currency with 380 grains of tine silver, or ess by 23 grains than the content of the French crown. Hence the pistareen was the cheapest tender, and must be regarded as theoretically forming the standard of value. But, for historic reasons, it would appear that a preference continued to be given to the French coins; and as these latter became lighter and lighter in weight by much wear, they effectively debarred better coins from local circulation. On 7th May 179G, the Legislative Council of Lowerf Canada passed the Act 36 Geo. III., c 5, the preamble of which runs as follows : — "^^ See also under Jamaica, tlie Bahamas, &c. ; and see page 305. fin 17S)1 Old Canada was divided into t lie two Provinces of Upper and Lower Canada. J The Official Gazette of 18th October 1792, contains proposals for a *' Canada Banking Company," emanating from merchant«>, &c., who had *' experienced great inconvenience in Canada from the deficiency of specie or some other medium to represent the increasing circulation of the vonntry, as well as from the variety of the money now current." Stevenson states that they " succeeded in forming a private hank only, chiefly of deposit, not of issue." Ch. XV. Canada. 181 " Whereafl it will tend to prevent the diminution % of the Bpecie circuliiting in this Province, that the same bo regulated accord- ing to a standard that shall not present an advantage by carrying it to the neighbouring countiies, and whereas by the Ordinance now in fiirce for reijiitating the curreney of this Province, an advan- tage does arise by carrying gold coin out of the same, be it there- fore enacted," &c. The following ratings were then laid down in order to retain gold : — Weight.* Current '^V "/• Gold. Dwts. Grs. £. s. d. British guinea . - - - Johannes of Portugal - - - 5 18 6 1 3 4 - 4 Moidore „ . . - 6 18 1 10 — Milled doubloon, or 4 pistole piece. of Spain - - - - - 17 3 14 — French Louis d'Or, coined before 1793 . - - - - 5 4 1 2 6 French pistole, coined before 1793 4 4 - 18 — American Eaglef - - - - 11 6 2 10 - SiLVEU. British crown - - - - - - 5 6 „ shilling - - - - Spanish milled dollar § - - - - - - 1 1 - - - 5 - „ pistareen - - . French crown, coined before 1793 •" " — - 1 - 5 6 „ piece of 4 livres 10 sols tournois - - 4 2 „ „ „ 36 sols tournois - - 1 8 American dollar _ _ _ M « - - 1 - 5 1 " And all the higher and lower denominations of the said gold and silver coins shall also pass current, and be deemed a legal tender in payment of all debts and demands whatsoever in this Pro- vince, in the same proportions respectively." For every grain of gold (in all the gold coins mentioned), above or below the above weights, 2^ d. was to be allowed or deducted in payments by tale ; but over 50 I. currency either party might require gold coins to be weighed, com])uting the gold coin of Great Britain, Portugal, and America at 89 s. currency per ounce, and the gold coin of Spain and France at 87 s. per ounce. Precisely similar provisions were enacted on 3rd June 1796 for Upper Canada, by the Act 36 Geo. Ill,, c. 1. • It will be observed tliat tlie weights nre generally reduced. t«.«M tlie old Eagle, which was of British atnndaVd fineness, and contained 247*5 grains of fine gold. ^" Equal to 4 it.nd. sterling money," observes the Act incidentally, refer- ring to Queen Anne's Proclamation of 1704. 72642. N 182 Colonial Curuency. I I Practically, therefore, what was done in the two Provinces in 1796, was (i), to raise the (light weight) doubloon 2 s. nearer to its intrinsic value, relatively to other gold coins, and (ii), to give legal currency to the new American Eagle and silver dollar. But the under-rating of Spanish and French gold continued to drain such coins out of the country ; and, " whereas by the Act now in force, the relative value of gold coins current in this Province is not accurately established," the Act 48 Geo. III., c. 8, was paSffeed in Lower Canada in 1808 ; and the similar Act 49 Geo. 111., c. 8, in Upper Canada in 1809. By these Acts the douoloon was raised by 6 d. to 3 I. 14 *. 6 d. ; the Louis d'or by 2 d. to \ I. 2 s. 8 d., and the French pistole by 3 d. to 18 s. 3 d., for payments by tale ; whilst for payments of over 20 I. currency (as against 50 /. in 1796), payment might be made by weight — (i) at the old rate of 89*. per ounce for American, Portuguese, and British gold coins, and (ii), at the increased rate of 87 s. 8^ d. per ounce for Sjanish and French gold coins. It was further provided that for every grain above or below the standard weights cited above, an allowance should be made, — (i) oi 2^ d. currency per grain for American, Portuguese, and British gold coins, and (ii), of 2^ d. currency per grain for Spanish and French gold coins. It will be observed that, though provision was made for weigh- ing gold coins, no penalty was imposed on light silver ; and this immunity continued to maintain silver coins as the real standard of value throughout Canada. Thus far the currency of the two Provinces of Old Canada was governed by similar enactments, each step being taken with a yiew to keep the under-rated gold coins i.. circulation.* * On 1st August 1812, in order to provide funds for the American Wai", the Provincial Parliament of Lower Canada pnssed an "Act to facilitate the circulation of Army Bills," to a total amount not exceeding 260,010/. cur- rency, and in denoininRtions of (i) $4 and (ii) $25 and upwards. 1 he $4 notes were payable in cash on demand ; the higher denominations bore interest at tiie rate of (5 per cent., and were redeemable either in cash or in bills on the London Treasury at a rate of exciiange to be fixed once a fort- night. The maximum issue was increased to 500,000/. by Act of IGth February 1813, and to 1,600,000/. by a further Act of 1814. The latter Act provided that " a sum no less than 200,000/. and not exceeding 500,000/. shall be in bills of 1, 2, 3, 5, and 10 dollars, such bills (being) payal>le at* those of larger denominations in bills of exchange on London, and not bearing interest, and that the holders of such bills shall be entitled to demand Army Bills of $50 and upwards bearing interest." > No notes were issued after 1st February 1816. The grand total of Army Bills issued was 3,441,993/. 10«., made up as follows : — Bills of 25, 60, 100, and 400 dollars Bills of 1, 2, 3, 5, and 10 dollars - Bills redeemed with specie only, — $4 II £. s. d. 2,793,rtl2 10 - 551,500 - - 52,131 - - 44,750 - - Total - £.3,441,993 10 - The above Acts were repealed in 1817, and the Army Bill Office was finally closed on 24th December 1820. " The introduction of this paper currency," observed a writer in the " Quebec Ch. XV. Canada. 183 Though the most over-rated of the larger coins was the light French crown, yet, as fresh supplies of this coin and its sub- divisions were impossible, it cannot be regarded as having been the real standard of value, at any rate in Upper Canada. The volume of Spanish silver procurable may oe taken to prove that, even in spite of its being rated on a par with the less valuable silver dollar of the United States, the standard of value in Canada was the Spanish dollar, or more properly the token ''pistareen. This view is borne out by the evidence given in 1857 before the Decimal Coinage Commission by Mr. Draper, Chief Justice of Common Pleas in Upper Canada. According to his testimony, the circulation of Upper Canada in 1820 consisted mainly of Spanish coins, with some French crowns, &c. (though not to the extent prevailing in Lower Canada at that date). " Of gold," said Mr. DraDer, " we saw very little except the English guinea, the value of which, by provincial statute at that time, was 23 g. 4 (i. I do not remember to have seen any other gold coin in circulation at that time." But with one and the same metallic currency, the accounts of the Province of Upper Canada were complicated by two concurrent systems : — (i) In the Halifax currency the " pound currency " was divided into 20 currency shillings, or four Spanish dollars, each rated at 5 s. currency. (ii) In the Neio York currency the imit was the " York shilling," i.e. the Mexican Real, eight of which went to the Spanish milled dollar. Twenty " York shillings " made up the New York currency pound. But as the York shilling, or one- eighth of a Spanish dollar, was equivalent to only 7| rf. in Halifax currency, it follows that the New York currency poimd was only equal to 12 «. 6f/. in Halifax currency. The New York currency system of account was " prohibited virtually by the inconvenience the Legislature attached to draw- ing bills or notes or rendering accounts in that currency." The prohibitory Statute (2 Geo. IV., c. 13), was passed in Upper Canada on 14th April 1821, and thenceforward "we had the same coins in circulation as before ; only all our accounts were kept in Halifax currency." It is, however, carefully to be borne in mind that by " Halifax currency " is meant merely that the denominations were (imaginary) pounds, shillings, and pence, with a 5 s. rating for the dollar. Out of political prejudice, as Mr. Draper observed, and in contravention of all commercial convenience, a nominal adherence to sterling was maintained pari passu with a circulation mainly composed of non- sterling coins. In Lower Canada, in 1819, by the Act 59 Geo. Ill,, c. 1, Gazi'tte " of Hist Marcli 1H1.5, " was certainly a seasoniible and judicious experi- ment, and its unprecedented success has not only been a great pecuniary savintr to Great Britain, but it has also contribiUed in no small degree to the preser- vation of these Provinces." {Sef Mr. .lames Stevenson's monogruph of 1892 treating of Aruiy Bills in elaborate detail.) N 2 184 Colonial Currency. ^ i French sold and silver coins struck since 1792 were admitted to unlimited legal tender, the gold 20-franc piece of 4 dwts. 3 grs. at ]Ss. Id., the silver ecu of 6 livres at 5s. 6 » » 4 9 5 4 14 6 As the sovereign contains 113 grains of fine gold, it was properly valued, relatively to the eagle containing 232*2 grains fine And taking the Spanish and Republican dollars at 50 d. sterling, a tolerably exact equilibrium was obtainer? between the sovereign and eagle on the one hand and those dollars on the other. But, inasmuch as the United States dollar was rated equally with the SiJiinish and other dollars at 5 «. 1 d. currency, a preference of j per cent, was given to this coin in Canada. Since 10 of these coins were procurable, over the border in the United States, for a gold eagle rated only at 50 a. currency, it may be ctmcluded that the real standard of value in Canada was now the silver dollar of the United States. In 1850 the Parliament of the Province of Canada passed the Act 13 & 14 Vict. cap. 21, "to establish freedom of banking," which (i) repealed the Acts of 1837 and 1839, &c. in Upper and Lower Canada, but (ii) re-enacted their provisions as regards the restriction of issue privileges to authorised banks only, and (iii) limited issues to the face equivalent of provincial securities to be previously deposited by the banks. So far therefore as this Act applied, the Note circulation of the Province of Canada began to be specifically secured, though fiduciary only (cf. the Notes of the National Banks of the United States). In 1851 there was a proposal to strike a "pound currency" in gold containing 92'877 grains of fine gold, with a decimal coinage in silver, subsidiary thereto. But nothing came, in Canada, of this scheme for perpetuating in gold the old 5 a. rating of the silver Spanish dollar. In 1853 by the Aci 16 Vict. cap. 158 {see also chapter 15 of th« " Consolidated Statutes of the late Province of Canada ") a further step was taken towards the adoption of the United States (gold) currency by providing that the denominations of money might be not only shillings and pence, but also '' dollars. 18R Colonial Currency. it I cents, and mills." In consequence of the old 5 s. rating of the Spanish dollar, this statutory dollar (divided into 100 cents or 1,000 mills) was to be the quarter of the fictitious "pound cur- rency." The sovereign was Htiil rated at 1 /. 4a. 4 h i l» In 1839, in consequence of the above-mentioned under-rating of the silver dollar, the local Act 2 Vict. c. 37, was passed as to paying Treasury Notes in dollars, not at their "value in the old Halifax currency of 5 *.," but at current rates, stated to have " fluctuated of late from 5 ,s. Id. to 5 s. 3 d." In 1839 the coins in circulation were stated to be mainly doubloons and Hritish silver. In 1842,* by the Act, 5 Vict. c. 8, the Provincial Legislature, to regularise the conventional ratings in force, enacted the following just currency values, taken from the Imperial Pro- clamation of 1838 (see page 27), viz. : — Currency. Sterling. Gold: £. s. d. £. s. d. Doubloonf - - - - Sovereign - - 4 1 5 - 3 4- 1 - - Silver : Peruvian ^ Columbian U^^j,^^^ _ _ Mexican [ + Old Spanish - 5 2i - 4 2 Shilling - - - Penry - - - - Halfpenny - - - - - 1 3 1 -h - 1 - - - 1 - - -} The limit of le^al lender was fixed at 40 s. sterling, or 50 s. currency, for British silver, and at 1 s. cuiTcncy for Jiritish copper coins. As late as 1846, as appears from the Act 9 Vict. c. 52, "the practice of making promissory notes . . . payable in timber, country produce, and other specific articles, prevails to a great extent in this Province." In 1859 {see 22 Vict. c. 24) public accounts were to be kept in dollars and cents, with an optional seco^ad column for £. s. d. ; and for this purpose a sovereign was to be brought to charge at 5 dollars, and silver coins in proportion. This preliminary step led in 1860 to the jjassing of the Act 23 Vict. c. 3, whereby, in addition to prescribing dollars and cents as the sole denominations * See Report of a Currency (Committee, dated 4 March 1839, and ordered to be printed on 7 March by the Assembly. f Weighing not less than 41.5 grains, and containing not less than G60 grains fine ^old. % Weigliing not less than 416 grains, and containing not lea than 378 grains of fine silver. \t^ Ch. XV. Canada. 191 of money, the following ratings of legal tender coins were enacted, viz. : Sterling. Sovereign - _ - - _ Doubloon (of 360 grains fine) - Peruvian 1 Cdumbian 1 ^^^^*'* °^ ^^^ S^^ains ^^^ ' Old Spaniahj A 10-dollar limit of legal tender was placed on British silver coins, which were rated in currency as follows : Crown ------- Half-crown - - - - . - Florin Shilling Sixpence ------- Fourpence - - - - - - For bronze and copper money the limit of legal tender wa fixed at 25 cents (!«.)> ^^^ ^'^ provincial copper pence were to b withdrawn from circulation to make way for a new local issue.e Under this latter provision the following coinages were struck at the Royal Mint, viz. : ^• c. 1 25 - 62i — 50 — 25 - m — 8 Year. Cents. i Cents. Total. 1861 . - - - 1862 - . . - 1864 . . - - 8,000 10,000 8,000 2,000 2,000 $' 10,000 10,000 10,000 Total nominal Value - $. 26,000 4,000 30,000 It will be observed that the metallic currency of the United States had not been adopted in Nova Scotia prior to its incluwion in the Dominion, and that no specific rating of the eagle had been fixed. When Nova Scotia was incorporated in the Dominion of Canada, old debts were to be paid at the rate of 73 cents of the In 1866 the Province had obtained 1,250/. in "pence," and 1,250/. in " half-pence " from the Royal Mint. By the Act of 186J) these coins were to be called in and exchanged at 60 pence to the dollar. 192 Colonial Currency. I '> « ! new Canadian currency for every 75 cents of Nova Scotia currency. III. New Brunswick. This Colony, ceded to Great Britain in 1 763, formed part of the colony of Nova Scotia until 1785, when it was erected into a separate colony. In New Brunswick, as in Nova Scotia, the currency basis was the rating; of the Spanish dollar at 5 s. In 1786,«by the Act 26 Geo. III. c. 16, the following ratings were laid down : » Gold: £. s. d. Portuguese half Johannes (or ^8) English guinea - - - - 2 1 3 4 Silver : English crown French crown Spanish dollar : ; : : ': ': 5 5 5 6 6 Dwts. grs. £. s. d. 5 6 1 3 •4 18 4 - — 6 18 1 10 — 17 3 14 — 5 4 1 2 6 4 4 - 18 — 11 6 2 10 _ Practically, the pistareen (as a " shilling ") was hereby esta- blished as the standard of value. " Whereas it will tend to prevent the diminution of gold specie circulating in this province, and whereas an advantage does arise by carrying gold coins out of the same " (savs the Act of 1805, 45 Geo. III. c. 4), the following currency ratings were enacted : British guinea - - - - - Portuguese Johannes - - - - Portuguese Moidore - - - - Spanish doubloon French Louis d'Or (coined before 1793) French pistolo (coined before 1793) American eagle*- - - - - " And all the higher and lower denominations of gold coin shall also pass current and be a legal tender, in payment of all debts and demands whatsoever in this province in the same proportion respectively." For every grain, more orlessthan the above standard weight,2^ - - _ 30,000 in 20 cent, pieces. „ 10,000 „ 10 ., 5,000 „ 5 „ Bronze 10,000 „ cents. § No subsequent coinages were executed for New Brunswick, which thus possessed on its entry into the Dominion of Canada no other coins of its own than the above |1 15,000 in tokens. It was provided in 1871 (see infra) that these coins should be a legal tender throughout the Dominion. • See also the Provincial Act IR Vict. c. 33. f It will be seen that tlif> shilling was under-valued with regard to other British coins. Probably it was in view of a flooding of the country with crowns and half-crowns, that the 7th section of the Act enabled the Lieutenant- Governor by Proclamation " to stop the circulatiuii " of any British silver coins after six months' notice. J In 1854 the colony obtained from the Royal Mint 2,000 /. in " pence '' and 1,000 /. in " half-pence " for local circulation. § Half-cents, also, are stated to have been coined {gee Atkins, p. 279) ; but they were not struck at the Royal Mini, and are, therefore, very doubtful. Possibly 8andham, whom Atkins quotes as his authority, has mistaken the Nova Scotia half-cents of 18GI and 1864. Ch. XV. Canada. 195 IV. Prince Edward Island. After its capture in 1758, this island, like New Brunswick, was annexed to Nova Scotia in 1763*, but seven years later was constituted a separate colony, on petition of the inhabitants. In a revenue Act of 1785 (25 Geo. III.,c. 4, s. 2) " lawful money of this island" is defined as being "at the rate of five shillings per Spanish milled dollar," the standard currency rating of this coin in British North American Colonies. The 18th century rating of the dollar at 4 5. 6d. "dterling" long survived in the colony. In the words of the Act of 1851, 14 Vict. c. 33 : — '* Sterling money ever since the settlement of the colony has, with few exceptions, been paid and received in the liquidation of (juit rents by the addition of one-ninth part to the sterling, in order to reduce it to the currency of this island, without having regard to the fluctuating commercial premium or discount of exchange." It is thus probable that the Orders in Council and Proclamations of 1825 and 1838 had no effect in this colony. See also recitals in the Act 16 V^ict. c. 4. The money of account was depreciated by the excessive issue of irredeemable Treasury notes, 5 /., 2 I., 1 /., 10 s., and 5 s. each. According to the Journal of the House of Assembly for 1853, " the first issue of Treasury notes was made in 1825 to the amount of 5,000 /., while in that year the net revenue of the colony amounted only to 2,500/.; and from 1825 to 1833 inclusive, additional issues of Treasury notes were successively made, to the amount of 14,000 /., which several issues amounted in the whole, on 31st January 1834, to 16,500/., and the net revenue of that year, ending Slst January 1834, was 16,925 /. ; and from that period 1,000/. were cancelled annually, until the sum of 5,000 /. was liquidated, which reduced the amount of Treasury notes afloat to 11,500/., which sum is still in circula- tion."! About the date when this reduction had been eft'ected, the undue issue (reaching 23,712/. in 1851) of six per cent. " warrants " in small amounts by the colonial Government in anticipation of revenue, led to a great depreciation of currency. For, it was stated as early as 1839 that " 20 British shillings pass conventionally as the equivalent of 30*-. island cui'rency," instead of about 24 s. before depreciation set in. And even at this higher rate it was found imjwssible to retain coin in circulation, as appears from the report of a local Commission of 1847. There * " The late Earl of Egmont, First F.orrl of the Admiralty, proposed settling the island on a feudal plan, his Lordship to be Lord Paramount of the Island which was to be divided into a certain number of baronies to be held of him every baron to erect a stronghold or castle, to maintain so many men in arms and with their under-tenants to perform suit and service, according to the custom of the ancient feudal tenants in Europe" ("An Account of i'rince Edward Island," by John Stewart, London, iJiOG). f See Acts 5 Geo. 4, c. IB; (j Geo. 4, c. 12 (authorising 10 s, notes); 11 Geo. 4, c. 1(5; 1 Wm. 4, c. 15 ; 3 Wm. 4, c. 13 (directing cancellation of 1,000/. yearly for five years) ; 5 Wm. 4, c. 11 (making issue perpetual); and 10 Vict. c. 12 (authorising exchange of old for new notes), 'i'hc maximum issue consequently remained 1 l,f)00 /. in notes of from 5 /. to 5 a. In 1845 the Home Government refused to sanction a proposal from the colony to make a further issue of 16,000 I., to be redeemed in 15 years. f \l 106 Colonial Currency. i i was (naturally) no local bank at this time ; and the convertible notes of the private banks in Nova Scotia and New Brunswick circulated in Prince Edward Island by 1852 to the amount of 150,000 /. The colony meantime had been led to favour a Government note issue, and in 1848 a Bill passed the House of Assembly providing for a specie reserve amounting to one-third of the issue ; the Legislative Council wished to increase the reserve to half, and the Bill dropped. In the next Session, though nothing was done as t note issue, a re-valuation of the current coins was effected as a preliminary to currency reform. Under the Island Act, 12 Vict. cap. 24 (which received the Royal Assent on 6th October 1849), the following currency ratings were established, viz. : — £. s. d. >) 4 3 1 16 - Dollar- - (Weighing not less than 412 grains, of which 370 Tains must he fine silver.) 10 1 6 3 - 3 - 1 - 5 6 9 6 - - 1 Doubloon (weighing not less than 415 grains) Eagle „ „ „ 258 Sovereign (*' being of full weight ") Shilling* (&c., in proportion) United States Peruvian Mexican Chilian Spanish milled Central American ^ Half dollars --_--_ Quarter dollar ------ Hair-quarter dollar - - - - - Five-franc piece ------ Pence of United Kingdom, Canada, Nova Scotia, and New Brunswick (with Is. 6d. limit of legal tender) - - - - The main features of this Table were already popularly in force, as is proved by their appearance in the table which is printed in the 1844 edition of M'CuUoch's Commercial Dictionary Art. Quebec). The ratiniis of British coins were correct relatively to one another and to the doubloon and Spanish dollar. The United States silver dollar was overrated relatively both to other dollars and to the eagle, which latter coin was undervalued about 1 s. 8 d. as against the British sovereign. Thus the United States silver dollar was made the insular standard. But, by section 3 of the Act 19 Vict. cap. 1, the United States silver dollar was ordered to be valued at only 6 s. currency lor calculating duties on imports. In 1864 a limit of legal tender on silver coins was first intro- duced, the limit being fixed by the Act 27 Vict. cap. 15, at 6 /. currency (= 4 /. sterling). In 1870 (by the Act 33 Vict. cap. 17) French five franc pieces and all the silver dollars, with their sub-divisions, were demone- tised. In 1871 it was "deemed expedient to assimilate the ** No limit of If gal tender was prescrihed for H 'itish or other silver coins. Ch. XV. Canada. 197 »> »> $ c(s. 4 86 1 20 60 24 12 I 16 15 40 3 80 90 1 1 3 24 currency of this Island to that of the Dominion of Canada and of the United States of America, and to introduce a decimal Bvstem of keeping accounts in the public offices into this country." Accordingly, oy the Act 34 Vict. cap. 5, the dollar of 100 cents waK made the imit of account, and constituted on the United States ratio of ^4.86 cents to the sovereign. The following ratings were fixed by the Act : — British sovereign - - - - crowns - - - - half-crowns shilling - - - - sixpence - - - - United States gold dollar Spanish doubloon- - - - Mexican ,,-"-- French 20-franc piece - - - Spanish silver dollar - - - Mexican „ „ - - - Pound currency - - - - Canadian silver coinage (face value). This important Act omitted to place a limit of legal tender on silver coins, and re-monetised the French, Spanish, and South American coins. These oversights would appear to have been speedily felt ; for, in the following year, the Act 35 & 36 Vict. cap. 12, placed limits of ^10 and 25 cents on the tender of silver and copper coins respectively, and demonetised all " foreign silver coins." The Lieutenant-Governor having been empowered by Section 5 of the Act of 1871 to provide a coinage of cents for the island, a million bronze cents were struck in 1871 by Messrs. Heaton and Sons, of Birmingham, under the supervision of the Royal Mint. This ^10,000 in bronze cents was the contribution of the Island to the currency of the Dominion when incorporated therein in 1873. But it was not till 1881, as will be seen later, that the Dominion currency system was extended to this colony. V. — Dominion of Canada.* A— Hetallio Money. The International Monetary Conference at Paris in 1867 led to the passing of the first currency legislatio i of the new " Dominion of Canada." f It was presumed that the 25-franc piece in gold, containing 112 grains tine, would be the standard international coin, and that the U.S. half-eagle would be adjusted to the same weight. Consequently the Dominion Parliament, in assimilating the currency of New Brunswick and the two Provinces of Canada to that of the United States, declared that it was desirable that the • By Royal Proclamation of 27 May 1867 the Imperial Act 3') Vict. c. 3 was IirouKht into operaticm, uniting the Province of Canada with Nova Scotia and Mew Brunswick to form the '* Dominion of Canada." t See U.S. and Canadian Bills in Rpt. on Intern. Coinage, 1868. 72642. O 198 Colonial Currency. H '! J I \ currency of Canada should remain of the same value as thr.t of the United States, and therefore made contingent prevision for the adoption of the basis recommended by the Conference, if such basis should be adopted ia the United States (31 Vict, cap. 45 ). The Act provided for the retention of the '* pound cuirency," as the equivalent of |4, such " pound currency" to contain 89"601 grains of fine gold, or 97 '747 grains standard gold. As regards existing contracts, 2.3 cents 22 mills of the new currency were to represent 22 cents 40 mills of old cur- rency (except in Nova Scotia, where 121 new cents were to be equivalent to 120 old cents); and the British sovereign was to pass for ^5 '04 4. The above Act of 1868 was repealed by the Dominion Act of 1871, 34 Vict. c. 4 (Chapter 30 of the Revised Statutes of Canada, 1886), which assimilated the currency of Nova Scotia to that of Ontario, Quebec, and New Brunswick, establishing dollars, cents, and mills as the currency of the whole Dominion of Canada, and adopting the gold coins of the United States for circulation concurrently Avith the British sovereign rated, accord- ing to metallic content, at ^4. 86^. Provision is, indeed, made for the coinage of special gold coins for Canada, but no such coins have been struck. The metallic currency is, therefore, on an exclusively gold basis, and consists almost entirely of eagles and other United States gold coins. British sovereigns occur at Halifax, where British troops are stationed, and an Imperial dockyard has been established. But as a matter ot fact, gold is rarely seen in circulation in the Dominion, its place being taken by Bank aad Dominion notes (see infra). If gold is required {e.g., by individuals going to England), it is obtained from a bank. As regards subsidiary coinage, reference has been made above (p. 188, 191, 194, and 197) to the silver 20-ccnt, 10-cent, and 5-cent pieces, and copper cents, struck for the Province of Canada, New Brunswick, Nova Scotia, and Prince Edward Island respectively. The total nominal value of these coinages was ^605,000. It was provided by Section 7 of the Act of 1871 that these coins (not including those of Prince Edward Island, Avhich was not then part of the Dominion) should continue to be legal tender in Ontario, Quebec, a"d New Brunswick, and from 1 July 1871, should be legal ten in Nova Scotia also. Provision was at the same time made for the striking of Dominion tokens, which were to be legal tender, the silver up to ^10, and the copper or bronze coins up to 25 cents. " No other silver, copper, or bronze coins than those which Her Majesty shall have caused to be struck for circulation in Canada, or in some province thereof, shall be a legal tender."* In 1881, by the Act 44 Vict. c. 4, the provisions of the above Act of 1871 were extended to the Provinces of British Columbia and Prince Edward Island, so that the metallic currency of the Dominion is now uniform. And in 1886 the currency Acts were consolidated by Chapter 30 of the Consolidated Statutes of 1886. * See the Act 31 Vict. c. 47, " respecting the manufacture or importation jf cop er coins or tokens." Ch. XV. Canada. 19d The subsidiary coinanje of the Dominion is struck at, or on behalf of, the Royal Mint in London, and is of the following denominations : — Silver 50 cents. „ - - • - - 25 „ „ 10 „ i» - " " ~ " 5 „ Bronze ----- 1 cent. The Royal Mintf gives ^6,189,110 as the total subsidiary coinage (inclu(^)iig the ;^450,0()0 struck in 1858) ; but this is less til an the total according to Dominion authorities, which is by them given at ^6,229,110, irrespective of the provincial coins and 20-oent pieces. On the latter basis the amount of subsidiary coin per head of the total population (which stood at 4,833,665 in 1891) is slightly over SI4. B.— Paper Currency, (i.) Dominion Notes. In 1866 the Legislature of the Province of Canada passed the Act 29 & 30 Vict. c. 10, "to provide for the issue of provincial notes" to an amount not exceeding |8,000,00) in all, viz : — (i) ^5,000,000 on general account, and (ii; ^3,000,000 in exchange for provincial debentures to be taken by banks sur- rendering their power of issues. These " Provincial Notes" were to be redeemable on demand in specie and to be a legal tender. By offering 5 per cent, compensation on existing circulation, it was hoped to arrange for the gradual surrender by the chartered banks of their power of issue ; and no new banks were to be allowed a like privilege. For securing the provincial issue, it was pro- vided that the redemption fund (up to ^5,000,000 of notes) should consist of 20 per cent, in specie, and that the balance of the issue Bl)ould be covered by Provincial debentures. Over ^5,000,000, the specie was to be 25 per cent. From the 8th section of the Dominion Act of 1868 (31 Vict. c. 46) it appears that the sura of |5,000,000 was " issued for general purposes of the Province, and a further amount for purposes relative to the surrender by the Bank of Montreal of its power to issue notes." With the above issue began the important system of what are now " Dominion Notes." In 1868, after regulating coin, the Dominion Parliament pro- ceeaed to regulate pa[)er currency. The Act 31 Vict. c. 46 (i)took over the |8,000,000 of " Provincial Notes" issued or prepared for issue two years before, (ii) offered to chartered banks the same terms as the Province of Canada had offered in 1866; and (iii) secured the Dominion issue by a 20 percent, deposit of specie up to ^5,000,000 of notes, and 25 per cent. * Tliis departure froin a purely decimal system by introducing a quarter dollar instead of a 20-cent piece was on analogy with the currency scheme of the United States. It is true that by the United States Act of 3rd March 1875 provision is made for a 20-cent piece; but as it was not readily distin- guishable from a quarter-dollar, only a limite'l number of the new coins were issued, and they have since been withdrawn as far as possible. I Twenty-second Annual Report of the Deputy Master of the Mint, 1891 (c. 664). ^ 02 • I 200 Colonial Cukkency. beyond ; the balance of the issue to be covered by Provincial or Dominion debentures. No bank except the Bank of Montreal* surrendered its issue under the scheme of 1866-68. In 1870, by the Act 33 Vict, c 10, it was provided that the normal issue of Dominion notes might be increased to ^9,00(),(K)0, to be secured as to 80 per cent, by debentures, and as to 20 per cent, by specie ; and an excess issue to any amount was allowed, provided it were wholly against specie. But, as the outlet for paper was steadily growing, the stnngency ofthe latter provision was relaxed by the Act of 1872 (35 Vict. c. 7), which hmited the holding of specie to 35 per cent, only of the excess issue beyond ^9,000,000. In 1875, by the Act 38 Vict. c. 5, the percentage of specie to be held for the issue between ^9,000,000 and ^12,000,U00 was fixed at 50 per cent., the whole of any excess issue beyond twelve millions to be covered by specie. Lastly, by the Act 43 Vict, c. 13, the maximum issue was raised to ^20,000,000, "provided that the Minister of Finance shall always hold, for securing the Tf emption of such notes issued and outstanding an amount in gold, or in gold and Dominion securities guaranteed by the Government of the United Kingdom,| equal to not less than 25 per cent, of the amount of such notes, at least 15 per cent, of the total amount of such notes being so held in gold ; and provided also that the said Minister shall always hold for the redemption of such notes an amount equal to the remaining 75 per cent, of the total amount thereof, in Dominion debentures issued by authority of Parliament." The issue may exceed ^20,000,000 by an unlimited amount, provided the whole of such excess is fully covered by a deposit of gold. Thus 85 per cent, of the normal issue may be purely fiduciary. The denommations of the notes in general circulation are ^4, $2, $\, and 25 cents. Besides these the Dominion Government issues notes of the denominations of ^50, ^100, ^,300, and ^1,000, which are chiefly, if not entirely, held by the banks to make up the 40 per cent, of their reserves required (see infra) to be held by them in Dominion notes. To superintend the issue of these notes to banks in exchange for specie, &c., Assistant Receivers General are stationed in Toronto, Montreal, Halifax, St. John N. B., Winnipeg, Victoria B. C, and Charlottetown P. K, I. The regulation of the issue is now governed by Chapter 31 of the Revised Statutes of Canada 1886, which was a consolidation of the Acts then in existence. The amount of these notes in circulation on 31st December 1891 was as follows : — Fractionals (25 cent, scrip) - Small notes (^1, $2, and $i) Large notes {$50 and upward) - Provincial notes ($5, ^10, and ^20) $ c. 184,807 60 7,058,418 25 8,953,050 00 10,494 16 Total - - 4 16,206,770 01 • The Bank of Montreal resumed its iasue on the termination of its agree- ment with the Government, t See Finance Accounts of the United Kingdom for 1890-91, pages 112-3. Ch. XV. Canada. 201 Of this total, 110,113,040 was helank in Canadaen commandite) and the Bark of BritiKh North America (the only bank whose shareholders have only a single liability). The circulation of these two banks is limited to '< per cent, of their unimp Ashanti," which make the price of gold 4/. per ounce (i.e., fjj. per "ackie" or 10 rf. per "taku"), and give the "benda" as two ounceH four ackies (0/.) and the " periquin " at two ounces eight ackies (10 /.). It is 'interesting to note that the minimum weight, the " taku," is the name of a seed, recalling the British " grain'' and the Indian seed unit of weight the "rati." Ch. XVII. The Gold Coast. 213 by Bide with the currency of gold duBt, a syatem of denominational currency was in vogue in the Colony up to as lute as 1870 at least. " A commercial nominal currency exists (wrote the Governor in 1870) by which, for general tnido purposes, the dollar* is still romputed at 4 s. fi d., and consequently eaglesf and doubloons, which contain a fixed number of dollars, are also on tli(!8c occasions paid and received at the proportionate currency, or imaginary, value.'' (But the 45. if. rating did not obtain at the Colonial Treasury, where the Idgal ratings were observed.) It seems probable that this 4 «. 6 d. rating was introduced from the Unitetl States, where Sir Isaac Newton's sterling valuation of the piece of ei'_'ht (or Spanish dollar) survived uj) to a few years ago (see p. '2()(\ note). Under this system an ounce of gold dust passed as th ; equivalent of a doubloon, ii very profitable mode of reckoning, seeing that the doubloon wa& only worth 64«., wiiilst an ounce of (standard) gold is worth .'J /. 17 s. lO^d. It was further stated in 1870 that at that date cowriesj were very little used, except in the (jastcrn districts, and no further imports of cowries were being made. The "head of cowries" in 1870 fluctuated from Is.Qd. to 2 .». 3 r/., but was most fre- quently at the former price. A few Dutch silver coins (see infra) were in occasional circulation ; but they were very few in number and their value was uncertain, as the Fantees objected to them. With regard to sterling t-ilver coins, it was stated that the natives refused all but unworn coins, and utterly declined to take pre- Victorian silver, on the ground that with the death of the monarch the coin became vjilueless. This latter 188Umi if CHAPTER XVIII. Lagos. (1861.) The legislative history of currency in Lagos will be found under the iiead (i.) uf Sierra Leone, and (ii.) of the Gold Coast Colony, Lagos having formed part of the united government of the West Africa Settlements from 1866 to 1874, and of the Gold Coast Colony from 1874 to 1886. The Gold Coast Pro- clamation of 5th August 1875 {see page 212) was expressly applied to Lagos, and formally made current in this Colony the sdver dollar at 4s. 2d., the French 5-franc piece at 3a. 10^ d., the doubloon at 64 «., the French napoleon at 15 «. 10 d., and the United States eagle at 4 Is., in addition to current sterling coins.* But though this Proclamation served its immediate purpose of removing all doubts as to what was legal tender in Lagos, it is dubious whether it was really necessary, seeing that the Order in Council and Proclamation of 10th June 1843 laying down the above currency, was made applicable to " Her Majesty's colonies and possessions in Sierra Leone, the River Gambia, Cape Coast, or elsewhere on the western coast of the continent of Africa, and their dependencies." The Gold Coast Proclamation of 1875 leas therefore in the nature of a re-enactment of the legislation if 1843. In 1879, owing to the fall in the gold-price of silver in the London market, large shipments of dollars were made to Lagos (chiefly by a Hambui-g firm), and put in circulation at a profit of over 10 per cent. On Slst July the Government balance of 10,920/. consisted of dollars to the amount of 9,200 /., mainly Mexican, but also Peruvian, Chilian, and Brazilian. On 13th May 1880, 14,548 /. out of a total balance of 15,398 /. was in dollars. And it appears from a memorial to the Governor, of May 1880, that dollars formed an equally large proportion both of the money in circulation and of private hoards. It was at this juncture that the Gold Coast Ordinance No. % of 1880 was brought into local operation by Notice of 11th May 1880, all foreign silver coins being demonetised on and after 2l8t May.f "> A local Ordinance, passed on 5th August 1862, had made the Dutch 2) guilder piece legal tender at the rate of 4 s. sterling. This Ordinance was held, however, to be invalid, like all other Ordinances of 1862, in consequence of the invalid constitution of the legislature in that .vear ; and in the i)rdpr in C6uncil of 9th January lP6:-t foreign silver coins were not rated as legal tender, the idea being that British silver coins would best berve fur the smaller pecuniary transactions of the Colony. j-The totHi number of dollars shipped to England by the Colonial QQVtii'O* nient wps 78,936, representing 16,441 I. at 4», 2 ii I lii i! .... I. 11 I H . Natal. (1843.) In 1825 the Cape Government had passed an Ordinance making British silver and copper coins legal tender in the territories then comprised in the Cape Colony. But, as the Cape* Ordinance, No. 12 of 1845, declared that no Ordinance pre- viously passed in the Cape should extend to Natal, the currency of the latter Colony was absolutely unregulated by law. As a matter of practice, however, the currency of Natal was identical with that of its neighbour the Cape ; and British coins of gold and silver (but principally the former) were the exclusive medium of exchange. The first regulation was the Government Notice, No. 15 of 1867, dated 1 February 1867, which published the Order in Council, and Proclamation of 10 November 1866, declaring the gold coins of the Sydney Mint a legal tender. But apparently no local proclamation was issued bringing the Imperial measure into operation. The great dearth of silver and copper money which prevailed throughout South Africa until quite recent years was acutely felt in Natal. Even fourteen years ago, the recognised change for a sovereign was 19 s. 6 d. up-country. Copper or bronze was almost unknown ; it was unpopular with the natives, and the only place where change was given in bronze was the Post Office. At stationers, &c., where it was occasionally necessary to sell articles of less value than a threepenny-bit, it was the custom to give cheap pencils, &c., as change. But storekeepers generally found it expedient to meet the difficulty by selling nothing under 3 d. At the present day there is a sufficient supply of bronze coins, and somewhat of an excess of British silver. One curious result of the former dearth of silver was the cur- rency of the Indian rupee, which was introduced from Mauritius bv speculators after the commencement of Indian immigration, l^he rupee passed in the Colony at 2 s., a rate which, with a falling gold-price o^ silver speedily led to large and profitable importations of these coins. The resuli was that the local banks refused to take them at their popular ratin{r, and the Colonial Government in August 1876 ordered that rupees should be refused when tendered in payment of taxes, &c. Consequently, by 1880 the rupee had passed out of local circulation. The anarchy which prevailed 'with regard to the currency of Natal was ended in 1882. By Royal Proclamation under Order * Until 1848 the Legislative Council of the Cape continued to frame laws of Natal. Ch. XXI. Natal. 229 in Council of 29th November 1881, it was provided that on and after u day to bo fixed by the Governor by Proclamation, the Imperial Coinage Act of 1870 should apply to this Colony (and to the Cape). The Governor's Proclamation of 3rd February 1882, fixed 14th February as the day for the coming into operation of the Royal Proclamation ; and, consequently, from that day onwards the metallic currency of Natal has been established on a sterling basis with the same safeguards and provi- sions as to subsidiary coins as prevail in the United Kingdom. There are no foreign coins in circulation. No legislation has taken place with respect to bank notes. The amount of coin (gold and silver) in the Colony on Slat December 1891 was estimated at 682,948 /., and the amount of bank notes* in circulation on the same date at 225,290 /., or 908,238 /. in all. As regards coin, the banks held 582,948 /. ; and 100,000 /. has been estimated for the coin in " active" circu- lation (exclusive of the banks). Taking the populationf at 544,000, the gross figures are equivalent to 1/. 5 s. in coin, and Ss. Sd. in notes, per head uf the population. Taking the European population alone, the note circulation represents nearly 4 /. 16». |)er head. The "active" circulation in coin works out at only 3s. Bd. i)er heod of the total population (native as well as European), m addition to the above 8 s. 3 d. in notes, or about 12 jr. per head for coin and notes together. " Gape notes have no circulation in Natal. t Only some 47,000 were Europeans. i, v. 72642. Q 230 t! ':ii( Colonial Currenct, CHAPTER XXII. Capk of Good Hope.* (1795.) Likp: Ceylon, this colony passed at the close of the last century from Dutch into British hands ; and, as in the case of Ceylon, so in the Cape, the Dutch East India Company had been constrained by their financial exigencies to resort to the ruinous expedient of paper money. The standard coin at the Cape, as in other Dutch Colonies, was the Hilver ducatoon, with copper stivers in sub- sidiary circulation ; but a variety of foreign coins, gold as well as silver, were introduced into concurrent circulation with the Dutch coins by ships touchiiip^ at the Cape on their way to and from the East, to which the Cape was a stepping stone. Of these foreign coins the chief was naturally the Spanish dollar, the universal coin prior to the present century. But materials are not forthcoming to trace in detail the ratings in force at different dates in the colony under Dutch adminifltration. Nor, if such materials were forthcoming, would the information be of other than secondary importance, in comparison with the early history of paper currency at the Cape. It was in 1782, during the war, that Governor Joachim Van Plettenberg issued the first paper-money in the colony. The denomination adopted was not the ducatoon, which was the standard coin, but the " rix-dollar," a money of account, equal to 8 skillings or 48 stivers (cf. Ceylon). In June of 1782 the issues amounted to Hds. 159,607. 6. 4 , the notes being for various denominations ranging as low as two stivers. In 1793, when only 200,000 rix-dollars in paper were in circulation,! the Lombard Bank was floated with a capital of Rds. 680,000, which was lent to the ('olonial Government in return for new paper rix dollars ; and by the date of the first surrender of the colony to Great Britain (16th September 1795), the total paper issues, including the 680,000 Rds. representing the Bank's capital, amounted to Rds. 1,291,276. According to Grant,:{: after the ** For information respecting the modern currency of the Cape, I am in- debted to Sir Charles Mills, k.c.m.g., c.b., the Agent-General for the Colony. t Total issues, 1782-4 Redemptions in specie and bills, 1786-9 Further issaes in 1792 Total Rds. 926,219-46 825,904-34 99,315-12 - 100,084-36 - 200,000- X " Consideriitions on the State of the Colonial Currency and Foreign Exchanges at the Cape of Good Hope" (Capetown, 1825); see also J. B. Ebden's (anonymous) " Copies of Corrospondence relative to the Currency of the Cape of Good Hope" (Capetown, 1825). Ch. XXII. Capk of Good Hope. 231 capture of the colony in 1795 tlie (paper) " rix-dollar was in such request that General Craig could not obtain a sum required for the * extraordinaries' of the army, though he offered the bills at par, that is at 4 *. the rix-dollar, the value at which they passed in circulation. He was, therefore, <»l)li. ' ij/viual i tS.' 1 241 AU8TKALA8IA. i: ^^ .—JWt -U., ^ ' — 242 Colonial Currency. m I' f I! I CHAPTER XXIII. New South Wales. (1788.) There is a marked parallel between the early history of the currency of the senior Australian Colony and that of the Plan- tations in the New World some two centuries previously. In the first years of New South Wales, as of the American and West Indian Plantations, there was a dearth of coin ; exchange was by barter ; when coin did begin to flow into the colony it was foreign, not sterling, coin, and this foreign coin (which here, as in the New World, was the Spanish dollar) was over- rated in terms of sterling, and so originated a system of " denominational currency," comparable in all respects with the " currency " systems of the older colonies in the New World. The chief difference lies in the prevalence of private promissory notes in the early years of New South Wales. The currency history of the colony may conveniently be divided into four periods ; the first extending from its foundation in 1788 to 1822, the second from 1822 to 1829, the third from 1829 to 1851, and the fourth from 1851 to the present dny. The first period was an age of barter and tokens ; the second period was marked by the supremacy of the Spanish dollar as the actual standard and measure of value : the third saw the substitution of a sterling standard ; and the fourth began with the discovery of gold in Australia, and is characterised by the establishment of a Branch of the Royal Mint at Sydney. I 1; 1 1 ■■ i ^ 1 ff ' i' fl 1 1 '\ \ i 1 \ 1 1 1 .i f ! IP (i.) 1788-1822. The early records of currency are meagre in the extreme ; a circumstance readily explicable by the facts of the early settle- ment of the colony. David Collins' " Account of the English Colony in New South Wales" (1802), shows that a certain amount of coin reached the colony through the military and the free settlers. This coin was mainly of the denomination of dollars, the universal coin of the day, with rupees and a few Dutch coins.* * 1792. " Mary Bums was robbed of dollars to the amount of 11 1." 1794. " The convicts have been seen playing at their favourite games (cribbage and all fours) for six, eight, and ten dollars each game ; and those who were not expert at these, instead of pence tossed up for dollars." 1796. " Several articles having been brought for sale in the 'Marquis Corn- wallis ' a shop was opened on shore. As money or onlers on, or by, any of the responsible officers of the colony, were taken at this shop for gootls, an opportunity was afforded to some knowing ones among the prisoners to play off not only base money (as counterfeit Spanish dollars and rupees) but forgecf notes and orders." Ch. XXIII. New South Wales. HS But the occurrence of these coins must not be taken as evidence of their general circulation. The real currency of the infant colony consisted of the Commissary's "store receipts," given in acknowledgment of supplies furnished, and eventually convertible into bills on the London Treasury at par. These receipts passed from hand to hand and constituted a paper currency which could be at any time exchanged for a sterling bill. But even this currency did not circulate throughout the whole community, lor Government fixed in terras of sterling not only the prices ol convict labour, but also the prices of all common articles ; hence exchange was by barter. The first record of currency regulation in Nt / South Wales 18 the Governor's Proclamation of 19th November 1800, which states that "whereas representations of the want of small money here have induced His Majesty to take into His gracious consider- ation the immediate relief from this great inconvenience to all classes alike of His Majesty's subjects in this colony, a quantity of copper coin has been received in His Majesty's armed vessel * Porpoise,'* and will be circulated by being paid for grain and animal food supplied " {i.e., to the Colonial Government). The Proclamation goes on to prescribe, that the coins weighing 1 oz. were to pass at 2 d. each ; and in order " that no one may plead ignorance of the rate or legality of this or any other of the coins circulating in this colony (of which it does not appear that any regular Proclamation has ever collectively been issued)," the Governor published the following "table of all the species legally circulating in this Colony, with the rate attached to each at which they shall be considered, and be, a legal tender in all payments or transactions in this Colony. When a sufficient quantity of copper coins is received in the Colony (of which notice will be given), no private notes or cards will be allowed to circulate." And in order to discourage the collection of the new copper coin for large payments, a. 5 I. limit of legal tender was imposed. Table of specie current in New South Wales. Guinea Johanna - Half ditto - Ducat Gold Mohur Pagoda This extraordinary table Avas based on the assumption that a dollar was really worth 5 s. in sterling, a rating which at the time was in vogue in many British colonies, but was never understood to imply that this coin was actually equivalent in value to the * The amount of copper coin received in the " Porpoise " was only 550 /. " The circulation of this money would be attended with the most comfortable accommo- dation to the people in their various dealings with each other," wrote David Collins in 179'J, when the arrival of the coin was "daily looked for." See Macpherson's "Annals of Commerce," iv.,501,whereaVoteof Parliament (fi97/. 7#.) is mentioned as having been taken " for a coinage of copper for New South Wales." £. s. d. £. *. d 1 2 - Spanish dollar - - 5 - 4 - - Rupee - - - - 2 6 2 - — Dutch Guilder • - 2 - 9 6 English Shilling - - 1 1 1 17 6 Copper Coin of 1 oz. - - 2 - 8 — 'il li M I I ' » 1 i i '■ i I ;■<...' 244 Colonial Cubrenot. Rmount of stcrliop coin nominally denotec {»ee under Canada, &c.). The equally conventional ratings of ^ «. 6 d. for the Sicca rupee, and of eight dollars for the half-jphannes {see under West Indies), add to the confusion. The most over-rated coin was the universal Spanish dollar : but the economic conditions of the colony render it futile seriously to examine the theoretical effects of the several ratings. Barter, and the circulation of store- receipts and private paper, continued to rule the currency. On 3rd August 1803 the Governor issued a Proclamation against forging private promissory notes. On 30th June 1810 Governor Macquarie was constrained to issue a further Procla- mation, from which it appears that "the forgery of promissory notes in writing for the payment of small sums of money hatn of late times been much practised, to the subversion of common truth and justice, the prejudice of trade and credit, and to the manifest injury of industrious individuals." It was now provided that all promissory notes of 5 /. and under should be u{)on printed forms. Writing on 2nd October 1823, with reference to the currency of New South AVales in these early years, Mr. J. M' Arthur (after stating that there was no export until a few years before 1823, and that exchange was necessarily by barter in the first instance) goes on to say, that "in process of time acurreucy, con- sisting principally of personal promissory notes, was established in the colony. The numerous issues, however, of these notes caused great inconvenience from frequent failures and forgeries, and much confusion in the different modes of buying and selling, according as the payments were made in notes, entitled to greater or less credit. With a view of diminishing these evils. General Macquarrie imported a considerable quantity of dolars from India, and substituted them as a currency." The action of the Governor to which Mr. M' Arthur refers was carried out by the Proclamation of 1st July 1813, the pre- amble of which recites, that " it has been deemed expedient to send a quantity of dollars* to this colony for the purpose of assisting and improving the circulating medium thereof." The Proclamation goes on to state, that the Governor had " thought proper to direct that a small circular piece of silver shall be struck out of the centre of every such dollar, which, together with the remaining part of every such dollar (subsequently known as the ' holey dollar ') is intended to be issued and cir- culated," It is next provided that " each such small circular piece of silver (subsequently known as a 'dump'), on one side of • Writing on 28th June 1813, Governor Macquarie reported that on 26th November 1812, 10,000 dollars had arrived from India by the "Samarang." " Having deemed it essentially necessary to adopt every possible precaution to prevent this useful supply of dollars from being exported or carried out of the Colony, I gave immediate direction for constructing a machine here for the purpose of stamping, milling, and cutting a piece out of the center of each dollar, previous to my circulating this specie in the Colony. . . I found it necessary to engage to receive these coins back again into the Treasury here at their current value, at the expiration of every two years, and to grant then bills for them on England, having ascertained that the People here in general would not be satisfied to receive them in payment at the value I have put upon them without my giving them thig assurance." Ch. XXIII. New South Wales. 945 which is impresried the figure of a Crown, the words * New South \N ales ' above nuch iinpreasion, and the Hiiures 1813 beneath the same, and the other or reverse side thereof are imiircssed the worda ' Fifteen pence,' and having the ed^jes grained, 'shall be current within the territory rt)r the sum of fifteen pence of lawful money of the United Kingilom of Great liritain and Ireland of English value and currency. Every such larger piece of silver, ot» the upper part of one side of which are impreesed at its inner rim the words ' Five shillings,' and at the lower part of the said coin on the same side is also impressed the lij-ure of a branch of laurel, and on the reverse side of which, at the upper part of the said inner rim, are impreswetl the words 'New South Wales,' and at the lower part of the said rim the figures ' 1813,' the edges of the said inner rim being urainod on both sides, shall be eurrent within this Territory, and every part thereof, for the sum of Five Shillings lawful money of the United Kingdom of (Jreat Britain and Ireland, of Knglish value and currency." Under the same proclamation of 1813, every master of a vessel was U) enter into a bond of 200/. not to ex|)ort, or allow to be exported, the new silver coin. And, more injportant than this, after 31st December 1813, "it shall not be lawful for any person or persons to issue or negotiate within this territory any promissory notes whatsoever for any sum of money under the sum of 2 s. 6 rf." "Government," says Mr. M 'Arthur, "was at all times ready to receive these silver coins at their current price, and to give in exchange bills on the Treasury for sterling money payable 30 days after sight." This statement has reference to what was the dominant factor in the local currency, viz., that Government, the great consumer, fixed from time to time the rates at which it would purchase the commodities it required, and paid for these commodities either in Treasury bills or in current tokens (copper or cut silver), which could at any time be exchanered for sterling bills at their current ratin-s. Con- sequently, the assmned standard was sterling ; but the metallic currency consisted solely of silver and copper tokens, maintained at an exaggerated price by the extravagant rates at which Government sold its sterling bills. In the words of a letter of 10th May 1822 from the Bank of New South Wale-^ (which was founded in 1817), "since the first establishment of the colony, the purchases made by Government from tiie settler of the provisions and other articles necessary for the service of the Government have uniformly been paid for in money of stcrlinff denomination, the Government fixing the maximum price at which they would make such purchases and such payments. The Spanish dollar has hitherto circulated at the nominal value of 5 s. sterling, being about 16§ per cent, above its real sterling value as bullion. When the dollars were few in number, and received indiscriminately with the stamped Government 5 s. token by the Commissary, who gave for the same bills on the Treasury at their nominal and not real value, no injury or loss 72642. R • t 246 Colonial Currency. ; 'I ' "I iii : IS t ! i I nnil 1 ' could be sustainod by those persons who furnished the supplies required from time to time by Government." ' ." Side by side with the token coins which formed the whole of ihe metallic currency of New South Wales prior to 1822, there ■was, as has already been seen, a large and growing circulation of private promissory notes. From proclamations of 27th November 1813 and of 23rd and 25th November 1816, it appears that " rings " were formed for the circulation of notes, and that much of this so-called " currency " tended to express the "rate of exchange," and so to create a •' colonial currency " differing from eterling. These practices were forbidden. From Mr. M'Aithur's Tetter already quoted, it appears that the foimda- tion of the Bank of New South Wales in 1817 "had certainly the good effect of putting an end to the ' currency,' or issues of personal promissory notes ; but some of the emancipatffd convictf having become Directors by the desire of General Macquarrie, the ' evil, consequences soon became visible.^' On 7th December 1816, "in consideration of the present state and value of the co[)per money now in circulation," and with a view to the complete establishment of " sterling " currency only, the Governor ordered by proclamation that on and after Ist January 1817 the British coj)per coins should pass at their face value only ; but before that date they might be exchanged at the Commissary's office in Sydney for three halfpence per penny. The old /. limit of legal tender for coj)per money was retained. (ii) 1822-1829. *• Within these last three months," wrote the Bank of New South Wales on 10th May 1822, "dollars to a very alarming amount have been imported into the colony, the importers induced no doubt by the knowledge that their circulating value was greater here than in any other part of tlie world." This statement has reference to an entirely new departure in the regu- lation of the local currency by the new Governor, Sir Thomas Brisbane. With him originated Avhat was known at the time as the "dollar system." Sir Thomas Brisbane was an ardent believer in the Spanish dollar, and believed that, in making it the standard of value in the colony, he was placing the currency on the soundest basis. The steps by which this important change was effected w^ere as follows : — In the first place a large importa- tion of Spanish dollars (no less than $ 400,000, according to a letter of loth Aftgust 1826 from the chairman of the Chamber of Commerce) was made under contract from India. These dollars were issued by the Commissary in payment for supplies at the regulation rate of 5 s. per dollar. Ou 9th May 1822 a general order was issued that colonial duties and Government quit rents would be received in these coins at the like rate. Thus, by stopping the sale of Government bills, and by payment in the newly-imported dollars, a metallic circulation had been established. This done, the Commissary put up his bills to public tender, and " as the exports were stil much less than the irajiorts " (or rather, because of the over- valuation of the dollar Ch. XXIII. New Sooth Wales. 247 at 5 s.), " the merchant was compelled to offer a high premium for tliese bills. The first were sold from 2J to 5 per cent., but the premium rose in a few months to 20, and was in May 1 82.3 at 25 per cent," the latter rate being equivalent to about 4*. sterling per dollar, or about 4 per cent, below the sterling price of the day in London. Pursuing his new policy. Sir Thomas Brisbane sought, by the repeal on 27th June 1822 of his predecessor's proclamations of 23rd and 2oth November 1816, to put a stop to all barter in the colony. And on 25th July 1822 he ordered by proclamation that the "Government dollars" of 1813 should be exchanged at their rate of issue, if tendered for exchange within six weeks. On 15th November 1822, a further proclamation directed that the " dump" might be presented within six month's at the Com-- missariat for the purchase of bills, but that after that period they would be current "for one-fourth part only of the Spanish dollar," i.e., for six months, bills at par would be given for the dump rated at 1 s. 3 d., but afterwards the dump would have to compete with Spanish dollars for the purchase of bills at a premium. The "hol^y dollar " of 1813 was re-issued at the end of 1822, and passed current, imder general order of 3l8t December 1822, " for three-fourths of the Spanish dollar." Hac'i the Governor stopped here his policy would at least have been consistent, if mistaken ; but, not content with dislocating trade by a sudden change of the standard of value, he proceeded to introduce an unjust and vexatious complication by the follow- ing general order of 5th February 1823 : — " The Spanish dollar will commence to be taken in payment of the colonial dues, imated in sterling money, at the highest rate for which it mav have been received by the latest public tenders made to the Commissariat. Henceforward the accoimts of the naval officer and colonial treasurer Avill be kept in dollars and cents ; and the salaries chargeable to the colonial revenue will be converted into the currency at the exchange of five Spanish dollars for every pound sterling. The copper coins of Great Britain will in future pass in the colony for as many cents as they are denominated to contain halfpence." This last regu- lation made the " dollar system " intolerable. The same dollar which was paid out by Government (i.) at 5 s. for purchases (ii.) at 4 s, 8 d. to the troops, and (iii.J at 4 s. to public officers for salaries, was received back by the Colonial Government at a fluctuating exchange-rate. And the Bank declined to receive t'-.e dollar for more than 4 s. The inconvenience of the new " dollar system ", and the con- comitant withdrawal of the benevolent rate of exchange previously allowed, raised a loud outcry in the colony. As early as 2lst August 1822 (as appears from the "Sydney Gazette " of the 30th of that month), a public memorial wan addressed to Sir Thomas Brisbane against " the system lately introduced by the Commissariat in paying for supplies required by Governmen*: in Spanish dollars." The memorial goes on to deprecate the importation of more Spanish dollars, and begged b2 ; ( "I! I I I' I 248 Colonial Currency. '! r1 II' ■n for a return to the old system under which " store receipts ^ were given, which were exchangeable at par for bills at 5 s. per dollar. And, as the exchange rose by leaps and bounds till it found its just level, the outcry grew louder still. After a pro- longed resistance, worthy of a better cause, the Governor oiv 13th September 1824 ajjpoiuted a committee to fix a definite rate at which all the public offices should receive and pay the Spanish dollar. On 21st September they reported that the intrinsic value (?>., on the obsolete " mint-price " of 5 *. 2 d. per ounce) was 51 '79 6'., and recommended a rating of 4 s. 4 rf., the British halfpenny and shilling to pass for 1 and 20 "cents." and the colonial dump and holey dollar to pass for 25 and 75 " cents " respectively.* As a result of the introduction of the dollar into general cir- culation, it became necessary in 1824 to pass an Act " to make promissory notes and bills of exchange jtayable in Spanish dollars available as if such notes and bills had been drawn payable in sterling money of the realm." And it may here be stated that in this year the total amount of British silver and copper money together did not exceed (^by estimate) some 400 /., and this was rarely seen in circulation. The great mass of the metallic currency was composed of Spanish dollars. In 1825 (see page 23) the Imperial Government produced its measures for introducing British silver into general circulation in the colonies. The Treasury Minute of 11th February 1825 speaks of the variety of rates of currency of the dollar as ■" highly objectionable," and exjiresses the opinion that " it would be expedient to provide that all debts which may be contracted, and all engagements which may be made, after a day to be named, for the payment of money in the colony, should be dis- charged either m British silver money, or in Spanish dollars at 4 s. 4 (I. each, at the will of the debtor ; and that all engagements contracted jjreviously to the day to be so named, either by the Government or by individuals, should be respectively discharged and liquidated by the payment of 17 s. 4 d. in the pound for the nominal amount of the debt, either in British silver money, or in dollars computed at 4 s. 4 <^. each; by which means a debt already contracted will be discharged by the same number of dollars as at present." The Imperial scheme was brought into operation by the Order in Council and Proclamation of 23rd March 1825 {see page 425). The idea was cordially received by a public opinion now bitterly opposed to the dollar. Accordingly, the Treasury suggestion was adopted, and an Act passed on 12th July 1826 (i.) repealing the Act of 1824 respecting notes, (ii.) prohibiting the issue of notes of a less denomination than twenty shillings, and (iii.) enacting that 4 s. 4 d. in sterling money — the mistaken rate, it will be ob- served, which the colonial connnittee had hit upon independently — should be deemed equivalent to a Spanish dollar. According to • It lian not leeii foi.ml possiljlu to trace what iictioii fi)llo\ve >.♦ >} •j »» »» >» 1 »» » >» P*^' 3.J „ „ „ 2 per cent, premium. Ch. XXIII. New South Wales. 251 in (iv.) 1851 to the present Day. At the beginning of 1851 the total circulation of the colony, both in notes and coin, was estiniared not to exceed some 300,000 /. The discovery of gold produced a sudden ami revolutionary change in the internal trade. In a country in which a very small circulating medium had been required, in proportion to its extent and wealth, in consequence of the scattered condition of its population and the simplicity of their mercantile transactions, the concentration of numbers of people at the '• diggings " gave rise to an active retail trade, and the want of coined money was immediately felt. It was natural that, with the means at hand in so great abundance for furnishing the material of money, a demand should arise for a mint at which it might be coined* Nearly half-a-million pounds' worth of gold was gotten in New South Wales alone during the first year of the " gold fever ; " but there was not coin in the colony with which to buy all this metallic wealth, and gold dust of over the standard fineness was commonly sold in Sydney for about 3 /. per ounce. To meet this crisis a committee was appointed on 18tn November 1851 by the Legislative Council, '* to rejjort upon the expediency of establishing in Sydney an assay office and mint." On 16th December 1851 the committee reported (i.) thnt an assay office would be of '* little, if any, value to the colony," but that (ii.) " if Her Majesty would be graciously pleased to establish a Mint, or branch of the Koyal Mint, in Australia, at which unassayed gold, or gold in bars or ingots, miglit be exchanged for the current gold coin of the realm, on payment of an establiplied charge, much good might be expected to result to the interests of all producers of raw materials in the colony." Acting on the recommendation of the above committee, the Legislative Council addressed the following Petition, on 19th December 1851, to Her Majesty the Queen : — J To Her Most Gracious Majesty the Queen. The humble Petition of the Legislative Council of New South Wales: Showeth, That large quantities of gold have recently been discovered in Your Majesty's colonies of New South Wales and Victoria, * The following arc the maximnm and minimum rate8 of exehange on London 1851-58 :— 1851 1852 1868 1854 1856 1856 1867 1858 H per cent, pruniiiun to 5J per cent, discount. 8 „ discount to 12 ,, „ par - - - - to 8 „ „ H \)cr cent, premium to | „ „ " )» •» »» ■' >i »» (The year of the Mint's opening). 1} per cent, premium to 1^ per cent, discount. 2 „ „ „ par. i II » i pur cent discount. H '\ ! r I ! II M!! 252 Colonial Currency. by which the wealth of Your Majesty's subjects will be increased" by many millions of pounds sterling annually. That the attrac- tion of labour ♦^o this new employment, and the rate of exchange consequent ujjoii the wonderful disproportion between the colonial im])orts and exports, have seriously discouraged the former staple productions of these colonies, and menace them with destruction, which, Your Majesty's petitioners humbly represent, wouhl be no less ruinous to individual flock-masters than injurious to Your Majesty's Imperinl interest. That this evil might be diminished by the exercise of Your Most Gracious Majesty's i)rerogative in the establishment of a branch of Your Alajesty's Royal Mint nt Sydney. That the facility thus afforded to Your Majesty's subjects of converting their gold into current coin of the realm would give additional value to th? result of their labour in its discovery, and prevent the existing unnecessary depreciation of the other produce of the colony, without any undue interference with trade or the rights of any portion of Y^our Majesty's subjects. That your petitioners hiunbly conceive that the accident of their remoteness from the seat of Your Majesty's Government, which has not diminished their attachment to Your Majesty's person or their obedience to Your Majesty's laws, ought not to deprive them of similar advantages to those which flow from the exercise of Your Majesty's authority in favour of Your Majesty's subjects residing in Great Britain. That an increased facility of coining Australian gold into current coin of the realm, by giving encouragement and stability to the trade and commerce of Your Majesty's Australian colonies, and additional value to Your Majesty's j)ossessions in that part of the globe, would serve to perpetuate those feelings of gratitude for Your Majesty's con- sideration and reliance on Your Majesty's justice which are the surest bonds of connection between these colonies and the British Empire. Legislative Council Chamber, Sydney, 19 December 1851. Charles Nicholson, Speaker. Meanwhile, some of the principal bankers, &c. connected with New South Wales had addressed Earl Grey, then Secretary of State for the Colonies, who on '20th February 1852 informed tlie Governor that, if, after consulting with his Executive Council, he should report that it was desirable to establish a mint at Sydney, and that the expense of doing so could be provided for without inconvenience to the colony, his Lordship would be prej)ared to take the requisite steps for that purpose, it being understood that the mint so to be established would be regulated by Order of Her Majesty in Council, and would be considered suboidinate to *he Royal Mint. Lord Grey at the same time forwarded to Governor FitzRoy a Report of the Royal Mint, furnishing two estimates, one for a mint consisting of a single press, worked by animal power, capable of coining 5,000,000 pieces annually (the estimated cost of which, including the Ch. XXIII. New South Wales. 253 building, was 10,000/.), and the other for a mint comprising three presses, worked by steam, of a capacity calculated for the coinage of "all the probable yield of gold in Australia," and costing 30,000 I. The Executive Council advised on 26th July 1852 that the establishment of a branch mint would be of the greatest advantage to the interest of the colony ; the Governor con- curred ; and the Le«hment of a Mint at Sydney, whilst useless to Victoria, would revive " the spirit of discontent so long fostered by the subjection of Victoria " to the senior colony. Though the Sydney coins were ordered to be made current throughout Australasia by the Order in Council and Proclamation of 18thO(!tober 1854 (see ])ago441), it was not until 14th July 1857 that, by ])rocIainati()n of that date, (gover- nor Sir H. Barkly gave effect in Victoria to tho Imperial legislation. And in the same year the ('olonial Legislature passed the Act 21 Vict. No. 15 making the Sydnc)- coins "current and lawful money within Victoria together with and in like maiunu' as current coins of the realm." (The same i)rovision was repoafed in 1864, and again in 1890, as Section 29 of the Banks and Currency Act, 1890, 54 Vict., No. 1164.) Prior to 1857 Sydney gold had been subject to an export duty in Victoria as not being " current coin of the realm." * Althougli under the terms of the Treasury Minute of 22nd March 1853,tit was open to Vi(!toria to press for a local Mint, notwithstanding the opening of the Sydney Mint, no action was taken for some years. In the words of Sir li. Barkly on • See the prccccUnu; clinpter, deiiling willi New South Wales, with refer- ence to the delay of Victoria in recogiiimnij; us lej^al tender the coins struck at the Sydney Mint. f Printed injra at puge •iHG. 8 2 I , 1 , Li- 1 . \i !jip. * til If II » ■! 1 ri' 1 f 964 Colonial Currency. 16th December 1859,* "It was generally considered, indeed, that Victoria would enjoy nearly all the advantages of a local Mint, without the expenses attendant on its maintenance, which it was anticipated would largely exceed the receipt, so soon as the vacuum caused by the re-exportation of the enormous amount of British geld coin sent to the Australian colonies in the early days of the gold diocoveries bad been filled up by the Sydney coinage. When however it appeared, by Parliamentary Returns, that, on the contrary, the Sydney Mint was becoming not merely a self-support- ing, but a profitable ii)stitution, the project was again discussed here (i.f., in Victoria) ; and looking to the great increase of political power conferred on the gold-fields by a recent Act, altering the electoral divisions, it is not surprising that at the general election a demand for a similar establishment in Melbourne became quite irresistible, as proved by the unanimous assent of both Houses of Parliament to the address now sent." The address in question, which was dated 14th December 1859, prayed not only that a branch Mint might be established at Melbourne, but also " that gold coins issued from such branch of the Royal Mint may be rendered legal currency throughout the British Empire." This latter proposal was rejected by the Home Government at the end of I860,t but was, conditionally, agreed to by the Imperial Parliament in 1863, though in connection only with the Sydney coins, by the passing of the Imperial Act 26 & 27 Vict. c. 74 (see page 442), the principle being, however, extended to all colonial branch Mints in 1866 by the Act 29 & aO Vict. c. 65 (p. 444.) While the question of the status of colonial gold coins was being settled, the proposal (or a Mint in Victoria remained in abeyance. It was not till 1869 that, the Colony having in 1868 made permanent provision of 20,000/. a year for its Mint by the Act 31 Vict., No. 307,t the Order in Council of 7th August 1869 {see page 29) was passed, authorising the establishment of a branch of the Royal Mint at Melbourne to strike, under Treasury control, " gold and other coin in accordance with the standard of weight and fineness of the currency of this realm, and of the same design." Also on 7th August 1869 a Royal Pro- clamation {see page 447) was issued, under the provisions of the Imperial Act 29 & 30 Vict. c. G5, declaring the gold coins to be struck at the Melbourne Mint "a legal tender for payments within all j)art3 of Our Dominions in which gold coins issued from Our Mint in London are at the date of the issue of this Our Proclamation a legal tender." This Proclamation was published by the Governor in the " Victoria Government Gazette " of 5th November 1869, and so brought into local operation in Victoria. Although it does not appear tliat the Proclamation was similarly brought into operation in any other Colony ; yet, inasmuch as the Imperial Act itself prescribes that coins specified in Royal Proclamations thereunder shall, "upon such Proclamation being issued," become a legal tender in all Colonies where the British Bovcreign was then a legal tender, it seems clear that local publi- '^ Parliamentary Paper No. 421 of 1«62, pj). Hl-2. t Parlinmentaiy Paper No. 4'21 ot iWii?, pi>. 1!4-G. JTlie Act now in force i^ tlie ConsoliJatetl Mint Act, 10!)0. U'l Ch. XXIV. VicTouiA. 265 cation of the Royal Proclamation was not essential in order to give legal currency to the new coii) in the Colonies affected. In 1871, by the lioyal Proclamation of 24th March of that year {seepage 453;, which was promulgated in the Colonyon 21st June 1871, currency was given in Victoria to the new gold coins ordered to be struck at the Sydney Mint. The Colony had now obtained the formal recognition of the two objects which it had had in view in 1859 ; and thenceforward no legislation has been passed affecting the metallic currency, with the exception of Imperial provisions for new designs of gold coins and for the withdrawal of pre- Victorian gold. The new Mint, of which the site cost 8,500 /., and the buildings, &c., 68,350 /., opened on 12th June 1872. The charges made for coinage were low, being only 3 d. per oz. for deposits of over 5,000 oz., whereas the Sydney charge at the time was 6d. per ounce standard for deposits ot over 1,000 oz.," in addition to the charge of 3 d. per oz. imposed by Her Majesty's Proclamation of February 1866 on the coinage of gold." At the end of 1873 {see list of charges at successive dates, at page 463) the Mint charge was reduced to 3 d. per oz. standard for all deposits over 1,000 oz., and this charge was halved in 1875. Under the regulations of 7th October 1878, which are still in force, the charges are as follows ; — Over 1,000 oz. 1^ d. per oz. Under „ „ 2 d. ; minimum charge 4 s. These charges are calculated on the gross weight of the deposit before melting And here it may be remarked that Victorian gold in the crude state is worth as much as 4 /. per oz., so that the Mint charge is lighter tlian it would be if the charge were per oz. standard worth 3 /. 17 5. 10^ d. The weight of gold brought to the Melbourne Mint between 12th June 1872 and 31st December 1891 was 12,829,77288 oz., equivalent to a sterling value of 51,352,820 /. lis. Id. This represents an average receipt jier annum of some 658,000 oz., or 2,633,500^., of which (roughly) ^ths was the produce of Victoria itself, and J,th came from New Zealand. During the same period of 19^ years the Mint issued gold coin and gold bullion in the following proportions : — (i.) Coin: £. Sovereigns _ - _ 45,635,541 ■ - - 555,614 Half-sovereigns (ii.) Bullion £. 45,913,348 5,436,599 Gross Total - - - £.51,349,947 From this should be deducted the light gold coin remelted at the Mint, viz. - - - - 34,989* Leaving a Net Total of £.51,314,958 * The deficiency on pre-Victoriiin coins withdrawn was made good out of Imperial funds. 266 Colonial CunuENCY. The Mint charges for the same period were as follows : — Mint charges on gold 88,183 From sale ot silver and other sources - - 99,823 Total Revenue - - - £. 188,006 i 1 I » •■ 1 11 /i I. ii ■ 1 ii il i » (1 1 i 1 ' 1 ) i !j| II M As the total cost of tlie Mint since 12th June 1872 to 3l8t December 1891 has been 299,1 "3/., whilst the total revenue has only amounted to 188,006 /., the net cost of maintaining the Mint has been 111,167 /., or 5,700/. per annum on an average. For 1891 the net cost to the Colony was 3,612 /. The Deputy Master of the Melbourne Mint has made an endeavour* to estimate the gold coin in Victoria on the basis of the coinage, adding the imports and deducting the exports of gold coin, from 1873 to 1891 inclusive. The "balance apparently retained in the Colony " (in respect ot those years) is stated by Mr. Anderson at 7,638,641 /. (or 16*91 per cent, of the total coinage during the same period). He adds " the amount actually retained is probably much less than this, for considerable quan- tities are taken away by passengers for Europe which do not appear in the Custom House Returns, and which probably are not counterbalanced by sums brought in by incoming passengers, the former being only at the beginning and the latter at the end of their journey. 'Ihus in Victoria the amount of all coined metals held by banks on the 3l8t December 1891 was only 4,086,739/. more than they held on the Slst December 1872, or only 53"5 per cent, of the amount apparently retained in the Colony since that date ; and in a Colony where the practice of keeping bank accountp is almost universal, and the circulation of 1 /. bank notes very large (the circulation of bank notes being nearly 1 /. 10 a-. per head of every man, woman, and child in the Colony j, it is not probable that the amount of gold coin in private hands is very large.'' If the above figures are accepted, with the reserve suggested by Mr. Anderson's weighty criticirtuia, the sum of 7,638,641 /. (in gold alone) is equivalent to 6 /. 14 s. per liead of the total popu- lation, and if the increased Bank holdins^ of 4,086,739 /. be deducted therefrom, the remainder, or 3,551,902/., works out at 3 /. 2 s. 3 d. per head of "active " metallic currency in private hands. It may well be doubted, however, on analogy with New South Wales, Tasmania, and South Australia, whether the amount of coin in general circulation amounts to one-third of this sum. In 1873f the banks petitioned for the coinage of silver at the Melbourne branch of the Royal Mint, aud the Colonial (irovern- ment bi'ought the matter before the Imperial Government. Whilst not unwilling to concede the privilege requested, the Imperial Government pointed out the dangers attending the issue • Twenty-second Annual Report of the Deputy Master of ihe Mint. 1891 (C. 6G74), page 13.. f (Victorian) Parliamentary Paper, No. 208 of 1890. • ■ '. Ch. XXIV. Victoria. 267 of token coins, and the practical difficiilties connected with with- drawal and inter-colonial relations. For the time the matter dropped. In 1891 it was re-opened by the Premier, Mr. .lames Munro, who observed* that "the very large production of silver in these Colonies altogether changes (one) aspect of the matter, and renders it desirable now to reconsider the whole question, and the particular difficulties before pointed out by the Lords of the Treasury. A primary motive for re-opening this question is the fact that the present coinage of gold at the Melbourne Mint — the produce of which goes into the general circulation of the Empire — is carried on at a loss, while the coinage of silver supplied for circulation here yields a profit to the Imperial authorities." After showing that the annual profit on silver to the Imperial Government was about 11,000/. a year, and the annual loss to the Colony on gold about 5,000/., Mr. Munro, whilst deprecating the coinage of a mere Colonial token, formulated proposals for dealing with the difficulties of over-issue, withdrawal, &c. The matter was brought before the Imperial Govtrnment, but no final decision has been arrived at. k > Bank Notes. The question of safeguarding the local issues had been con- sidered in 1887 by the lioyal Commission on the banking laws of the Colony. t Rejecting a proposal that all issues in the Colony should be fully covered by investment in Colonial Stocks,;}: on the ground that such investment " would involve the withdrawal of 1^ millions of money from the working capital of the country without corresponding advantage," the Koyal Commission con- cluded that " the essential thing to be done is to give the community an assurance of absolute safety for the paper currency. This will be adequately accomplished, as all witnesses attest^ by making the notes a first charge on the assets." The Commission also recommended that all issuing banks should have a paid-up capital of 125,000/, and that it should be made a misdemeanour on the part of any bank to deposit its notes as security for advanceB.§ The recommendations of the Royal Commission were embodied in the Banks and Currency Amendments Statute 1887, || which (i) made bank notes issued in Victoria a first charge on the assets in Victoria in case of the winding-up or insolvency of the issuing bank ; (ii) requires the issue to be bo?id fide, and makes the pledging of notes as security for an advance a misdemeanour ; and (iii) prohibits all issues, unless (a) by a company or firm having a subscribed capital of 250,000/., and a paid-up capital of not less than 125,000 /. ; or (b) by an individual banker having a capital of not less than 125,000 /. These provisions were re-enacted in the consolidating anti amending Banks and Currency Act, 1890 * (Victorian) Paliiimentary Ppper, No. 81 of 1891. f (Victorian) Parliamentary Psiiier, No. 06 of 1887. X This plan of a purely iiduciary issue, which originated in the United States, has since been adopted by the Cape ( q-v.). § Cf. Canada. \ The original Banking Act (27 Vict., No. 194) was passed in 1864. ' . \ as 1 il i ! < ■ 1 I i . ■ "i 1!' } Ml I Ml j (h, « - I II , i i I' i (i Hi ti 268 Colonial Curuency. (54 Vict., No. 1164), as was the 2 per cent, tax on the average circulation originall}' imposed in 1876. The note circulation of Victoria on Slst December 1891 was 1,414,216 /. (or about 25 ». per head of the population), and the banks on the date held coin and bullion to the total amount of 7,124,497/., or nearly 6/. 6 s. per head of the population, — as shown in the following Table : — BANE. Australasia • - • ... Union, of Australasia • - • . . New South Wales ...... Victoria ....... Ijondon Chartered, of Australia - English, Scottish, and Australian Chartered Colonial, of Australasia .... National, of Australasia .... Commercial, of Australia, Limited City of Melbourne, Limited .... Federal, of Australia Mercantile, of Australia, Limited Royal, of Australia, Limited New Oriental, Limited .... South Australia, Limited .... New Zeoland Metropolitan, Limited Total - £. Notes. £. 181,783 93,R3S 101,974 173,184 192,228 47,012 138,483 172,310 196,213 67,631 23,713 12,420 6,484 Coin. 1,113 1,414,210 £. 1,030,683 727,104 838,228 673,884 465,523 358,887 330,871 897,102 821.980 395,823 146,369 96,298 41,632 17,471 83,576 70,607 8,861 6,801,989 1 .K" :'■■ ) ■ ■>>.,■ S .':/; .V I Bullion. £. 31,445 113,838 13,488 33,847 11,318 22,627 ,30,384 31,988 31,741 1,938 322,508 H 'A*m»L. Ch. XXV. Tasmania. 306 ige vas the :of -as CHAPTER XXV. Tasmania. (1803.) The early currency of Van Diemen's Land, as this Colony was originally called, was identical with that of New South Wales.* The standard coin was the Spanish dollar, rated at 5 s. currency ; but the bulk of the circulatory medium was composed of the promissory notes of private individuals. In his evidence before the Committee of the Legislative Council of 18.35 Mr. Gellibr.and stated that in 1824, " and for some years afterwards, the general circulation consisted of dollar notes of private individuals, and of notes so low down as6 d. . . . The Spanish dollar passed at 5s. in mercantile transactions; the public servants M'cre paid it as 4 *, ; the soldiers at 4 s. 2 d. ; the Sherift would only take it at 4 s." Such were the unsatisfactory conditions of currency which led the Council in 1826 to pass the Act No. 3 of 7 Geo. 4, which prohibited the issue of notes of a less denomination than 20 s. The title of the Act declares that it was intended " to promote the circulation of sterling money of Great Britain " ; but this object (which was evidently suggested by the Imperial Order in Council and Proclamation of 1825, see page 23) was defeated by the provision in the Act itself that Spanish dollars, which *' by common usage have hitherto passed current within the Island as money, and have been generally paid and received at 5 s. each," should pass as the equivalent in Bterling of 4 s. 4 l-^ .lU!..') - 2,024,423 £. 2,0(;9,240 •j- This proclamation was published for general infurmation iu Tasmania oa 28tli July 1371. i Ch. XXV. Tasmania. 271 tills as in other Colonies in Australasia. The coins of the Mel- bourne Mint were declared a legal tender by Royal Proclanoa- tion of 7 til August 1869 (5re j)agc 29), under the provisions of the Imperial Act 29 & 30 Vict. c. Ixv. (the Colonial Branch Mint Act, 1H66). From that day forward the only local legislation affecting the metallic currency of Tasmania has had reference to copper and bronze coiin ol' the United Kingdom. By the Act 39 Vict. c. 15, the old British copper coins were demonetised, and British bronze coins yvere declared a legal tender, the latter provision being carried out by Proclamation of 11th October 1875 (.srr " Gazette "of 12th October). The metallic currency consists exclusively of Australian and British gohl, and of British silver and bronze. It is ditficult to ei^timate with any degree of exactness the amount of coin in general circulation, outside the banks. But the insular position of Tasmania lends greater value to its imjiort and export statistics than to those of other Colonies in Aus- tralasia. From 1871 to 1890 (inclusive) the statistics relating to gold coin show a net surplus of imports amounting to 800,623 /., or at the rate of 40,000 Z. a year. This total which, by itself, exceeds the banks' holdings (see infra) by 87,000/. (or over IOa'. per head rf the total population), is exclusive of (i.) gold in the Colony prior to 1870, and (ii.) of all silver and bronze coins. According to the 20th Mint Report, the net imports of silver and bronze coin into Tasmania since the beginning of 1872 amount to 28,277 /., or nearly 4 s. per head ; and it is difficult to conceive that the amount of gold and other coin in the Colony prior to 1871 did not amount to 30,000/. On this hypothesis the " active " circulation of coin is j-robably about 1 /. a head, of which two-thirds may be conjectured to be in gold coin. It should be added that this calculation (which, with the note-circu- lation, gives an active currency of 2 /. per head) accords with the estimate formed by Sir Henry Ayers with respect to South Australia, and may perhaps be taken as fairly representative of Australian Colonies generally {see New South Wales). Bank Notes. Section ccxiii. of the Consolidating and Amending Act 33 Vict., No. 22 (Tasmanian Statutes, I., 251 ), provides that " No Banking Company claiming to issue notes in this Colony shall be entitled to limited liability in respect of such issue, but shall continue subject to unlimited liahilitij in res])ect thereof, and if necessary the assets shall be marshalled for the benefit of the general creditors, and the members shall be liable for the whole amount of the issue, in addition to the sum for which they would be liable as members of a limited company.''* By the Act 46 Vic, No. 34, bank notes are not to be issued without a licence, and bankers may issue and re-issue unstamped notes on rendering accounts and paying a composition. ^' Cf. the chapter on New South Wales for a similar provision. \ 111 ^ !!il IMAGE EVALUATION TEST TARGET (MT-S) fe {/ i^i^ v.. s v.. 1.0 I.I 11.25 Li£l2.8 2.5 2.2 2.0 JA 11 1.6 ^x-. V N> %. ^^. ^S>\ *'^* f ^ ? 272 Colonial CuRRENcr. ''. At the end of 1831, according to the certified returns pub- lished in the Hobnrt Gazette, there were four banks of issue in Tasmaria circulating notes to the total amount of 149,075/., with a joint holding of specie and bullion at the same date of 713,010/., as follows : — Bank. - Notes. Coin and Bullion. « £. £. Bank of Australasia - 25,453 194,849 Commercial Bank - - 66,636 205,919 Bank of Tasmania - - 39,624 60,351 Union Bank of Australia - £. 17,362 251,891 Total - - 149,075 713,010 As the enumerated population of Tasmania on 3]Bt March 1891 was 146,667, this issue is equivalent to a circulation of 1 /. «. 4 rf. per head. This average is the lowest of all the Australasian Colonies. Ch. XXVI. South Australia. 273 CHAPTER XXVT. South Australia. (1834.) The most remarkable feature of the currency of South Australia has been the invasion of the coining Prerogative by the Colony in striking the so-called " Adelaide Sovereign." In order to find a precedent, it is necessary to go back to the middle of the 1/th century, when the " Plantations " of Maryland and Massachusetts temporarily set up mints of their own, as men- tioned in Chapter I. The story of this coin may best be told in the words of the Report of the Adelaide Chamber of Commerce for 1852 : — " For more tha'i two years past there had been considerable over-trad- ing, which was beginning to entail its usual consequences, such i)S a glutted market, an undue amount of paper afloat, a system of renewing bills, and of mutual accommodation, discounting on change at usurious rates of interest, and all those shifts which are generally premonitory of a coming crash But the crisis which now threatened the Colony was incalculably aggravated by the loss of our population There was a general arrest of all business To add to the panic, the banks were sub- jected to a steady and alarming drain of specie.* Every emigrant carried away his savings in gold. The banks, being compelled to redeem their notes m specie, were under the imperative neces- sity of restricting their issues, and consequently their discounts, if they would keep faith with their creditors. ... At this juncture, as if to mark with greater emphasis the signs of the times, a vessel arrived at Port Adelaide from Melbourne with a number of our colonists on board, who, after a few weeks' successful digging at the gold-fields of Victoria, had brought back with them to this colony gold-dust to the value of 50,000 /. This they were desirous of converting into money, but such was the straitened condition of the money market, that purchasers could not be found for it. A portion of it was eventually sold at 55 s. to 56 s. per oz., the price at Melbourne being 60 s. at the time, and the remainder was carried back to Victoria. It was at this time, when ruin was staring everyone in the face, and when * The total amount of coin in the colony on Slst December 1851 was esti- mated at 128,114/., of which 114,114/. was in the banks, and only 14,000/. in circulatioD. '1- in • ti !l ::l :! Ml ii 274 Colonial Currency. there had already been unmistakable symptoms of an approach- ing run on one of the banks," that the Chamber of Commerce suggested the scheme of a Government Assay Office for the pur- pose of assaying and stamping gold ingots to serve as a metallic basis for the issue of notes by the banks.* This scheme, which was unanimously adopted at a Special General Meeting of the Chamber on 19th January 1852, was submitted by memorial and deputation to the Governor, who forthwith convened the Legia- ative Council. Meeting on the 28th January, the Council at once passed " The Bullion Act" (No. 1, of 1852). By this Act it was provided: — (i.) that an Assay Office should be established by the Colonial Government to melt, assay, and stamp gold, at a charge of 1 per cent.; (ii.) that owners of such stamped gold might demand notes from the banks against their gold at the rate of 7\ s. per oz. standard, the gold in such case to be handed over by the Assay Office to the banks direct ; (iii.) that bank notes Were to be a legal tender, except by the banks ; and (iv.) that the Act was to expire after 12 months. " The effect of this measure,'' observed the Chamber of Com- merce, " was little short of miraculous. Credit and confidence were almost instantaneously restored ; the extreme tightness of the money market was relieved. No one could have foreseen that, in less than six months, we would not only be rescued from impending ruin, but that our condition would be infinitely more sound, healthful, and prosperous than ever it had been before ; and yet such is indisputably the case." Comparison of the Bank Returns immediately before and six months after the passing of the Bullion Act, showed that "in the brief space of six months the paper under discount had fallen from 606,826 /. to 1^87,048 /., or nearly one-half ; the deposits had increased from 2 11, 007 /. to 451 ,91 W. ; and the (note) circulation from 84,605 /. to 233,025 /. ;" while the stock of gold had risen from 97,600 /. in coin at the beginning of the period, to 524,761 /. in coin and bullion at its close. The Government notice of 4th February 1852 {see " South Australian Government Gazette," of 5th February) provides exclusively for " receiving gold dust for assay," and stamping the " weight, purity, and value thereof upon the ingots of gold, as required by the Act.'' So far, it will be observed, the Colony had not prceeeded to strike coins of its own. The neighbouring Colonies (according to the Chamber of Com- merce) viewed the South Australian Act with disfavour, repre- senting that its primary object was to attract gold by offering so high a price, and contending tliat the circulation of the stamped ingots were a depreciation of the currency. But this latter argu- ment assumed as the standard the Victoria price of 3 /. per oz. (for gold-dust worth 4 /. per oz. in England), and was refuted by the fact that in the middle of 1852 95 /. in South Australian currency would buy a bank bill on London for 100 /. The ^ The main credit for the scheme is attributed to Mr. George Tinline, then ftcting-inanager of the Bunk of South Australia. Ch. XXVI. South Auetralia. 275 truth was that the (relatively) liberal price and facilities offered by South Australia cut down the extravagant profits originally extracted from gold-diggers by banks and speculators, and so served to attract about a million sterling in six months, in addi- tion to ensuring the return of most )f the emigrants from ihe Colony. Just before the Bullion Act expired, at the time when the banks were preparing to meet the reviving obligation to cash their notes in coin only, the rising market price of gold-dust enabled the banks actually to raise their buying price for the crude gold, and to offer 745., instead of 71.v., per ounce. Consequently, though the subsequent Act No. 14 of 1852 had provided for the con- tinued assay of gold, and for the stamping of one pound tokens,* in lieu of ingots, at the old price of 7)«. per oz., the Assay Office stood idle at the opening of the year 1853. Finally, by the Governor's Proclamation of 3rd February 1853,t it was closed as from the I7th F'ebruary. From its opening on 10th February 1852 to its closing a twelvemonth later, the Assay Office had received in all the value of 1,529,410/. at 71s. per oz. standard. Thus it was only the rising price of gold dust which put a stop finally to the invasion of the coining Prerogative of the C'rown by the resourceful energy of South Australia. For, by the operation of the laws of supply and demand, the Assay Office had closed its doors before the Imperial Government had had time to disallow the continuing Act, No. 14 of 1852, an Act which could not be defended on those grounds of urgency and exceptional circumstances, which had justified (as a trmporary measure) the passing of the earlier Act of the same year. Had the Assay Office continued to turn out " Tokens " weighing 5 dwts. 15 grs. standard, fhe pound currency of South Australia would have been worth nearly 12 per cent, more than the British sovereign, a relation which largely explains the selling of bills on London at 5 per cent, discount in Adelaide ir 1852, at a time when a buyer of a similar bill in Melbourne had to pay 110/. With the exception of the above coining operations, the cur- rency of South Australia has little or no history. It does not *> The Government Notice of 9th December 1852 {see " Gazette" of 16th December 1852) provided thiit " upon the One Pound Gold Tokens about to be issued there shall be stamped the device next hereinafter set forth, that is to say — On one side the Imperial Crown with the date * 1852 ' below it, surrounded liy an ornamental bolder, outside of which are inscribed tiie words 'Government Assay Office, Adelaide ' ; on the other side the words ' Value One Pound,' surrounded by an ornamental border, with the inscription ' weight, 5 dwt. 1ft grs., 22 carats.' " The Act provided also for 2 I. and 6 /. "tokens." Dies were actually struck for the 5 I. token, but not for that for 2 /. See pp 280 and 240 ot Report of Royal Commission on the establishment of a State Bank and Royal Mint (Adelaide, 1881)), which gives figures of the several dies, and, amongst other details, states the number of the 1 /. tokens issued at 24,048, and shews a total net profit of 3,042/. for 1852-3 on the Assay Office. Assays by the Royal Mint made the token worth 1 /. I «. 11 d. t See "Gawtte" of 10th February 1853. i' Hi III it i I? Ml i \ , ! ,t Ml I \\ i-' «; 276 Colonial Currency. appear that a local proclamation was issued, bringing into local operation the Imperial Order in Council and Proclamation of 16th October 1852 {see page 435), establishing sterling and limiting the legal tender of silver to 40«. in any one payment. Nor have local proclamations been traced, giving currency in the colony to Sydney gold coins in 1854 {see page 442). On 7th June 1871, however, the lloyal Proclamation of 14th January of that year was promulgated In the Colony, and so Sydney gold coins of the new design were made legally current. As gold coins struck at the London Mint were not a legal tender in South Australia in 1869, the Koyal Proclamation of 7th August of that year {sec page 447) did not give legal currency here to Melbourne gold. But the sole metallic money In cir- culation is sterling. In 1888 a Royal Commission was appointed (which reported in 1889) to consider, inter alia, the question of establishing a local Mint; but the evidence taken led the Commission to report against it, as entailing unnecessary expense. As regards the amount of coin in general circulation, Sir Henry Ayers, Chairman of the Trustees of the Savings Bank of South Australia, stated in evidence before the Royal Commission of 1888 that "the circulation of money among the people amounts, in coin and notes, to (say) 2 /. per head of the popu- lation." On this basis, seeing that the average note-circulation is 1 /, 8 «. 8 (I. per head (as shown, infra), the amount of" active" coin (silver as well as golu; WDuld stand at only 11a. 4(/. per head of the total population (320,000), or some 181,000/. in all. These figures are irre»[)ective of the specie held by the Banks, amounting to 1,528,020/. on 3l8t December 1891, according to the official banking statistics. Bank Notes. The public legislation of South Australisi, with regard to banks, is limited practically to the Banking Companies Act, 1863 (26 & 27 Vict. No. 25), Avhich provides that "Every company, firm, or Individual publicly engaged in the ordinary business of banking by receiving deposits and issuing hills or notes, ])ayable to the bearer, at sight or on demand," shall (i.) prepare a weekly statement of assets and liabilities, and (il.) prepare therefrom, and publish a half-vearly statement, one Item in which is " Notes in Circulation." liy the amending Act, No. 5, of 1875, the statement was required to be made quarterly. Under Royal C'harter, or private Act, all Issuing banks may circulate notes of a denomination not less than 1 /., as is the case In all other Colonies of Australasia. On 31 December 1891 the total amount of notes in average circulation in South Australia stood at 459,082 /.,* equivalent to • For inSl it was 70,580/. I h Ch. XXVI. South Australia. 277 \ l,B s. 8d. per head of the total population, the following being the constituent details of the total issue (which is taxed 27,) : — Notes Banks. in Circulation. £. s. d. Bank of South Australia - - 107,631 7 8 Bank of Australasia . . - - - 33,618 4 7 Union Bank of Australia - • • 17,228 3 11 National Bank of Australasia - - 129,246 19 3 English, Scottish, and Australian Chartered Bank - - 41,441 7 8 Bank of Adelaide - - - - - . 52,155 - —t Bank of New South Wiiles - - - 39.381 16 1 Commercial Bank of Australia - . 21,402 18 6 Bank of New Zealand - - - - - 3,388 16 11 Fedral Bank of Australia - . . 13,587 4 7 Total Averages 459,081 19 2 The Royal Commie ;on of 1888 was appointed to enquire into the policy of establishing not only a local Mint, but also a Government Bank for the province of South Australia. The Commission reported on this point, as follows : — " The question of establishing a Government Bank has so wide a scope, and in- volves such exceedingly grave issues ; upon which very few financial experts or students of political economy are as yet agreed; that we are unable to recommend the adoption of 1 he proposition ' That a Government Bank should at once be established.' We have no example or experience such as might be supposed to be aflorded by the existence of a State Bank in in full development under coiiditions precisely similar to those that pertain to this province." The Commission proceed, how- ever, to " call attention to the fact that the aggregate note circu- lation, the issues of ordinary banks, freely circulates in the community. The effect of this currency is that the public lend at what is equivalent to a very low rate of interest, to these banking institutions, in return for the conveniences they afford, a sum of money nearly equivalent to the amount of the note issue. It may be easily understood that the amount of the note issue thus loaned must be of considerable advantage in supple- menting available capital and facilitating financial operations. It is asserted in evidence that political economists who treat of the Bubjectofa paper currency, agree tliat all profits on the note issue in any country belong as a matter of right, to the State, and not to private individuals, who may, for the most part, be absentees." And though the Royal Commission did not see its way to report- 72642. T 7n 'I ! ' III I '•' • )* i i r . I il- 1 r ■:■! 1 'r ! 1 . » 1 H ' I : li 278 Colonial Currexcv. ing in favour of a Government Bank, yet it advocated a limited State Issue in the following words : " The Government could with advantage to the general administration of public affairs, and with relief to the taxpayer, issue a paper currency, by the con- version of the imprest order system into a systematic issue of Treasury notes, such notes being of fixed values, from 5x. up to 10/.; and the same being made convertible, and a legal tender for the payment of salaries and such Government obligations as may arise within the limits of the province. These notes should be received in payment of taxes and debts due to the State. It might be arranged that for every 1,000/. worth of Treasury notes issued there should be a deposit or reserve of Government bonds to a corresponding amount, provided always that Parliament shall determine the issue of such Treasury notes within a safe and reasonable limit. ... It may be that various objections will be raised to the issue of a State paper currency, even though in the modest form of Treasury notes, as there will necessarily be a conflict of interests, and special privileges are usually held with a tight grasp. But we take the liberty to advance the assertion that the interests of the State are in all cases paramount, and that whatever increment of advantage there may result from a system supported and permitted by the people should be secured for their benefit." Nothing appears to have come of the proposed system of Treasury notes. 1' ,. I I ! I Ch. XXVII. QUKEXSLAND. •tf CHAPTER XXVII. Queensland. (1859.) This Colony was not separated from New South Wales until 1859, «.«., subsetfuently to the passing of the New South Wales Currency Act of IH55, which (i.) declared British or Sydney gold the only (unlimited) legal tender in the Colony ; and (ii.) imposed a limit of 40*. on the tender of silver (see page 254). Consequently, even from a date prior to its separation, the system of currency legally in force in Queensland was that of Great Britain, with Sydney sovereigns and half- sovereigns admitted to concurrent tender. In 1869 provision was made (prospectively) for the currency of Melbourne gold coins in sterling-using Colonies, by the Koyal Proclamation of 7th August 1869 (»ee page 447), issued under the provisions of the Imperial Colonial Branch Mint Act of 1866 (see page 444). As British gold was a legal tender in Queensland in 1869, Melbourne gold was admitted to tender in this Colony by the Royal Proclamation (aee page 29). In 1871 the Royal Proclamation of 14th January (see page 453) made provision for the currency of Sydney gold coins of the new design "from and after the promulgation of this Our Proclamation by the Governor." The Royal Proclamation was published in the Local Gazette of 17 June 1871. Bank Notes. The New South Wales Act respecting banking in force a the date when Queensland was made a separate Colony, was the Act of 1841 (4 Vict., No. 13), which required all banics to publish quarterly Statements of assets and liabilities, showing (infer alia) the notes in circulation, and the coin, &c., in hand. This Act still remains in force in Queensland, as in New South Wales, and applies to all banks, whether under Royal Charter or Colonial Act. The chartered banks doing business in the Colony are governed by the terms of their charters, which were modelled on the lines laid down by the Colonial Banking Regulations (see page ). For the rejiulation of joint-stock banks, Queensland passed the Companies' Act of 1863 (27 Vict. No. 4), which provided, on the lines laid down in the United Kingdom, that — *' No banking company claiming to issue notes shall be entitled to limited liability in respect of such issue, but shall continue, subject to unlimited liability in respect thereof, and, if necessary, the assets shall be marshalled for the benefit of the general T 2 \ 280 Colonial Cuubency. creditois, and the members shall be liable for the whole amount of the issue in addition to the sum for which they would be liable as members of a limited company." Half-yearly State- ments must be published, under the provisions of Section 43 of the same Act of 1863. Prior to 1866 schemes for the issue of * inconvertible Legal Tender Notes " found considerable favour in the Colony, but, fortunately, were not carried out in practice. In 1866 a modi- fied scheme for a State Issue was laid down by the Act 30 Vict., No. 1 1. The latter Act gave the Colonial Government power to issue Notes (which were not to be a legal tender) for sums in pounds sterling, payable in specie on demand at the Treasury ; the issue was limited to the amount of coin and Treasury Bills (of four years' currency, issued under Act No. 10 of the same year) for the time being in the hands of the Colonial Treasurer , and coin was to form at least one-third of the total amount of coin plus Treasury Bills no held as a reserve against the Notes. The immediate object of this enactment was " to render the " contemplated produce of the Treasury Bills more immediately and conveniently available;" it was also described at the time as " the thin end of the wedge," and the first step towards establishing a Government Bank of Issue. It would not appear that the success of this temporary measure was sufficient to encourage its permanent adoption, as the Treasury Bills Act of 1869 dropped the special provisions of the earlier Act. Bank notes are exempt from duty under Section 9 of the Act 30 Vict., No. 14, provided an annual composition is paid at the rate of 3 per cent, on the average circulation. Tnis rate is the highest exacted by any of the Australasian Colonies. The " Government Gazette " of 20th February 1892 gives the following particulars, for the quarter ended 3l8t December 1891, of the notes issued, and the specie held, by ihe 11 banks of the Colony : — Bask. Notes. Coin. Bullion and Stamp Account. Bank of Australasia Union Bank of Australia (Limited) Australian Joint Stock Bank .... Commercial Banking Company of Sydney Bank of New South Wales .... Queensland National Bank (Limited) London Chartere that at Inmie thvi/ nia'ie their pni/nifnts in (/ol(f, and will nut pai/ in silver without a premium. Upon the coming in of a plate Heet, the premium ceases, or is hut small ; but as their silver goes away, and becomes scarce, the premium increases, and is most conuiionly about G per cent.'' In practice, the gold doubloon was the standard coin, and the *' dollar " of account represented not the silver dollar (which bore a fluctuating gold-price as merchandise) but the sixteenth of a gold doubloon. 1704-1825. Currency of Spanish Coin. It was nearly half a century after the capture of Gibraltar (1704) before matters of currency greatly troubled the garrison. Whilst the Military Government maintained sterling as the money of account, their transactions were chiefly in the Spanish doubloon and dollar ; and the small native and mercantile com- munity trading daily with S[)ain adhered to the denomination of account as well as to the coins of Spain. The purchases of the garrison from the natives, and the daily use of Spanish coin, 1)roduced a habit (in Gibraltar as in the American and West ndian colonies) of roughly converting payments in this coin into the denominations of sterling : the conversion was rough-and- ready, and therefore incorrect, and a local " currency " was thus established, the pounds shillings and pence of which did not actually correspond to those of Great liritain.f The chief error appears to have risen from the false rating of the " real " at 6 d. In 171 1 the soldiers engaged on the fortifica- tions were content to work for '' one ryall only, or 6 d. per day, in consideration of receiving their provisions free.'' And from * I am indebted to Mr. CuvendwU Boyle, o.M.o., Culoiiial Secret try of Gil)rrtltar, and to his statf", for early records of iinportance. — C.A.H. f See page 4. That the Home (Jovcrnmeiit w^s not slow h> take advantage of the shortconiiitgti of the local currency is sliown hy tlie fallowing extract from official records ot 1714: — '•The money allotted to pay the Army at ^ moidors ueing passed for 1 I. \1 s. id. each, and at tiiat rate paid tiie soldiers (which tliey reidly are), makes a sum of a 1, 670/. 18». 8rf., and leaves in Spanish money 5,777/. l:iii., wiiicli makes about 4, (, sterling; per annum " A C\\. XXXI. GiBUALTAK. 297 the vciy fir.'^t tlii3S of the occupation, bills were regularly drawn on the Home Government ut the rate of 5*. to 'lie standard Spanish-American dolhir, which had, mice 1G86, been e(^ual in Spain to 10 pr«)viiiciul reals of '* 7<.etD plate."* But the confusion did not end with the estahJIdhment of a local " currency " in £. s. d, ; the error took a new form when, about the middle of the century, the English garrison had got used to the Spanish denominations, and began to make them the ordinary money of account. Owing, apparently, to an attempt at adjust- ing the early misrating of the provincial real, u new ''real" arose, of which 12 instead of 10 went to the standard dollar, although it was still divided inio 16 c^...rto8. This was the " real current" of Gibraitarf; it was a monoy of account, not a coin ; and was the basis of what is usually known as Gibraltar currency, which was thus composed of an imaginary dollar (equi- valent to eight of the new reals), an imaginary real, and the cuarto. This " current dollar '' explains the constant use of the " hard " dollar (= peso diiro) in Gibraltar transactions to denote the Spanish dollar. It also explains such statements as "^1,000 = 854/. 3s. 4rf.," which gives a dollar of 'is. 5 d. in 1754, and again, in a petition of 1783," 9,000 dollars, equal to about 1,400/. sterling," wl)ich places the current dollar at 3 s. IJrf, A Government notice in 1762 states that 'the exchange here has for several years last past been from 37 d. to 38 d. the dollar." Of actual coins, and especially those of a low denomination, thf^re appears to have been a dearth. '''he want of decent token coin is among the earliest grievances of ttie garrison, who allege, in 1713, that "the Jews bring in brass money amongst us trom liarbary, by which they get 500 per cent., and carry out in lieu of that all the Spanish money that is going." This " HarbaryJ copper coin, commonly called a fluce," of which four "are not nearly equal to a Spanish quart, at which rate they have lately passed," was prohibited in 1751 by an Order which declared the values of the Spanish copper coin in Gibraltar currency. But when, in 1762. th«^ currency of cut or diminished Spanish silver coin was prohibited, llie lack of small change was such that it was found necessary, by a later order 4 4 months after- wards, to confine the prohibition to " the currency of the cut hard dollar or cobb," all smaller pieces of Spanish sdver coin whether cut or uncut bemg left in circulation at existing rates. In l783 Genera! Elliott had issued a proclamation jjrohibiting, '^ Sec paac 392. Consequently, the case of Gil)rnltar is not to be confused witli tile 17th century rating of the real of Mexican Plate in Beruiuda and jHinaicii as 'a Spanial. sixpfuce." Tiie cases are analogous, not iu uiologous. f The records throw very little liglit on l.lie iiistory of this real. It may, however, fairly lie conjectuied that the British cuinmuiiity finding that the real wus over-rated as 6d., and nnly produced 5-2d in exchange, tried to restore the halance by cuuiiting 12 of them at 5d. to the standard dollar, as rated in terms of " currency." Iu a similar manner, there \vere 8(.cnied ihet^c men are foimed into squads of six men each, lo whom a haid diillar value 12 reals isgiveii . . . The six soldiers 8.) paid are under the necessity of proceeding to a wine- hmise and if> expend theie pait of the money received, to procure change." The governor at that lime recommended thai the Mint should coin one-ieal and two-real pieces and send them out, and he named 10,000 /. as the sum lie needed. Meanwhile local mer- chants took the matter into their own hands, and, in the absence of sufficient copper money, issued pieces of the value of two cuiirtos payable at their houses of business. A similar difficulty seems to have existed in regard to gold coin during the latter halt of the eighteenth century. An order of the .'^Otli of March 1762 recites that "the want of fixing a standaid value on the Portugal gold, beinc the coin which the tro'tps of this gairisiiu aie paid in, has i'cen attended with great inconveniency to the private soldier:' and it fixes the "half- shiner"* at 1 1 dillats 2 reals; this rate wns apparently due to an arithr^ictical Munder ; it was confiiined in August and abolished in September ; and the half-shiner passed at the market rate till October 1771, when, "on account of the present great scarcity of money in this garrison, the commanding officers of the several corps . . . represented unto the Governor that there is a necessity of introducing the gold coin of Portugal," and an Order -vas promulgated fixing the half-shiner (not wanting above 5 grains of its lull weight) at 94 reals currency "the same being a ju'^t relative value to the currency of the double pistole of Spain established in this ])lace." Yet in 1787 Spanish gold coin is spoken of as "by far the greatest part of the circulation at this time,'' when the doubloon was ratcdf "at 16 Mexico^, or 2-1 dollars currency." Thus, up to 181.), when it was denou ced by Proclainatioi, Gibial ar had a money of account nf its own, with Spanish de- iiMininaiio IS evulvcd out of an erroneous treatment of the tine Spanish coins ; and for actual coins it depended on the Spanish doubloon and Portngues.' coins in gold, the Spanish milled silver dollar and certain Spanish copper coins supplemented by private tokens. The doubloon, for the greater part of the period, was practically the standard. * By the value attached to it, this must have been tlie Johannes, which was iiiilf the Dohra(»^c page HiK!.) f It is nofewortiiy that this rating was made hv "His Majesty's Justices" in response to a presentment of ihe Grand Jnrv, that "the uiR'stal)lished value i In 1778 Rohan decreed as law the following report from the officers of the Mint : - *' We think that fine g'A(] may be valued at 3^' pcudi the ounce, and fine silver at 30 snidi the pound ; in tMs case gfold of 22 carats should 1)C fixC'.l at the price of 3 { sondi and ffold of 17 carats at 2fiJ scudi the ounce. In the same manner Malta silver, to be wrouj^ht by the silversmiths, of 10 J, dcnari, should be fixed at the priro of 20} seudi the pound; that ol Kouu; of the fineness of 11 at 27.^ scudi; and that of France of 11^ at the j)rice of 2H.^ scudi.'" This was the basis upon which were coined most of the old coins of Malta which were in existence at the time of the British occupation. They were as follows*: — silver coins : ((iloontiUnIng 10 deiinri of tine silvor. 30 tnri piece => 2* sondi. ' 15 tiri piece «=■ Ij ticildi. (1>) containing It denari of tine silver. 2 scudi piece. 1 scudo piece. j Gold coins : Double LouIh C 'or, passing for 20 scudi. Single Louis d' or, „ „ 10 icudl. Half „ 5 scudi. Zecclilno „ „ 4 scudi e 4 tari piece, 3 tari piece. Itwl. Copver Coins : 10 grani piece (or carlino). S gruni piece (or cinquina). 1 grano. It does not appear that the brief occupation by the French . made any material alteration in tl'e currency or introduced i French coins. 1800-1825. The Sicilian and the Spanish Dollar. In 1797 Malta came under the protection of the English, and one of the earlier acts of the new CJoverninent appears to have resulted, quite unintentionally, in getting rid of a considerable portion of the native coins. "Sir Alexander Ball," savs Eton, "observing a scarcity of coin in Malta, and wishing to make the circulating medium more abundant, issued a decree by which foreign coins should pass ir. Malta for a greater number of scudi, tari, and ^rani than thev had hitherto done. The consequence was as he expected, that more foreign coins actually did come to Malta, but what ' lu; did n(»t expect, all the Malta coin went to foreign countries, particularly to Sicily, where the Grand Master's scudi were - melted, and came back to Malta in the form of Sicilian silver * coins with a gain of above 20 per cent." Thus was tiie Sicilian dollar introduced into the currency of Malta. The decrees referred to must have been those of May and August 1797, which fixed the Sicilian jiiece of 12 carlini - at 30 tari, and the Sicilian gold ounce at six scudi three tari * This statement is based on Eton's account, which agrees with that given in Kelly's Cambist, but portions of the original decrees do not tally with that account. The history of the rating of these old coins, though not important for the present purpose, needs further investigation. Ch. XXXII. Malta. 309 (75 tari). Writing apparently in 1803, Eton says already that none* of the ancient national coin is to be found in Malta, " except a few pieces which are preserved by the curious as medals," and the scudo had really become merely a unit of account. " The silver coin current in Malta " he proceeds, "is the Sicilian ' Oncia d'argento,' and, according to the intrinsic value of this piece of silver, the Malta scudo has acquired its nominal valu*' ; for this piece in Malta is fixed at two scudi aud-a-half, and as such passes in .vll payments. The real value of this Sicilian piece (commonly called the Sicilian dollar) is about fuur shillings sterling."! Besides the Sicilian dollar, the Spanish dollar was evidently in circulation at the beginning of the century.;): And it may be gathered from the decrees relating to the currency of the doubloon that the Spanish dollar was for a time commonly estimated, if not formally rated, on a par with the less valuable Sicilian coin. A decree of January 1801, following the old Spanish valuation, directed that everyone should receive the doubloon as the equiva- lent of 16 pillar dollars. But a Proclamation of 21 st October 1806 reduced the rate of conversion, in deference to an idea that " Spanish gold had a comparatively inferior value in Sicily," to ld| dollars, or 38 scudi 9 tari, which is equal to a rating of the dollar at 30 tari.§ From returns of coin imported into Malta on Imperial account it appears that fr n 1800 to 1805 the Sicilian ounce formed the bulk of the specie imported; but in 1807 200,000 Spanish dollars were introduced in a large consignment of specie from England, and for a time Spanish coin appears to have been the favourite medium of circulation: "during the war and for some yeurs after the peace {i.e., of 1815), the Island abounded in doubloons and dollars of Spain." And in a decree of 1812 it is spoken of as " the principal money actually in circulation." This decree of 1812, promulgated by Sir Hildebrand Oakes, with a view to assimilate the value at which the Spanish dollar passed to that at which it was current in Sicily, ordered that * It is difficult to reconcile this statement with the later information that in 1829 about one-fifth of the silver in circulation consisted of the old Maltese silver, vide p. 312 adfinem. t Eton observes that the immediate effect of the influx of Sicilian coin was to reduce all salaries tind payments stipulated for in scudi of Malta about 2G per cent. ; and he proceeds to consider the expediency of coining a new Maltese scudo, and leaving the Sicilian dollar to circulate concurrently. He also states that the copper coin in circulation bears no sorr of proportion to the value of the metal ; and that much false coin was being introduced. And he states that the airiount of copper in circulation is calculated at about 25,000 I. sterling. X Eton states that, although a lighter coin than the other, the Spanish piastre was of greater fineness, and of the value of 2 scudi 3 tari 3 grani, and 5 piccioli of Malia. He notes, however, that the piastres vary in value, mentioning " those of the Crown, those of Peru, and those of two globes." See page 391. § From which it may be fairly inferred that from 1801 to 1806 the doub- loon passed at 40 scudi of Malta. This was the rate at which it was legalised in 1H50: see page 320. The Governor at the latter dale refers to the profit which the Government in old days made out of this wrong rating. 72642. X ' ' 310 Colonial Currency. |i t I i ' '' ■ J b " the Kard Piece of Spain without diatinction, whether Pillared or Caatile, should pass for 10 efrnins of Malta more than the Piece of Sicily, eo long as those two moneys continued to bear the same relation one to another."* Ou the 1st of January 18 hi, the Governor, having apj>nrpntly discovered that the decrees in force undervalued the S^)ani8h dollar, "fixed the difference between the Spanisih and Sicilian dolhir at 2i f/.| in all payments to the army and navy, but left the under-vuluation of the Spanish dollar in all civil receii)t8 and payments." We also are told thut in 1822 he contemplated raising the rate at which the Spanish dollar passed current to 31^ tari in all payments and receipts. But this was not done, and a good deal of ill-feeling was caused by the disappearance of the Spanish coin. In 1823 the growing discontent took shape. The merchants of the Island memorialised the Government on the state of the currency. T'-e copper coinage they stated was depreciated more than 95 per cent. The late extensive issue of that coin from t!ie Treasury had already been attended with great inconvenience. The gold and silver coinage in circulation was stated to be, though not so bad as the copper, yet inadequate to the necessities of the Island. The coins in circulation at this time appear to have been the following : — Copper. • 4 tart pi*c*. •^ I* »» ■ If 11 foanlth pillar dollar. Sicilian dnlUr, and parti. {Maltese SO tari piece, f* 1*^ i> If Silver. 10 grsni pieoe. 1 )i i> Malteie 8 loudi (M Uri) piece, and other colhn, nit emime- ratcd in theatalement on the next page.{ Gold. Some Old Malirie Louis d'Or and Zecchlni. • This e^'inode in the history needs elucidation. All the obtainable evidence, as well ns the wording of Sir H. Oakes' decree, goes to show that the valuation of the Spanish was thereby raised in comparison with the Sicilian coin. Yet shortly afterwards the former evidently began to disappear. The Colonial Secretary, writing in 1824, attributes this to the fact that the order had ''fixed the exchange at SOJ tari per Spanish dollar, i.e., only 1 d. currency between the Spanish and Sicilian dollars, whereas the intrins'c difference (even taking the best of the Sicilian coin) is 2i rf." But this does not explain the facts in the light of the previous ratings ; evidently other causes were at work, probably the change from war to peace. Pennington's book is hopelessly confused on this subject f 'I'here are traces of a local " currency " from the beginning of the British occupation ; the scudo had in the days of the Grand Masters been intrinsically worth a fraction under two shillings, and annongst the new comers it passed for a two shilling piece. Its value was either really upset in the way described by Eton on p. 307 ad init., or declined steadily with abrasion -nd a falling geld price for silver. Kelly, in 1821, makes it 1 s. 9J d. The ratings of 1825 assumed its sterling value as 1 s. 8<2. ; and there is varied evidence to show that the difference between amounts of sterling and of " currency " was 20 per cent, on the amount of sterling, i.e., 2} d. sterling =s3d." cuiTency." This is the meaning of the passage cited ; it also explains the annoyance alluded to on p. 321, at th ^ reduction in nominal value of the scudo by making half a scudo more go to the £ sterling. t The 30 tari piece (2} scudi) went by the appellation of the « current dollar." § it may be of interest to reproduce an official statement which shows not it > I Ch. XXXII. Malta. 311 and the commonest coins were Sicilian dollars, half dollars, and quarters in silver, and the grains in copper or hme metal. " The {)re8cnt circulation consists almost entirely of Sicilian dollars, lalf and quarter dollars, and other small Sicilian coinn, all of them much below tlieir nominal value, and a great part of ex- tremely old date, and reduced b not )y use or clipping very far indeed for the facilities afforded by the and by checks, business below it." And " were it two banks by their notes, . would be still more impeded." " During the war," writes the Colonial Secretary, " in February 1824, and for some years after the peace, this Island abounded in doubloons and in Spanish dollars ; out at present not one of the former is to be found, and very few indeed of the latter. In fact Spanish dollars are become not a tnedium of circulation, but an object of commerce, and any call for them raises the price immediately in the Money Changing Market." The Imperial Treasury was evidently in the habit of remitting large quantities of Spanish dollars to the Island, and " in all payments in this Island settled at home in sterling money the Spanish dollar is valued at 4 5. 6 lacc, since defective mmting had been soon discovered, " and the reduction now made by Government in its value had in part or entirely previously taken place for all jturposes of foreign trade. No claim is made for Spanishf dollars, because they maintain their former value of 4 «. 4 ,/. to 4 .«. 4^ f/." In reply to these representations, the Treasury simply affirmed their fornier position, and in following it up with a large supply of British currency rcmtirked that " as the receipt of this coin by the Commissariat and other public departments without limita- tion as to its amount, as well as its availableness for remittance to this country, will fully maintain its nominal value, Iler Majesty's Government see no reason to doubt that it Avill very sufficiently answer all purposes of local currency, and that with the addition of British gold coin and of dollars at their proper weight and real intrinsic worth, there will bo no want of an anjjile circulating medium of well-ascertained value." The Government further proposed to legalise, at its intrinsic value, the Sicilian dollar, which, notwithstanding that it was not legal tender, was now rapidly rej)liicing the Mexican dollar, and was readily received by all classes at its previous value of 4*. 2 a8i«d eixewhere {see next page ad med.) at tlie higher rate, they rapidly lett the island. It will be observed that in Malta, unlike Gibraltar, the new dollars had rapidly taken a hold on the coiumunity ; and distrust of them appears to have been the result of actual facts quite apart from the reduction of rating. f The proportion of this latter coin he.'d by the banks on the Slst July J 844 was declared to be :— Bank of Malta. Anglo-Maltese, Spanish |iillar dollar Mexican dollar - 11,603 118,244 18,032 iM>,386 Ch. XXXII. Malta. 317 The liability of HritJrth silver to be withdrawn for remittance to England, nnd one very inconvenient result; it "had often deprived the inhabitants of the qnantity of small silver necessary either to tender in payment of minor jjurchases in the shops and markotH, or to give in exchani^*' for larger coins.* It is but a few months ago that the whole bulk of the British silver almost entirely disappeared from circulati sell the value of sixpence or a shilling, or he insisted on one, two or more pence to change a dollar." Petitions were made to the Government and no relie^ obtained. So that the Chamber of Commerce made interest with tlie Government of Naples, and, in return for Spanish dollars, brought to Malta 138,^00 pieces of 2 carlini or 8^d. each, and 12,000 pieces of 1 carlino or A^d. each. These afforded "a great (but temporary) relief, for even this small coin does not escape the avidity of traffickers in agio." The British Government were finally persuaded to take action on these repeated representations, by a memorial of the Chamber of Commerce of February 1850. The Chamber alleged that their convention answered its purpose as regards foreign com- merce, but there was a scarcity of silver in change : and the appeal turned on the agio on this silver and its results. In November 1850 two Orders in Council and Proclamations were issued. The first Order in Council and Proclamation, after reciting that "the coins current in Our Island of Malta, . . . consist partly of the current coins of the United Kingdom and partly of the gold and silver coins of Foreign States," gave the five-franc piece currency at 3 s. II d. The second Order in Council enacted that from and after the date of the publication of these presents the following coins should pass current at the following rates in Maltese currency in substitution for those enacted by the Order in Council of 1844 : — Coins. Rate in the Maltese Currency. IJiitish : Sovereign Half-sovereign Crown - Half-crown - Shilling Sixpence Fourpence - Threepence - Penny - Foreign : Doubloon of Spain, Mexico, and South America - - - - Dollar of Spain, Mexico, and South America Dollar of two Sicilies - - - Five-franc piece of France Scudi. 12 6 3 1 40 2 2 2 Tari. G 3 1 6 t 3 o 7 6 5 Grani. 10 15 10 15 10 174 124 6 74 it also placed a limit of 2 /. or 25 scudi on the tender of silver. * From Mr. Christian's pamphlet of 1861. Ch. XXXII. Malta. 391 The admission of the doubloon and South American dollar into the schedule caused a protest from the Governor, who delayed publication of the Order ; but he was overruled on the ground tnat the mere rating of a coin could not bring it into cir- culation if it was already excluded, and the Order was published on the 10th of March 1851. The other effect of the Order, which seems to have caused some heartburning, was the apparent effect on the nominal value of the scudo caused by raising the rating of the sovereign from 12 scudi to 12^ scudi.* Although this Order in Council for the first time established the currency of Malta on a sound basis, viz., that of English gold with foreign coins accurately rated for concurrent circulation, it did not immediately find favour with the merchants as a body. A week after the promulgation of the Order they signed an agreement on the lines of the previous convention of 1845 and succeeding years, whereby they decided to receive and pay — The Spanish pillared dollar The Sicilian „ „ The Maria Theresa „ The five-franc piece - at » d. 4 2 2 It is not quite clear on what grounds this convention recom- mended itself to the majority of the merchants, who had obtained the object stated as the motive of the former convention, viz. : the limitation of British silver. But a local view of the matter is given in the following extract : " That the Convention of 1851, sanctioned by the Chamber of Commerce, was like its predecessors readily accepted by the public at large, is however no matter of surprise for anyone acquainted with the circumstances of Malta. Two causes con- tributed to that effect: 1st, tlie strong influence of the higher class of merchants on shopkeepers and other small traders . . . 2nd, the temporary and slight confusion caused in the retail trade among the lower classes, by the unavoidable alteration of the value of the British shilling and penny as compared to Maltese money ... no coin being in existence corresponding to half a grano." The convention was renewed, and was still in force in June 1852,f when the Governor called attention to the nullity of the Order in Council, and to the fact that the convention really regulated the currency. British silver having become a glut, there was 51,000/. in the Treasury alone which he was anxious to exchange for gold, as the troops were said to suffer. In con- sequence of the continuance of this state of things, and as a result of a report of the Auditor-General in 1855, the Order in Council of 13th August 1855 (which was proclaimed in the colony 4th October 1855) made British coins the sole legal tender in the islands. * See note on page 310. f The convention appears not to have been formally renewed after this date, but the merchants acted upon it and the public followed them. fll -M" i I i ■ i rV" I" hi i ,„■:' ! 1 |l 'I li I) '\ i ;l4]iM -i; m i ;■; jl' ' ^pfE; Hi . 322 Colonial Currency. 1855-1886. Sicilian Dollar Holds its Ground though Demonetised by Law. But the new Order in Council made no difference. Except in the j)aynients of and to the Government the circulating medium remained the Sicilian dolhvr iit 4 s. 2 i (Jopper, 1 -piastre. i „ (also called 20-para piece). \ » 1, ,, 10 8 >» » )> " (also called 20-para piece). (also called 10-para piece). all of which were in actual circulation, besides napoleons and a few sovereigns. There was also a considerable amount of inconvertible paper called in Turkish " Caime,"§ which is practically equivalent to ** I have to express my acknowicJjiiments to .Mr. Thompson, the Colonial Sucretary, and to Mr. Taylor, the Receivtsr Gfeneral, for interesting information. t The vagaries of Turkish currency produced five different piastres: gold, silver, pliited, cupper, and paper. The "'goM pinstre" often referred to was never a coin ; it was gold accounted for in piastre.^ at the rate of 100 to tiie lira, which gives IlIJ "gold piastres" to tlie 1 /. >teriiiig. A "para," there- fore, in fact might mean any one of five different mone^'-values. X The milallique coinage was of two descriptions : the coins of the nltilih class issued in 1833 and containing from '450 to -480 of silver, the beshlik and its sub-divisions issued during 15 years prior to 1B43, and containing only ■100 to -172 of 8i?ver. The word alti is Turkish for six, and besh for five ; lik is a termination of general import and various uses, one of which is to attach a concrete meaning to any iiiea. The word miri, whicli is found used in connection with thesa cowis, means simply "belonging to the Government." § Ihe word ka'im, plur. ia'ime, in Turkish, means "upright," and comes to be used for a boud, hence for the Treasury note. 72642. Y '* i ill 326 Colonial Curee.., 1 c. p. 20 ..s por stiver piastre. 1 lira - • „ „ 160 „ „ i.s., 1 r. p. it pnras per silver piastre. These progressive additions to the rate at which larger sums exchauged for copper piastres appear to have been more or less arbitrary — e.^., for the .'>-lira piece they were reckoned at the same rate as for the lira, and accoi'ding to the value assigned to the Napoleon, they were taken at a slightly lower rate than for the lira. This may bo due to the better credit of the mint from which the Napoleon issued. In fact there was no one definite value for any coin, and there were different rates ruling at the branches of the Ottoman Bank and in the bazaars; the depreciation of copper having gone further in the open market. Thus — ('. piiist. iiariLi. Mejidi6 = at tlie Bank 20 10 and in the Bazaar Silver Piastre = „ „ 1 o „ ,, Altilik = „ „ fi „ „ Deslilik = „ „ a ,, „ The sovereigns and napoleoni which were in circulation at the time of the occupation were current, as follows : — j 1 sovereign ^ 1 na[)oleon = 1 gold lira = lO.")^ to lOC^ allver, or 100 copper, piastres. 'ihe Napoleon appears to have been pretty common, as the tithe farmers, six months after the occupation, are said to have had a large ({uantity of them. Of sovereigns there were but few. The total amount of coin was estimated at 30,000/., and of caime at 1,000/. The great bulk of the coin was in copper piastres and their fractions, and plated coins. The latter were almost exclusively the currency of the Limassol and I'apho districts, the rest of the Island being dominated by the copper.§ c. p. pnras 1 8 lot C 00 115 silver, or 175 copper i)iastre8. 03 ,. or 140 „ ** The piastre of Turkey is the illegitimate dtsrendHnt of the piastre or pillared dollar of Spain, reduced by a series of debasvnieiit^ from the steili g value of 48. 'id, to that of id. ■f it varied from 1 p. lOparns to 1 p. lO paias. It will he noticed that the Bank, I ke the Turkish Govcrnniem, counted ail piastres alike. I The valuation of the gold coins at the Turkish Government Treasury and Telegraph Othce seeniH lu have been lower. ^ See note to p. 3.'J1. vi to Hi. XXXITI. Cypuus. Eeform of Currency under British regime. 327 The first act* of the BHtish Government in regard to currency at Cyprus was the instruction of the Board of Treasury that for the purpose of issue from the Treasury chest for the pay of the troops, &c. s. d. 15 10 18 - 3 7 The napoleon -hould be taken at The Turklcli lira at . _ _ The mejidie at - - - - This rating for issue naturally determined the rates at which the military authorities supposed tiiat they were to receive tho ntejidic as compared with the lira, but the High Commissioner was quickly advised to disregiud the instruction so far as it related to the mejidie, which was over-valued by morf> than a 1 d., and he fixed the value of that coin for receipt at 3 «. 6 d. It was necessary for a time to continue to receive in the depreciated paper certain taxes which had been customarily so received ; but it was pr<)|)osed to unload such paper and other depreciated Turkish money as might accumulate in the Treasury as part of the payment which would have to be made tu the Porte under the Convention of 1878. Grasping at once the inconveniences of the changeable Turkish currency, the Hiji^h Conunissioner made certain pn»p()3als for getting rid of the worst of the current coin and urged the introduction of the British currency system. The Treasury pointed out that to introduce at once into Cyprus whsvt was practically a foreign currency system would be unwise, and that lor the present the new adnunistration must W(jrk on the basis of the existing system, liut they approved of the proposals intended to drive out the debased coin : and, with the concurrence of the Treasury as to the rating of the sovereign and lira, the High Commissioner, in October 1878, issued a notice detei mining the rates at which gold and silver coins should be received in payment of Customs dues as follows : — s. d. English sovereigns = 20 - 120 silver |iiiistrej, rtr 180 copper ditto. >9 a 9> = 10 - - «0 »> „ 90 ,, .sliillin<;s = 1 - - (1 n M » French niipoleuii = 15 10 - 95 >» „ 1424 )> i 11 = 7 fl - 47 i »» „ 74 Tuikisli iini = 1« - - 108 »' „ KiO „ mi'ji(li6 = 3 6 - 21 >< „ 30 „ piastre = - o - 1 9> „ H This table was not absolutely accurate. The ratinsr of the sovereign appears to have • been purely empirical, based on its <» When the troops proceeiled to take ovt-r the Island, the Home Govern- meiii tch'graplird to the Staff Ptyinastcr who accompanied the force, and had charge of tile Treasury chest, to tike British sovereigns, not Anstraliiin coins or Imlf-sovereigns. It wa* huhKecjoently explained that the Australian sovereigns would pr<>bahlyhe looked on with distrust, and that half-sovereii^ns were unknown in the Levaut. 72642. • Y% I J \'\ f ,M: l|! 32S Colonial CuftiutNcV. fine content as compared with the lira, and, as a fact, the lira was undervalued as compared with the sovereign by jL of 1 if, : but this was favoured as tending to keep sovereigns in the Island. The mejidie was rated too high, and as that coin began to flow into the Treasury, the notice was amended so as to reduce the rating to 3 ». 4 d. or 20 piastres. The more important point, however, was tiie valuation of sterling in the copper piastres which formed the bulk of the currency. The copper piastre was more depreciated in value in Constantinople than it was in Cyprus, and the liras which were received in exchange for 160 copper piastres in Cyprus were shipiled to Constantmople and exchanged for 177 copper piastres 80 that it was profitable to export Turkish gold, and impossible to keep it in circulation in the Island. The same operation was not 80 readily performed in regard to the sovereign, and the tendency to export it was checked by the (Jroverument rating ; as the sovereign could be purchased for Mf) copper piastres in the bazaars, and the people made a sufficient profit on paying it into the Treasury at the advertised rate. It soon became apparent that etabilitv demanded another change, the substitution of a British for a Turkish copj,^.* piastre. For, on the one hand, the natives in tlieir ordinary dealings declined to take the sovereign for more than 175 copper piastres and the shilling for more than 8J ; on the other, in Constanti- nople, the sovereign was worth a varying number of copper piastres which at this time was pretty steady at 197. Meanwhile certain progress was being imide in the direction of clearing out the debased coinage. By the 7rh of November, or within about three months of the occupation, the High Commis- sioner had reported that the inconvertible paper had disappeared from circulation ; no one would receive it. except the Uovern- ment, to the extent above referred to, and only up to the 1st of April 1879; so that the paper portion of the currency was thus disposed of. On the Istof January 187!^ notice was given that the importation of the plated coinage was prohibited after the 15th of January. A little later the Government agreed to the proposal to strike a' new bronze piastre, half-piastre, and quarter-pi.istre, for('yprus; they concurred in Sir Garnet Wolscley's view above (jiioted, that the time was opportune, and they accepted without question his suggestion that 180 of the new piastres should go to the 1/. sterling. At this rating one copper piastre equals l^l^/., and as a penny weighs 145'H33 grains, the proportionate weight of the new piastre should have been 194"444 grains. The authorities, however, decided to fix the weight at 180 grains. This did, in fact, more nearly correspond with ihe value of the copper piastre at Constantinople, and was obviously a convenient aj)proxima- tion, but it at first c.uscd some disapfiointment to the local authorities, the new coin being smaller* than that which it replaced, and viewed therefore with some suspicion by the ignorant. On the obverse of the coin was the ettigy of the Queen, with the words " Victoria Queen," and date; and on the " * lo fact being about the size of the T'trkish half-piastre.' ' ■ ■ Ch. XXXIII, CypRUH. ^ rbverse the numeral I, i, or \, as tLe case might Le, witl^ " Cyprus " above, and " Piastre" below. On receiving the Imperial decision, Sir G. Wolseley at once issued a notice that, after the 13lh of March 1879, no mctallique (plated) piastres would be received at the Government Trea- suries; and, after the lilst of March, none of the other plated coins (beshliks and altiliks) nor cairae ; the latter had ju^t been repudiated by the l*ortc. ,; This notice arouBcd the apprehension and evoked the protest of the Limaesol district, where the plated coins were the chief medium of circulation; but on investigation it turned out that the excitement was solely the worJcot the money changcrA who hud made a good thing of the fluctuation in value of the plated coinage, and of the necessity of obtaining copper piastres for business with other parts of the Irtland. The poor themselves were easily affected by any suspicion because they, had been led by Turkish rule to expect constant extortion. The only outward sign of agitation was the closing of the front doors of the shops of certain merchants, business being carried on at the back of the premises as usual. The rapid changes in the value of currency at .Constantinople at this time imjjressed on the British Government the necessity of speedy measures to phice the currency of Cyprus on a firm basis. Witli the repudiation of the caime the value of the copper piastre rose sliaply*, the lira exchanging for 140 of the?e coins instead of IK2 within a few days ; the value of silver mejidies was also rising, and this appreciation of the Turkish coins at their centre was favourable to the efforts of the British Government to displace them. But the High Commissioner, while he favoured the idea of legalir» ^i )f » jj Copper • wm. English piastre ,, half piastre „ quarter - = 40 paras. 20 paras. 10 paras. The English copper piastre and all English silver coins will be received up to any amount into the Treasuries in payment for the taxes of the current year. Up to the 31 St Augupt next English copper coins (pennies and halfpennies) and Turkish copper piastres * will be received into the Treasuries in payment of taxes or in exchange for other coins at their tariff values, but they will not be received ufter that date. His Excellency hereby directs that on and after the 6th August 1879 the importation of silver or copper coins into any of the ports of Cyprus is prohibited." The half-crown was not legalised because the natives were found to confuse it with the florin. In vicAv of the decision to coin a bronze (copper) piastre, British pence and halfpence were wisely withdrawn as rapidly as possible- By the end of the first quarter of 1880 the High Commissioner could claim complete success for his efforts. He pointed to the mejidie as having [just] been depreciated o jter cent, by the Sultan. He reported that the new quarter-])iastre was begin- ning to go off well, so that the bronze coinage had got well hold of the people, and during the two succeeding years the only feiiture in currency history was the recurring requisitions for more bronze coin, half-piastres and quarter-piastres as well as the piastre. •By a 8ubse(iuent notice, dated 2'2nd August 1871), the words "and Turkish copper piastres" were struck out, as a great amount of smuggling wa9 taking place in those coins. r 332 Colonial Currency The following Table shows the movement of gold in Cyprus to the end of 1881 :— IMPORTS. EXPORTS. British. Turkish. Nnpolcou. British. Turkish. Knpoleou. £. £. £. £. £ £. 1878 . 67,000 14,000 781 7,300 7,000 27,000 1879 - - - 66,192 5,370 17,497 21,131 6,102 19,390 1880 - 43,231 4,626 8,179 17,185 8,943 8,747 1881 - 78,436 3,254 8,066 15,905 8,663 18,811 £. 244,859 27,250 29,393 61,491 27,707 67,948 From this it appears that English gold was steadily forming a larger part of the circulation of the Island, apparently driving out the French napoleon. And when the question of the coins to be legalised was finally being considered, " the Manager of the Anglo-Egyptian Bank deprecated making the lira and napoleon a legal tender on the ground that bills drawn in Cyprus expressed in these coins might then be paid in English gold at a lower rate than the actual rate of exchange prevailing in the market," a statement which goes to show that the sovereign bore an agio as compared with the foreign gold. It should be noted that the course ot the trade of Cyprus is with gold-using countries, chiefly England, France, and Egypt. On the r2th of June 1882 the satisfaction of the Government with the existing position of the currency was marked hy the publication of Her Majesty's Order in Council of 3rd May 1882, whereby as from the 1st of August 1882 the following coins became a legal tender at the rates and for the amounts subjoined :— Value in Cyprus Piastres and Paras. Limit of Tinder. Gold. Sovereign - - - Half ditto - Turkish Lira French 20-Fraiic piece - • - 180 00 1«2 142 20 \ - None. Silver. Florin - • . 18 3/. =--640 Piastres, Shilling Sixpence ... Threepence - - - - - 9 4 3 20 10 Bhonze. Piastre Half Piastre . - i^qarter ditto ' - — 40 20 10 i3«. = 27 Piastres Ch. XXXIII. Cyprus. 333 " Provided always that in all coutracts made previously to the day to be fixed by Proclamation ... in which any sum of money was expressed in silver piastres, it shall be lawful to discharge the debts created by such contracts in gold coin at the rate of 120 silver piastres to the sovereign, and so on in propor- tion," and a similar saving as to contracts in other coin, chiefly viewing the metallique. At the same time it was proposed to remove the prohibition on the import of (British^ silver. This could, probably, now have been done with safety as the tender was limited. Previously there would have been no certainty that a large supply of British silver would not have depreciated the coin in the eyes of the Cypriots, who, of course, were not aware that its issue was limited in London, and were only alive to the positive fact that British silver is not accepted in the Levant, and elscvhere, except at a discount. As a matter of fact, however, the prohibition still remains in force. Thus, the Cyprus currency settled down on the British basis, with the substitution of their own copper tokens for the pence of the United Kingdom. The only troul)Ie which has since occurred in regard to it is the persistence with which the traders of Limassol and Papho decline to recognise the new piastre in their accounts. Although the metallique and silver piastres, and their fractions, have practically disappeared,* they still cling to tiieir old money of account, fearing that the bronze piastre might have the effect of lowering the prices they receive for their goods.t Thus in Limassol all trans- actions are conducted in piastres of the nominal value of 132 to the £ 1 sterling, at Papho in piastres of 120 to the £ 1. This obviously gives an opening for a considerable amount of juggling with values in which the smarter calculators get the better of the English peojjle and their servants.^ * These coins had ceased to ciiculnte by 1860 ; they were exported in greater or less quantities up to l!i8(>, wlien they disappeared altogether. f Mr. Taylor recollpcts a villager coming into the bazaar at Papho to buy an oke of nails. The first man he went to asked 4i copper piastres ; his rival next door heard it and said he would let iiim have tlie same nails for 3 piastres (meaning silver). There was no time to explain the trick to the village!', who bought the nails at 3 piastres, but, of course, gained nothing. The man who hud adopted the copper rate came to the conclusion that it lost him custom, and that rate " has never had a chance in Papho since." X Mr. Taylor, Receiver General, states that " the argument of the inhabi- tants of these two districts was that the /c^arruikish currency was the metallic, and that the copper piastre was a debased currency which was only intended to be nsed to supplement the metallic, and provide small change for small transactions. It became so common at last that most of the districts in the Island found it convenient to use the copper piastre as the standard ; but this, so Limassol and Papho argued, was strictly illegal, and they declined to be led away by the evil example of the rest of the Island. "When metallic became so depreciated as to cause gi'ent inconvenience (at the end f 1878, or beginning of 1879, I think), the merchants of Papho held a meeting and decided to conduct all their transactions in silver piastres at 120 to the £. The question of adopting the copper piastre rate was suggested, but, I believe, unanimously disapproved of. "The arguments now used against any change are the inconvenience that would be caused in transactions v/hich are still pending, the opening that ! ti-K I ' 334 Colonial Currency. 11 'i s : The Government called attention to the matter by a Notice of 15th November 1884, stating that the consideration in contracts should never be expressed in silver or metallique piastres, or their parts. Their action produced notices from the principal traders of Limassol and Papho in the following form : — " We, the undersigned, promise that on and after the 1st of January 1885 we will carry on our transactions in accordance with the order of our respected Government, dated the loth November, which fixes the pound sterling at 180 Cyprus piastres, whereas up to the 31st December our transactions are, as is known, carried on with the £. at the rate of 132 [for I'apho 120] piastres." This, however, did not settle the matter ; tne con- ventional piastre still holds its ground. Legislation was suggested, but was, of course, impracticable, as dealing in an imaginary denomination is no otfence against law, and docs not affect the actual currency of the Island. The coins now usually seen are British gold and silver (excepting of course the half-crown), and the Cyprus piastres and their fractions ; a few French 20-franc pieces occur, but Turkish liras are rare ; the half and quarter lira, which at one time were common, have now disappeared. There is no note-issue cuiTont in the Island. The only Bank is the Imperial Ottoman Bank. It had been established in Cyprus for some years prior to the British occupa- tion and bought out in 1890 the business of the branch of the Anglo-Egyptian Bank established at the time of the occupation, thus securing a monopoly of the banking business. The Imperial Ottoman Bank uoav has branches at Larnaka, * Limassol, and Nicosia, with agencies at Famagueta, Pa[)ho, and Kyrenia ; its head office is at Constantinople. Its note- issue does not circulate in Cyprus. The amount of coin in circulation is estimated as being: — In English Gold - „ Foreign Gold - „ English Silver „ Cyprus Copper Total - £. - 310,000 23,000 - 62,000 8,000t £. 403,000 m \\ Hi or about 2 /. per head of population, inclusive of the bank's holding. would be given to unscrupulous persons to take ail vantage of the ignorant villag'-r during the change, and the probable reduction in the rate of wages, and price of produce." This statement, however, is not quite consistent wiiii one from another source, that copper was current in all parts of the Island till a few weeks prior to the occupation, when the people of Limassol and Papho began to refuse it. * This was the only branch exising under Turkish rule. j- According to the " Twenty -second Annual Report from the Deputy Master of the Mint,'' the total nominal value of the special bronze coinage struck for Cyprus, up to the end of 181)1, has been 8,491 /., of which 4,741)/. was in piastres, 2,901 /. in half-piastres, and 841 /. in quarter-piastres. [ 335 ] THE EAST. li ill j in ■: ,1 ■• I * II ' Ml ■>' '■ C !?f •' 336 Colonial Curkbnct. CHAPTER XXXIV. India.* The hiet<*ry of the currency of India would require for its adequate treatment not a single chapter, but many volumes. The following ]/agee do not purport to do more than to give a revicAT of Indian currency iiistory since the closing years of the last century, supplemented here and there by such historical and other notes as eeem to be required in order to understand the currency ol' India at the present day. The earliest monetary systeraf of India, as of China, appears to have consisted of weights of fine metal, silver, gold, or copper, with silver as the accepted standard. The unit of weight was the rati (1"75 grs. troy), which was the seed of the Abrus precatorias, or " wild liquorice." A hundred rutis{\75 grs.) formed the familiar sata-raktika, a weight of fine metal «hich on the one hand can be traced back almost to the Vedic epoch, whilst in modern times it has developed into the riijiee of the British Government. Though gold has played a considerable part in the currency of India, especially in the Soiith, silver has formed the gene'^al standard and measure of value, and it is therefore with the silver rupee that an account of the currency of India naturally begins, gold (the mohur and pagoda) and paper being reserved for subsequent discussion. (i.) The Rupee. From the standard weight of 100 ratis originated in 1542 the rupyam {or silver coin) of Sher Shah, weighing some 176 grs., soon to be followed by a multitude of local rupees, each with its own A\ eight and fineness. The earliest English rupee| was the " Rupee of Bombaim " of 1677, weighing 167'8 grs. But it was not till the establishment of British rule in 1758 that British * For niuth valuable information vplafing to the currency of IniHa, more particularly in its modern aspects, I am indebted to -Mr. Henry Waterfield, C.B., of the India Office, t See E. Thomas, Ancient Indian Weights in "Numisniata Orientalia" (London, Triibner and Co., 1H74). % Q,ueen Elizabeth in KlOO had coined "portcullis pieces of eight," with her own effigy, for circulation in India, lluding says hereon : — "' Some coinajre of this sort was necessary ; for the Queen, when she first incorporated the East India Company, would not permit them to transport the Kinw of Spain's silver coins to the East Indies, though she was frequently solicited by the merchants. The reason which they assigned to induce her to grant this (lermission determined her to strike coins for the particular purpose of circu- ation in Asia. They represented to .Her Majesty that her silver coin and stamp were not known in the East Indies, which they supposed would induce her to grant them a license to send thither what silver they pleased. The Queen and her Privy Council replied that, for the very reason alleged, it was Ch. XXXtV. India. 337 rVipeeB Were largely coined. Prior to 1835 these rupees were of three main* types, the Sicca rupee in Bengal, the Siirat rupee in Bombay, and the Arcot rupee in Madras.f (a.) From 1773 onwards the »SVrc«J rupee of Bengal, to prevent discount by the money-changers, was stamped 19 San Sihknh {i.e. " struck in the I9th year'' of Shuh Alam, the last of the Moguls). This coin, weighing nearly 180 grs. and containing 176 grs. of fine silver, persisted, with trifling changes, until 1836, when, by Act XIII, 1836, its coinage was discontinued in view of the introduction of the Company's rupee, the Sicca rupee ceasing to be legal tender on Ist January 1838. (b.) The Old Jiombai/ rupee w:i8 slightly ligliter than the Sicca rupee, but contained a fmction more fine silver. The (native) Surat rupee ought to have been of the saine weight and fineness but being struck of less intrinsic value drove out the British coins, and so led at the close of last century to the cessation of the coinage of the latter for twenty years. In 1801 the new Bombay rupee was ordered to be struck, weighing 179 grs. gross and nearly 165 grs. fine, or almost the proportions of the rupee of to-day. In 1824 Bombay adopted the Madras standard. (c.) Prior to 1818 the Madras Arcot rupee, of the Fort St. George .Mint, as distinguished from other Arcot rupees of native coinage, contained 166*477 "rains of fine silver. Owing to the over-valual ion of gold, and also owing to the coinage of native Arcot rupees of low standard, the silver rupee in Madras was less important than either the gold pagoda {»ee. infra) or the silver fanam.§ Government ordered the pagoda to pass for either 3^ Arcot rupees or 45 fanams. Since 45 fanams contained, according to the Court of Directors in 1806, 574*38 grs. fine, whilst 3^ Arcot rupees contained 582*669 grs., the rupee was undervalued 1*422 per cent, as against the nominally subordinate fanam. Under an earlier scheme, by which 42 fanams went her fixed and unalterable resolution rot to permit tiiem to send the coin of the King of Spain, or any foreign prince, to India ; and that no silver shonld be exported by her merchants, but only such as should be coined with her effigies and picture on the one side, and the portcullis on th« other, of tiie just weight and fineness of the Spanish pieces of eight and pieces of four rials. Her prudent reason for this was, that her name and efbgies miglit i)e hereafter respected by the Asiatics, and siie be known as great a ])rince as the King of Spain." {See Sir George Birdwood's " Early Records of the India Office'' for Charter provisions as to coining.) * Section 14 of Bengal liegutation XXXV of 1793 specifies no less than 27 varieties of rupees as " current in the several districts, and rates them in terms of sicca rupees. j- Accounts were commonly kept in "Current rupees" (chaldni), taken as 2s. each in the Company's financial reports to Parliament; 116 Current rupees were equal to 100 Sicca rupees, or 10G§ Company's rupees. J From the Arabic sikka, a coining-die, wlience also Zecchino or Sequin, and the old Anglo-Indian " chick " (4 rupees). § Tlie word fanam is probably an Arabic version of llie Tamil panam meaning " money." Originally it was a gold sixteenth of a pagoda. Priorio 1818 the monetary scheme in Madras was 80 copper cash = 1 silver fanam; 1*2 fanams = 1 rupee; 42 fanams (or 8) rupees) -- 1 htar pagoda; but the bazaar exchange fluctuated from 35 to 45 fanams. (See Thurston's " History of the Coinage of the E. I. Co." (Madras, 1890) and Zay, pp. 269- aao). , ,11 I i:. ! ■A' n III ''i 'ir 1 : fi 1 338 Colonial CuukencV* to a stat pagoda, the amount of fine silver in the latter numbef of fanams was only 53t)'H8 grs., or nearly K per cent, worse than the fine content of 3^ Arcot rupees. In 1806 directions were sent out from home that the standard coin of Madras should be a silver rupee weighing ISO gre. gross* and 165 grs. fine, the fineness being 11 12ths.t liut it was not until 7th January 1818 that a proclamation was issued in Madras giving (currency to the new standard coin, in lieu of the gold pagoda, at the rate of 350 rui)ecs to !()'> pagodas. (d.) Though it was the intention as early as 1806 of the East India Company to put an end to the losses and inconvenience I'esulting from the " circulation of so many denominations of gold and silver coins of difterent values in differont districts," by estab- lishing '* one general system for the formatiim of the coin for the currency of the whole of our possessions on the continent of Asia," yet it was not until a generation later that this intention was finally carried out. Convinced, as they expres.-ly stated, by Lord Liverpool's "Letter" that a single standard was necessary, the Comj)any decided in 1806 thai in Lidia "such coin must be of silver;" but it was not until 1835, that, by Act No. XVIL of that year, one uniform silver rupee was declared the standard coin of the whole of British India. The ty[)e chosen for the new "Company's rupee" of 1835 was the Madras rupee of 1818, weisfhing 180 grs., I l-12ths fine, and therefore containing 165 grs. of fine silver. 'J'ho weight and fine- ness of this standard coin have remained unaltered lo the present day, though in 1862 (by Act No. XIII. of that year)t the Queen's effigy was intnxluced in lieu of the Company's arms, and the name of the coin was declared to be " the Government rupee." The Act now in force is the consolidating and amend- ing Indian Coinage Act of 1870 ^No. XXIII). Subordinate to the rupee are the following coins: — (rt) Silver : 1. Half rupee. 2. Quarter rupee, or 4-anna piece. 3. An eighth of a rupee, or 2-anna piece. All these coins are of the same fineness as the standard rupee, and of proportionate weight. The half-rupee, like the rupee itself, is legal tender to an: amount ; " the ([uarter rupee and eighth of a rupee shall be legal tender only for the fractions of a rupee." No silver coins are legal tender if " clipped or filed, or defaced, or diminished, otherwise than by use ''; and, further, the rupee *» This weiglit was cliostn as being; "the neiirest to tlie sicca weiyilit in \Yliole iiuinl ers," the sicca weight of tlie Mogul mints being ascertained to be 179^ troy grain?. f The fineness was adopted from tlie Report of a (Jonnnitteo of Council of January IBOIl on the London Mint. They approved the liritisli ifold standard of n-12tns fine, and the Court thought that the standard " would be equally proper for fiiver coin. ' % This Act also rescinded an inoperative clause in the Act of 183-5, authorising a double rupee. Ch. XXXIV. India. 339 ami half-rupee must not have " lost more than 2 per cent, in weight." (ft) Copptr : 1. A double pice, or half-anna. 2. A i)ice, or qunrter-anna. 3. A nalf-pice, or one-eighth of an unna. 4. A pie, being one- third of a pioe, or l-12th of an anna. The weight of ihc double pice is 200 grs,, that of the oth t copper coins being proportionate. Copper coins (like the silver quarter and ciglith rupee) are a legal tender only for fractions of a rupee. The Indian mints are open to the " free coinage"* of silver, in quantities of not less than 1,000 tolas (of 180 grs. each). The coinage char'^e is 2 per cent, (in addition to •! per cent, for melt- ing charges) for silver of the Indian standard (91*6 jier mille); a reKning charge is also made if the silver be of worse standard or unfit for coinage. On delivery of silver at the mints for coinage, the owner receives '' a receipt which shall entitle him to a certificate from the assay master for the net produce of such bullion or coin payable at the gen(!ral Trt-asury." In 1876 (by Act No. IX. of that year) the (Jovernment of India was empowered "^to declare certain coins of Native States to be a legal tender in British India," provided that such coins (whether of gold, silver, or copper) (i) are identical in weight and fineness with coins of British India, and (ii) are coined at British mints, and provided further that for 30 years the Native State abstains from coinage on its own account. Power is also given to limit the coinage under the Act for each Native State. So far the only Native States which have availed themselves of the provisions of the Act of 1876 are Alwar, Dliar, and Dewas. The coins of Portuguese India are coined by the Government of British India under Act XVII. of 1881, and are legal tender equally with the coins of British India. According to official statistics f the nominal value of the total silver coinage (including re-coinages) in the mints of the three Presidency towns, from 1835-6 co 1890-91, inclusive, was 3,302,500,837 rupees, made up as follows: — Whole rupees Half Quarter Eighth Rs. 3,149,857,487 50,462,090 60,598,730 41,582,5.30 Total silver - - - Rs. 3,302,500,837 For the same period the copper coinage was ------- 54,768,980 t Total silver and copper Rs. 3,357,269,817 ** Tins provision of" free coinage" has been the chief point of attacic by Indian cuneiuy reformers, otlier than " binietalliats." (See, e,g., tlw. Final Report of the Gold and Silver Commission, dated October 1888.) f Finance and Revenue Accounts and Miscellaneous Statistics relating to tlie Finances of British Indian 1891, Part III., i»age20'J. 540 Colonial CuRftENCr. , Taking the population of British India at 220,000,000, the above total gives an average of I5i rupees per head in respect of the silver and copper coinage since 1834-5. In the Economic Journal for Decemljcr 1891 and June 1892, Mr. F. C. Harrison* has arrived, by nn elaborate system of practical investigation, at the conclusion that tlie circulation of the rupee itself may " be taken to be about 115 crores," of which " in ordinary years the coin held by Government and the banks would be about 20 crores." Mr. Harrison estimates 3 J crores mure for copper (" agricultural India is still in the copper age, and this metal forms the currency of the poor to a greater extent than silver"), and adds "a crore for the circulation of other than Government coin, and seven crores for small silver." If these latter figures be added to the above estimate of 115 croi'es, the total amount of coin in general circulation and in the banks, &c., is Rs. 1,265,000,000, or Rs. 5| per head of the population. If the 20 crores in the banks, &c., be excluded, the "active" metallic circulation stands at Rs. 1,065,000,000, or Rs. 4*84 per head, i.e., less than oue-third of the total coinage since 1834-35. (ii) Gold. (a.) The Mohur. Like the silver rupee, the gold mohur (Pers. muhr "a seal") represents the old Indian weight of 100 ratia, or 175 grains, of fine metal. In the 14th century (perhaps in order to adjust the ratio of gold to silver), the coined mohur was for a time raised to some 200 grains, but reverted to (approximately) the ancient weight of the sataruktiha. After 1758 the East India Company endeavoured to make gold the standard of India. The history of the mohur is best known in Bengal, though in its present form the mohur (like the rupee) originated in Madras (in succession to the pagoda) in 1818. In Bengal, in the language of Regulation XXXV. of 1793, *' Under the Native administrations, and until the year 1766, the gold mohur was not considered a legal tender of payment in any public or private transaction, nor Avas the number of rupees for which it was to pass current ever fixed by the Government. It was struck for the convenience of individuals, and the value of it in the markets fluctuated like other commodities, silver being the * At the moment of going to press, I find in the " Calcnttii Review " for July 1892 an important iirtiule i)y the same writer, entitled " Early AnnaU of the Indian MinlH," from which the following is >\ quotation :— "I am of opinion that ahoiit 38 crores of rupees were circulating in 1H.35, viz , 7 crorea in Lower Bengal, (!J in Upper India, 6 in Madras, 2i in Hyderabad, 2 in the Punjab, and 15 elsewhere. The difference of 37 crores between this amount and the net issues has either been melted, or hoarded, or exported. To the quantity so disappearing should he added 5 crores or so on account of issues prior to 1800. In other words, the yearly waste due to these causes av«ra) to be fully secured by a metallic reserve beyond such minimum. The notes were declared a legal tender within their own Circle '"See House of Commons PupiT, 449 of 1881, ami Parliamentary Papers 47i)7 of IB80, 5512 of 1888 (Gold and Silver Commission's Final Report), f See House of Commons Piiper, Mo. 1815, of 1800. i i.e. deducting the coining and melting charges of 2'1 per cent., see supra. 11 J! I\\b wy Ch. XXXIV. India. 347 of Issue except by the Government of India at any office or at the Issue Department. By Act XXIV of 1861, the Governmentof India provided for the employment of the Banks of Bengal, Madras, and Bombay, as agents for the note issue ; but, owing to the Secretary of State's objection to the arrangement, the Act was not put into force, and it was repealed in 1871. In order to avoid a run on the Mints for coin, it was provided by Act No. I. of 1 866, that the issue of notes in exchange for bullion, or foreign coin, might be delayed until the bullion could be converted into coin. By Act No. XXX. of 1867, power was taken to transfer, for the purposes of the Paper Currency, any town from one Presidency to another ; Act No. XV. of 1870 raised from four to six crores the fiduciary issue;; and Act No. III. of 1871 con- solidated the law on the subject, and at the same time reduced from Rs. 10 to Rs. 5 the minimum denomination of the notes. The main Act in force iit the present time is the Indian Paper Currency Act, 1882 (No. XX. of 1882), which extended the Paper Currency to British Burmah and established Agencies within Circles of Issue. The denominations of Government Currency Notes are 5, 10, 20, 50, 100, 500, 1,000, and 10,000 rupees. During 1862-3 and 1863-4, the only " Circles of Issue" were Calcutta, Madras, and Bombay. In 1864-5, other circles w;ere established, viz., Allahabad, Lahore, . Calicut, Triohinopoly, Vizagapatam (afterwards termed Cocanada), a^id Nagpore. Kurrachee was added in 1865-6, Akolah in 1868-9, and Rangoon in 1883-4. The Trichinopoly Circle was merged in Madras in 1873-4, and Cocanada in 1882-3 ; and the Nagpore and Akolah Circles were amalgamated with Bombay in 1882-3. The average circulation, which was Rs. 41,000,000 in 1862, had more than doubled itself by 1866-7, and was quadrupled in 1888-9, when it stood at Rs. 164,316,290. At the close of 1890-1 the average circulation amounted to Rs. 256,904,490, namely: — Bengal Bombay Madras Rangoon Rs. 118,019,160 94,530,510 39,057,390 5,297,430 Rs. 256,904,490 For 1890-91 the reserve held against the Note Issue was as follows : — Silver coin - - - Rs. 179,020,800 bullion Securities 7.883,730 09,999,960 R8. 256,904,490 By Act No. XV. of 1890, the maximum fiduciary issue was increased from 60 to 80 millions of rupees, the minimum circulation having increased more than 50 per cent, since 1870. At the close of 1891 the amount of securities held was raised to this maximum. J il hi 348 Colonial Currency. Taking the total population at 220,000,000 this total is equiva- lent to an average per head of Rs. 1^, of which about one rupee is in general circulation. This would make, with the " active " circulation of Rs. 4'84 in coin (as shown above) a total active currency of slightly under Rs. 6 per head of the population. Up to Slst March 1890, the Government of India had received a net profit of Rs. 45,371,440 from the Paper Currency Department. IJ % 'It I 41 .'\ii . ■'■■■i .''y,.- , V. ' ! . .t > :> ky. ■!: ,). iJi [ 349 ] CHAPTER XXXV. Ceylon. * •.;■. (1795.) It is outside the scope of this work to discuss the ancient cur- rency of Ceylon prior to its occupation by Europeans ; informa- tion on this interesting but complicated subject, will be found in the monograph by Professor Rhys Davids in " Numismata Orientalia " (London, 1877). But it is essential to note that, as might naturally be expected from the Island's history and geo- graphical position, the early monetaiy system of Ceylon was that of Southern India. The standard coin of Southern India was the gold pagoda (see pa^e 342) : but the standard denomination was the fanam. The gold pagoda was finally supplanted by the silver Madras rupee in 1818, and in 18.3-5 Madras was merged in the larger currency area of British India, with the natural residt that Ceylon also was drawn into the new consolidated area. With the exception of the eleven years between 1825 and 1836 (during which artificial conditions prevailed in the Island), the currency of Ceylon has been dominated by that of South India, alike before and during European rule. (i.) Portuguese Period. As regards the currency of Ceylon under the Portuguese, who were dominant in the Island for a century and u half prior to 1658, Professor Rhys Davids is of opinion that "no coins are known to have been struck by the Portuguese in or for Ceylon." This statement does not imply that Portuguese coins were not current in the Island ; for Captain Robert Knox f expressly states that, besides lariiis'l and pounams (fanams), there were in circulation during his twenty years' captivity in the Island other pieces of silver money ''coined by the Portugals ; the king's arms on one side, and the image of a friar on the other, and by the Chingulays called tanf/om massa. The value of one is nine- pence English ; poddi tanyom, or the small tangom, is half as much." There does not, however, appear to be distinct evidence * For valuable information in connection with the currency of Ceylon, I am indebted to the scholarship and official knowledge of Mr. J. A. Swet- tenliam, c.m.o., Auditor-General of the Island. f " Historical Relation of the Island of Ceylon in the East Indies " (London, 168i;. \ For information concerning this " Hook money " from Lar, see Rhys Davids (op. «7., ;>p. 34-6). *%« also Sir Walter Elliot's "Coins of Southern India " (London, 1886). '! ■ m ill 3 ' I f ,' r il in! Ill • > i 4 >» farthiiiir , ?» I 6 2 >> Ceylon fanam 5) 1 „ stiver or pice 5J i 3 >> „ challie •» ih 1 J? But, by the Governor's Proclamation of 23rd August 1871 * Nearly a million sterling was received from Kngland to supplement Colonial Revenues between 1810 and 1U24. Ch. XXXV. Ceylon. 357 (under tlic Order in Council and Proclamation of 1869) the above copper coins were rated as the ^, ^, ^, -r^j ^V> and T-J^ parts of a rupee, new copper tokens beinj> authorised in the denomination of cents (5-cent, 1-cent, and i-cent pieces).* The new tokens were authorised as from Ist January 1872. A i-cent was authorised by the Governor on 14th September 1872. Finally, by the Governor's Proclamation of 17th March 1874, the old Ceylon fanam, stiver, and pice were demonetised as from 17th September of the same year; and thus the last link was broken which connected the modern with the old currency. The currency system of Ceylon from 1872 to 1891 was analogous to that ol the United States in combining a binary with a decimal system for coins subordinate to the standard. In 1891 the Indian silver coins of two annas were abandoned, and the decimal system was introduced (praciically) in its enliretyf under the Order in Council of 1892. Under this consolidating and amending Order (i.) the rupee of Portuguese India was admitted to unlimited legal tender equally with the rupee of British India, and (ii.) decimal silver tokens of 10, 25, and 50 cents (of 800 millesimal fineness) were authorised to be struck, and to be legal tender up to five rupees, the limit for copper coins remaining one-half of a rupee. Power was also taken to coin other tokens, if required subsequently ; and it may be anticipated that under this provision bronze coins may be hereafter issued in lieu of {e.r/.) the expen- sive and unwieldy 5-cent piece now current. The Indian ^ rupee and ^ rupee are retained as a legal tender, but only as subsidiary coins with a five-rupee limit. The metallic currency of Ceylon thus consists of Indian and Portuguese silver with a subsidiary coinage proper to the Island, as is also partly the case with Mauritius. The amount of coin in the island on 3 Ist December 1891 is estimated to have been as follows : — ,,. . . (i.) Silver : .J (a.) In hands of Government against Rs. Rs. Currency Notes, and as Kutchery balances - - 4,500,000 (b.) In banks at Colombo - - 3,000,000 (c.) In coxmtry banks and private hands _ . . . 4,000,000 tc i.> 1 (ii.) Copper ^1»\fV!^\i'l\ Total (say) - 11,500,000 948.966 Rs. 12,500,000 As the total ])opulation of Ceylon in 1891 was 3,00(>,000 (in *^ The weights of these coins (wliich are of ])iire coiiper) were taken (n[>proximutely) from the old Britiili copper penny, fartliing, and lialf- farthing. Hence, intrinsically, the cent is the quarter, not the fifth, of the 5-cent pieces. f Strictly speaking, a '2()-cent piece should have tnken the place of the repre- sentative of the ludian { rupee (tour annas), as in Mauritius. Compare also the 20-cent pieces of the Straits Hong Kong, and Newfoundland. Canada, following the United States, now utt'ords a parallel to tlie 25-cent piece of Ceylon. . 72C42. A A f'l j'i I (),' V "II [') ' I 8 ::i i I ■!■ Ml I ii . ti •m Mfi ' 1 ij ;' ! 1 1 ■ i 1 y ii ■j WM f^B if P' ■ - 358 Colonial Currency. round figures), this total would give Rs. 4^ in coin per head. Without the Government holding (which is practically all ear-marked against the note issue), the metallic circulation of the Island stands at Rs. 2§ per head. And if, further, the banks' reserves be struck out, and the coin in private hands be taken at Rs. 3,500,000 in silver, and Rs. 1,000,CK)0 in copper, the "active" metallic circulation of Ceylon works out at Rs. 1^ per head of the total population. Notes. There remains the important question of notes in circulation. The failure of the Oriental Bank in 1884 had led to the guarantee by the Governor of the bank's notes then in circulation ; and this stej) occasioned the establishment of a Government note issue in Ceylon on the model of that already existing in Mauritius. By Ordinance No. 32 of 1884 it was provided that " currency notes," of the denomination of 5, 10, 50, 100, 500, and 1,000 rupees, should be issued as from Ist January 1885 by a Board of (three) Commissioners of Currency. These notes, which are legal tender, and payable on demand in "silver rupees of India.* .... but no other coin," are issuable on demand " in exchange for the amount thereof in silver rupees of India." The Commissioners are to hold a " reserve in silver coin of one-half, at the least, of the amount of currency notes in circulation ;" and a sum not exceeding one-half of the circulation may be " invested in Indian Govern- ment securities, and such securities of the Government of the United Kingdom, or of the Government of any British Colony other than Ceylon, as may from time to time be approved by the Secretary of State for the Colonies ; provided that not more than one-half of such sum shall be invested in Indian Government securities, except by the express sanction of the Secretary of Stale;" but if, by shrinkage of the circulation, the specie reserve should fall below the standard of one-half of the notes in circula- tion, it is not incumbent on the Commissioners of Currency to realise their securities until the specie falls to one-third of the notes in circulation ; but no new investments must be made until the specie exceeds one-half of the circulation. One per cent, of the dividends is set aside to forrp a *' depreciation fund," which, however, may at any time be discontinued with the approval ot the Secretary of State. Ceylon Government currency notes were brought into circula- tion on Ist January 1885. The following figures give the total issue on 3l8t December of each subsequent year up to the present time : — 1885 1886 1887 1888 1889 1890 1891 Rupees. 4,192,165 5,012,165 5,171,705 5,529,705 6,444,375 6,294,375 7,537,375 * Heoco, apparently, the Portuguese rupee, which was ninde legally current in inu2, is not a legal tender in payment of currency notei. Ch. XXXV. Ceyloi*. U^ The note circulsition of Ceylon is, therefore, equivalent to Rs. 2§ per head of the total population. The " active" metallic circulation being Rs. 1^ per head, the total metallic and paper currency of the Island amounts to Rs. 4 per head, which is almost the estimated total of the coin in the Island, apart from notes. The abstract account published by the Currency Commissioners for the month ending 31st December 1891, showed that the "reserve " {i.e., the assets) of the note issue was as follows : — (i.) " Silver in the vault » - - - - (ii.) Sums invested : Rs. c. (a.) In Indian 4 per cent. paper - - - 1,778,807 70 (b.) In sterling debentures, &c,, of Australia, Canada, and the Cape - - - 1,279,985 50 Rs. c. 4,478,581 80 ■ - -fV.'- 3,058,793 20 7,537,375 00 Total - - Rs. Calculated at the latest market rates, the rupee-value of the above investments was as follows: — Rs. c. (a.) Indian 4 per cent, paper _ _ _ 1,933,152 87 (b.) Sterling securities 1,379,465 51 Total Rs. 3,312,618 38 Thus the original investments had improved by Rs. 253,825. 1 8c., or about 8 per cent, in value. The "Depreciation Fund" at the same date stood at (in round figures) Rs. 200,000, of which, roughly, one-half was in Indian securities, one-quarter in sterling Colonial Stocks, whilst the balance was uninvested. The net profits amounted, for 189 1, to Rs. 121,759. 9c., of which Rs. 25,073. 12c. was placed to the credit cf the Depreciation Fund, whilst Rs. 86,68.!). 97c. went to swell the Colonial revenue. In the seven years ending 31st December 1891, the Colonial revenue had received a net profit of Rs. 467,878, or Rs. 66,839 per annum on an average, in respect of the Government Issue. ill! .(«•»■'" I '» r > .'i 72642. A. a2 Ir Mr ) .< I". jif, ji) ' I •- t;^ .»/,. ■(«( ♦•■?) /. .-it CHAPTER XXXVI. Mauritius. (1810.) .■1,-ii t .,tit, *' Mauritius," in the words of Mr. Lucas,* "is an instance of a country in which geography and history have, to a certain extent, run counter to each other. Geographically it belongs to Africa, but the Course of its history . . . has closely connected it with Asia." Lying on the highway round the Cape to India, and ruled successively by the two European powers who have built up an Indian Empire, Mauritius necessarily formed its chief trading relations with India. With the opening up of Australia, Mauritius grew to be a great entrepot for the East and the rising Australian Colonies, and for a time the gold discoveries in Australia threatened to make gold permanently the standard in Mauritius, but the opening of the Suez Canal in 1869, whilst dealing a heavy blow at the commerce of the Colony, swept the Island back into the Indian "currency area;" and so, in spite of Imperial efforts to introduce sterling into circulation, this African island is dominated to-day, as it was dominated at the beginning of the century, by the currency system of India. The history of currency in Mauritius furnishes an instructive lesson in the futility of arbitrary, if well-meant, endeavours to substitute an alien scheme of currency for that prescribed by trade relations. Before passing to the detailed history of the island's currency, it may be well to point out that the key to the study is whe " cur- rent or colonial dollar." Identical, at the close of the 18th century, with the universal Spanish dollar of 370"9 grains fine, the 'dollar' (of 10 colonial livres) became mere money of account about 1810, sinking to the level of two sicca rupees, containing 352 grains fine. Though legally declared in 1826 to be equiva- lent to is. in sterling coins, this "colonial dollar" continued to be valued popularly at two rupees ; but, as the sicca rupee of 176 grains fine had disappeared in 1833 to make room for the Com- pany or Government rupee of 165 grains fine, this popular rating of the "colonial dollar" involved a further shrinkage of over 6 per cent, in its intrinsic value. Finally, in 1876, after half-a-cen- tury's futile endeavours to introduce sterling as the local currency, the rupee was establii^hed by law a-^ the island standai'd of value, and the "colonial dollar" was dispensed with as a needless complication. The history of currency in Mauritius may thus be conve- niently divided into tour periods: (i.) prior to 1810; (ii. ) from « '< Historical Geography of the British Colonies," Vol. 1, p. 167. Ch. XXXVI. Mauritius. Ul it 1810 to 1825; (iii.) from 1826 to 1876; and (iv.) from 1876 onwards. (i.) Prior to 1810. With regard to the currency of the island under French rule * it will be sufficient to state that the real metallic standard of the 18th century was the Spanish dollar; that the old paper issues were withdrawn in 1786-90 ; f that the subsequent Revolutionary paper was "retire en entier sur le pied de 2,000 francs (i.e., livres coloniales) pour une piastre en 1803, epoque de I'arrivee dii General de Caen ; " and that this officer in 1810 attempted to reduce the " dollar " to the level of a five-franc piece by coitviug the island dollar which bears his name. | It is important also to bear in mind that in this French Colony accounts and calculations were invariably expressed in " livrea coloniales," reckoned 10 to the dollar, and therefore 'equivalent to the familiar Spanish real, or to half the French Iivre. A decimal system was, therefore, in existence before British occu- pation; but the " colonial dollar '' was worth somewhat less than the Spanish dollar. On the other hand, there was a dearth of coin, resulting in part from war and the Kevolution, which militated against exact ratings. (ii.) 1810-1826. ' Soon after the capture of the island the Governor issued the Notice of 6th December 1810, declaring th" Spanish dollar equal to 2 sicca, or 2 J Arcot, rupees, the gold - onurs of Bombay and Bengal being rated at 7i and 9 *'du. v ^^"ctively. || For some two or three years this tariff, which t, ■ .wrvaiued the Spanish dollar some 6 per cent., appears to have worked well, so long aa few sicca rupees were in circulation. But by 1813 the Indian coins had become so abundant that tlie Spanish dollar bore a premium of 3 to 4 per cent. " C'est a cette epoque qu'il faut reporter la difference qui a commence a s'etablir enlre la piastre courante ou coloniale de dix livres et la piastre effective d'Espagne."ir The * A series of articles by M. Iloussellet in Lc Mouvement a Vile Maurice"- from ."jth February to J)th April 18i)2, deal with the old currency of the island in interesting detail. t See le Reglement sur le papier of 28th July 1790. It was the j»aper money wiiicb depreciated the local Iivre of account. At the beginning of 1777 ti)e Spanish dollar was rated at 7j livres. In the course of till' next seven years the quotation rose to 10 livres, nnd sometimes as high as 12. Beture IHIO all rupees alike are stated to have passed as four livres coloniales, or two-fifths :)f a Spanisli dollar, a rating which undervalued even the Arcot rupee about 11 per cent., and. consequently, rendered impossible the con- current circulation of the dollar and rupee. And the dearth of coin in circulation is recorded by de Caon (Zay, p. 2'i.1). X Gross weight 4 13'164 grains, tineness ten-twelfths, fine content 344*3 grains, or a slight fraction under the fine content of tlie five-franc piece. This coin had been made legal tender hy General de Caen's Airole of 8th MaK ti 1810. Tiie silver fo the coinsge came from the booty of the " Ovi6dor," captured in this year. (.S'ee Zay, ])ages 2fll-5). {{The issue of interest-bearing Treasury Bills on 10th April 1811 is not important from a cutTency point of view, % Ijetter of 2l8t August 1824, from the Bank at Fort Louis to the Colonial iiovernment. i'il w I'^f 362 Colonial Curuency. ini practical standard of value was now the 8ic(;a ruj)ee, which readily conformed to the decimal HyHtem in vogue, as the equivalent of five livres coloniales. The island currency was placscd on a basis which met with the general approval of the inhabitants. The chief deficiency in the circulatory medium was in coins subordinate to the sicca rupee, and larger than the copper sol marque (see infra). To meet this want, the Colonial Govern- ment applied to England in 1817 for a supply of small silver coin for the island, and issued temj)oriirily small Treasury notes of the denominations of a half and a (|«iirter dollar, and a further issue was made in these and in much higher denoujiuations (up to ^500) in 1818. As no coins came from England, the Colony in 1818 imported 1,600,000 pices from India at 04 to the sicca rupee ; and, to prevent their exportation from the island, each pice was ordert-d to pass as a cent (i.e., at the rate of 100 to the colonial dollar of two sicca rupees), or at a premium of some 28 per cent. But, as excessive issues of paf resulted in an agio of over 28 per cetit. on specie about 18:^0, these overrated coins did not escape export to liourbon uid elsewhere. The renewed inconvenience of having no small (;hiinj;e was met in a novel fashion. Special "tokens" in base silver were struck for the island at the Calcutta Mint of the denominations of 50 and 25 sous, i.e., 25 and 12^ cents of a colonial dollar, respec- tively, and were issued under the Notice of l!)th March 1822. Their intrinsic value being under fJ^ d. and .3| d. each, the over- rating was nearly 90 per cent. ; and naturally, therefore, these insular ^oins (of which 286,251 of the larger size, and 311,498 of the smaller, were struck) remained in circulation in Mauritius. Meantime, the Home Government in 1820 had directed 50,000 Spanish dollars to be bought and coined into quar- ters, eighths, and sixteenths of dollars for the service of the island. These fractions, which were unsuitable because they were not decimal parts of the dollar, were "struck with the device (of the anchor) adopted for the coin of the British Colonies," and were of dollar fineness and proportionate weight.* They are the earliest "anchor money " {see page 21). Pence and halfpence were also requested, but their coinage was not executed, f In 1821, 20,000 /. worth of silver was purchased by the Com- missariat to be coined " into halves, quarters, eighths, and six- teenths, for the service at the Mauritius." These coins were struck in 1822 on the former plan, 10,000/. in half-dollars, 4,000/. in quarters, 4,000/. in eighths, aod 2,000 /. in sixteenths. On 24th September 1822, the Commissariat officer wrote that " the colonial paper money in exchange for the metallic currency bears a discount of 29 per cent., and for Spanish dollars 33 per cent." And on the same date, under Treasury directions, the general officer commanding rated the coins in circulation, for • Of the quarters, weighing 104 grains, 99,792 were struck. „ eighths „ 52 " „ 119,690 „ „ sixteenths „ 'Hi „ lCI,.");i(j „ f Copper tractions of tlie dtilkr were actually Htruok a year or two later for MauritiuB, the West ladies, Sierra Leone, &u. ; L)nt the coinage waa melted down, heforo isbue, at the end ut lb25. Ch. XXXVI. Mauritius. 363 issue to the troops, on the basis of a 4 «. 8 d, rate of issue for the familiar Spanish dullar. The chiet feature of his silver ratings was the reduction of the sicca runee from 2 «. Ad. to 2 a. 2J rf., making therefore the "colonial dollar" worth 4 s, 5d. for issue to tilt' troops. In 1H2) a serious effort was made to |)urge the currency of pa|)er, and by Proclamation of 25th June in lluit year, the existing issues were called in, and demonetised as from 24th December 1824. In view of the " approaching return to a metallic currency," the Governor on 10th December 1824, issued a notice rating in cents of a " current dollar of the value of two sicca rupees," the undermentioned coins in common cir- culation for the purposes of receipt and issue by the Colonial Government : — 1 a I L V E U. 1 GOLD. sicca rupee SO ceiit9. Bengal molmr ■ 8 current dollars. Miulras „ ... 47 tt Madras „ ... ' II Bombay „ ... 47 i» Boiutiay „ ... ' n Spaniah dollar • 108 1) Sovereign .... II ^ English colonial dollar 106 11 Twenty-franc piece - * II Decaen dollar • 08 »» Uoublooa ... " Pive-frano piece US 11 ■ - AuBtrian ilollar - 98 N !• ■• :V -V, ,\.u This regulation, though not destined to be long in force, was important for its rating of the sovereign as five colonial dollars, on the erroneous basis of the Mint price of 5 1. 2 d. per oz. of standard silver. The starting point for these (round) figures was the sicca rupee; the ^old ratings were subsequently deduced from their hon e equivalence to the silver coins of their own currency systems. The Spanish dollar was designedly overrated about 2 per cent., in order to retard its exportation to Bourbon, where it passed for 11 colonial livres or 110 cents. (iii.) 1826-1843i Throughout .his period the " Colonial dollar" continued to be regarded as equal to 2 sicca rupees : but this, as will be seen, was conventional only. In 1825 (see page 23), the British Government formulated, and proceeded to carry out, its scheme for making British silver and bronze tokens the circulating medium of British colonies. On receipt of the Treasury circular letter of 12th February of this year, the Governor issued on 22nd September a notice (on the lines of the 1824 rating of the sovereign as five colonial dollars), whereby the shilling was rated for Army and other Government purposes at 25 cents, the penny at 2 cents, and other British tokens proportionately. And, after the receipt of the Order in Council of 23rd March 1 ■ i 1 364 Colonial Currenct. ill' i '>" 1 * 1 ■I 1825 {see page 417), the importnnt Ordinance No. 3 was passed by the Governor in Council on 25th November 1825, introducing sterling as the denomination for public accounts, as from 1st January 1826, and declaring that " a tender and payment of four shillings British silver money or British silver and copper money shall in this colony and its dependencies be considered equivalent to and a legal tender and payment of one current dollar of the colonial money of account of Mauritius." No other coins were actually made legal tender ; but the public offices were directed, until further notice, to pay and receive foreign coins at the following rates, derived partly from the Treasury Circular, and partly from the Government notice of 1824 : — a L D. ^ £. I. d. Sovereign - • • 1 - - 30-f ratio plcco • • - - -16- Doubloon 3 9 4 Bengal Mobur- - - - 1 13 4 Madras 18 9 Bombay 18 9 I ■ ■ - • - ■ I >• ■ - ♦ - . OOPPBB. SolMarqu^t - • - - - - -i Cashe or ploe - - - - - - -J £. 1. d. - 4 • SILVER. S-franc piece a „ „i IS 1 „ ., - - - - - - 10 Spanish and U. S. dollar - - 4 4 Sicilian dollar • • . -41 Austrian „ . . . _ 4 _ Dccaen „ ... - 4 _ Sicca rupca - - - - -31 Madras, Bombay, or Surat rupee • Colonial hJlf- dollar, dec. - 1 11 - 8 8 The most important features of the above ratings of foreign coins for concurrent circulation with sterling were (1) the under- valuation of sterling relatively toother coins; (2) the overrating of" the doubloon, worth only 6-4 s. sterling; (3) the over-rating of the single and double francs relatively both to sterling and to the 5-franc piece ; and (4) the over-valuation of the sicca rupee. In 1826, 1827, and 1828, a total sum of 60,200/. in British silver, and of 1,000 /. in copper coins, was poured into Mauritius by the Imperial Government. And it is stated that, about 1830, dollars and rupees were imported into the island from New South Wales as a result of the prohibitive rating popularly estab- lished in that Colony in 1829-30, Consequently, in 1828, the question of the over-rated "tokens "of 1822, and copper coins (pices and marques), claimed the consideration of the Colonial Government, (i) The pices were collected and remitted to India to the number of 1,393,515. (ii) The "tokens" in the * It is curious that the Pagoda is never mentioned in these tables. That it circulated, is shown by the inventory referred to on the next page, from which it appears tliat. in 183i), tlie Pagnda '' h, I'abeille," was rated at 4 dollars, the Star Pagoda at 1*65 dollars, and the Porto Novo Pagoda at 1"35 dollars. t This coin was sent out from France under the Royal Edict of October 1738. and was issued for 2 sons. To restrain exportation, the Avis du Hoi of December 1771 raised its currency value to 3 sous. Thus from 1771 they passed at OOf to the dollar By the Ordinance of 1825, 04 went t« the Colonial dollar, or 4 s. sterling. (See Zay, pp. 77-i))- Ch. XXXVI. Mauritius. 361 first place were called in by the Governor'H Proclamation of 11th May 1831 to be "exchanged for other money according to the value at which it wrh formerly issued." Of these coins, the equivalent of 414,616 "ahiiling" tokens was received, or only 27,384 less than the whole issue. And by Proclamation of 4th of August 1831 they were re-i^aued at 8 rf. and 4 d. respectively; this figure representing their intrinsic value phis original expenses of mintage, freight, &c. Thus the whole token was reduced, at the expense of the Colonial Government, from the quarter to the sixth of a current dollar, and the half token in proportion, (iii) On legal grounds, the question of the marques was left over for the time. The flooding of the island with liritish silver, and the un- restrained issue of Bills on London by the Commissariat for such coins (see page 25), had diverted official, if not private, attention from the premium placed in 1825 upon the doubloon and the smaller silver coins of France. Very large importations of doubloons* having been made, and the Treasury having on the 19th June 1835 reduced the Army rate of issue for the doubloon to 66«., the Colonial Government passed a corresponding Ordi- nance on 14th January 1836, substituting a rating of 66 s. for the 1825 rating of 69 s. 4 d. Private remonstrances were powerless to procure the disallowance of the local Ordinance, which, strictly speaking, repealed not a law, but a mere office regulation. Speculation was now diverted to French silver coins. By the end of 1837, as the result of large and profitable impor- tations, francs and two-franc pieces formed about two-thirds of the coin in circulation in Mauritius ; and this led to a general refusal to accept these coins in payment at the excessive rates laid down in 1825 for their receipt and issue in the Government offices. Accordingly, the Ordinance of 14th March 1838, provided that these coins " shall be received and paid' at the public offices at the rate of five one franc jaeces for 4 s., and of five two-franc pieces for Ss. ; nevertheless, the said pieces cannot be received in sums of less than 4 s." After the lei^islation of 1836 and 1838, and after the abolition in India of the Sicca rupee in 1836, the cheapest tender of payment was in Spanish dollars and Company rupees, correctly rated (with reference to each other) at 4«. 4 r/. and Is. lid. respectively. British silver and gold, being undervalued re- latively both to these coins and to the doubloon, had no general circulation, being either returned, as soon as it was issued, to the Commissariat for the purchase of Bills on London, or shipped wholesale to the Ciipe. This imeatisfactory position of the sole coins that were strictly Iciial tender in Mauritius led the colony in 1839 to ask for 20,000 /. in shillings and sixpences to be stamped " Mauritius," ** M. RouBsellet quotes in Le Mouvfiment a Vile Maurice of fith February 1892, an interesting inventory. Hated 27 July 183!», of the contents of a stronfif box, showing a total of 1 1 ,!>56 dollars all in gold. Of this 2,375 dollars was iu bullion at 20 dollars the ounce, and of the remainder over 80 per cent, was in doubloons, some 9 per cent, being in Portuguese Johannes, and the reat principally in French gold and Pagodas. i i JS '// W /; /!S^ >' '/ IMAGE EVALUATION TEST TARGET (MT-3) II I.I 11.25 ■a|2£ 125 «f lii 122 ■yuu W 116 // «^ ^ ^^ ^ ^ "^^ ^ w It III Nil 't\ ifljl 1 1 1 ' i .1 IfM II 1 f t j : i ii i 816 Colonial Currency. and to circulate exclusively in the island; but the Treasury refused to sanction a local coinage. The dearth of small change due to the withdrawal of the marques in 1837-38 had been obviated by the importation of 9,000 /. in small British silver coins ((jr/., 3d., l^ d.) and of 1,000/. in pence, halfpence, and farthings. In 1840-41, in connection with the slave indemnity, about 150,000 /. in British silver was received in the island. But even this large importation was ineifectual to detach Mauritius from the Indian currency area of which it still formed a part. Like previous consignments, the coins introduced in 1840-41 either flowed out of the island to £ngland and the Cape, or were retained as counters for the specific purpose of buying Treasury Bills on London. (iv.) 1843-1876. The remedial legislation of 1838 for the West Indies {^$ee p. 27) was extended to Mauritius in 1843. The provisions of the Order in Council and Proclamation of 1st February of that year were embodied in the Local Ordinance No. 9 of 1843, which provided that no foreign or Indian coins would be received at the public offices or considered as a legal tender except the following, at the undermentioned rates for concurrent circulation with sterling : — Gold. Doubloon of Spain, Mexico, or the States of South America ------ Mohur --- .---_ 20 franc piece _-._-_ Silver. Dollar of Spain, Mexico, and South America - Company's rupee ------ 5-franc piece, or pieces of 1 and 2 francs to the same amount, viz., 5 francs - - - - s. d. 64 - 29 2 15 10 4 2 1 10 3 10^ But, notwithstanding the above Imperial and Colonial enact- ments, the Colonial dollar of account was still regarded as consisting of two rupees, and was, therefore, worth about 3«. 8(7. sterling for the greater part of this period. Thus the rupee held the field till about 1850 against sterling and other coins even at the popular over valuation of 2 s. British coins, bearing a jjremium on 4*. of from 4 10 6 per cent, as against two rupees, were used only for the puipose of paying Colonial dues and buying Treasury Billt^. By popular custom the franc was rated at 10it of treating the rupee as 2 s. sterling survives in the local method of quoting the exchanges on London on the basis of a nominal par of 100 rupees =< lU /., and adding the requisite number of rupees '* per cent, premium." Ch. XXXVI. Mauritius. 369 R$. 20 cents. 118,000 10 „ 143,000 5 „ 32,500 2 „ 32,500 Cents. 32,500 Hs. 358,500 following have been coined at the Royal Mint, and the Mint, Birmingnam, up to 3l8t December 1891 : — Silver- - - . Bronze _ - . Thus there is a subsidiary circulation of almost exactly a rupee per head of the population. It has not been found Possible to ascertain the amount of coin in general circulation. Mie specie reserve held by the Government against the note- issue amounted to 1 i millions of rupees, or over lis. 3 per head, irrespective of the banks and the '* active" circulation. Notes. With the change of the metallic standard from the sovereign to the rupee, a corresponding change was made in the law regulating the local paper currency. Ordinance No. 28 of 1876 (1) authorised the issue by the Currency Commissioners of demand notes of 5, 10 and 50 rupees in exchange for silver rupees of India, and (2; directed that the old sterling or " dollar " notes should cease to be a legal tender. " But any person holding any such notes shall have right to demand and receive payment of the lawful value thereof from the Commissioners of Currency until the 3l8t December 1877." (3) The old pro- visions as to investment were re-enacted in these words : — "A sum not exceeding one-half of the amount of notes in circulation at any time may be invested in securities of the Imperial Government, provided that any fraction of such sum not exceeding one-fourth part of the notes in circulation as aforesaid, may likewise be invested in debentures of the Mauri- tius Government or in Mauritius Registered Stock." (4) The Commissioners are not bound to realise their securities (except by the special directions of the Governor) until the specie in their hands has fallen below one-third of the circulation at the time. (5) The profits of the issue go to swell colonial revenue ; but, (6) subject to the decision from time to time of the Governor, 1 per cent. " on the interest yielded by the investments," goes to a special " Depreciation Fund,"* to be payable to the Currency Commissioners, and to be invested by them against shrinkage of the capital value of the investments. (7) The Commissioners are bound to publish a statement every month showing (a.) the amount of notes in circulation on the last day of the preceding month, and (b.) the amount of securities and specie in their hands at the time being. For a number of years the average circulation has been about 3 millions of rupees, or roughly about * This provision originated in Article 5 of Oriiinanctt No. 19 of 1865, which was subsequently repealed by Ordinance No. 20 of 1874. r- II If) , ■ .^ = r. 1-1 I In' 370 Colonial Currei^cy. 8 rupees per head of the population. On 31 December 1891 the it*sue etood at Rs. 2,668,250, or about Rs. 74 per head. At the end of 1891 the assets of the note issue were stated as follows : — Ks. " 1. Specie in hands of Commissioners " - 1,124,000 " 2. Amount disbursed for remittances up to 3l8t December 1891 - - - 1,544,250 Total - - - Rs. 2,668,250 In conclusion, it may be stated that in 1886, when the gold- price of silver was low, and when there was a partial demand in Mauritius for a gold standard, a colonial committee was appointed to report on the monetary system of Mauritius. The valuable report of the committee, which is dated 14th September 1888, (i.) traced the evils complained of to the price of sugar, and (ii.) arrived at the sound conclusion that it was to the interest of the colony to maintain the existing system, " aussi longtemps du moins que ce systeme sera celui de I'Inde, qui est le pays auquel notre situation geographiquc, nos besoins, et la nature de nos relations commerciales, rattachent plus intimement Maurice."* * It has been urged that the arguments which apply to Mauritius do not apply to one of .ts Dependencies, the Seychelles, the trade of those islands being mainly with gold-using countries. < 'I! I r 371 ] CHAPTER XXXVII. Hong Kong. (1841.^ In 1841 the island of Hong Kon^, then described as a mere barren rock sparsely inhabited by fishermen, was ceded by China to Great Britain; by 1888 the total imports and exports exceeded 40 millions sterling. The history of the currency of this important colony is thus comprised within the past half- century. But, though Hong Kong is thus one of the youngest of British Colonies, its existing currency recalls the earliest phase of currency in the 17th century "Plantations in America." For, just as the old silver " Piece of Eight " was the dominant coin nearly three centuries ago in the ancient West Indian Colo'^ies, so the Mexican dollar (the lineal descendant and modern representative of the Piece of Eight) dominates the currency of Hong Kong at the present day. This result, which the Imperial Government sought in vain to prevent, is due to the silver tradition so long held and so rigidly maintained by the Chinese ; Hong Kong, as being the chief commercial entrepot for the foreign trade of China, has naturally and necessarily been drawn into the Chinese " currency area.' The silver dollar, in its earliest Spanish forin, had been familiar at such Chinese ports as Canton, Ningpo, and Amoy, since 1571, in connection with Spanish commerce from the Philippines. And in 1596 Linschoten, in his Intinerarie Voyage, stated that at Goa " there are likewise Rialles of eight {i.e., dollars; which are brought from Portingall, and are * Pardawes de Reales ' worth at their first coming out 436 Reyes of Portingall ; and after are raised by exchange, as they are sought for when men travel I for China^ Consequently, both the Spaniards at Manila and the Portuguese at Goa (and Malacca, see under Straits Settlements) familiarised the Chinese with the dollar more than three centuries ago. At the date of cession of Hong Kong, the Chinese, who are characteristically fastidious in the choice of coins according to device, had come to accept the Spanish dollars of Ferdinand VII. as the standard silver coin, but still preferred the '' Carolus Dollar," struck bv Charles IV. (i.e., prior to 1808). Taking the Ferdinand Dollar as " par," the dollars of Mexico and South America (dating from about 1820) were regarded with suspicion I i :i 372 Colonial Ourrenot. ■ I ■". If' '!* i as innovations, and passed at a discount of from 3 to 7 per cent. ; whilst the superior antiquity* of the dollar of Charles IV. com- manded a premium ranging from 4 to as much as 15 per cent. All these dollars, however, were intrinsically of equal weight and fineness. A like preference for the Carolus Dollar existed till recent years in Shanghai, and exists to-day in the Malay Peninsula (see page .) where the Mexican dollar is still unknown, and the " Pillar " dollar holds the field. On 29th March 1842, Sir Henry Pottinger, Plenipotentiary and Chief Superintendent of the traae of British subjects in China, issued a Prdclamation prencribing that for bazaar purchases, &c., but not for mercantile trvinsactions, the following coins were to bo deemed legal tender, viz. : Spanish, Mexican, and other dollars, and their component parts, the East India Company's rupees and their component parts, and " Cash,"t or the coj)per coins current in China. 1 dollars:24 rupees. ^ 1 dollar = 1,200 cash. 1 rupee =533 cash. Two months later, on the 27th April 1842, Sir Henry Pot- tinger issued a further Proclamation making " Mexican and other Republican dollars " the standard in all government and mercantile transactions at Hong Kong, &c. The policy adopted in these two Proclamations wao sound, in so far as it established the Mexican dollar as the standard, and disregarded sterling ; though the wording was loose in not defining the dollar, in view of the varying weights, e.g., of the Mexican and United States dollars. The authorities at home, who since 1825 had striven to intro- duce British silver coins into circulation in the Colonies, viewed the action taken in 1842 with disfavour, and insisted on applying their uniform panacea. Accordingly by Royal Proclamation, under Order in Council of 28th November 1844, Sir Henry Pot- tinger's Proclamations were revoked, and token British silver <> VVIien in 1871 the device of the Mexicaii dollar was altered from the Cap to the " Scale," cominerce with the Chinese was dislocated by the refusal of the latter to recognise the upstart coin. So likewise with the " Maximilian " coinage. ■f This word is derived, through the Portuguese form caixa, from the Sk. karaha (an Indian weight of 80 ratis, or 140 grains, according to Thomas, Ancient Indian Weights, in Num. Or., London, 1H74). Linnchoten, in 1696, says that, "inSinida(or Java) there is also no other kind of money than certa Tt copper mynt culled caixa, of the bigness of a Holiades doite, but not half M thicke, in the middle whernof is a hole to hang it on a string, for that coininunlie they put two hurdreth or a thousond upon one string." Houtman, in 1(501), says, Cliincse " monnoye est appellee cas." It is suggested by Yule and Burnell (" Glossary of Anglo-Indian Words") that the distinct English word cash (sscaisse or strong-box) may have atfected the above corruption. X On the basis of fine content (according to Mirt standards) the rupee contains 105 grains, and the Mexican dollar 377'1,3 grains. Hence, by law, $ 1 := Rs. 2"285(5. But, in India, the coined rupee is 2-1 per cent, more valuable than its own silver content by reason of the Mint charge. Cli. XXXVII. IIoNO KoNo. 373 established as the nominal standard, with the following coins rated lor concurrent circulation, viz. : £. s. d. East India Company's p;old Mohur (coined since Ist yeptember 1835) 19 2 Rupee - - - - - - - --110 Dollar of Spain 4 2 „ Mexico „ South America 288 *• Cash " - 1 - The limit of legal tender was fixed, (i.) at 20*. for British silver coins of lower denomination than the shilling, and for Indian silver coins lower than the rupee ; and (ii.) at 1 s. for liritish copper coins and Chinese " Cash." It was anticipated In 1844 that agreements at Hong Kong to pay dollars would be discharged by the payment of shillings at the rate of 24 cents, and that the coins and money denominations of the mother country would be established in the new settle- ment without disturbing existing contracts, and with as little interference as possible with the prejudices and habits of the peeple. The Home Government herein reckoned without the Chinese. In China fine, or Hai-Kwan, Sycee, silver had always been reckoned not by tale but by weight, the standard measure being the " Tael " weighing some 580 grains, subdivided decimally into 10 mace* or 100 candareens. Of the only Chinese coins (copper " Cash"), one thousand ^^each weighing one mace) were originally equivalent to one tael of fine or Sycee silver. But owing to adulteration (with sand, &c.), and to illicit coinage, as many as 1,400 cash sometimes passed for a tael. Now, as for all but potty transactions the Chinese used silver and measured that silver by its fine weight and not by tale,t the introduction oi token British silver coins which represent fractions of a gold sovereign, proceeded on a fundamental misconception ; and the Royal Proclamation of 1844 remained a dead letter. All accounts (except those of the Government) were kept in dollars, and the sole instrument and medium of exchange, both at Hong Kong and at all the open ports (except Shanghai) continued to be the silver dollar, weighed in Hong Kong at 1,000 dollars to 717 taels, i.e., nearly 416 grains per dollar. As a result of the gold discoveries in Australia in 1851, the <> Mace=Sk. masha (the bean of the Phaseolus), apparently through tlie Malay. The Malay tael-weij,'iit was divided into 16 Mace each of 20 candareens (called eumduryns by Nunez in 1564) ; and it was hence that the nt "vhich were familiar for centuries at Malacca, came to be applied later to tu. uecimal subdivisions of the Chinese tael- weight. Like "mace " the word " tael" is of Indian origin, being tlio representative of the Hindu tola, which comes from the Sk. tuld, a balance. f Cf. UHistoria del (rran Regno della China (a translation published at Venice in 15U7 of Mendozzi's Spanish work) : *' La moneta, die corre nel regno, , . . non h coniata, pero si spende a peso, et ognuno porta i pcsi seco, et alcuni piccioli pezzetti d'oro etd'argento per coprar quello, che gli bisogna." 72642. B B m ' 1 374 Colonial Cuiirkkcy. I I' In I legal tender of British silver was limited in lHa2 to 40 «. for Australasia by the Royal Proclamation* of lOth October 1852. This mcaaure also applied to IIon<; Kon^, Ceylon, and Mauritius, as it was anticipated at that time that India and the East generally would adopt a gold staudird. The Koyal. Proclama- tion was brought into operation in Ht>ng Kong, as from 1st October 1853, by Government noti ication of 27th April 1853. Hence- forth, therefore, Hong Kong in theory enjoyed a gold currency with silver and copper tokens in subsidiary circulation ; and the Imperial Government conceived that Hterlini; whs as much the actual currency of Ilonrj Kong as of the United Kingdom. As a matter of fact, however, excei)t for unfortunate officials, the Koyal Proclamation of 1844 was from the outset ino[)erative. In 1854 it was practically repealed, by a decision of the Colonial Chief Justice, that " when contracts were made in dollars, pay- ment must be made in such coins and not in those s|)eciKed in the Queen's Proclamation of 1844." The Colonial Government readily accepting this decision, the dollar was established, by a legal decision, if not by law, as the lo(!al standard of value both for the ofHcial and the mercantile communities. And as the stock of old Spanish dollars decreascil pari passu with the in- crease of trade, and as time matured the Mexican dollar in the eyes of the Chinese, the hitter coin became established about 1853 as the standard coin of the colony. In 1861, when Peru dollars were dejM'cciated and Spanish dollars rare, negociations were opened by Sir Hercules Kobinson, then Governor of this Colony, to place the currency of Hong Kong on a sounder legislative footing, and to introduce a sub- sidiary coinage. By Royal Proclamation, under Order in Council of 9th January 1863, all existing Proclamations were repealed ; and ** the dollar of Mexico, or other silver dollar of e<]uivalent value," as authorized from time to time, was made the only unlimited legal tender. Provision was made for striking at the Royal Mint in London; (i) copper cents and mils (or cash), respectively representing one hundredth and one thousandth of a dollar, and (ii) silver tokens representing multij)le8 of the cent. This Proclamation was published in the Jlouff Kuiu/ Gazette of 2nd May 1863,t and embodied in a Local Ordinance No. 1 of 1864. The limit of legal tender for token subsidiary coins was fixed by the Proclatnation at 2 dollars for silver, and 1 dollar for copper or bronze. Thus, Hong Kong was finally and formally recognized as being outside the currency area (»f Great Britain. But, though Hong Kong essentially forms part of the currency area of China, and recognises this by adopting silver as its standard of value, the actual units or measures of value are not those of China. China having no silver coins but only wei(/hts, the simplest course would have been to adopt Chinese weights for the colonial standard, and so to compute (as at Shangliai) by the tael of fine silver, using stamped weights of silver on the • Seepaga 28 and 435. t Bringing tlic Royal Proclamation into force an from KUli February 1804, Ch. XXXVII. ll(.-(i Kong. 375 3(1 as rency its not iyhts, ights Sjhai) the ChincHC system. But this course has not been taken. Instead, a coin has bc(>n used with equal economy, the Mexican dollar Iiassing current as a weight of fine silver ; precisely as in ^^ngland, with a standard weight of fine gold known as a sovereign the gold coins of France, the United States, and other coiw.Lries pass at their bullion value according to the number of grains of fine gold they contain. European adherence to the (lollar, instead of the Ilaikwan tael of fine silver, has resulted in tlu; coinage of dollars by the Chinese themselves. In 1890 the Mint at Canton struck silver dollars, half-dollars, and pieces of 20, 10, and 3 cents, the millesimal fineness of which (i.) was nominally 900 for the dollar, 860 for the half-dollar, and 820 for the smaller coins, but (ii.) was actually found on assay by the Royal Mint* to be respec- tively 884-2" for the dollar, 848-2 for the half-dollar, 807-3 for the 20-cents, 808 for the 10-cents, and 811-1 for the 5-cents. The weights of the coins were fairly correct, though the dollars were fully half a grain lighter than the nominal standard of •72 taels per dollar. It aeems very doubtful whether these unre- liable coins will ever succeed in supplanting the Mexican dollar in China, though small silver coins are now gladly takeu by the Chinese in Ii .u of the debased " cash." The latter observiitions have anticipated the order of time, and it is necessary to go back to the important further step taken by the Cohmy in 1864, after establishing the silver dollar as the local standard. As local feeling, especially among bankers, was strongly in favour of the |)olicy of having a Britisli dollar, and as the estab- lishment of Branch Mints in the colonies h.id already been agreed to by the Imperial Government in the case of New South Wales, the Colony of Hong Kong decided to establish a local Mint to coin a British dollar, which was lo extend the sphere of British influence in the far East, and to provide a " clean " cur- rency which would defeat the exactions of compradors. Ordi- nance INt). 2 of 1864, Wiis pissed, providing for the new Mint ; machinery was bought by the colony iu London at a cost of about $ 71,500 ; and the Mint opened on 7th May 1866. Under the Treasury Regulations of 20th October 1866, the standard " See page 58 of the '2l8t Mint Report. From Us opeiiini; (fur silver cuinage) on 22nd May 1800 to .'ilst December 1891, the total output at the Canton Mint was as follows : Nos. Dollar* 43,033 60-cent piects - ... - U.HJf -20-cent pieces 5J3G7,.'}81 lO-cent pieces - - - - 1«,00»,575» 5-cent pieces - . . . . 1,150,945 And from Ist January to 14th May 1892 the further output has been : Nos. 20-cent pieces 2,250,000 ID-cent pieces 4,450,000 5-cent pieces 100,000 In addition, about half-a-miUion *' cash " are struck per diem. 72642. B B 2 III! it ill 876 Colonial C'uurency coin (mudelled on the familiar Mexican dollar) v«-a8 the dollar weighing 41G grains * uf 900 millesimal finenesn. A halT-dolIar was subsenuentlv added of like finencsH and of half the above weight. Subsidiary silver coins were to be struck, of 800 millesimal fineness, and of weights "in proportion to their nominal value, referred to the dollar." Such token coiuH struck were the 5 cent, piece, and the 20 cent, piece, the latter being substituted for a standard quarter-dollar originally proposed by the colony. Copper cents and mils (or "cash") were also sanctioned, but not actually struck. Great things were hoped from the new Mint ; but low ex- changes and a mint charge of 2 per cent, resulted in its failure. The Chinese ou the mainland could not be got to take the new dollar (though in intrinsic value it was identical wi'^i the current Mexican dollars) unless at a discount of 1 per c( Daunted by the first reception of the new coin by the Chinese, and un- willing to pay for the privilege of striking a British dollar, and of educating China into the use of coin instead of bullion, the Colonial authorities decided to close the Mint. Accordingly, after just two years from its opening, the Mint was closed, and the machinery sold at the end of the year to Japan. The experi- ment did not extend over a time conimen8urate with the prejudices of the Chinese. In two or three years from the closing of the Mint the new dollar Avas accepted at par with the Mexican ; and che subsidiary coins, which were at first only accepted at 35 per cent, discount, first reached par by virtue of their convenience, and soon were eagerly sought after at u substantial premium on their nominal value. Tn concluding this episode of the local Mint, it remains to state that its total output of coins was as follows : — Dollars ------ Half dollars 20-cent pieces 10 5 >j j> 2,108,054 58,587 445,429 2,479,216 1,313,303 Of all these 6^ million coins, representing over 2j million dollars, none now remain in circulation in the colony. Under the Royal Proclamation and Order in Council of 9th January 1863, and the local Ordinance No. 1 of 1864, provision was made for the Governor to admit " other silver dollars of" equivalent value " to legal tender. That power was acted upon on 14th September 1866, when the Governor proclaimed the dollar and half-dollar of the Hong Kong Mint a legal tender, equally with the Mexican dollar. On ist April 1873 the United States struck " trade dollars, weijihin 10 „ J5 5 „ >> Cent a _ Mil, or " Cash " Bronze. Legal tender to ^1. It ii difficult to state with any precision the average number •>f Mexican dollars poured annually into Hong Kong.§ But vast numbers of subsidiary coins have hitherto been poured annually into the island, and thence into China, where these tokens are supplanting the debased copper "Cash" of the Chinese, particularly in connection with douceurs at the new ^, jar. &c. From the Twenty-second Annuul Keport of the Deputy Master of the Mint it appears that up to the end of 1891 no less than .<7,336,800 in subsidiary coins had been struck in England for the colony, ^4,125,400 being in 10 cent jjieces, and ^2,088,000 in 5-cent pieces. But the beginning of 1892 was marked net only by the cessation of all outside demand, but by * See Second Rrpoit of the Deputy Master of the Mint, ptw;e 72 t See also the speech of Mv. Samuel Montagu, m.p., in the House of Commons on fith November IIM<8. J On the general subject of the supply of Mexican dollars, and of the e!>tal)li8hment of a local Mint, see the ritth Annual Keport of the Deputy Macter of the Mini. § From 1880 to 1890 (both inclusive) about 45 millions of dollars would appear to have been shipped from London to Hong Kong, Shanghai, and Japan. The proportion for Hong Kong cimnot be distinguished, and it is impossible to say what was shipped from San Francisco and elsewhere. IfrS 378 Colonial Cuurengy. In I •! m the wholesale introduction of Canton tokens into Hong Kong itfieir by compradors, native bankers, &c., all stimulated by the fact that the Chinese authorities nt Canton were supplying the Canton subsidiary coins at a discount of from 10 to 20 per cent. On the other hand, "cents" are becoming much sought after on. the mainland (us being more convenient than the Canton " cash "), though in Hong Kong itself they arc at a discount when tendered in bulk, as compared with the more portable dollar or dollar- note ; for small trunsac^tions they connnaiid their full nominal value. In conclusion, a word is required as to the practice of " chop- ping " dollnrs. This practice apjiears to be peculiar to the province of Canton, and to be unknown in the north. Native Chinese merchants stamp or sign ('chop'*) every coin as it comes into their possession. No Chinaman will take back a dollar on which his stamp cannot be pointed out, though by the multitude of successive stamps a chopped dollar not only loses its "ring," but gradually becoms so obliterated that any individual stamp cannot be distinguished in one case out of a hundred. The state of a dollar long in circula- tion in Hong Kong is deplorable, but it seems impossible to overcome the Cantonese practice. On the contrary, " chop- ping" hap been legally recognised in Hong Kong by the Governor's Proclamation, published in the " Gazette " of 2l6t October 1865, under the Local Ordinance No. 10 of tha* year. In 1890, when the Canton coinage was being intruducec, the Chinese authorities were urged to prohibit the practice, but they expressed themselves powerless in the matter The con- sequence is that " clean " (i.e., unchopped) dollai s for the northern ]iorts command a premium of 1 jiiir cent, '^v more, according to demand and supply at the time being. It was estimated that the amount of coin in the colony on 3l8t December 1891 was ^10,600,000, of which ^10,000,000 was held by the Eurcpean banks, and ^200,000 by the Chinese banks. t Taking the population at 220,000 in round numbers, and the " active " circulation of coin at the net total of ^400,000 (as deduced from the above estimate), the average metallic circulation works out at, ^1*8 per head, irrespective of nearly ^27 per head in the form of bank notes, as shown subsequently, " The word "cliop" comes from the Hindi chliap, a seal-impreoHion, and can be traced hack in European Inngiin^es as fur as 1 537, when n PortugueHe treaty stateo that a Nizam " sealed an agreement with iiis chop" (" eo chapo de sua chiipa"). 'i'he origin of tlie " pigeon-Knglich " name c/(o/>-/iOH«« for Customs-station is explained by Joiin Fryer in his *'■ New Account of East India and Perria" (London, 1(J98), as foilows : — " The Custom-house has a good Front, wliere the chief customer appears at certain iiours l:> clioj), that 18 to mark, goods outward bound." Hence "first chop" is umilogous iii origin to "A I." \ Tiie sniallness of this sum is explained by the fact that Chinese have no safe places in whicii to keep dollars in liirge i|uanti*'i'8. Comtequently they pay their money into the European banks, or excliaige coin for i:utes, at the earliest opportunity. "^ Ch. XXXVII. Hong Kong. 879 Notes. There lias never been a Government issue in Honj? Kong.* but notes issued by banks are in circulation. Of the three banks of issue on 31 December 1891 , two (the Chartered Bank and the Mer- cantile Bankf ) are froverned by Royal Charters, whilst the third (the Hong Kong and Shanghai Bunk was constituted by Local Or- dinance No. 5 of 18fi6. The total issues of all the three banks are limited to the amount of their paid-up capital, which stands at SOO.OOO/. (or the Chartered Bank J, at T.lO.OOO/.for the Mercantile Bank, and at ^ I (),()()(),()()() for the I long Kong and Shanghai Bank. These total issues have reference to the circulation not in any one colony alone, but in all places where the banks are empowered to carry on business. The security of the issue of the Hong Kong and Shanghai Bank stands on a peculiar footing. Section XII. of the Ordinance of 1866 provides that, — " It shall be lawful for the company to make, issue and circu- late notes or bills payable to bearer on demand in coin lawfully current in the colony and to re-issue the same, provided that no such notes shall be issued for any other sums than the sum of 5 dollars, or some multiple of such sum, or other equivalent amojint, unless the issuing of notes of other amounts shall be sanctioned by the governor; provided also that nothing herein contained shall exempt the company from the operation of any existing or future laws of the colony or of any port, city, town, or place beyond the limits of the colony where they may estab- lish banks or branch banks, restricting or regulating the issue of such notes, by banks established therein ; and provided also that the sharehohlers of the company shall be subject to uniiviited liahiiitif in respect of all or any such issues or issue of notes, and, if necessary, the assets u*' the company shall be marshalle(l for the benefit of the general creditors of the company and the shareholders shall be liable for the whole amount of such issue, in addition to the sum for which they are liable under the other and general provisions of this Ordinance." As a reserve against notes issued, each of the three banks is re(|uired to keep specie to the extent of one-third at least of the circulation. But, whilst the Chiirtcrad and the Mercantile Banks are rf'tjuired by their Charter.-, to keep this proportion of specie in (fich colony in which they issue notes, the llong Kong and Shanghai Bank is only required to keep in I long Kong the total reserve against the total of its issues, whether in Hong Kong or elsewhere. The lowest denomination of note allowed by Royal Charter to the Chartered and the Meicautile Banks is ^5. ** Some few years hack n ))ro|)08al was considered, but subsequently liiopped, for the issue of $ 1 note* by the Colonial Government. f Tliis latter Uank is stated to lie under reconstruction as a limited liability company, a reconstruction which, if carried out, would forfeit the chartered Issue. I t^ach dollar of issue is calculated at 4 s., niaking the maximum issue |4,000,000. ' ill 380 Colonial Curkency. I>i I' •II , (. The issue of $\ notes bv the Hong Kong and Shanghai Bank was sanctioned by the Colonial Government in 1872 under the 12th Section of the Bank's Ordinance of 1866. These small notes are highly popular as a substitute for *' clean " dollars, and as a means of escaping the impositions of compradors, &c. The folloAving table gives the local note circulation on Slst December of 1881 and of 1891 : Bank. 1881. 1891. Oriental Bank - - - - Mercantile Bank _ - _ Clinrtered Bunk _ _ - Hong Kong and Shanghai Bank - 807,133 649,568 589,388 1,640,290 $ Nil. 1,438,745 1,382,665 3,078,447 Total - - t 3,686,379 5,899,857 The circuliition of bank notes at the present day therefore averages ^26.8 per head of the population of Hong Kong (alone). But, m this connection, it is to be noted that the use of bank notes is not only fast supplanting the Mexican dollar in Hong Kong itself and in Canton, but is growing popular in the interior. Portable, and requiring no " shroffing " like the dollar, notes carry at the present time a premium over coin. [ 381 ] CHAPTER XXX VIII. Straits Settlements.* Of the three Settlements which unite to form this Colony, Singapore is the chief at the present day. It was also the chief in the 15th century according to Joao de Barros, who, writing in 1553, •• expressly states — in words which aptly depict the pre- sent condition of Singapore — that " before the foundation of Malacca, at this same Singapura . . . flocked together all the navigators of the seas of India from West to East." f With the beginning of the 16th century Malacca, in the hands of the Portuguese, rose to be the great entrepot for European trade in the far East, a positi(m which half a century later was partly shared by the Philippines. And it is of interest to note that, speaking of •' Melequa" in 1498, the " Roteiro da Viagem da Vasco da Gama " records that the native money was com- posed of the staple commodity of the Straits, namely, tin.| With the arrival of the Portuguese, however, and with the discovery of the Philippines by the Spaniards, § silver coin — and more particularly the dominant Spanish dollar — established a supre- macy in the Straits Avhich, as the trade has moved eastwards, has been retained and strengthened by (he Mexican dollar, the lineal descendant of the old Spanish dollar. It is a far cry from the beginnings of Portuguese colonisation at Malacca to the rise of British rule in what are now the Straits Settlements. In the interval Malacca, like many other Por- tuguese Colonies, had passed from Portuguese into Dutch hands ; and its trade was already on the wane. The first British possession was not Malacca, but Pulau-Pinang, which WIS re-christened Prince of Wales Island by the East India • I am indebted to Mr. W. Maxwell, Colonial Secretary, for valuable infor- mation respecting the currency of this Colony. ** Decculas da Asia. t Curious to a modern reader is the statementof A. Hamilton in Ills " New Account of the East Indies " (1727) : — ** In Anno 1703 I called at Johore on my way to China, and he treated me very kindly and made me a present of the Island of Sincapure ; hut I told him it could be of no use to a private person, though a proper place for a company to settle a colony in, lying in the centre of trade, and being accommodated with good rivers (! !) and safe harbours, so conveniently situated that all winds served shipping, both to go out and come in." • J *' Tin of which they make money ; but the money is of large size and little value, so that it takes three farzalus of it to make a crusado." Tin coinn are still in use in Malay States of the East Coast of the Peninsula (Pahang, &c.). The tin and lead coins of Achin are described in " Recherches sur les Monnaies des Indigenes de rArcliipel Indien et de la Peniu^ule Malaie " bv Millies (La Haye, 1871). § See under Hong Kong, page 371. 382 Colonial Currkncy. r ! ' £ i' Company, on its cession in 1786. For this settlement, which soon tended further to oust Malacca as a commercial entrepot, the Company in 1787 and 1788 struck a silver coinage consisting of rupees, with half and quarter rupees, and copper cents, half- cents and quarter cents, a further issue of which was fruitlessly recommended by Lieut.-Governor Farquhar in 1805.* There were also " pice," here usually of tin. Foi-, on 22nd March 1809 a Ciovernment advertisement states that, " Whereas large quantities of spurious pice are now in circulation in this Settle- ment, and Government having ordered a new coinage of pice to the amount of 4,000 dollars ; which with those that have been before been coined at different times, by order of Government, will be sufficient for the purpose of general circulation ; notice is hereby given that on and after the first of next month no pice will be received into the tx'easury of this island, except such as have been coined by the orders of (iovernment, as before mentioned, so that 100 of which (sic) pice shall not weigh less than 4| catties of pure tin." Though the Company had established the rupee as the standard coin in Penang, the trade relations of the settlement constrained the mercantile community to adopt as their standard, not the Indian coin, but the universal Spanish dollar, the coin familiar to the conservative races with whom they had commerce. Therefore, from the earliest days of Penang, the dollar, not the rupee, was the recognised standard of value. Writing of this island, Kelly says, in his "Universal Cambist" of 1825: — "Accounts are kept in SpanisI) dollars, copangs,t and pice, 10 pice making a copang, and 10 copangs one Spanish dollar. The current pice are coined in the island ; they are pieces of tin, 16 of which weigh the catty, or 1^ lb. English. On the exchange of dollars into pice there is a loss of 2 per cent. ; on dollars with- out the King's head,} 10 per cent. ; and from 5 to 10 per cent, on all dollars defaced {i.e. 'chopped.'"; § The old " Carolus," or " Pillar Dollar,"'|| of Spain is to this day the standard coin iu certain of the neighbouring Malay and Siamese-Malay States. In Achin and in the States of Kaman, '^ Journal of the Indian Archipelaijo, v. 418. In 1810 the lloyal Mint coined 25 tons of copper for i'enang into ])ieces weighing respectively, 1(50 grBiiis and 80 grains, nnd therefore coinparahle witli the cent and half-cent of 1847. In 1813-14 there w«9 a tin coina:je issii.-d in .Java hy the Britisli Government. See ^etscher Mowten van Nietl. /wr/jV ( Batavia. ISO.S). f This word is still nsed in the island of Penang to signify 10 cents of ii dolJHr, though it is unknown in the neighbouring Settlements of Singapore and Malacca. The Memorandum of 180.5 by Lieutenant-Governor Far(juhar (Journ. Ind. Arch., v. 418) speaks of '• doublekies or cupangs," the " doubleky " being the Dutch coin of 2 stuyvers, or 10 duits. X i.e., '' Republican" dollars struck in Mexico, &c , after 1010. Comp'ire the earlier preference of the Chinese for the old Spanish coins at Hong Kong. § Atkins mentions copper '• cents, half-cents, and 2-cents" as having been coined f»)r Prince of Wales Island in 1825 to 18J8, presunialily on the inodel of the coinage of 1810. II Tiie Malays, like the Arabs of North Africa (nee page 391), call these coins " «i«HOM dollars," mistaking the Pillars of Hercules for the recognised pioneers of European civilisation. Ch. XXXVIII. Straits Settlkmenns. 3^^ these ignised Lege, Patani, and (to a less extent) Kelantan, none but pillar dollars are accepted by the natives. As to Malacca, which after being restored to the Dutch in 1818 had been finally taken over by the East India Company in 1825, Kelly states that " accounts are kept in rix-doUars of 8 schillings of 48 stivers; the stiver is subdivided into 4 duits.* The rix-dollar is an imaginary money in which all contracts for goods are made; but the principal current coins are rupeesjf Dutch schillings, Dubbeltjes, 2-8tiver pieces, and doits. The Spanish dollar is from 25 to 40 per cent, better than the rix- dollar of account ; hence at a medium the rix-dollar is worth 3s. 4d. sterling. A Dutch ducatoon pjtsses for 13 schillings; an English crown for 10 schillings; a Bombay or Surat rupee for 5 schillings ; a Madras or Ai'cot rupee for 4 schillings, more or less. A stamped Japan copang J passes for 10 rix-dollars. It was in 1826 that, Singapore having been ceded finally in 1824, the three settlements of Malacca, Penang, and Singapore were united under one government with its seat al Penang. Not until 1837 did Singapore supplant Penang. The currency of the Straits Settlements is thus described in Low's " Dissertation on Pennng, &c.," in 1836 : — '* The dollar is the favoui'ite coin in the Straits. It exchanges in the bazaars for a number varying from 100 up to 120 pice. At present it is pretty steady at 106. Indian rupees are also in circulation, but gold coins are hardly ever seen. There are also half dollars, and the divisions of the Sicca rupee. A Sicca rupee exchanges in the bazaar for 50 pice on an average." And, similarly, Newbold, in his. " Account of the British Settlements in the Straits of Malacca" (London, 1839), after mentioning that the Spanish dollar was the merchants' standard, and that Indian coins were in circulation, goes on to say that " guilders and half-guilders, and other Dutch coins are disap])earing '' (he is probably referring here to Malacca in particular). " The most current copper coins are the cent, the half and quai'ter cent, the doit, the wang, the wang bhura,§ and Indian pice." Jn 1835 the Company revised its currency legislation for the whole of its territories, which included the Straits Settlements, and made no exception in tavour of the dollar-using colony when ® 5 doits went to thestu^verof Holland, as against 4 to the ^tnyvel• of Dutch India. f In Dutch India tlie guilder or florin was, and is to tliis day, spoken of as a "rupee ;" so that Kelly's statement neid not refer to Indian coins, though the position of tlie word *' Dutch " after " rupei-s " points tliis way. X This gold coin of Japan is not to be confused with the copper coins of 1 and 2 capangs coined for Malacca in 1835 by tlie East India Company. Mari^dena Malay Dictionary of 1812, says "kepiiig '' is "a copper coin, 400 of which are equal to a Spanish dollar." § '• Tliese are Malay \v«rd9. The wanff was the Netherlanils Indian stijver, = 4 duits, and the toanq hhara was the European stijver, = 6 duits. Twenty- two years ago, when 1 whs magistrate of Malacca, I often heard the expression watu/ hhara used to signify 2^ cents of a dollar, though there was nu corre- sponding coin. This U similar to the use of the word Kapang \n Penang," (Note communicated by Mr. W. Maxwell). I I ■ ^1 m § " :l li^ * ' 1 h. ^ 1 ' - ■ m [i. ' 1 : , ! i ill 1 384 Colonial Currency. enforcing the establishment of the rupee aa the standard coin, with pice in subsidiary circulation. Tne first cooceseion which the Company made to the requirements of Straits currency was in 1847, when by Act No VI. oT that year it was provided that the Indian Regulations "shall not l)e deemed to apply to copper currency of the Settlements of Penang, Singapore, and Malacca. From . nd after 1st January 1848 the following copper coins only shall b'j received at or issued from any Government Treasury within the said Settlements (i) acent, weighing 144 grains troy; (ii) a half-cent, weighing 72 grains; and (iii) a quarter-cent, weigh- ing 36 grains." These copper coins* were to be legal tender only for fractions of a dollar, and " the circulation in the said Settle- ments after the said day of all copper coins or tokens, not being the authorised leaal coinage of any British or foreign Govern- ment, is prohibited," under penalty of not more than Rs. 10. But this concession was withdrawn in 1855. The preamble of Act No. XVII. of that year reads as follows : " Whereas the Company's rupee is by Act XVII. of 1835 a legal tender in the Setlements of Prince of Wales Island, Singapore, and Malacca, but no copper coin, except the half-pice issued under the Act XI. of 1854,t is now by law legal tender for fractions of a rupee in that Settlement; and it is expedient to remedy this defect in the law ; and whereas besides the rupee the dollar is by custom current in the said Settlement ; and it is expedient to provide that the copper currency which will be legal tender in the said Settlement for fractions of a rupee shall also be legal tender in the said Settlement for fractions of a dollar ; " — it was enacted that from 1st July 1855, — \ I 1 70 A pie should be a legal tender in the Straits for A Half-pice „ „ „ A Pice ■ „ „ „ A Double Pice „ „ „ Commenting on this Act in 1803, Sir Hercuks Robinson reported to the Imperial Government, as follows: "In 1854, I believe, the Government of India adopted measures for forcing the rupee into general circulation in the Straits Settlements, and for making it the only legal tender in all transactions. With this view the copper currency, consisting of cents of a dollar, half-cents, and quarter-cents, i)reviously supplied under the pro- visions of the Act of 1847, was Avithheld, and the Indian copper money, which cannot conveniently be adapted to a dollar cur- rency, was substituted in its place. But great inconvenience having been experienced, and public demonstrations against the change having taken place, the authorities at home wdre appealed o They were struck at the Calcutta Mint, and were stated in 1R03 to have " a wide circulation beyomi the Settlements in many parts of the Malayan Peninsula and Indian Archipelago, being jireferred by the natives to the Dutcli doit, which is nearly the only other small money known to them." •)• When this new coin was authorised by the above Act, it was made "a legal tender in any part of the territories of tlie Government of the East India Company." Cl«. XXX VI II. SxRAits Settlements. 385 ! "l to, and the project was counterir.anded." * After pointing out that the new Indian Currency Act, No. 13 of 1862, made the Indian coins legal tender in the Straits, as in all other Indian territories, wlieroas no measure had ever been passed giving legal currency to the real and sole measure of value in the colony, Sir Hercules Robinson exposed the absurdities of the existing regu- lations in the following words : " All accounts throughout the Straits Settlements, except those of the Government, are kept in dollars and cents, but the public accounts are kept in the denomination of rupees, annas, and pie, causing thereby much needicei labour and confusion :n the financial departments. With tiie exception of the receipts from stamps, which it is optional with the public to pay for either in rupees or dollars, the whole of the public revenue is required to be paid in dollars, but it is brought to account in rupees at a par of Rs. 224 8a. 6^*0*0 P- '""i* every ^100 received at Singapore and Malacca, and at a par of 220 rupees at Penang. All pay- ments from the local treasuries are made in dollars, but disburse- ments to the public are charged in the public accounts in rupees at a par of Rs. 224 8a. 6^gp. in Singapore and Malacca, at a par of 220 rupees at Penang ; whilst the salaries of all public servants, civil as well as military, which are fixed in rupees, are paid at all the Settlements in dollars at a par of 220 rupees. Thus the sum of 100 dollars is received at the Singapore Treasury, is brought to account of revenue as Rs. 224 8a. 6*1jp., and is paid away to an official for 220 rupees, the account being balanced by an entry of " loss by exchange," Rs. 4. 8a. Bt^o^oP- The confusion is still greater as regards the transactions under the Indian Stamp Act, for the values of the stamps being expressed in rupees and annas, a Government Regulation had to be issued under the authority of a special Act of the Indian Legislature, No. 28 of 1863, declaring that dollars would be received at the local treasuries in payment for stamps at the rate of ^100 for Rs. 227 4a. 4^p., equivalent to 2j cents per anna. Thus stamps representing Rs. 227 4a. 4 i*Tp. are sold at the stamp office for ^100, which ^100 is brought to account in the treasury books as a receipt Rs. 224 8a. 6A''jp., and is paid away to a public official for 220 rupees. Again, another arrangement is in force as regards postage labels, upon which the values are also inscribed in annas, whilst the labels are sold to the public for dollars, as has been before observed, at the rate of Rs. 224 8a. 6t*o'oP« for ^100. liut these labels are accepted in payment of British postage at the rate of one anna for three halfpence, Avhich at a par of 4 s. 2 d. to the dollar is equivalent to a par of Rs. 208 5a. 4p. for ^100 ; that is, the postage labels are sold by the Government at a low valuation, and are accepted back in payment of postage at a high one ; or, in other terms, labels representing Rs. 224 8a. 6,Vop. are sold to the public for ^100, whilst labels representing only Rs. 208 5a. 4p. are accepted from the public • See Parly. Paper of 1866, " Correspondence respecting the transfer of the cnntrul of the Straits Settlements from the India Office to the Colonial Department." f I ip \ , II 1 l! : y ^1 11 3^ Colonial CuuRteJJct. in payment of ^100 of British postajre ; and the difference of Rp. 16. 3a. lT*o"ftP'> equivalent to upwards of 7 per cent., is lo.H to the local Government." " In short, the whole system under which coins not in circulation are declared by law a letjal tender, and the public accounts are required to be kept in the denomination of one currency, whilst the real monetary transactions of both the GoYcrnment and the public are conducted in another, is unsound, and productive of nothing but needless labour and confusion." For some years the merchants of Singapore had advocated the coinage of a British dollar. The opening of the new Mint at Hong Kong in 1866 met this demand, and all that was now needed was to make dollars the legal, as they had always been the actxial, standard of value in the Straits. This salutary change was effected as part of the transfer of the Colony from the Indian to the Imperial Government under the Act 29 Si 30 Vict, cap. 115, Avhich was brought into operation as from the 1st of April 1867 by Order in Council of 28th December 1866. No time was lost by the new local Legislature in reforming the cur- rency system. Under date let April 1867, " The Legal Tender Act of 1867 "* was passed, repealing all laws for making Indian coins hgal tender, and declaring that from 1st April " the dollar issued from Her Majesty's Mint at Hong Kong, trie silver dollar of Spain, Mexico, Peru, and Bolivia, and any other silver dollar, to be specified from time to time by the Governor in Council, shall be the only legal tender in payment, or on account of any engagement whatever, except as is hereinafter mentioned (i.e., as to subsidiary silver coins) within this Colony and its Depen- dencies ; provided that no dollar shall be a legal tender unless it be of the same fineness and intrinsic vahie as the Hong Kong dollar, and be not less than 415 grains troy weight, and be not injured or defaced." The Act goes on to place limits of tender of $2 and ^l respectively, on silver coins (to be coined by a British Mint, and (ii) on " such copper or bronze coins as may now be current in this Colony and its Dependencies under Act No. 6 of 1847 of the Indian Legislature, as well as such copper or bronze coins as may be issued from Her Majesty's Mint, any branch thereof, representing the cent or one-hundredth pai >,, the half-cent or two-hundredth part, and the quarttr-centor four- hundredth part of the dollar, f So long as the Hong Kong Mint vfP". working, no questio^i could arise as to the supply of suitable subsidiary coins in silver and copper, provision for the currency of which had been made " The Imperiftl Government had proposed to proceed bv Imperial Order in Council, &c. under the imperial Act. Indeed, an Order and Woclamation, prac- tically identical with the local Act, was passed on 17th May 1867, but, being forestalled by the local measure, was never promuliJHted. t The standard of value having now been satisfactorily fixed, the Colonial Legislature proceeded, by Act ^>o. 5 of )8G7, to provide for the conversion of rupees in ail payments by or to the Government, and for the keeping of the public act^ounts in dollars, &c. The rate at which the conversion of the old into the new currency was to be efifected was 220 rupees per $100. Ch. XXXVIII. SruAiT8 Skttlkments. 387 in the Act of 1887. But, as the liong Koiig Mint was clojed in 1808, only two years after its opening, and as the tokens struck at that Mint were sijeedily absorbed, it became m^ceesary for the Straits to provide tlicir own subsidiary coinage. This the Colony proceeded to do in 1871, under the provisions of the local Act of 1867 ; the highest denomination for the first fifteen years being the 2()-ccnt. piece. On the model of Hong Kong, the silver tokens of the Straits were of 800 millesimal fineness. In 1886, a token half-dollar was added, of the same standard. The details of the coins struck for the Straits from 1871 to 1891, inclusive, will be found in the 22nd Annual Report of the Deputy Master of the Mint, the total being given as 2,684,850 dollars. If the population of the Straits Settlements on Slst December 1891 be taken in round numbers at 513,000, the al:ove total coinage of silver and copper tokens for the Colony is equivalent to 5*23 d(»llars per head ; but this figure represents a maxiiinim, rather than an actual circulation. For, a consider- able number of Straits tokens are carried off (though not to the extent prevailing in the case of Hong Kong) for circulation in neighbouring countries. To revert to the standard coin, it is to be noted that, by Order of the Governor in Council of 10th January 1874 (under the Ordinance of 1867), the American trade dollar and the Japanese yen (which was coined on the model of the Hong Kong dollar, with the Hong Kong machinery) were admitted to unlimited legal tender, equally with the Mexican dollar. For some years before 1890 the Colony was flooded with the copper coins of the North Borneo Company. As the law on the subject was not deemed sufficiently stringent to deal with the evil, it was decided in 1890 to consolidate and amend the currency legislation of the Colony. This was done by the Order in Council of 21st October 1890, which came into force on 1st January 1891, the text of which will be found in the 2l8t Annual Report of the Deputy Master of the Mint. In essentialSj it left the local system of currency unaltered. In concluding this survey of the history of metallic money in the Colony, it remains to be added that, as compared with Hong Kong, the Straits Settlements are less influenced by the vagaries of the Chinese. " Chopping " is not in vogue here, and the Aveight and fineness of each coin tendered is not so suspiciously scrutinised as in Hong Kong. In fact, currency is practically by tale in the Straits, as in Europe. It will be noticed that the dislike of '* chopped " dollars in the Straits dates back to at least before 1825 {see page 382, supra) ; at the present day " chopped " dollars are never seen in the Straits Settlements. Bank Notes. At no time has there been a Government issue in the Straits Settlements. The notes in circulation are those of the three banks which monopolise the note-circulation in Hong Kong, and are issued under like conditions. TT ■r; 1 1 1 lt ' ' 1 i 1' 1 w 1 ^ f^ I ■;• \ 1.1 tiii i 1 ♦ :4 W*' '111 \i I! ' If 388 Colonial Cukrency. The amount of paper currency * in local circulation, none being a legal tender, was as follows on .'ilst December 1891: — Bank. Singapore. Penang. Malacca. Mercantile . . . - Chartered - - - - Hon? Kong and SlianKliai $ 673,093 1,328,439 l,39(i,557 $ 128,87o 1,490,873 .54(5,594 179,400 $ 3,298,091 2,472,542 179,400 . Thus the total amount of bank notes in circulation was 5,949,833 dollars, or 11*2 dollars per head of the population. * In 1884, when the Oriental Banliiiig Corporation coUnpsed, the other Straits lianics were constrii ned, in 8elt-dft'<>nce, to cash notes of tiic local ifsue (imiounting to over $300,1)00) of the bankrupt Corporation. ing \a.s ther UCIil Hv- 390 Colonial Curbxnct. Ki ' APPENDIX A. COINS CURRENT. (1.) The Spanish and Mexican Dollar. (Synonyms : — Pieza de & ocho, PiaBtre," Piece (or Reall) of Eight, Colonato, Peso Duro, " Cob," Gourde,t Escudo de Plata.) It is apparently upon the authority of Zedler'a Uuiversdl-Leriron (1746) that the Spanish " dollar " (or '• piece of eight " reals) is generally traced back, in substance as well as name, to the thaler. A translation of Zedler's statement is as follows : — " Thaler, Tahler, Reichsfhaler, Jochimsthahr, Thalerus Imperialis, Joachimicus Vallensis : The first coins on this foot were struck as early as the fifteenth century, and were known as Tiiilden groschen,' as in the case of those of Maximilian the First in 1479,J of Duke Sigismund in 1484, or Friedrich of Saxony in 1500. " But since the Counts of Schlick caused a great number of these coins to be struck in 1517 § in the little town of Jochimsthal in Bohemia, they came to be called ' Jochimsthaler.' (These thalers are also called ' Josepher,' from the effigy of Joseph, which they bear with that of St. Joachim.) In later years such coins were struck elsewhere also, with but slight variation, such as the Cross or Albertsthaler, the Burgundian, the Dutch, the Spanish ' Philipps-und-Diekethaler,' the French. l| &c." But 20 years before the minting of these thalers, or dollars, in the " Thai " (or Dale) of St. Joachim, Ferdinand and Isabella had issued their Edicts of 13th June 1497, of which the following is a translation : — " Moreover, we ordain and command that in each of the said mints there shall be struck silver money to be called 'reals' {i.e., 'royals'), weighing 67 to the mark, and not less, and 11 dineros 4 granos"" fine, and no less ; and that there shall be struck reals, half-reals, quarter-reals, and eighths of reals." And, further, the real of their Catholic Majesties was identical in fineness, and practically identical in weight, with the real of John II., * The name " Piastre," commonly derived from the Italian pinxtro (a plaster), the Latin {em)plastrum, and the Greek (f^)ffXa(Tr|uov, suggestK the pilattert or pillars (gee infra) so characteristic of the coins struck in Spanish-America for 300 yearn, dating from the beginning of the sixteenth century. Hut the form of the woi'd seoms Italian, and Ducange notices plagfra as an old form of piastre. Fiattva (V Argento is explained by John Florio, in his " WorUle of VVordes, or most copious and exact Dictionfirie in Italian ami English " (London, 155)8), as " a coine or plate of silver used in Spaine." " Piantra " alone, Florio calls " any kind of plate or leaf of mettal." In 1874 Blount, in his " Glossographia," says, " Piastre, a coyn in Italy, about the value of our crown." f Littr6's Dictionary derives this French name for the dollar from the Spanish "gordo, gros : cette piice 6taiit dite une grosse piece." % 1472,accordingtopage 16of the first volumeof Becher's "Das Oetterreichitche Miinzwrnn" (Wien, 1838). § 1518, according txj Bccher, vol. i., page 17. The coins were 15 loths fine, and 8 to the Cologne mark. Hence they weighed slightly over 451 grains troy, and were of D.IZ") millesimal fineness. At Augsburg, in 1566, the fineness was reduced to 876 for the Reichsthaler, or rix-doUar. II The silver 6cu was not struck until '"'"•. % Citf,d at page 324 of the firet volum^ A Heiss' Monedas Hisjjano-Onttianat (Madrid, 1865). . ** liiqual to 930"5 millesimal fineness. App. A. Coins Currknt. 391 who in hin Ordinance of 1442 profeRRea to be maintaining nn old standard Pedro the Cruel, indeed, would appear to have been the first to coin the real, which thus dateR from before 1. '{(><.). (Heixn, I., 01 ; and page 9 of the " Breve Rcfleiia HiHtorico-criticn de la Monuda Enpanola," printed as an appendix to the " Besumon do los InformeH sobre la cueRtion Monetaria," Madrid, lHf.2). ThuH it will be seen (i.) that from the ontRet in Spain it waR not the '' pcHO," but the retil. which waa the unit ; (ii.) that the standard real of Upain, and ita multiple the piece-of-eight-reala, ia a century and a half older than the " thaler "; and (iij.) that the " pieco-of-eight " waa of a less weight and finenoRR than the reichsthaler or rix dollar (prior to the Leipziger Fuss of 1690, when the intrinsic content became nearly the same in both coins). Though specific provision waa not made in 1497 for multiples of the real, yet pieces of four and of eigb "eals, struck in the reign of Ferdinand and Iflabella (14!)7-lf)iri), are known, though rare. The relation, in short, of the peso to the real is strictly co:nparable to that of the English crown to the ahilling. In 1518, the year after the great coinage of thalcrs in Joachimsthal, Mexico was conquered by CortcH ; and six years later followed the conquoat of Peru by Pizarro, the rich mines of Potosi being discovered in 1545. Consequently, on the coins of the Emperor Charlea V. (I. of Spain), " first appears the type of the pillars of Hercules, with the modern device plun ultra, in lieu of the ancient iiou /ilus ultra, because Cristobal Colon had proved that there were other lands and other worlds beyond the limits set by Hercules "^(Heiaa). Many of these "pillar" coins are shown by the mint mark M • to have been struck in Mexico. According to Jose Caballero.f cited by Hciss (op. cit., p. 149), "it was only in the Indies that silver money was coined by order of the Emperor (Charlea V.) with the device of the pillars of Hercules rising over wavea of the sea." The (crowned) pillars are united by a scroll with the legend (in whole or part) phiit ultra. The legiil weight and fineness of the " piece-of-eight," as it waa commonly, and properly, called in olden times, until (after 1690) practical equivalents of value with the rix-dollar encouraged the general adoption of the name " dollar," tally with those prescribed in 1497, for the standard real of which it was a multiple. Up to 1728 the " piece-of-eight " was commonly referred to four types both in England and in the colonies, viz., " Seville, Mexico, Pillar, and Peru." The distinction is not uniformly clear. But (i.) in no case (until after 1821 ) did the coins atruck in Spain bear the pillars, or have the additional legend et Iruliariun. after Rex Ilii^pankirutn ; and (ii.) " cobs," or formless lumps t of stamped bullion, marked on one aide by a cross like the arms of a windmill,^ were known as "Peruviana," though frequently they were struck in other colonies. In Spain, according to Heiaa, they received the name of " duros cortados, cap de barra. piastras cuadradas," &c.; (iii.) Mexican coins prior to 1728 rarely bore pillars ; and hence, (iv.) by a proceaa of exhauation. " pillar pieces " appears to have been the name for all round coins struck in America, and bearing the characteristic pillars, even when the legend waa " Poto.si el Peru," as on Peruvian coins {e.g.) of 16.')2 and 1691. From tie Royal Ordinances of 1650 and 165.^, it appeara that in the reign of Philip IV. there " occurred a scandalous falsification in the fineness of the silver moneys coined in our Peruvian mints." This at '>unts for their practical demonetisation in the British colonies in the k^c half of the seventeenth century. In 1717 Sir Isaac Newton reported on Peru pieces of eight as " of uncertain allay." • These emblems, which represent the Strait' of Gil iraltar, were mistaken in Morocco for cannon ; wlience the Arabic name for ..jis coin, Abu Madfa, "father of cannon." Sie also p. 3^2 note. f " Jirevf! Cotego y hnlanee di' las j>eitas y mrdidos." t Speaking of these piastres, Damorcau, in his Traiti of 1727, says, " Dana le Perou ou ne prend pas k present la peine de les bien former." & Whence their Mexican name, " miquina de papalote y cruz," or " windmill and cross money." c 2 If'. ill m 1*1 1^ I i;*t I iu 392 Colonial Currenot. PaRBing over Bpaniflh reals of " new plate "• and " provincial " money, the Htandard weight and finonoHs of the pieco-of-cight remained unaltered until tlio beginning of the eighteenth century. On Dth June 172H, under the Bourbons, the milKmimal finoneHa was lowered from 08()'5 to 'JIC'C), and the of the Pra/finatAra of 2lHh May 1772 declared that the weitjht anil fineness were to reni'iin unchanu:e(l. "This, says the Jtvi'vr It^nrtiii, '* is what was stated to the i)iiblic. Hut at tiie mint rpiito a differetit announcement was raa'lc." Here the fineness was ordered to lie reduced to 10 din. 20 gr. fine, i.e., hy 1-4 per cent, ^ It was only on Ist .July 1890, under tho provisions of tiio Decree of 2nd December 1889, that tha rpal was abolished in Mexico to make room for a decimal systim, and oons.iquently that tli3 Mjxlcan dollar coaaod to be in fact a " picce-of- eigiit." II 5"(» infra, page 398, and " A Monoj^raph of tho Dollar," by J. L. Riddell (New Orlea. IS, 184.5), dealinsf with Spanish and Anjerican varii^'/m, iioU^ing counter* feits, then in circulation, App. A. Coins Cuureni?. 3&d ! artistic dollar " was unfavourably rccoived iu China, tho chief market for Mexican (lollarH, a return waK made to the "old die," which in that exclusively in use at tho prcHeut day. As has been pointed out' above, the modern Mexican dollar still retains (practically^ the legal weight and linoiieHS OHsigned in 1 772 to the earlier Spanish dollar, the standard weight being 27*07.^ grammes, and the millesimal fineness being 'J()2'7. But tho common system of coinage is to allow 2(i!i gramnies of alloy to 2444 granmiis of fine silver, and to coin tho total gross weight of 2707 grammes into $ 100. Consequently, each dollar is coined to weigh 27'07 grammes (or 41 7| grains) gross, and to have a lino content of 2444 grammes (or ;{77I.'{ grains), tho fineness being y02844 per mill*! ; l)ut the lineness stamped on tho dollar is '.)02-7, or 10 din. 9.0 gr. in earlier fashion. Apparently, the difference between the old Spanish and modern Mexican standards of weight, arises from the fact that tho Castilian mark, as used in S()ain, was a Hinall fraction lighter than the mark in use in Mexico. According to American assays the fineness of the Spanish pillar dollar averaged DUO from 1772 to 180H, and fell to Hl)8 from lH()H-2r), a result which tallies with the fine content of ;>70'1) grains, assigned by Kelly to tho coin in 1820. The weight and tincness of the Republican dollar have varied with <^ho respective mint and the date of coinage. Tho average fine content frt ,i lK24-.'ir» was found on assay to be 'Ml'M grains ; from 183(i-41, ;{74 grains, rising subse(iueiitly to 37.0 grains. In 1873 a somewhat heavier coin began to be received (containing 375} grains fine), and tho upward movement continued. In 1871), 800 dollars were obtained, 100 from each of the seven principal mints, and 100 from the various otiier miuta. The followring remarkable results were derived from this investigation : — Mint Mark.* Average Weight. Average FiiieiiesH. Average Fine Content. (1 rains. Pn- Mill,: Grai)i*. D". Durango .... 417-84l» 'J07-7 379-281 0*. Chihuahua .... 417-2:tr) l)()r)(i 377-848 G*. Guadalajara 4l7-r)90 'J(m-2 377-167 M. Mexico .... 417547 903-2 377-128 1". San Luis Potosi - 417(;ilt 902-2 376-776 G". Guanajuato . - - . 417748 901-7 376-683 Z^. Zacatccas .... 41(i( the followin:,' Hvp iiiintg were preferrcil iit tlii' iinrthorn porta of China In th» fnUiiU'liiK onlor : ( 1) (luiti. jiiiilu ; ( :! ) /.iivutuKii8 ; (3) Mi'xlcii ; ( 4 ) (! uiultklujara ; uud (fi) Buu LuU PotuHi. Thu flnit-nainiMl ii tho " Hun iliillnr," or HhitiiKliai dullar, Nu. 1. t litt\.\i6 ilSuti Uo|)ort uf tlio Uoputy Mkitor of tho Idiut. rH. % '► ';t t 394 Colonial Curuency. procured in the London market. It was found in 181)1, as in the previous examination of 187i), that fully throo-quartors of the coins had boon struck within tho provious six years. The following tal)li) gives the details of the investigation, classified under the 11 mints : — Mint Mark. Percentage of Total Number. Average Weight. Average Milleglmnl Fiiietiew, Average Amount of l-'iiieHllver. At'^ragf A mount nf I'Hne (ioltl jM-r l.'oiii. Oraint, (liuini. Ornlni. ]S (Mexico) 8977 417-089 «oa-7 377-021 0-040 Z» (Zuoateoaa) .... 21-71 417058 901-5 375-976 0-126 OO (QnniiBJHato) - . . - 1781 417-459 8'J!)-4 375-403 0-174 Pi (Sftii LuU PotoHi) - 10-2B 4! 7-470 903-3 377-101 0-140 OA (Cliihuahua) .... 7-87 417-427 901-3 370-227 0-143 GA (Ouivlaliiiftrft) 3-01 417-180 901-3 37C-004 0-402 DO (Durango) .... ' AS (Alamos) .... . CN (CuliacAii) .... 1 8-67 417-177 902-9 370-069 0-m Ho (HenuosUlo) .... OA (Ottxuca) .... Adjusted Average of the whole j Siiiii|ila 1 100 00 417-394 901-647 376-342 0-129 It will be observed that Mexico supplies nearly a third of the total number of coins, and that the fineness of the Mexico coins is that of the standard, whilst tho weight shows a remarkably close approximation to the standard of 417-8 grains. The Mexican Mint Report of 188',) gives the following particulars : — I. Total silver coinage in the financial year 1887-88, jj? 2r),8r)2.977, of which no less than ^ 25,281, 5'jy was in " piezas de il un peso," or " Mexican dollars." II. Relative proportion of silver coined by each of tho 11 mints : — Alamos - - 2-24 per cent Culiaclu - . 2-'.)5 Chihuahua - 10-22 Durango - - 4-02 Oiiada ajara - :}-9() Guanajuato - - 17-;V2 Hermosillo . o-oy M6xi(!0 - - 27-.".0 Oaxaca - 0-4.3 San Luis Potosi - 10-(U Zacatccas - 11) -8(5 100-00 in. Total silver roinagc from 15.^7 to .30th June 1888, ^.3,19.S,21.'),137-92, distributed as follows : — s Colonial epoch, 1537— 1821 - • 2,082,2(;d,(;r)7'44 Independence, 1821— 1888 - - 1,110,1)54,480-48 $ .3,19.3,215,137-92 And to this output the decade from Ist July 1878 to 30th June 1888 had contributes 4 5^50,940,0 132 App. A. Coins Current. 395 (2.) The Spanish Fistareen.* ■ ' In the Spanish Wars of SucceHHion, at tho beginning of the eighteenth century, a quantity of "base" coins representing two reuln, or $ \, of " new plate," were issued by tho rival claimants, with a profitable reduction of the millesimal iineiieHS. The revenue accruing to the King from the new coins led to tiieir issue in still greater profusion in later yearii. Though nominally "provincial " coins, intended for the Peninsula o* ly, and pausing there us the fifth of the old piece-of-eight, they rapidly travelled to the New World, and. particularly to the British Colonies in the West Indies. The first notice of the pistareen's appearance in this country is con- tained in the following letter, uf the Ifjth January 1712-13, from 8ir Isaac Newton, then Master and Worker of the Mint, to " Mr. Chancellour": — " Our Assay Master being out of Town and his Olerk sick in bed, I got the Two Spanish Peices Assayed at (Tuldsmith's Ilall. The Peice of King Charles weighed 'd-K w'. 12 kf. and in fineness was four Peny Weight worse than standanLt The Value thereof in English Money it 10 d. and 3-5ths of a Pony. The Peice of King Philip weighed 4 dwt. i grain, and was One Ounce worse than Standard :j: and in Value 11(/. half Peny English. They seem to be Quarter Peices of Eight of the New Species and, in the nearest Hound Numbers, Five of them may bo reckoned worth a Mexico or Pillar Piece of Eight." The coins which puzzled Sir Isaac Nowton were destined to play an important part in the history of the British colonial currency. They appeared at the juncture when, mainly under stress of Queen Anne's Proclamation of 1704, the West Indian Colonies were passing from a silver to a gold standard. The "piece-of-eight" was being driven from circu- lation, and there was great need of a silver coin larger than the real for ordinary internal circulation. The pistareen filled the gap. Being of base silver, it was enabled to hold its ground in concurrent circulation wit. gold, and thus, like the modern token shilling which it resembled, it served for internal and subsidiary circulation under cover of a gold standard. Whilst, in connection with tho dominant rating of the dollar at 5 «., tho pistareen had a legitimate sphere as the denominational " shilling," its importation was favoured less creditably by the facility with which it could be passed off on tho unwary as an " unpillared quarter."^ \n the United States those coins passed for 20 cents until 1827, when, in consequence of a Beport by tho United States Mint, they fell to 17 cents. In the West Indies they were driven out by British silver after 1825 ; and Canada, following the lead of the United States, demonetised these coins soon afterwards. The pistareen thus lost the importance which it had enjoyed in colonial currency for more than a century, and became, in fact as well as in name, a " provincial " coin, circulating in the Peninsula. Its modern representative is the Spanish peseta, e({ual to the franc of tho Latin Union. (3.) The Doubloon. Like the dollar, this coin was not a unit but a multiple, as is indicated by one of its many names, " doblon do a ocho." The silver piece-of-eight was a multiple of the real, and tho escudo was the correlative of the real in gold. In 1537 L)a. Juana and the Emperor Charles V. enacted, that " the coronas and escudos which wo have cominaiidod, and shall command, to be struck, shall bo 22 carats fine, and shall weigh OH to the mark of gold of our kingdoms of Castillo, whicii is the linttiiess and weight of tho larger escudos of Italy and of those which are coined in France." The multiples of the escudo were tho pistoles or double-escudo (hence "doblon "), the double pistole, and tho quadruple pistole, known to us as • This wcnl may Ijo couiiectud (like puseta) with pimi, but is not a regularly- formed (liraiuutive. More probably it is a sort of " cauip Spanish" for "little piastre," as is suggested by the form " piastcreon." {i.e., 9U8-H millesimal flnences. i.e., 841"7 millesinial tinenesa. i See under Bahamas, 396 Colonial Cubbenct. ! 'i 3 i il the doubloon. In Spain this latter coin was also known as the " onza de oro," and, after 1730, as the "peso duro de oro," from its identity in weight with the silver dollar. The weight remained unaltered from 1537 to 1848, but the fineness was reduced to 21} carats in 1772 and to 21 carats in 178(5 (in both cases not by a public law but by a " Real orden reserrada," addressed to the Casas de Moneda). In the monetary system of Spain a gold escudo was the equival t in value of two silver dollars, or " escudos de plata." In the words of Sir Isaac Newton, " a Spanish pistole was coined for 32 reas, or four pieces of eight reas, usuallv called pieces-of -eight, and is of equal allay, and the 16th part of the weight thereof. Gold is, therefore, in Spain of 16 times more value than nlver of equal weight and allay. But this high price keeps their gold at home in good plenty, and carries away the Spanish silver into all Eurr^^e, so that at homo they make their payments in gold, and will not f ij in silver without a premium. Upon the coming in of a plate-fleet th(. premium ceases, or is but small, but as their silver goes away and becomes scarce, the premium encreases, and is most commonly about 6 per cent." Gold was unimportant in the British colonies in the seventeenth century ; but when, at the beginning of the next century, the West Indies adopted a gold standard, the principal gold coins they saw were Spanish pistoles and doubloons ; and, with the coins, they naturally adopted the Spanish ratio, and consequently shared with Spain the experiences arising from the over-valuation of gold. It was this Spanish ratio of 16 dollars = ] doubloon, which helped to defeat the measures taken by the Imperial Government in 1825 (see page 23). As in the case of the dollar, there was a rude coinage in gold prior to 1728 known as "cob doubloons," but far more reliable in weight and fineness than " Peru pieces-of-eight." Spanish and other doubloons are regularly quoted in the weekly lists of bullion brokers, and still find a currency in Newfoundland, certain West African Colonies, Trinidad, and some other places. (4.) The Moidore and Joannese. In the seventeenth century the familiar Portuguese coin was the " Moidore," i.e., the Lisbonine, or double " Moeda de Ouro " (gold money) of the Portuguese monetary system. This " Moidore " (subdivided into 10 gold cruzados) was the fifth of a dobrao, and was originally worth 4,000 reis, raised by 20 per cent, (like the rest of the series) to 4,800 in 1688. The importance of this coin was rather European than colonial. It formed practically the whole of Irish currency in the early part of the eighteenth century, and was plentiful in the West of England about 1700, until its rating was reduced from 28 .s. to 27 s. Gd., as explained by Sir Isaac Newton in 1717. But, as the moidore series of coins was not struck later than 1732, and as the " joanneae " series from 1722 onwards rapidly sup- planted it, the moidore was losing its importance when the West Indian colonies adopted a gold, instead of a silver standard. Far more important in colonial currency was the Joannese, or " joe," coinage, which originated in 1722 on the basis of the dohra weighing a Portuguese onfu of gold. The series was formed by dividing this coin by two down to the cruzado, or l-32nd part of the dobra ; strictly speaking, the half-dobra of 6,400 reis was the iclwle joannese, but in America and the West Indies this coin was universally known as the " half -joe." With the Spanish doubloon, the Portuguese " half-joe " dominated the metallic currency of the New World, and particularly Barbados and the Windward Islands. The popularity of the joannese, as of the moidore, in the eighteenth century, was due to their uniform good- ness both in weight and in fineness. To the same cause was duo the clipping and sweating of the "joe" in the West Indies (to secure concurrent circulation with the baser doubloon), whilst the good repute of Portuguese gold led to the wholesale manufacture of counterfeit joes in North America and Birmingham at the end of last century. With the revolution of 1822 in Brazil, the gold currency of Portugal rapidly lost its importance. The Brazilian mines are now in English hands, and the gold currency of Portugal consists mainly of British sovereigns. App. A. CoilfS CuBBBNt. 397 (d.) The Barbary Duoat. Shortly before 1700 this coin became prevalent in some of the West India Islands. In 1699 an Act of Antigua rates the " Arabiane chequine,"** and as will be seen under the head of Leeward Islands, the same coin was still in circulation there in 1740 as a "zequeen" or "Barbary ducat." In the Bermudau Act of 1707, the same coin is mentioned as a " chicquin " of gold weighing 2dwt. 3gr., and is rated (with "half-pistoles") at two pieces of eight. The " Barbary ducat " reached the West India Islands from the planta- tions on the mainland. Speaking of Virginia before 1708, Oldmixon says " the chief of their coins are either gold of the stamp of Arabia " (or Spanish money, &c.) ; and he gives the Virginian rating of the " Arabian chequin " as 10 8., t.«., double the denominational value of the piece-of -eight, as in the Leeward Islands. Perhaps the introduction of these coins of the corsairs may be traced to pirates. For, writing from the (Roman Catholic) colony of Maryland to the Board of Trade on the 5th December 1701, Mr. George Larkin tells of the escape of certain comrades of the notorious Captain Kidd with their booty into (Quaker) Pennsylvania, and complains that these escaped pirates " have been hugg'd and caressed after a very strange manner by the Religious people of, Pensylivania ; no money to be seen amongst them now but Arabian Gold." In 1717 Sir Isaac Newton gave the assay of " a Barbary ducat, with Arabic letters on both sides in square tablets, without any effigies or escutcheon" ;t but his weight of 61} grains (of 818 millesimal fineness) points to a difEerent coin to that seen in the New World. The assay in 1740 by the mint of the " Barbary ducat or chequin," gives the weight as 51 grains, like the Bermudan Act of 1707, and this weight approximates to the standard ducat or sequin weight of 53} grains. The low standard of these coins (875 per mille in 1740), while it favoured their introduction into the colonies about 1700, led to their being discarded later, when the gold standard had been adopted in the West Indies, and when fineness was scrutinized as keenly a-, gross weight. With the second half of the eighteenth century, the " Barbary ducat " passed out of colonial currency. (6.) Coins of France. On iUst March 1640, a " Declaration du Roy " of Louis XIII, ordered that, in place of the (gold) ecu of 23^ carats fine, there should be struck a louis d'or of 22 carats fine. As Le Blanc points out in his Traite Historique, the edict gives the name of " louis d'or" to what is commonly called the half louis of five livres, in the same confused way in which the name " moidore " was given to the double " moeda de ouro." Subordinate to the old dcu in gold, was the silver quart-d'^cu (11 dwts. fine), familar in England as the " cardecue." J With the introduction of the new louis d'or, Le Blanc states that Louis XIII " on 23rd December 1641, ordered the fabrication of a new silver coin (also 11 dwts. fine) under the name of louis d'argent or piece of 60 sols, which we commonly call Esm Blanc." These coins, which were practically the first milled money of France, retained their standard of fineness up to the Revolution ; but they underwent a bewildering succession of increases in their nominal value in livres and sols; and the endeavour to adjust the ratio between silver and gold to the changing relations of the two metals in outside ♦ The Italian name Zecchino is derived from the Ai'cca, or Mint of Venice, which word is derived (like the " Sirea " ru])ee) from the Arabic Sihhi " a coining die." t In obedience to the Qu'ran, no eftigy appears on Mahomnieilau coins. j In was in these silver coins that Charles 1 received in 1()2.") the whole of the dower (800,000 crowns) of his consort Henrietta Maria of France. They were made current for a time at 1 s, 1\ d., but owing to counterfeits, &c., were demonetised the next year(Ruding; and Macpherson's "Annals of Commerce," II., 337). S98 Colonial Cukrenct. markets, led to a like succession of alterations in their weight. It will also be observed from the tables infra, that the liberal " remedies " allowed at tha royal mints of France considerably reduced below standard the <" ne content of the coins issued. The louis d'or issued after 170it, it may L^re be noted, was freiiuently called the " French guinea," its sterling value, according to Sir Isaac Newton, being a fraction over 1 1. When, after the Revolution, the gxim sys*^em of weights was introduced, tha weignt of the ecu was reduced by about one-sixth, so as to make the new silver franc " (900 fine) equal to one gram. The necessary adjustment as regards gold coins was made in 1803, when, after eight years' cessation of gold coinage, the gold napoleon was struck as the equivalent of 20 francs. In 18(5(5, when the Latin union was formed, silver coins below the five franc piece were reduced in millesimal fineness from 900 to 835, and converted into tokens. The " bimetallism " of France, and of the old Lutin union, rests therefore exclusively on the five-franc piece ; but though this coin remains unlimited legal tender, its issue is carefully watched, and like the silver dollar of the United States, it is practically an expensive subsidiary coin for internal circulation. It is because of the gold reserve (sometimes called the " War Chest ") in the Bank of France, that the London quotations of five-franc pieces remained steady at about one-quarter of that of a gold 20-franc piece during 1890, in spite of fluctuations amounting to 20 per cent, in the gold-price of silver during the year. And it is because of the absence in Spain of a sufficient stock of gold to maintain the five-peseta piece at its representative value, that this Spanish five-franc piece is dropping to its intrinsic value («ee under Gibraltar). (7.) Coins of the United States. The monetary model adopted by the United States in 1785f was the silver Spanish dollar with which they were familiav. But for the weight of their new coin, they took, not the full standard of Spanish dollars, but the average of coins in circulation. Hence the new dollar of the United States was made to contain only 375'G4 grains of fine silver, or less by about two grains than a Spanish dollar of full weight. In 1792 Congress further reduced the fine silver in the dollar to 37r25 grains (in order to institute a ratio of 15:1 between silver and gold) ; and this content of fine silver (the scale of fineness having been reduced to 900 in 1837) remains in the United States silver dollar of to-day under the " Bland Act," weighing 412*5 grains gross. Side by side with the silver dollar, which was intended to repre ent the familiar Spanish dollar, the Resolution of Congress of 6th July 1785 declared that there should be a gold coinage of five-dollar and ten-dollar pieces, the latter containing 246"2t)8 grains of fine gold. In 1792, acting upon the advice of Mr. Alexander Hamdton, Secretary of the Treasury, who was strongly of " opinion tiiat a preference ought to be given to neither of the metals for the money unit," Congress by the Act of 2nd April 1792, set aside * In France tlie name f:-anr had for centuries been synonymous with livre. The cai'lieist mention of a ■■ Iraiic " in Lu Bliiiio, is witli refoience to the year liMiO, when King John struck •• un Frimc il'Oi' fin qui pesoit une ilrachme trebucLant, Elle iut aiusi nominee d cauHe qu ellu'valoit un Franc ou une livre, c'est & dire 2U sols," In connection with a similar coin of Charles V in 1305, Le Blanc says " on luy donna le uom d cause que la mauiire de compter par livre, composee de 20 sols, doit son origiiie aux Fianqois." Thus in its fraiio of 20 sous the Revolu- tion preserveil, and acknowledged the authorship of, the scheme of the !■ rankish King t'harlomagne in the eighth ceutur,-, whereunder " 12 unciie libram 20 solidos coutinentem efliciunt, ct duodecim denarii solidum reddunt." f See American State I'apers (Finance), Vol. I., p. 91 (cited at p. 352 of the Preliminary Report of the Decimal Coinage Commission, 1857) ; Report of the Royal Commission on International Coinage, 18(58, p. 313 ; Fourth, Eighth, and Twenty.First Reports of the Deputy Master of the Mint ; Felt's " Massachusetts Currency," 1839 ; Linderman's "Money and Legal Tender in the United States," 1877, &c. App. A. Coins Current. .^d9 the 1785 ratio of gold to silver of 1:15^, and reduced it to 1:15, by reducing the fine content of the silver dollar and l)y raisin); the (hitherto theoretical) ten-dollar piece, or Eagle, to 247-5 grains of tine gold. In 1834, by Act of Congress of 28th June, the amount of tine gold was diminished to 232 grains, the ratio of gold to silver being tlms altered to 1 : 16002. In 1837 a further charge was made by increasing the fine gold in tlie Eagle to 232*2 grains (the gi-oss weight being 258 grains and the millesimal fineness 900), with the result that the ratio finally became 1 :15988. But, as the European ratio was l:ir)-5, it was found to be impossible to retain the silver coins in circulation ; and by the Act of 2l8t February 1H53 it was provided that the silver coinage subsidiary to the dollar should l)o converted into a token currency by reducing its silver content from 371 "25 to 345*6 gr. per dollar ; that is to say, a ratio of 1:14888 ( = 63*357 d. per ounce) was established for token silver. Manifestly, this latter change could not save the silver whole dollars ; and so the bimetallism of 17i)2 pa.s.;ed into practical monometallism.'^ Indeed, at the International Monetary Conference of 1868 at Paris, it was the representative of the United States who pressed most strongly for gold as the sole standard.! Pointing to the fact that of the five millions of silver dollars coined in, the seventy years ending 1867, " nearly all have disappeared from circulation," whilst the same fate had attended all of the .;Ji 131,000,000 of subsidiary silver coins coined before 1853, Mr. Ruggles, the United .States Delegate, "felt justified in claiming, and insisting, that the double standard now existed in the United States only in form, and not in fact." In the light, of these facts, it is intelligible why in 1873 Congress omitted the silver dollar from the coins authorised to be struck in the mints of the United States. By this step the country formally adopted gold as the sole standard and measure of value. But five years later, i.f., in 1878, the " Bland Act " was passed, restoring the silver dollar as a standard coin of unlimited legal tender, and prescribing, not indeed the " free coinage " of silver originally embodied in the Bill, but a limited coinage of not less than ,|2,000,(X)0, and of not more than ^4,000,000, every month. Of these dollars only about one in seven is in cir- culation, the remainder being stored in vaults to the extent on Ist November 1892 of ^354,740,3«0, legal tender " Silver Certificates " being issued against j!i324,552,532 on the same date. The legislation of 1878 was a partial return, though chiefly in form, to " bimetallism.'' A further step was taken in 1890 when an Act was passed requiring, not the coinage, but the purchase (under certain conditions), of silver equal to at least 4,5li0,000 ounces a month, against which silver certi- ficates were to be issued t On 1st November 1892, the United States Treasury held silver bullion bought for ^91,829,247, against which theie were in circulation Legal Tender Notes to the nominal value of j^ll4,567,4i3, ■which are redeemed in gold by the Government. In 1892 Congress re- jected a Bill to prescribe the "free coinage " of silver. Like the five-franc piece of France, the silver dollar (with its paper representative) is practically an expensive token. The enormous area of the United States, and the volume of its internal transactions, enable the country legitimately to absorb a vast amount of silver (or silver-paper) currency. But the currency' of the United States rests ultimately on a stock of gold adequate to meet its international obligations and to shield its silver, seeing that on 1 November 1892 the gold-price of the silver in a silver dollar was only jj*665, i.e., one- third under its nominal value. It only remains to be added that the United States have been the proposers of two International Monetary Conferences, one of which met at Paris in 1881, whilst the other has recently been held 8 Jrussels; and that Canada, which enjoys the United States gold standard in conjunction with token silver, has no leanings to " bimetallism.'' •As a matter of fact, after the revolutionary suspended and not rewumed until 1875. f See Mr. Ruggles' Report, printed at p Commission on International C'oliiage, 1808. X iSet; analysis of the Act in the Twenty-first Report of the Deputy Master the Mint. WAT, specie payments were 197 of the Report of the Royal T 400 Colonial CtBRENCY. ) I ;'€' ^' i. . *!• 1) 'l. . 1- '■ J! ^-l' \: m U-. ill f;il (8.) Sterling. In tho reign of William the Conqueror, the (Tower) poniid-wcight of standard silver was coined into -JO shillings, *and thus the idea of the " pound sterling "f had direct reference to silver as tho sole standard. In 1601, after many vicissitudes, the pound wrii/hf of standard silver was ordered by Queen Elizabeth to be struck into 62 shillings. But the •' pound " by tale, still consisting (as at the present day) of 20 silver shillings, continued in the popular mind to refer to silver. But though silver was regarded as the standard of value, gold was equally admitted to tender (at varying ratios) ; and so by law bimetallism prevailed, with the " free coinage " J of gold and silver. For present purposes it will be sufficient to go back in tho history of gold coinage no further than lliOO, when tho guinea was first struck. § This coin was originally issued as the equivalent in gold of a (silver) " pound sterling," or 20 ». But the resulting ratio between gold and silver rapidly denuded the country of tho new guineas, and emailed a Poyal Proclamation, raising the value of the guinea to 22 s., iind thereby establishing a ratio which gave a greater relative value to gold than that ruling in ihe mercantile centres of Europe, notably Amsterdam. The resul'. was that the undervalued silver coins were clipped and sweated. Before 1G96, indeed, silver was so much degraded that the guinea passed current for 28 .s. and even HO «. |! By the Act 7 & 8 Will. 3, c. 10, the rating of the guinea was reduced to 2(5 «., and to 22 «. by the further Act 7 «S: 8 Will. 3, c. I'J. It Bhould be added that in the previous year the Act 6 & 7 Will. 3, c. 17, had prohibited the exchange of silver money for more than its value, and the purchase of sale of clippings. After tho great re-coinage of 169l!-y "the value of the guinea," according to McCuUoch, " was estimated by the public at 21 s. firf., a premium of 10 rf. in favour of the guinea The new silver coins began to be exported .... The growing scarcity of silver consequent on this exportation being in the end productive of considerable mconvenience, an attempt to stop it in 1717 ^ by reducing by Proclamation the value of the guinea from 21 s. 6 fl. to 21 s. The guinea was still overvalued *** as com- pared with silver, by about 4 J. in the guineas, or IJ? per cent. And, as the value of silver compared with gold continued to increase for most part of last century, it became considerably greater. Hence gold became ff . . - in practice what silver had formerly been, the sole legal tender ; and during the lengthened period from 1717 down to 1816 no silver coins of the legal weight and purity would remain in circulation, but were either melted down or exported, the silver currency consisting entirely of light worn coins." Consequently, it may be concluded that from 1(560 onwards gold has been the real standard of value in England, and that the Act of 1816, whereby silver coins were reduced to tokens subordinate to the gold sovereign, was a formal recognition of the long-standing supremacy of gold in England. Bearing in mind the co-existence of the gold standard in fact, * The scheme of 1 libra=20 solidi=240 denarii, dates back to Charlemagne, as stated in note * on the i)iece(lin}? page. t As to the origin of " sterling " (probably from Easterling mintmen), see p. 13 of M'Culloch's -'Select Tracts on Money '' (London, 1866), and Ending's Annals of the Coinage. I The actual charge for scignorage was alx)lished by Act of Parliament in 1666. Previously gold and silver brought to the Mint was converted into coin at a small per- centage. " This Act was made perpetual by the Act 9 Geo. S, c. 25, and its provisions in respect to gold have ever .since continued in force." First Mint Report, 1871. § It was adopted by Charles II. at the Restoration from the " Laurel " or gold 20*. piece of James I. The name is attributed to the coinage of the first guineas out of gold from Guiiiea. II Pari patKU the price of Spanish silver coins in London went up : " Pillar dollars go at seven shillings and a peny per ounce, and Seril and Mexico dollars at seven shillings per ounce." Lowndes, " Essay for the amendment of the Silver Coins," (London, 1695). See also Locke's " Further considerations concerning, raising the Value of Money" (2nd Edition, London, 1695). fin consequence of the " representations " of Sir Isaac Newton, reprinted in M'Ct Uoch's "Select Tracts on Money." ♦♦ • By the course of trade and exchange, between nation and nation in all Europe, fine gold is to fine silver as 14| or 15 to 1 ; and a guinea at the same rate is worth between 20 1. 6 d. and 20 ». 8J» I-H .-4 t-4 dpHrH-^i—li-teO ^ (N (JJ (J« ^(NINCJie^p^O OS 54 O a w CO s a, o o ^ P3- c a o o a. -s, o ce I^H H 5 ^ c a; 7^ o 5 5 'o '"5 o ■5 o o •t; Ts 'd o -3 o et o s 00 ^5 00 t^ t-» CO 00 CO •9 o«-ip-i as CO fo. f- 1-1 c . '^ »1 hi t4 ta =3^ a •3 o ^2 be 2 3 F-< u; i-i a7 «l rs = 1 m M M H M o H H b «0 e C5 "3 ^ .§ i 8 g .9 'S u (/5 'S O s si u s °S C2 O H O IN M App. A. — Coins Curbbnt. 403 ii s^ o c o I I I ll-ll 9 CJ Sei as tid 2 (2 3 U9 .0 __ r» t^ ^ — «o if ii> "f (N ■JD CO — •" M o -^ t>« r« OQ t^ t« (^ t<» ■ CO -eo f "P "^ 0>S3A CO MoOCOP^i-'r-iifiFMO ccccac c) occoooicoaoacaO'Xiac oo OC "S Cd O 0) •1, lb 33 TO f»'»*M>-'"5cor»'n ■-' «0 TS mc01'''»95'JlO«-» CO r» r» o-H'*'*»«>aO'rtw! co 6«C (O l-< f-l -^ ■«f •* ^ •p CM CO y 00 i 'O 9» CO a> 00 o> o at 1; 111 8 •C III s o u I . . . « ■< >i 111 OS O o ;< O o -a 00 00 cJ = ^ = (3 d •S o PH •a m iH Oh 43 0) ^ 2. S 3 a < ' si s s ^ s 6p - o ,. . "^ ^ '^ i-l 73 ,^ I» 'I i OS § C 60 b 4 14 Fri i is ^ r» •« ^ s (y» « « »* f4 ^ 94 '4< <« 09 0» OS OS S OS a 6 OS ff> ai 00 s *4 9^ •* s a % 00 U9 3 3 s 84 s §i ^ §8 »4 3 "3 iQ in »4 84 eo CO OD f^ f4 US ►» r» 00 to t» ^ > -^ 2 « ^:- -= o .a 00 b a £ a " an is »- 2 i2 S o a « a c •a 3 jT* " =• S I >> 2 cd 5 f .ft U i_ X<= J5 ^" n ■°- o JO o ^ -2 •a e I B td .2 T o o 84 H — ' ^-/ 5 s (b b Pli O 8, C^ 00 ■* to to CO M to OS 84 to goB 00 84 ro to P5 to CO n O 1— H 00 CD 8» to App. A. Coins Cuukent. 405 (5 •a M O a H 'mi a u 03 a o O hi > ^ -^ O •o a 5 I 2 ±» ^ o : H eg •;; * ^ '7 r ■t. e .s i ■» v « c 5 ■'*- -1 KM X e (I =5 a ?J * "' ® ';; X ..-5 c^ 2*3 = « iM « « '9 » "O ? 5» ? rt' 95 t 9« (N •}< to IN •A ^ i 5- ;3 t> 1- t-» i>. *) 99 CJ W S5 to 1^ i?j i; « " § S s § ^ ^ to J5 X o o C5 CJ & 0) O o ■a e I— < ir. ao ■<* 1 s M ^ 50 IN to a - 50 to IN 9» 51 9 •-( 50 to o "5 eo -W «^ fl cd C8 ^^ u u u o 3 a s 9 O C C Q D 03 5" .a 3Q •^ ,2 ^ ,2 ^ "o "o "o (^ Q Q Q •a B a o Oi x> to CO e « to to o H s J3 CO 00 • rH I I UO 03 »^ t^ 00 to 00 7 l-H 8 to r-t 00 i 1^ i 'I 72642. Dd I I fHil f II ri 406 a o (/} e m h u> JS bn o i a as o H o SK M O i (5 Colonial CuKBENoy. 9 o J:- t - Sw-^og ,i 2 S •o -S'T-* S « 2 . .. ■s.-E^r * "^ V. t k ° = .? M -^ - •- ^ a P .J - -t "^ ® "s « . « £ S ^.'■'-l-^^ = H t» -s i I lllp I I I 1;:; . W) (* If H r-" tl tij tL 60 « K 0! BS* ,0! ee o: « .^ (■>r«i-< •-•?i5> '"s '♦ f£ r >a ^ >-i t-t o f^ 6 1-^ 6 ^_^ FN 9-4 rH i-« - © © O O o o rH «^ i-^ F^ 16647 ^4 to 3 1^ 1-- to — FH 1^ ■ O lO lA 1? K-, «5 a o l-< #-4 *-* il !■« 1;^ -If) « « i> S -^ ■-- t. © TO It « 05 O Ol f •? -9 •sc •» -o » ■; C3 -< rri •'■ ''^ ■" O '•I ^ »-< TC t-" TtJ rH rH rH rH !■« Sec T^ rH CO CQ I- <» * f rH rH rH -fill Tt '^ « TO TJ tt C. r- O I o a X CO ?c e a V c CQ pq «=« CD B S" s i i « ^ S . ^H Ci -xi "p CO Tl T to w »-' O 00 X X •— I % I I lO CI o to o O o O a «-> a a App. A. Coi.VS CURRKNT. 407 IS Is in M M H M M o o « s a i K -0 << M CO ■« 2 a « s 2 ° ■• » PS %'t'^ "i Ml B .. I. •r i g^§;|lfis2t « c - *-' -flSo* a tc •A ^ M 3 bOU] «! S 1 11 5 1 1^ '(5 00 15 •N" 00 r-» CO « f-lFN 90«» S'-5So31i 4J A « eb ^ « ^ ^ ■t SJ^S^ t :s .5 S « !■> '!♦' « »! lO CO w ip -»" 03 t'. «0 k* I-* JO « fi C3 TO I'l? l>. 00 t- i>. «- '•r i» 1^ 1^ l-M ai CO « CO CO TO CO CO CO W CO 73 s i .-0 •■? ■ to •9 •0 1 ^ to OS 04 i £ 1 1 :* 9 fO f 1/ o « 9 3-. 0? •3 1^ iri S .a ;. n ^ « 1- s « I', lis «5 i*, tt t- C3 rt t« ?» 71 -M ^ 71 o« e^ i»« v ir 1 2 a < « ■* TO . -O •0 Si FH *-H FN FN •10 r-t FN FN PH •* f T NT t -f >* 1 1 1 1 Nt> 4 £ ;3 9 Q 1 I 1 1 1 1 1 1 1 Q ej V ^ S* .2 • 3 g g o~ i coo *§ 2 i z "gx C C Sees Q 1 I 1 < 1 ^r^ »» _ «- fc © <« N* FN FN r» 09 2 J ^2 06 « 91 FN T r-< 1 1 * •• • «•• r "^ r^?4 - ' '- ci^i^ t :i m FN i>i OQ \z^. «, I-. FN I r tf» FN l-* FN FN IH V FN J) 1)2 M! ife ll i ii i , :, ftn ■ I 1 f 408 Colonial Currency. ^1 L O O O » a v a be O s 2 o o c o u c O ^ s s ^ ^ o o v v >'. >5 Ss; « o o S5 •a 99 ^ "3-3 |S§) «T3 5 — 3 if CO 00 05 C5 00 00 !N 6) OS 00 ■* t^ I- n CO 00 r^ o »» t- r-l 00 r» U5 00 O O '<5 O «>. « © O u? 00 9 l-H o S3 0> ■«o 03 Oi ■ to FN 0) 05 n 6 3S S 05 to t>» CO O 00 -Jj" era SI 00 CO «o 00 i s s «>» CO o 3 o o .3 O 9 o V ■13 e« ■O x> o ■3 ■3 fe .9 C cs be •£.2 o O O "2 g O 00 o fl a CO o c o ;! © 04 g ■a o •3 Si 3 o c 3 tn o o 00 o 3 •a EC e a O o eg OJ 2 rH CO 00 OJ 1 App. A. Coins Current. 409 CO r-t to 00 00 « IS Gi 8 09 c o O s O c d O -.s <» o "w (» IS o ! W o 4 3 H si* |E. H 9 9 M 8 ■ « ^ "3 o » ** ^ 4rf ^ a a o s H P •< 1 1J a o « g ji ■a >> -g -s ^ « g s ^ -•-> » S .s .2 S s. d •a 13 S> O e o o o c o o o 6 o o ^ 85 fc PQ ;z; fe » 2 ;i: es iz; (ti ^. 00 « •o ►» S 1 00 (M ■* *-^ 00 CJ to r>» f^ ■* S , rt o i^H •«*< ■^ !> s o 03 X) i ^» t» r» r» 00 00 00 •n in o a) d ^ £ Ol o> 00 05 05 00 05 s Ei« ID IM -N OO 00 s m (T> t» a M o IM o 05 1^ p^ (N "0 00 , t- l-H o rH »>. CO t>. l« •V ■>1< «b tb (d OCr (30 00 90 6> d> 05 «b « U3 -^ •0 o u f-H f-i F-4 1—4 f^ ■-H rA r~4 rH r-1 IH pH o M 1 1 1 o 1 1 o s 2 1 I 1 73 .a o a > w •S ' ' S5, • T3 «3 ' 1 c £ * . £ /-^ .a § 2 lO S2 5 m 5 r , 13 , 1 1 '5 1 "i 1 o a V •4^ .si "3 3 « 'a' 2 >> 04 !>. tx O .a 0) •SS-i p •a o •> o m 6 03 73 ^ ~ 1^ p P ■b *-• "3 a "3 "3 • ^ 3 3 " .t; '3 ■g 4-» '3S O 3 o o o 3 e Q o O p o ^ H) >-) H^ ^ >-l ^ hJ " Hi >-! H^ < o " •0 1 l- 1-^ •> § ob 1 c • I rH M FN F-l I* IH M l.i 'CI 410 Colonial Cueeency. ill li^j a I s CO .2 O O 6 a Assay of ry regular, more than a * 9 « « >> cs m V K IS «D M e S. 5* g a> ■ "«§ .5 " 55 « _ a. 2 5^ ■2 s c ■^ s s "« O . "3 ao o u U c -S <2| £g So ^ « . "5 tT '^o«2 ■5 M i % >> c o g =5 •J bC > 00 «15 «W^ u o CQ « ^ 03 Ui H < w M u M S5 n t> ^ (-H ■* W t» CO s r^ f.N 00 9 ^ 0> o e<5 hC OS H»> wS ?) •^ « . 00 1 9 9 9 9 00 ** A r» «^ ('•> i» o V> lit CO ■A U) o hC :^ O r-« rH rH rH rH « &: a 00 CO 09 •* _ « SJ M 00 Kl "? e^ 00 fl I'fl « 0> do «5 ir 6> S3 1^ CS 94 ©» a> '3 p^ rH f-» o o O 00 ■* •* W CO SJ 6 f^ rH ^M i-H ^H rH 5 a* «» n w «4 ^^ G9 E o **v .to •■c O M *eo c § S Oj o^ C5 C 5 8 p o rH -H o» ^ a oi 00 i £ «' 00 s t 00 00 0> (M o 1/5 00 90 o> g lO te to S Hf 1J c: OS rH rH SI , s l-< © US '* I ? ■* *^ t'. to ■4^ o do do 00 t» r» (^ CO r» r» to (o 1 Q IN H«< < 3 30 1 ' i« l> rH 1 £ 00 i rH do n rH 00 5 rH App. A. Coins Current. 4U u •8 IS M O n to 'S a I C5 a 2 o s SI to CO ! B • ■•4 O O 'o O a .a 00 o S O C ea 1 Q o O u Q s g- . £ IN «) o .t! *^ ^— ? I t o bo 00 GO ► o X > X N^ H H a a o o •5 •^ 3, "3 _^ >. _>. Ul > M ^ o CO 00 « OS -^ c» a, 0 "9 an tt 2 « «0 »-< F-t " 1^ 1^ 00 •ffl O) CO i o OS CO ^ ? •o O) 6 C5 9* do 05 I-} o n 9 EC *^ O eg g 6 at u OS CO 9 C 05 9 PS CO u CO s O 4< 3 K c« o CO o <8 B o P3 S. s 3 d 2 us e •s n :; o in «j r-4 p-i h "s 0 S3 >^ % OB Q, -5 h 0-3 i n S 1- . 5 C5 I o I C5 CD CO CO CO i S 412 Colonial Currency. ^B, ^R 1 j 5 1 1 1 Jt in M 01 o a H -0 "g ! to •FN o O a I i (i 1 - g .s ^ s C3 0> iQ «o CO 6 o at o «0 FH N 00 FH 0< V V ^ t» t» t-« i3 ^ 00 CO OD « CO S s CO 0) 9) O o Q 0) 00 I "^ CO ■"C oo e^ F-l s 00 OD l> CO fH e<5 CO o •« >0 0) F- 3J «o Cft Hi CO P O) in ■* CO cs 00 0* ^ K 8 I z ■«! a o ->5 u ■p. 01 K 3 O •< O o rt* u a •c H 0) s /--N •< ^*-.' ^ ^ J I "o bo ca cd >» A p3 P3 Pi O J O 13 a a o c .9 a O 01 a s <1 * 00 oo O FM »< 00 ao 00 FH I 00 00 CD i 00 t tl'^ ] v« ^ 414 Colonial Currency. APPENDIX B. :i .. I .'i ' ' :yi IMPERIAL LEGISLATION, &c. (i.) An Act for Ascertaining the Rates of Foreign Coins in Her Majesties Plantations in Aiiiericu. (G Anne, cap. 57, 1707.)" WnERF.As for Remedying the Inconveniencies which had arisen from the different Rates at which the same Species of Foreign Silver ( loins did Pass in Her Majesties several Colonies and Plantations in America, Hreventing the- like an'. '2d. the ounce, is about An. 37'J'/., or something less than 4x. •i/l. ; nnd at the market prices of silver, which have prevailed for some time past, it is scarcely above 4". It appears, tliereforc, that the pricts at wliich dollars are now issued to the British troops abroad are considerably iiigher tlian the real value of the coin, or its value in British money at tlie Mint price of silver; and the Army would liave cause to complain if they had not antecedently, during a great length of time, enjoyed the advantage of receiving that coin at a rate much below the value into which it was converiible in British currency through the medium of the exchanges. Remonstrances have, however, proceeded from several of the Foreign Stations, on behalf of the Army, on account of tiie rates at which tno dollar is now issued ; and althougli the change by which a more correct issue of the pay of the troops abroad must bo introduced, will unavoidably be attended with a considerable increase of expense, my Lords deem it just and necessary to adopt measures for that purpose. They must at the same time observe, that by the regulations adopted for the pay of the regimental officers, that valuable class of the public servants, who would otherwise be the most seriously affected by the dis- advantages of this Army rate of exchange, are wholly freed from its inconveniences, as they have for many years past enjoyed the option of receiving their pay either from the Military Chest, at the station where they are serving, or through their agents in England ; by which means they have the full benefit of the state of the exchange when it is more favourable than the Army rate, and the advantage of the Army rate when it is less so. The inconvenience has, therefore, since that regulation, been confined to the officers on the staff, and some others who, as well as the private men, receive their pay from the military chest alone, and who are in some degree indemnified by the mode in which those supplies in kind are pro- cured for them, which, to a certain extent, are clefrayed by stoppages from their pay. In considering this subject, with a view to the introduction of a better mode of paying the Army abroad, my Lords advert to the circumstances which affect the supply of the Spanish dollar at the present time. Some difficulties in procuring it in sufficient quantities are occasioned by the diminished produce of the mines ; while, on the other hand, the established character of that coin, on account of its formerly well-known uniformity of weight and finei.ess, has been materially affected by diversities lately introduced in the coinage in America, whereby it has been rendered less fit for the payments which are now under consideration. Under these circumstances, it appears to my Lords that the fittest medium for the payment of ^he forcc.«, and the best standard of circulation for the British colonies anr" ions where these anomalies have hitherto prevailed, will be the s'' copper currencies now in circulation in this country, provide o be made convertilile, at the will of the holder, into the ^<e fixed in such manner as to be about eijual to the expense and risk of bringing it to England, the danger of any inconvenience from its re-importation into this country, would in like manner be avoided. This rate my Lords conceive to be about 3 per cent, from almost all of u\ App. B. Imperial Legislation, &c. 419 tho stations to which theso moasures would be applicable ; and they would therefore direct, in the firHt instunoe generally, that the DlFicer in charge of the cominifcHuriat Hhould give a bill for 100 /. on this Hoard for every lO.'J /. in Hritish silver currency ; such r;ite being suiiject to future regulation in any case in which it may, on experience, be found to be too high, or too low, for the purpose which it is intended to secure. Upon those grounds, therefore, my t.ords will direct supplies of silver coin to be prc^pared for rouiittance to tho several stations abroad, so as to furnish a sufliciency for the probable wants of each as speedily as possible. They desire that tlie agent for commissariat supplies will take tho necessary steps for that purpose. But as the substitution of this currency for the SpiinJsh dollar, even in the payments from tlie military chest to the troops, lan only bo gradually effected, and as it may. in many cases, be still expedient to employ that coin as a medium of payment, at a fixed rate as compared with British currency, ray Lords are of opinion that it should (when necessary) be issued at tho rate of 4.'*. 4 iL the dollar, being a fraction of a farthing only above its intrinsic value at the raie of o i. 2 d. the ounce of standard silver ; and also, that all other coins in use in tho colonics should, if used under any special oxpedioiicy for making payments from tho military chest, be issued at the same rate, as nearly as may be, with reference to their intrinsic value as compared with that of the Spanish dollar. Their Lordships desire that letters be written to tho commanders of the forces, and to the otRcers in charge of the comniissari.it, on each station abroad, conveying to tliem the necessary instructions for carrying this measure into exenution, and directing that the rate at which the Spanish dollar and other coins are hereafter to bo issued for the pay of the troops be adopted from the 24th of the month next succeeding the receipt of ttie instructions. Let tlio attention of the Commanders of the Forces be culled to tho rates at which certiiin allowances in money are made within their respeciive commands for forage, lodging, &c., i^ic, which, having been fixed in British money with reference both to the expense of the articles, and to the value of the currency in which tho payments were made, will require a revision upon the introduction of tho changes hereby directed. They desire therefore, that boards may be appointed at each station for inquiring into the subject of these allowances, and for reporting what alterations should be made in their nominal sterling rates, so as to keep the real amount of them at least as low as they are at present, for which purpose thfc reduction must in all cases be equal to the difference between the present Army-rate of the dollar and the proposed new rate of 4 «. 4 d. for that coin. Let the officer in charge of tho commissariat be also instructed that all unliquidated engagements with contractors or other persons are to bo completed according to tho terms of those engiigemonts ; but that in all future contracts the commissariat should reserve to itseli the option of paying the contractor either in British silver or in bills upon this board, at the rate above stated of 100/. in sucli bills for every lO.Si. in money : And, further, my Lords desire that tho commissaries be directed not to grant bills on any occfision for British money at any other rate. If at any time there should not bo a sufficiency of British silver at the disposiil of any commissary, for carrying on the service at his station, he is then to advertise for Spanish dollars or other coins, by public com- petition, for his bills on this board, and is to accept tho lowest tender ; the dollars or coins so purchased to bo issued invariably to the troops at; the rate of 4 «. 4 d. for the Spanish dollar, and at proportionate rates for other coins, according to their intrinsic values as compared with the Spanish dollar valued at that rate. Let copies of this Minute be transmitted to the Commander-in-Chief of the Forces, and to the Comptrollers of Army Accounts, for their information ; and also to the Master-General and Board of Ordnance, and to tho Lords of the Admiralty ; in order that the former may give instructions for the issue of pay to tho officers and men of the several establishments under their orders abroad, in conformity with these regula- tions ; and that the latter may give similar directions, through the pay- It 'I 420 Colonial Currency. f^ •' 4 1 master of the Marines, with respect to the dettichmont stationed at Bermuda ; to whom it appears that their pay is now issued in dollars at the rate of 4/5i sterling per dollar. ]\Iy Lords presume that the Board of Admiralty will think it right to put that du^.achuient upon the same footing hereafter as the troops of tho line, Avith respect to the issue of their pay, and the stoppages to be made from it. Transmit copy of this Minute also to Mr. Wilmot Horton, for the information of Lord Bathurst ; and request he will move his Lordship to cause the necessary communications of tlic measures hereby directed to bo may 100 dollars at 5 .». each. Debt ot 100 Z. to be paid at 17 s. 4 rf. in the pound, would amount to Sfi ^ 13». id. and which debt would require 400 dollars for its discharge, coniimted at 4 «. 4 d. each, f Tbji statement has been printed infra, after this Minute, ' • ' App. B. iMPERIAti LsGISLiLtlON, &C. 421 Sierra Leone. ' The accounts are kept, as at New South Wales, in the British denomina- tions of money, and the dollar is in all transactions of commerce taken at 6>t. each, and is issued to the troops at 4.i. «d. My Lords are therefore of opinicn that it would be expedient to provide that ull debts which may be con^rac'ed, and all engagements which may be made, after a day to be named, for the payment of money, should be discharged either in British silver men ey, or in Spanish dollars at 4s. 4d. each, at the will of the debtor : and the latter coin should after that day be issued and received in all Government payments on account of Government, at the sjime rate of 4 s. 4(1. each. But it should be provided, that all engagements already contracted, either by the Government or by individuals, should be respec- tivelv discharged and liquidated by the payment of 17 s. 4(1. in the pound for the nominal amount of the debt, either in British silver money, or dollars computed at 4 «. 4 d. each, by which the debt already contracted will be discharged by the same number of dollars as at present. )le ; and 1 debts ie, after should dollars dollar at the Mauritius. The currency has chiefly been Spanish dollars, and paper dollars sup- posed to be of the same value as Spanish dollars ; but these paper dollars have been at various times considerably depreciated. Instructions, how- ever, have recently been transmitted to the Mauritius, which provide, if not for the immediate liquidation of the whole of the paper dollars, at least for raising their value to that of the Spaniph dollar, and for their gradual reduction. It may, therefore, be stated that the general circula- tion is Spanish dollars and various coins of India ; and when the dollar is quoted with reference to British money it is called equal to Ss. The various coins of India are valued in circulation with reference to the Spanish dollar at that rate. The Spanish dollars (and other coins in proportion) are issued to the troops at 4s. Sd., and to the civil servants at the same rate. My Lords are of opinion that currency should be given to the British silver coin, and that any debt in dollars should be considered as discharged by a payment in Spanish dollars, or in British money at the rate of 4s. 4d. British money for each dollar ; and that in all cases where it may be necessary to issue Spanish dollars to civil or military servants, for sala- ries or otherwise, they should be issued at the rate of 4«. 4d. each ; and that all other silver coins usually circulating at the Mauritius, should be issued at a fixed value, with reference to their intrinsic value as compared with British standard silver, at 5s. 2d. per oz. troy, or with Spanish dollars at 4s. .*.''. each. It further appears to my Lords that it would be expedient to form tariffs of the duties now payable to the Crown in British money, and to impose all new duties in the same currency, leaving the parlies to pay the same in any other coin authorised to circulate in the Mauritius at the established rates by which the accounts of the Govern- ment may be immediately kept in the denomination of British money. A provision should also be m-'de, similar to that proposed with respect to New South Wales and Sierr . Leone, for payment of any debts which may have been contracted previously to a day to be named, in money of British det omination, but which debts are by usage payable in dollars at 5<. each. Cape op Goon Hope. The Spanish dollar was formerly issued to the troops at this station universally, and at the rate of 48. 8(1. each, but they never obtained any considerable general circulation ; and latterly their use has been almost discontinued in issues to the troops, who have been paid in the paper rix dollar computed at the current rate of exchange. There is, in fact, at present no metallic circulation at this Colony, and the paper mdney is not exchangeable against any metallic money, nor has it any real fixed value with reference to metallic money. The nominal value of the rix dollar i8 4«., but it has for many years been at a very considerable discount 72642. E E :J r " ; 492 Colonial Cdrbekcy." .qq^A r. t tit I in exchange for bills upon England, and its real value, with reference to those bills, has not, upon an average of two or three years, been more than la. &d. sterling. My Lords feel that it would be inexpedient, if not impossible, to introduce a metallic currency into this Colony, without either providing for the immediate payment of the whole of this paper money, or fixing a rate at which it should be received both in public and private transactions, and made exchangeable by the G ovcrnment, at the will of the holder, for metallic money, or for bills upon this Board. With reference to the average rate of exchange, as above stated, it appears to my Lords that 1 *. 6 rf. per rix dollar may be considered as a fair rate, and they are therefore of opinion the rix dollar should be declared equal to I s. Qd. in British silver money ; and with a viow to prevent it from falling below that rate, that it shall be at all times exchangeable, at the will of the holder, for bills upon this Board, at the rate of lOH /. in value of rix dollars computed at Is. 6d. each for every 100 1, bill ; and that after the arrival of a sufficient amount of British metallic money in the colony, no paper brought in to be exchanged for bills upon this Board should be re-issued, but that such paper money should be cancelled, and wholly withdrawn from circulation, and that none other in lieu thereof should thereafter be issued. And it is their Lordships' opinion, that the paper money withdrawn from circulation should be sent to this country, as vouchers for the bills which may be drawn on account of it. By this measure, it is presumed that the value of the paper money will be maintained at its fixed rate, with reference to British money. The number of paper rix dollars in circulation, which have been from time to time issued at the Cape of Good F e, is about 3,108,000 ; and the total amount of bills upon this Board, if tbo whole were to be exchanged for such bills, would therefore be about the sum of 226,000 /. But as a part of those rix dollars was issued by a Government establishment, called the Lombard Bank, upon various securities, the sums which may from time to time be paid upon these securities should be applied towards the liquidation of this paper money. It is not, however, their Lordships' intention that any compulsory measures should be taken to withdraw the whole of the paper money from circulation ; but that such portions only should be cancelled as may from time to time be brought in oy individuals in exchange for bills upon this Board ; and that the paper money which may be received for rates, taxes, or other revenues, should be again issued in payment of the current expenditure, except such paper money as may represent a less sum than 10 rix dollars, which should not, after the arrival of British metallic money, bo re-issued, but should be cancelled, and sent home as vouchers to the accounts, as should also rix dollars equal in amount to the sum paid to the Lombard Bank, in Hquidation of the debts due to that est' jlishment. As the rates, taxes, &c., are at present imposed in this oolony in rix dollars, and as it appears to my Lords that it would be extremely convenient to introduce into all the colonies belonging to the United Kin2;dom the same description of money, my Lords are of opinion that it would be expedient to establish a new schedule of rates, duties, &c., payable to the Crown, in which schedule the present rates in rix dollars, and the new rates in British money, at the proposed fixed rate of the rix dollar, should be specified; and that all collectors and other officers of Government at the Cape of Gopd Hope should be required to render their accounts in British money. ^ Ceylon. The currency of this Island is very various, and consists of rix dollars coined in England for its upe, of many of the coins of India, of Spanish dollars, and of paper rix dollars. The rix dollar coined in England expressly for the use of Ceylon is rated very much above its intrinsic worth, measured by British currency ; and neither that nor the paper rix dollar is exchangeable at the will of the holder, at its nominal rate against British money, or any other description of coin. The consequence naturally is, that in all transactions of exchange, the silver rix dollar is rated with reference to its intrinsic and not to its nominal value, and a very considerable depreciation of this coin appear s. 2 d. per oz. Troy, British Standard Fineness, of the undermentioned Silver Coins, taken from Assays made at the Mints at Paris and London, together with the Bate at which those Coins are to be issued (when British Coin is not in the Military Chest) for the Pay of the British Troops in the Colonies :— III '" kill ' mil- .1 r yf 1 1: 1 tit I I If ': m ^l! ^^B II 1 ^' it ilk ^f!^ French : Piece of 6 franca „ 2 ditto Franc - Sicilian : Dollar or scudo Piece of 40 grains „ 20 ditto Spanish : Dollar - United States op America ; Dollar East Indies : Calcutta, rupee Bombay ^ or > ditto Bunt - j Gross Weight of the Coins. Contents in pure Silver. Grains. Grains. 385 344 9 155 138 8 77i 69 4 422 348 2 141 117 5 72 59 1 416 370 9 416 370 1 192 175 9 179 164 7 Value, at 5 «. 2 «;. per oz.. Standard. ». d. Dee. 4-16 1 7 38 - 9 69 4-62 1 4 40 - 8 25 4 3 79 4 3 68 2-66 1 11 10 * Tl.f Coloqial Office prof9rr«4 »n Order {a CoDpcll, To be issued to the Troops at 8. d. 4 - 1 8 - 10 4 1 1 5 - 9 4 4 4 4 2 1 1 11 App. B. Imperial LEoisLJLttoN, &c. 495 ition Eorm f so, His Doies ierra into veral into f the adard ide at those ;heBt) .. d. i - 1 8 - 10 (t.) Okdbr in Council of 23rd March 1825. Whereas it has heen represented to His Majesty at this Board, by the Lords Commissioners of His Majesty's Treasury, that they have given directions that His Majesty's troops serving in the several British colonies and possessions abroad should, in certain cases, be paid in British silver and copper money ; and that, with a view of securing the circulation of such money in those colonies, it would be expedient that an Order in Council should be issued declaring that in all those colonies where the Spanish dollar is now, either by law, fact, or practice, considered as a legal tender for the discharge of debts, or where the duties to the Government are rated or collected, or the individuals have a right to pay, in that description of coin, that a tender and payment of British silver money to the amount of 4ts. id. should be considered as equivalent to liie tender or payment of one Spanish dollar, and so in proportion for any greater or less amount of debt : And whereas it has been f uither represented by the Lords Commissioners of His Majesty's Treasury that, with respect to the Cape of Good Hope, where there are not any Spanish dollars in circulation, but where the circulation consists entirely of paper rix dollars and its proportions, and with respect to Ceylon, where the circulation consists of silver and paper rix dollars, as well as of a variety of other coins which are generally received and paid with relation to their value as compared .-I'^h rix dollars, it would be expedient that a tender and payment of i d. i- I. in British silver money should be considered as equivalent to a tender and payment of one such rix dollar so current at the Capr ■ f Good Hope and Ceylon respectively, and so in proportion for any grea^tv or less sum ; and also that British copper should be made a legal tender in all the, British colonies, for its due and proper proportions of British silver money, as by law established in Great Britain, but that no person should be compelled to tako more than 12 d. in copper money at any one payment : His Majesty, having taken the said representation into consideration, is pleased, by and with the advice of His Privy Council, to approve of what is therein proposed ; and the Right Honourable the Lords Commissioners of His Majesty's Treasury, and the Right Honourable Earl Bathurst, one of His Majesty's Principal Secre- taries of State, are to give the necessary directions herein, as to them may respectively appertain. 1 5 9 4 4 4 4 2 1 1 11 (vi.) Circular Letters (2) to Colonies of 15th September 1838. No. 1. Sir, Downing-street, 15 September 1838. The state of the currency in the West Indies has, for some time past, engaged the serious attention of Her Majesty's Government. The very unsatisfactory state of the monetary system in those colonies, the almost total disappearance of the Spanish dollar from the ordinary channels of circulation, the substitution of mutilated coins, or of parts of coins, and the difficulty of preserving even these, defective as they are, in sufficient quantity for the purposes of domestic interchange, warranted the apprehension that in the constitution and structure of the colonial currency there exists some original error, without the correction of which that currency cannot be placed on a just foundation, or retained in a sound and satisfactory state. From the inquiry instituted on this subject it appears that the main error of the system, the principal source of the actual inconvenience, consists in the over-valuatiou of the gold coins in circulation relatively to those of silver. In the general market of the commercial world the proportionate valaa of silver to gold is vory nearly 15*8 to 1. 'v ll 1' :1'n i m ' <" Colonial (/DRRENCf. ■ I In the West Indies, although the nominal currencies of the different islands vary considerably from each other, tho doubloon of Mexico and South America, whatever may be the law in particular islands, is in practice taken to be equivalent to 16 dollars ; which makes the pro- portionate value of fine silver to fine gold, as nearly as can be computed from the average weight and fineness of those coins, as ascertained by the Assay Master of Her Majesty's Mint, very nearly 16*48 to 1. I'his over-valuation of the doubloon has rendered gold the ultimate standard to which all money contracts in the West Indies have reference ; for although, according to the original meaning of the terms in which the money of account is expressed, silver is tho commodity intended to be convened in all pecuniary contracts, yet the words which were once under- stood to mean a certain quantity of silver now mean either that quantity o^ silver or a certain quantity of gold ; and as a debtor always chooses to acquit himself of his obligation by a payment in the cheaper metal, or in coins of that metal which are overrated with reference to those of the other, both parties to the contract must, at the time of entering into it, have contemplated a payment in gold. Under the circumstances which I have stated the dollar and the doubloon caiipot be maintained in concurrent circulation at the proportionate rate of 16'48 to 1 assigned to them by law or practice. • In the general market of the world the relative value of the two coins is imiierstqod to be in the proportion of about l.OJ to 1. In London the value of a Mexican dollar, estimated in the gold currency qf the United Kingdom, is now, and has been for some time past, very nearly is. 2d. ' The value of a doubloon, at the Mint price of 3 I. 17 s. 10^ d. per oz. for gold of the British standard (assuming the doubloon to contain 362 grains of fine gold), is very nearly 64 s. ', The proportion of 4 s. 2d. to 64 s. is as 1 to 15'36. ; This proportion Her Majesty's Government have taken as the basis of the alteration which, with the view of rendering the concurrent circulation pf the dollar and the doubloon practicable, tlrey have deemed it proper to make. I](i the application of this rule of proportion to the currencies of the different islands of the West Indies it will be necessary to make such an alteration of the present nominal rates of the dollar and the doubloon as will render the nominal proportions commensurate with the actual pro- portions. As all existing contracts have reference to the overrated gold coins, it will be proper to retain the present denomination of the doubloon, and to raise the present denomination of the dollar in the proportion of 15*36 tol6. ; The effect ol the alteration will be to give to 15"3t) dollars the same current denomination as is now given to one doubloon, and to render 15"36 dollars and one doubloon equivalent tenders of payment for the same amount of nominal currency. Her Majesty has been pleased to revoke the Order in Council made on the 23rd day of March 1825, and by a new Order to approve a Proclamation declaring that in her colonial possessions in the West Indies and America 48. 2d. aud 64 s. of British silver shall be deemed legal tenders for one dollar and one doubloon respectively. Hence, whatever may be the current denominations of the two coins in any of the colonies referred to in the Order, the Same denominations will be applicable to 4«. 2rf. and 64 s. of British silver. In those islands where 64 English shillings and one doubloon are at preseiit cortventionalTy regarded as equivalent tenders of payment, no other practical alteration will be made than to give a new denomination to the silver of Mexico and South America, on the principle and in the manner Ifyhich I have above described. I have, &c. App. B. lupEBiAL Legislation, &c. 487 be as &c. """ No. 2. Sir, Downing-street, 15 September 1838. In obedience to the commands of Her Majesty in Council, I herewith transmit to you two Orders in Council, dated respectively the 7th and the 14th instant, with the Royal Proclamation to which the last of those Orders refers. The Order of the 7th instant revokes the Order in Council of the 23rd of March 1825 so far as it relates to the West Indian and North American colonies. The Order of the 14th instant approves the Proclama- tion by which Her Majesty has been pleased to determine the proportionate rates at which the Spanish dollar and the doubloon are hereafter to pass current in the British West Indies. In my accompanying Circular Despatch of this date I have stated, for vour information, the principles by which Her Majesty's Government have been guided in the introduction of these changes in the current value of foreign coins in the West Indian colonies. The object of the present communica- tion is to point out to you the measures which it will be your duty to adopt on receiving the Royal Orders and Proclamation. I trust that, when the principles and objects of the measure shall be distinctly understood, there will be no reason to apprehend any serious or exteusive objection to it. I)n the other hand, the subject is one on which misapprehensions are so readily conceived and propagated, that it is neces- sary to be prepared for some popular delusion as to the possible effects of these changes in the colonial currency. You will observe, therefore, that Her Majesty in Council has been pleased to declare that, until actually promulgated by you, the Proclamation of the 14th instant shall not take effect within the colony under your government. It will be in your power, therefore, to defer the publication of it for some short interval, which you might advantageously employ in communicating with the principal merchants, landed proprietors, and other leading persons in the colony on the subject. You will avail yourself of that opportunity of explaining the motives by which Her Majesty's Government has been guided, and for removing any erroneous impressions which may at first be formed respecting the character and tendency of this measure. The interval of delay cannot, however, I apprehend, be much protracted ; for as the Orders and Procla- mation must appear in the public " Gazette " in this country, and will therefore be universally known, and as their official promulgation in any one of the colonies to which they apply will render the same course inevitable in all the rest, it cannot be deferred for more than a short time in any. You will, of course, observe that the Royal Proclamation is framed with reference only to the sterling money of Great Britain. But as the pecuniary transactions of the West Indian colonies are all entered into with reference to the various local currencies or moneys of account, the measure will be incomplete and comparatively inefficient if the effect of the change in the relative values of the British and foreign coins should not be authoritatively stated in the terms of that conventional currency. But, after the most careful inquiry, it has been found impracticable to ascertain the relation of current and sterling money throughout all the different West Indian colonies with the exactness and precision which would be requisite if the Royal Proclamation were so framed as to embrace that branch of the subject. I find that in the year 1825 the same difficulty existed. It was at that time overcome by delegating to the respective Governors the duty of proclaiming in the various colonies the rates at which the Spanish dollar should pass current in the different local moneys of account. Instructions to that effect were conveyed by Earl Bathunst in his Circular Despatch accompanying the Order in Council of March 1825 In pursuance of those instructions various Proclamations have been issued for this purpose by the Governors, which Proclamations are still in force. It is proposed to follow this precedent on the present occasion. You will, therefore, upon promulgating the lioyal Proclamation, publish a subsidiary Proclamation, declaring what is the sum of money of ftccouht in the colony under your government to which the British shilling, the dollar, and the doubloon, are respectively equivalent. Her Majesty* F w 428 Colonial Currency. h- ' 1; i! U ' I does not delegate to you any discretionary authority for determining the relative values of these coins in the terms of the local currency, but merely confides to you the duty of expressing with accuracy in those terms ihe proportions established between them by the Royal Proclamation. The meaning will perhaps be rendered more clear by the following illustration. Let it be supposed that in the colony under your government the doubloon is equivalent in money of account to five pounds six shillings and eight pence (5/. 6«. Hd.). The consequence will be, that the dollar will be equivalent to six shillings eleven pence and one-third of a penny {6it. 11^<^.) of the money of account, and that the British shilling will be equivalent to one shilling and eight pence {la. Hd.) of the same money of account. The accuracy of these statements is readily shown by exhibiting in the usual arithmetical form the proportions which subsist between the gums to which I have referred. For 6: H\d. : bl. 6s. 8d. :: is. 2d. : 64s., and l8. 8d. : 6». Hid.:: Is. :4«. 2d. Or, if it be supposed that, in the colony under your government, the doubloon is equivalent in money of account to eight pounds (8 /.), then, according to the saibe rula of proportion, the dollar and the British shilling will be equivalent to ten shillings and five pence (10». 5d.) and two shillings and sixpence (2s. 6d.) respectively, of the same money of account. The assumptions as to the value of the doubloon in the local money of account may not coincide with the fact in the case of any one colony. They are stated merely by way of hypothesis and illustration, and will serve to sliow the principle on which the proportionate value of the British shilling, the dollar, and the doubloon, may be calculated in each colony, for the purpose of promulgating in each the subsidiary Proclamation by which the rules laid down by Her Majesty in Council will be expressed in the terms of the various local currencies. When you shall have issued any such Proclamation you will communicate it to me, in order that it may receive Her Majesty's ultimate sanction and confirmation. I have, &c. l». (vii.) Ordek in Council of 7th September 1838. Whereas by an Order of His late Majesty King George the Fourth, made with the advice of His Privy Council, and bearing date the 23rd of March 1825, after reciting, amongst other things, that it had been repre- sented to His Majesty at the Council Board, by the Lords Commissioners of His Majesty's Treasury, that they had given directions that His Majesty's troops serving in the several British colonies and possessions abroad should, in certain cases, be paid in British silver and copper money ; and that, with a view of securing the circulation of such money in those colonies, it would be expedient that an Order in Council should be issued declaring that in all those colonies where the Spanish dollar was then, either by law, fact, or practice, considered a legal tender for the discharge of debts, or where the duties of the Government were rated or collected, or the individuals had a right to be paid, in that description of coin, that a tender and payment of British silver money, to the amount of 48. id., should be considered as equivalent to the tender or payment of one Spanish dollar, and so in proportion for any greater or less amount of debt ; His said late Majesty was pleased to approve of what was proposed in the said representation. And whereas it is expedient that the said recited Order in (!ounciI should be revoked, so far as respects Her Majesty's colonies and possessions in America and the West Indies, be it, therefore, and it is hereby ordered, by the Queen's Most Excellent Majesty, by and with the advice of Her Privy Council, that so far as respects Her Majesty's colonies and possessions in America, and in the West Indies, the said recited Order shall be, and the same is hereby rescinded. And the Right Honourable Lord Glenelg, one of Her Majesty's Prin- cipal Secretaries of State, is to give the necessary directions herein accordingly. App. B. Imperial Lboislatiom, &c. 429 but (viii.) Obder in Council and Royal Proclamation of 14th September 1838. Whrrkas there was thi5 day read at the Board the draft of a Procla- mation regulating the rate at which certain foreign coins are to pass current in Her Majesty's West India colonies : Her Majesty, having taken the same into consideration, was pleased, by and with the advice of Her Privy Council, to approve thereof, and to order, as it is hereby ordered, that the said Proclamation do take effect and come into force, in each of Her Majesty's said colonies, upon and from and after such day as shall be, for that purpose, limited by the Governor or officer administering the govern- ment of each of the said colonies respectively, by any Proclamations to be by them respectively, for that purpose, issued in each of such respecti^ e colonies. And the Right Honourable Lord Glenelg, one of Her Majesty's Prin- cipal Secretaries of State, is to give the necessary directions for causing publication to be made hereof within Her Majesty's said colonies. By thk Queen, a Proclamation. Wheueas the coin current in Our West India colonies, including Our province of British Guiana, consisting partly of the current coin of the United Kingdom, and partly of Spanish, Mexican, and Columbian gold coin, called doubloons, and of Spanish, Mexican, and Columbian silver coin, called dollars ; and it is expedient that the rate at which the said doubloons and dollars shall circulate in Our said colonies should be ascertained and fixed : Now therefore We, by the advice of Our Privy Council, have thought fit to declare and ordain, and by the advice aforesaid We do declare and ordain, that throughout the whole of Our said colonies the said doubloon shall circulate and be received in payment as being of the full value of 64 8. sterling, current money of the United Kingdom, and the said dollar shall circulate and be received in payment as being of the full value of 4 8. 2d. sterling, like current money of the United Kingdom. And in all payments to be made in any of Our said colonies, tender of payment in doubloons and dollars, or either of them, at the rate aforesaid, shall be deemed and taken to be a lawful tender, in the same manner as if such tender had been made in the current coin of the United Kingdom. Given at Our Court at Windsor, this Fourteenth day of September . '. One Thousand Eight Hundred and Thirty-eight, and in the Second Year of Our Reign. God save the Queen. iji 1 i in (ix.) Regulations and Conditions for the Ohsekvance or which Provision should be made in Charters or Legislative Enactments relating 'io the Incorporation of Banking CoMi'ANiES IN the Colonies. (1840.)** 1. The amount of Capital of the Company to be fixed, and the whole of such fixed amount to be subscribed for within a limited period not exceeding eighteen months from the date of the Charter or Act of Incorporation. — (<.) 2. The Bank not to commence business until the whole of the Capital is subscribed, and a moiety at least of the subscription paid up. — (6.) 3. The whole amount of the Capital to be paid up within a given time from the date of the Charter or Act of Incorporation, such period, unless under peculiar circumstances, not to exceed two years. — (7.) 4. The debts and engagements of the Company on Promissory Notes, or otherwise, not to exceed at any time thrice the amount of the paid-up * The italicised numbers in brackets at the end of clauses refer to the clauses of the later Regulations of 1846 (i>{/Va), and have been inserted in order to facilitate comparisom 430 CoLONIAIf GVBRENCY.. '1 ,' •• ' ■ ' f Pi : 1 i ili^i i J '! 1 ml: Capital, with the addition of the amount of such deposits as may be made with the Company's Establishments by individuals in specie or Government paper. — (IS.) 5. All Promissory Notes of the Company, whether issued from the Principal Establishment or from Branch Banks, are to bear date at the place of issue ; and to be payable on demand in specie at the place of date.— (/J.) 6. No Promissory or other Notes to be issued for sums under 1 /. sterling (or in the North American Colonies 1 I. Halifax currency), or the equiva- lent thereof in any other local currency ; and not for fractional parts of that amount. — (/^.) 7. Suspension of specie payments on demand at any of the Company's establishments for a given number of days (not in anj' case exceeding (>0) within any one year, either consecutively or at intervals, to forfeit the Charter.— (^S.) 8. In event of the Assets of the Company being insufficient to meet its engagements, the Shareholders are to be responsible to the extent of twi<;e the amount of their subscribed Shares (that is, for the amount subscribed and paid-up, and for an additional amount equal thereto.)— (Z/.) 9. The Company shall not hold Shares in its own Stock, uor make advances on the security of those Shares. — (/O.) 10. The discounts or advances by the Company on Securities bearing the name of any Director or Officer thereof, as Drawer, Acceptor, or Endorser, shall not at any time exceed one-third of the total advances and discounts of the Bank.— ( .) 1 1 . The Company shall not advance money on the security of lands or houses or ships, or on pledge of merchandize, nor hold lands or houses, except for the transiiction of its business, nor own ships, or be engaged in trade, except as dealers in bullion or bills of exchange ; but shall confine its transactions to discounting Commercial Paper and Negotiable Securities, and other legitimate Banking Business. — (9.) 12. The Dividends to Shareholders are to be made out of profits only, and not out of the Capital of the Company. — (i2). 13. The Company to make up and publish periodical statements of its Asset-j and Liabilities (half-yearly or yearly), showing under the heads specified in the annexecl Form the average of the amount of its Notes in circulation and other liabilities at the termination of each week or month during the period to which the statement refers, and the average amount of specie or other Assets that were available to meet the same. Copies of these statements are to be submitted to the Government of the Colony within which the Company may be established, and the Company to be pre- pared, if called upon, to verify such statements by the production, as confidential documents, of the weekly or monthly balance sheets from which the same are compiled ; and also to be prepared, upon requisition from the Lords Commissioners of Her Majesty's Treasury, to furnish in like manner such further information respecting the state or proceedings of its Banking Establishments as their Lordships may see fit to call for. — {19.) 14. No bye-law of the Company shall be repugnant to the conditions of the Charter or Act of Incorporation, or to the law of any Colony in which the Company's Establishments may be placed.— (^.) 15. The Charter or Act of Incorporation may provide for an addition to the Capital of the Company within specified limits, with the sanction of the Lords Commissioners of Her Majesty's Treasury ; such additional Capital, and the shares and subscriptions that may constitute the same, being subject in every other respect, from and after the date of the above- mentioned sanction, to conditions and regulations similar to those applying to the original Capital. — ( .) 16. In all cases in which shares in the Company's Stock are transferred, be- tween the period of the grant of the Charter or Act of Incorporation and the actual commencement of business by the Bank, the responsibility of tha App. B. Imperial Legislation, &c. 431 original holder of the transferred Hhares shall continue for six months at least after the date of the transfer. — {S.) 17. As the insertion in Charters or Acts of Incorporation of proyisiuns relating to the detailed matiagomeiitof the business of the Corporation has, in several instances, been found to render the documents complicated and unintelligible, and has been productive of great inconvenience, it is desirable that such insertion should be avoided, and that the provisions of suoh Charters or Acts should be contined, as far as practicable, to the special powers and privileges to be conferred on the Company, and the conditions to be observed by the Company, and to such general regulations relating to the nomination and powers of the Directors, the institution of bye-laws, or other proceedings of the Company as may be necessary with a view to the public convenience and security. — (j.) FORM OP RETURN ueikrrkd to in REGULATION No. 13. KbTURM o( the Averaire Amount of Liabilities and Assets of the Bniik of tlie i)erio(I from (Ist January) to (3Uth June) 1H4 , viz. : — during Promissory Notes in circulation £ Odin and Bullion ... £ not l)«iring Interest Landed or other Property of the Bills of Kxcliange in Circulation (."iirporation .... not bearing Interest Oovernnient Securities Bills and Notes in circulation Promissory Notes or Bills of bearing Interest other Bunks .... Balances duo to other Banks Bulances due from other Banks Cusii Deposits not bearing In- Notes and Bills dLscoiinted, or terest ..... other debts due to the Corpora. Cash Deposit* bearing Interest - tion not included under the foregoing heads Total Average Uabilities - £ Total Average Assets - £ (x.) Regulations respecting the Inc rporation ok Banking Companies IN THE Colonies. (1846.J (Circular.) Sir, Downing Street, 30th May 1846. On the 4th of May 1840 Lord J. Russell transmitted to you a copy of certain Regulations,*' the observance of which, in all Charters or Legislative enactments relating to the Incorporation of Banking Companies in the Colonies, Her Majesty's Government then conaidei'ed of much importance. The Correspondence which has since taken place on subjects of this nature, and the arrangements adopted by Parliament in regard to Banks of I.s8ue in the United Kingdom, appear to Her Majesty's Government to have rendered necessary some modification of those Regulations, with a view to bring them into exact accordance with the principles on these subjects established in this Country. I accordingly transmit to you herewith a series of Regulations, revised with that object, to be substituted for those of May 1840. These Regulations are forwarded to you, not, of course, as inflexible rules to be in all cases insisted on, but as embodying the general principles to be observed in the preparation of Colonial Acts for the Incorporation of Banking Companies ; and Her Majesty's Government consider a compliance with all the more material conditions and restrictions as of much importance to the security of the communities in which such Banks may be established, and more especially to the poorer classes of such communities. I must, therefore, desire you to take care that in any Ordiuances or Bills introduced into the Legislative Council of the Colony under your Government, for the Incorporation of Banking Companies, these conditions and restrictions be inserted. I have the honour to be. Sir, Your most obedient Servant, • t.«., the foregoing Regv^lations of 1840. MS Colonial CuRR&Nct. ^ ■ ,i ! Regulations and Conditions for tho Observance of which Provision should ba miide in Charters or Lugislutive KuactmoutH rcLiting to tho Incorporation of Banking Companies in the Colonies.* 1. The amount of the Capitiil of the Company and number of shares to lie determined ; and the whole of such dctormined amount to be subscribed for within a limited period, not exceeding eighteen months from the date of the Charterer Act of Incorporation. — (f.) 2. Shareholders to be declared a Body Corporate, with common seal and perpetual succossion, and other usual corporate powers ; and with any requisite proviso that judgment against the Corporation shall attach to all additional liability ot the Shareholders, as well as to paid-up Capital and other property of the Company. — (New.) 3. Provision to be made, either by Rcoital and Confirmation of any Deed of Settlement in these respects or otherwise, for the due management of the Company's affairs by appointment of Directors, and so forth, so far as shall seem necessary for the security of the Public. — (/7.) 4. No by-law of the Company to be repugnant to the conditions of the Charter or Act of Incorporation, or to the Laws of any Colony in which the Company's establishments may be placed. — {i4.) 5. The Corporate Body thjis constituted to be specially empowered, sub- ject to the conditions hereafter mentioned, to carry on for and during a limited term of years (not to exceed twenty-one years unless under particular circumstances), and within the Colony or Colonies specified in the Charter or Act of Incorporation, but not elsewhere, the business of banker ; and for and during the like term to issue and circulate within the said Colony or Colonies, lyit in such manner only as shall not be at variance with any general Law of the Colony, Promissory Notes payable in Specie on Demand. — {New.) 6. Such Banking Business or Issue of Notes not to commence or take place until the whole of the fixed capital of the Company has been sub- scribed for, and a moiety, at least, of the subscription paid up.— (2.) 7. t The remaining moiety of the Capital to be paid up within a given period from the date of the Charter or Act of Incorporation, such period not in general to exceed two years. — {3.) 8. In all cases in which Shares in the Company's Stock are transferred between the period of the grant of the Charter or Act of Incorporation and the actual commencing of business by the Bank, the responsibility of the original holder of the transferred Shares to continue for six months at least after the date of the transfer. — (26.) 9. The Company not to advance money on security of lands or houses or ships, or on pledge of merchandise, nor to hold lands or houses, except for the transaction of its business, nor own ships, or be engaged in trade, except as dealers in Bullion or Bills of Exchange ; but to conline its transactions to discounting Commercial Paper and Negotiable Securities, aud other legiti- mate Banking Business. — (2/). 10. The Company not to hold Shares in its own Stock, nor to make advances on the security of those Shares. — (9.) IL The Discounts or Advances by the Company, on Securities, bearing the name of any Director or officer thereof, as drawer, acceptor, or endorser, not ♦ The italicised numbers in brackets at the eud of sections refer to the sections of the earlier Kegulations of 1840 (supra), and have been inserted in order to facilitate compariiion. I This section is merged in the foregoing section (No. 6) in these Regulations as printed in the "Colonial Office List." % App. 6. Imperial Leoislation, &c. 433 to exceed at any time one-third of the total Advnncefi and Dincounta of tho Bank.— (/O.) 12. The Dividen'lH to Hharoholders to bo made out of profits only, and not out of the HubHcribed Capital of the Company. — {/8.) lii. The total amount of the Debts and Liabilities of the Company, whether upon Bonds, Hills, Promissory Notes, or otherwise contracted, over and above the amount of Deposits on Banking Accounts with the Company's Establish- ments, not to exceed at any time three times the amount of the Capitjil Stock subscribed and actually paid up. — (.J.) 14. No Promissory or other Notes to be issued for sums under 1 1, sterling (or in the North American Colonies 1 1. Halifax currency), or the equivalent thereof in any other local currency, and not for fractional portions of such Pound or other equivalent amount. — (6.) 15. All Promissory Notes of the Company, whether issued from the Principal Establishment or from Branch Banks, to bear date at the place of iasue, and to be payable on demand in Specie at the place of date. — (3.) 16. The total amount of the Promissory Notes payable on demand, issued and in circulation, not at any time to exceed the amount of the Capital Stock of the Company actually paid up.* — (Neio.) 17. In the event of the assets of the Company being insufficient to meet its engagements, the Shareholders to be responsible to the extent of twice the amount of their subscribed Shares (that is, for the amount subscribed, and for a further and additional amount equal thereto). — (5.) 18. Suspension of Specie Payments on Demand at any of the Company's Banking Establishments, for a given number of days (not in any case exceeding sixty) within any one year, either consecutively or at intervals, or other broach of the Special Conditions upon which the Company is empowered to open Banking Establishments or to issue and circulate Promissory Notes, to forfeit those pri'/ileges, which shall cease and determine upon such forfeiture as if the period for which they had been granted had expired. — (7.) 19. The Company to make up and publish periodical Statements of its Assets and Liabilities half-yearly or yearly ; sho wing, under the heads specified in the annexed form, the average of the amoimt of its Notes in circulation, and other Liabilities, at the termination of each week or month, during the period to which the statement refers, and the average amount of Specie or other Assets that were available to meet the same. Copies of these statements to be submitted to the Government of the Colony within which the Company may be established ; and the Company to be prepared, if called upon, to verify such Statements by the production, as confidential documents, of the Weekly or Monthly Balance Sheets from which the same are compiled. And also to be prepired, upon requisition from the Lords Commissioners of Her Majesty's Treasury, to furnish, in like manner, such information respecting the state or proceedings of its Banking Establishments as their Lordships may see fit to call for.t — (^^Ot 20. The Charter or Act of Incorporation may provide for an addition to the Capital of the Company within specified limits, with the sanction of the Lords Commissioners of the Treasury ; such additional Capital, and the Shares and Subscriptions that may constitute the same, to be subject in every respect, from and after the date of the signification of such sanction, to conditions and regulations similar to those applying to the original Capital.— (/J.) * In the " Colonial Office List " this section now conclndei with the imp >rtant addi- tional provliion : — " A reserve of Specie always to be maintaiiioil cqii 1) to one-thii-d at the amount of Notes at any time in circulation." f The Regulations in the " Colonial Office List" add : — "The Governor to be also nmpowered to verify the itstements of the Company of the amount of Specie lield by ihoM," \}\ !^^ ■rr li, ': 434. Colonial Cuurenct. I' FORM OF RETURN kefkukkd to in REGULATION No. ly. BBTUBN of the AreraRC Amount of Liabilitipp ami Asaets of tlio naiik of tlio pcrioil from (1st Jiiimiii-.v) to (30th June) 1H4 , viz. M s ■ liabililiei. Aisett, Promissory Notes In circulation Coin and Bullion ... £ not hoar! 11 K Interest £ Landed or other Property of the Bills of Exolmn^re in circulation Corporation - . . . £ not l)earing Interest £ (iovernment Securities £ Bills and Notes ; n circulation Priiniissory Notes or Bills of bearini; Interest . £ other Banks .... £ Balances due to other Banks £ Balances due from other Banks - £ Cash Deposits not bearing Notes and I'ills disoountcd, or Int«: est - . £ other Debts due to the Corpo- Cash Deposits Ix-aring Interest - £ ration, not included under the To Sharoholiiers foregoiuK heads, and exclusive for Capital ]iaid of Debts abandoned as bod £ up - - - £ To Ditto for Ad- ditions declaretf Her Privy Council, to approve thereof and to order, and it is hereby ordered, that the said Proclamation do take effect and come in force in each of Her said Colonies, upon and after Huch day as shall be for that purpose limited by the Governor or Officer administering the Government of each of the said Colonies respectively, by any Proclamations to be by them respectively issued for such purpose in each of such Colonies. And the Commissioners of Her Majesty's Treasury, and the Most Noble the Du«.3 of Newcastle, one of Her Majesty's Principal Secretaries of State, are to give the necessary directions herein accordingly. |l! I 1^^ i , i till , i 'W I it. ^11 1, ■t \.t i« Colonial Offlce, 19 March 1862. 27 Deo. „ 27 Deo. 27 Deo. 18 Jan. 8 Feb. t Feb. 1863. Draft Proclamation.* Wherkas by Our Proclamation given at Our Court at Windsor on the 14th day of September ISiiS, and in the second year of Our Reign, rates were fixed at which certain coins of foreign countries shall circulate and be received in payment in Our West India Colonies ; and whereas it has been represented to us by the Commissioners of Our Treasury that it is expedient that, in addition to the coins named in Our said Proclamation, the rates at which the gold coins of the United States of North America should circulate in Our said Colonies shall be ascertained and fixed ; Now, therefore. We, by the advice of Our Privy Council, have thought fit to declare and ordain, and by the advice aforesaid We do hereby declare and ordain, that throughout Out said ('olonies the gold coins of the said United States of the denominations hereinafter mentioned shall circulate and be received in payment as being of the full value and equivalent to current money of Our United Kingdom, at the rates hereinafter specified, that is to say : — The Eagle at the rate of forty-one shillings sterling. The Half -Eagle at the rate of twenty shillings and sixpence sterling. The Quarter-Eagle at the rate of ten shillings and threepence sterling. The Gold Dollar at the rate of four shillings and one penny. And in all payments to be made in our said Colonies tender and payment in the said coins, or either of them at the respective rates aforesaid, shall be deemed and taken to be a lawful tender in the same manner as if such tender had been made in the current coin of our United Kingdom. (xiv.) Copy of Treasury Minute, dated 22nd March 1853.f My Lords have before them the whole of the correspondence re- lating to the produce of the gold fields of New South Wales and Victoria, and the proposal to establish branches of the Royal Mint in those colonies ; and they more particularly advert to the correspondence noted in the margin. A petition to Her Most Gracious Majesty the Queen from the Legisla- tive Council of New South Wales, dated on the I'Jth December IS.')], praying that Her Majesty would exercise Her prerogative by the establish- ment of a branch of Her Royal Mint at Sydney, was forwarded to Earl Grey, Her Majesty's Principivl Secretary of State for Colonial Affairs, by Governor FitzRoy on the 16th January 1H52. Meanwhile some of the principal bankers and other persons connected with New South Wales, in the City of London, had suggested the adoption m- -*if P * By a subsequent Order in Council and Proclamation nf 9th March 1854, it was j)rovidc' ;, , P I liki'i [' ' Wm iu.i App. B. Imperial Legislation, &c. 437 re- 1854, it vtely to ; sliould of the same measure to Earl Grey, who, after oommunioating with this Board, iaformed Governor FitzBoy, by a Despatch dated on the 20th February 1852, that if, after consulting with his Executive Council, he should report that it was desirable to establish a Mint at Sydney, and that the expense of doing so could be provided for without inconvenience to the colony, his Lordship would be prepared to take the requisite steps for that purpose ; it being understood that the Mint so to be established would be regulated by Order of Her Majesty in Council, and would be considered subordinate to the Boyal Mint in this country, and would be framed for the sole purpose of coining gold. Lord Grey at the same time forwarded to Governor FitzEoy a Keport from the Master of the Mint, furnishing two estimates, one for a Mint consisting of a single press, worked by animal power, capable of coining live millions of pieces annually, the estimated cost of which, including the building, was 10,000 /., and the other for a Mint comprising three presses, worked by steam, of a capacity calculated for the coinage of all the probable yield of gold in Australia, and costing in all 30,000 /. In reply to this Despatch Governor FitzRoy forwarded to Earl Grey, on the 12th of August 1852, a Minute of proceedings of his Executive Council, dated the 26th July 1852, in which he expressed his entire con- currence. The Executive Council stated in this Minute that, after giving to this quefltion all the consideration which its importance demanded, they had arrived at the conclusion that the establishment of a branch Mint would be of the greatest advantage to the interests of the colony. With respect to the scale on which the proposed Mint should be established, the Council were of opinion that the larger establishment detailed in Sir John Herschel's Report should be undertaken, assuming that it was the intention of Her Majesty's Government to establish at Sydney, as the seat of the General Government of the Australian colonies, a single Mint for the whole of those colonies ; and the Council then pro- ceeded to describe the detailed practical arrangements recommended by them, with a view to the establishment, at the earliest practicable period, of a branch of the Royal Mint at Sydney, on the above-mentioned hypo- thesis, that there would be only one Mint for all the Australian colonies, and that such Mint would be at Sydney. The Executive Council stated, in conclusion, that, on receiving the final decision of Her Majesty's Government on this matter, the Local Govern- ment would be prepared to make immediately the necessary remit- tances for the cost of the machinery and tools, and the e tpense of the conveyance to the colony of the part of the establishment which the Council proposes should be selected in this country by the Master of the Mint. An Address from the Legislative Council stating their opinion that it is expedient that a branch of the Royal Mint on the larger scale described by the Master of the Mint should, without delay, be established at Sydney, was forwarded to the Secretary of State by Governor FitzRoy on the 2ud September 1852. By a further Despatch from Governor FitzRoy, dated the 2nd November 1852, the Secretary of State was apprised that a remittance of 10,000 1. had been made to the Colonial Agent General for the purchase of the machinery and apparatus ret^uisite for the establishment of a branch of the Royal Mint at Sydney, and that sum is now at the disposal of Her Majesty's Government for the purpose. On the 31st July 1852 Mr. Latrobe, Lieutenant Governor of Victoria, forwarded to Her Majesty's Secretary of State for Colonial Affairs a petition to Her Most Gracious Majesty the Queen from the Legislative Council of Victoria, praying, for reasons therein stated, that Her Majesty would be graciously pleased to establish a branch of Her Royal Mint at Melbourne, the capital of Victoria, either for the Australian colonies generally, or for tae coinage of the gold of Victoria only, as Her Majesty might be pleased to determine. In a Despatch from Sir Henry Young, Lieutenant Governor of South Australia, dated 2nd October 1852, an Address to Her Majesty was trans- mitted from the Legislative Council of that colony, praying for the establishment of a branch of the Royal Mint at Adelaide. In the same 72642. F V 438 Colonial Currency. \ ■ ' i ) 1 ■ 1 ; 1 if ' i til 1 1: |:^ Despatch Sir Henry Young reports the issue, under the Bullion Act, No. 1 of 1862, of gold tokens in such a form as it is expected will supply a satisfactory metallic currency until a Mint for the issue of sovereigns is established at Adelaide. My Lords approach this subject necessarily with imperfect information, owing to the great distance of Australia from this country, and the con- sequent lapse of time in the interchange of communications ; and they must deal with it upon a consideration of the expressed wishes of the colonies immediately interested, without the advantage of such modifica- tions of their views as further experience might induce. At the time when Lord Grey s Despatch of the 20th February was written to the Governor of New South Wales no intelligence had been received in this country of the discovery of gold fields in other parts of Australia, and the offer to establish a Mint at Sydney, on condition of the expense being provided for by the colony, was made with reference only to the circumstances which were then known to exist in that colony. As the Executive Council of New South Wales has, after full considera- tion of the subject, expressed its opinion that the establishment of a branch Mint, subordinate to the Royal Mint, would be of the greatest advantage to the interests of the colony, and has engaged to defray all the costs of the undertaking, and as their opinion has, moreover, been confirmed by an Address of the Legislative Council, it appears to my Lords that the colony is entitled to claim the fulfilment of the expectations held out in the Despatch of Earl Grey. But the principle which led to this proposal in the case of New South Wales would apply equally to other colonies in which gold fields have been discovered, and which may be desirous of undertaking the cost of Mint establishments for the coinage of their own gold. And although the question has been raised whether it may not be desirable, for the sake of the general interests of the Australian colonies, that one Mint only should be formed for a common coinage, my Lords feel that Her Majesty's Government is not in a position to decide upon the conflicting claims which have been advanced for this privilege, and that, if such a measure should be ultimately adopted, the consideration of it must be deferred until further experience may afford the colonies the opportunity of coming to a mutual understanding on the subject, or may enable the Government to assert the prerogative of the (Jrown with greater certainty for their common benefit. In the meantime my Lords will be prepared to deal with the applica- tions of the several colonies as they arise ; and in Iraming regulations on the subject will stipulate for such conditions and restrictions only as are necessary on Imperial considerations. These are as follows : — First. There must be no charge, actual or prospective, on the British Treasury, Second. There must be an absolute central control, carried to such a point that Her Majesty's Government may be enabled fully to satisfy themselves in regard to the use to be made of the Queen's effigy, the fineness and weight of the coin to be issued from the local Mints, according to its denomination and the impression to be stamped upon it. In order to carry these principles into effect, my Lords would recom- mend the adoption of measures of which the following is a general outline. When it is determined to establish a Mint in any one colony, the necessary arrangements shall be provided under the authority of an Order of the Queen in Council, which shall constitute such Mint as a branch of and subordinate to the Royal Mint, and prescribe the duties and functions of the principal officers to bo appointed to conduct it. The Order shall contain provisions for the coinage and issue therefiom of such coins as Her Majesty may authorise to be struck from dies to be furnished by the Master of the Mint in London. It shall contain precise directions as to the fineness and weight of the coin to be struck, which sliall correspond in these #■» British recom- geaeral ony, the an Order ranch of unctions ier shall 8 as Her by the as to the in these App. B. iMtfiftiAL Legislation, & my Lords in detail the arrangements which he would propose lor carrying into effect the measures which their Lordships coutemplite for the establishment of a branch Mint in New South Wales. Transmit also copy thereof to Mr. Merivale, for the information of the Duke of Newcastle with reference to the sevtral communications on thtt subject of the establishment of Mints in Australia, referred to iu the first part of the Minute. (xv.) Order in Council of 18th October 1864. "Whereas by an Order in Council, bearing date the 19th day of Aagnst 1853, Her Majesty thought fit to order that a branch of the Royal Mint should be established at or near Sydney, in New South Wales. And whereas there was this day read at the Board a representation from Sir John Frederick William Herachel, Baronet, the Master of Her Majesty's Mint, dated the 25th day of August last, in the words following, viz. : — " In pursuance of Your Majesty's gracious commands, that dies for an Australian sovereign and half-sovereign (intended to be struck in the Branch of Your Majesty's Mint at Sydney, in New South Wales) should be prepared, according to a pattern Avhich the Master of Your Majesty's Mint had the honour to submit for Your Majesty's approbation, I humbly beg to lay before Your Majesty a description of the impression intended to be struck on the said Australian sovereign and half-sovereign, viz. : — " For the obverse of the sovereign, the effigy of Your Majesty, with the inscription ' Victoria D : 6 : Britanniar : Regina F : D :' and the date of the year. For the reverse, the word 'Australia' placed in the centre of the piece, encircled by a laurel wreath and surmounted by the Royal Grown, with the inscription ' Sydney Mint, One Sovereign,' and with a graining on the edge. " And for the half-sovereign, the obverse in every respect similar to the sovereign ; and for the reverse, the same word ' Australia ' in the centre, encircled and surmounted in like manner, but for the inscription the words ' Sydney Mint. Half-Sovereign,' and a graining on the edge. " Should it please Your Majesty to approve of the said impression to be struck on the Australian sovereign and half-sovereign, I humbly request Your Majesty will be graciously pleased to signify Your Majesty's commands thereon, that the coinage may be proceeded with as soon as the said Sydney Branch of the Royal Mint shall come into operation." Her Majesty, having taken the said representation into consideration, was pleased, by and with the advice of Her Privy Council, to approve of the therein described impression to be struck on the said Australian sovereign and half-sovereign. And the Right Honourable the Lords Commissioners of Her Majesty's Treasury are to give the necessary directions herein accordingly. (xvi.) Order in Council and Proclamation of 18th October 1854. Whereas there was this day read at the Board the draft of a Proclama- tion declaring the rates at which certain gold coins, to be called Australian sovereigns and half-sovereigns, intended to be struck at Her Majesty's branch of the Royal Mint at Sydney, in New South Wales, are to pass current in all Her Majesty's Colonies in Australia, New Zealand, and Van Diemen's Laud : Her Majesty, having taken the same into consideration, was pleased, by and with the advice of Her Privy Council, to approve thereof, and to order, and it is hereby ordered, that the said Proclamation do take effect and come into force in each of Her Majesty's said Colonies and Possessions upon, and from and after, the promulgation thereof by the Governors or Officers administering the government of the said Colonies respectively. And the Lords Commissioners of Her Majesty's Trfeasury, and the Ri'^ht Honourable Sir George Grey, Baronot, one of Her Majesty's Principal Secretaries of Ttate, are to give the necessary directions therein aocordiuAly. 4liSt Colonial Cubbemct. ii. tm Draft Tkoclamation. Whereas by an Order in Council, bearing date the 19th day of August 1853, We have thought fit to Order that a Branch of Our Royal Mint should be established at or near Sydney, in New South Walea. And whereas, in the 18th year of Our reign, by an Order in Council dated the 18th day of October 1854, We have thought fit to order that certain Sieces of gold money should be coined at the said branch of our Royal lint, to be called respectively Australian sovereigns and Australian half- sovereigns, and to be of the same respective weights, fineness, and values with the sovereigns and half-sovereigns now current within this Our realm. And whereas, pursuant to and in virtue of the powers given in Our said Orders in Council, it is provided that a coinage of the said Australian sovereigns and half-sovereigns shall be made, and that every such Australian sovereign shall have for the obverse the effigy of Her Majesty, with the inscription " Victoria D : G : Britanniar : Regina F : D: " and the date of the year ; and for the reverse, the word " Australia " placed in the centre of the piece, encircled by a laurel wreath ^nd surmounted by the Royal Crown, with the inscription " Sydney Mint, One Sovereign,"' and with a graining on the ed^e. And that every such Austrdian half-sovereign shall nave the obverse in every respect similar to that of the sovereign, and for the reverse, the same word " Australia " in the centre, encircled and surmounted in like manner, but for the inscription the words "Sydney Mint, Half -Sovereign," and a graining on the edge. And whereas pieces of gold money of the above descriptions will be coined at Our said branch of the Royal Mint, in pursuance of Orders issued and to be issued by Us, We have, therefore, by and with the advice of Our Privy Council, thought fit to issue this Our Royal Proclamation ; and We do ordain, declare, and command that the said pieces of gold money so to be coined shall be current and lawful money within all Our colonies in Australia, New Zealand, and Van Diemen's Land, and shall pass and be received as current and lawful money therein, by the names aforesaid, and at the values hereinbefore assigned to them. (3! 5:- i m (xvii.) Sydney Branch Mint Act, 1863 (26 & 27 Vict. c. 74). An Act to enable Her Majesty to declare Gold Coins to be issued from Her Majesty's Branch Mint at Sydney, New South Walen, a legal Tender for Payments ; and for other Purposes relating thereto. [28th July 1863.] Whereas by an Act of the Fifty-sixth Year of the Reign of His late Majesty King George the Third, Chapter Sixty-eight, intituled An Act to provide for a new Silver Coinage, and, to regulate the Currency of the Gold and Silver Coins of this Realm, it is amongst other things provided, that after the date of the passing of that Act the gold coin of the Realm should be the only legal tender for payments (except the silver coin of the Realm to the extent of forty shillings) within the United Kingdom of Great Britain and Ireland : And whereas by the same Act it is declared that the gold coin of the Realm should hold such weight and fineness as are prescribed by an Indenture therein referred to, and made with His Majesty's Master and Worker of the Mint for making gold monies nt His Majesty's Mint in London, and with such allowance called the remedy as is given to the said Master by the said Indenture, which weight and fineness are by the said Act declared to be the Standard of the lawful Gold Coin of the Realm, so far as relates to the gold coins of the denominations in use at the time of the passing of the said Act and specified in tbe said Indenture : And wheret gold coins of the weight and fineness and of the denomi- nations mentioned in the said Act, and specified in the said Indenture, have from the date of the said Act up to the present time continued to be issued from Her Majesty's Mint in London, and to be the only legal tender for payments, except as aforesaid, within the Un.ted Kingdom : And whereas Her Majesty has by Proclamation established at Sydney, in Neva App. B. Imperial Legislation, &c. 443 South Wales, a Branch of the Royal Mint for making gold coins of the same weight and finenc»8 and of the same denominations as the gold coin issued by Her Majesty's Mint in Lmuion, and has appointed a Deputy Master of the said Branch Mint ; and it is expedient that power should be given to Her Majesty to make the gold coin so issued by Her Majesty's Mint at : t -k % > J lie HI!!-' til 444 Colonial Curhenct. by Proclamation, iRRued with the advice of Her Privy Oonnoil, to declare that, after a ilate Bpecified in Huch Prochiinatioii, gold coins made at the said Branch Mint, at Sydney aforesaid, of de8i;;n9 approved by Her Majesty, ami being of the same weight and fineness as are required by law with respect to gold coins of the same denominations made at Her Majesty's Mint, in London, are to be a legal tender for payments within the United Kingdom of Qreat Britain and Ireland ; and upon such Proclamation being issued gold coins made of such designs, and being of such weight and fineness as aforesaid, shall be a legal tender for payments accordingly." And whereas by the same Act it is further provided, that " It shall be lawful for Her Majesty, by Proclamation issued with such advice as aforesaid, from time to time to impose on the coinage of gold at the said Branch Mint at Sydney a charge sufficient to defray the expenses of coinage, over and above the expenses of assay ant' .efining ; and it shall be incumbent on the said Deputy Master to co' -^Id at the charge so imposed." We, therefore, by and with the advice of Our P- tuieil, have thought fit to issue this Our Royal Proclamation, and Wf oo ordain, declare, and command, that from and after the date of the publication of this Our Proclamation in the " London Gazette " coins made at the said Branch Mint, of designs approved by Us at Sydney aforesaid, and being of the same weight and fineness as are required by law, with respect to gold coins of the same denominations made at Our Mint in London, shall be a legal tender for payments within the United Kingdom of Great Britain and Ireland. And We do hereby, by and with the advice of Our Privy Council, by this Our Royal Proclamation, impose on the coinage of gold at the said Branch Mint at Sydney the charge of threepence per ounce troy of gold of Standard fineness, being a charge sufficient to defray the expenses of coinage over and above the expenses of assay and refining. Given at Our Court at Onhome House, hie of Wiffht, this third day of February, in the year of Our Lord, one thousand eight hundred and sixty-six, and in tte twenty-ninth year of Our Reign. God save the Queen. %■'■*■ (xix.) The Colonial Branch Mint Act, 1866 (29 & 30 Vict. c. 65). A» Act to enable Her Majesty to declare Gold Coins to be issued from Her Majesty's Colonial Branch Mints a legal Tender for Payments ; and for other Purposes relating thereto. [6th August 1866.] Whereas by an Act of the Fifty-sixth Year of tho Reign of His late Majesty King George the Third, Chapter Sixty-eight, intituled An Act to provide for a new Silver Coinage, and to regulate the Currency of the Gold and Silver Coins of this Realm, it is amongst other things provided, that after the date of the passing of that Act the gold coin of the Realm should be the only legal tender for payments (except the silver coin of the Realm to the extent of forty shillings; within the United Kingdom of Great Britain and Ireland : And whereas by the same Act it is declared, that the gold coin of the Realm should hold such weight and fineness as are prescribed by an Indenture therein referred to, and made with His Majesty's Master and Worker of the Mint for making gold monies at His Majesty's Mint in London, and with such allowance called the remedy as is given to the said Master by the said Indenture, which weight and fineness are by the said Act declared to be the Standard of the lawful gold coin of the Realm, so far as relates to the gold coins of the denominations in use at the time of the passing of the said Act, and specified in the said Indenture : And whereas gold coins of the weight and fineness and of the denomina- tions mentioned in the said Act, and specified in the said Indenture, have from the date of the said Act up to the present time continued to be issued from Her Majesty's Mint in London, and to be a legal tender for payments App. B. Imperial LeqislatioN) &c. 445 aa well in the United Kingdom an in diveni of Her Majeflty's PoBflegsions abroad : And whereaH Her Majesty by Proclamation bath established or may hereafter establish in divers of Her Majesty's said Possesiiions Branches of the Royal Mint, for making gold coins of the same weight and flneness and of the same denominations as tho giold coin issued by Her Majesty's Mint in London, and it is expedient that power should be given to Her Majesty to declare the gold coin so made and issued by such Colonial Brand. Mints a legal tender for payments in any jwrt of Her Majesty's Dominions in which gold coin issued from Her Majesty's Mint in Lnnilnn may from time to time be a legal tender : Be it therefore enacted by the Queen's Most Excellent Majesty, bv and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows : 1. It shall be lawful for Her Majesty from time to time, by Proclamation issued with the advic%of Her Privy Council, to declare that for such period and subject to such conditions as may be specified in such Proclamation, gold coins made at any such Colonial Branch Mint, of designs approved by Her Majesty, and being of the same weight and fineness as are required by law with respect to gold coins of the same denominations made at Her Majesty's Mint in London, are to be a legal tender for payments within any part of Her Majesty's Dominions to be specified in such Proclamation in which gold coins issued from Her Majesty's Mint in iMndon shall at the date of the issue of such Proclamation be a legal tender, and upon such Proclamation being issued gold coins made of such designs, and being of such weight and fineness as aforesaid, shall be a legal tender for payments accordingly. 2. It shall be lawful for Her Majesty, by Proclamation issued with such ' advice as aforesaid, from time to time to impose on the coinage of gold at any such Branch Colonial Mint as aforesaid a charge sufficient to defray the expenses of coinage over and above the expenses of assay and refining ; and it shall be incumbent on the Deputy Master of any such Mint to coin gold at the charge so imposed. 3. Any Proclamation issued under authority of this Act may be revoked by Her Majesty, with the advice of Her Privy Council. 4. This Act may be cited for all purposes as " The Colonial Branch Mint Act, 1866." (xx.) Order in Council and Royai, Proclamation of 10th November 1866. Whereas there was read, this day, at the Board, the Draft of a Procla- mation declaring Gold Coins made at the Branch of the Royal Mint at Sydney, New South Wales, a legal tender in certain of Her Majesty's P'ossessions abroad specified in a Schedule attached to the said Draft Proclamation. Her Majesty having taken the same into consideration was pleased, by and with the advice of Her Privy Council, to approve thereof, and to Order, and it is hereby Ordered, that the said Proclamation do tpke effect and come into force in each of Her Majesty's Possessions abroad s^ led in the afore- said Schedule, upon and from and after such day a? shall be for that purpose limited by the Governor or Officer administering the Government of each of the said Possessions by any Proclamations to be by them for that purpose issued in each of such Possessions. And the Right Honourable the Earl of Carnarvon, one of Her Majesty's Principal Secretaries of State, is to give the necessary directions for causing publication to be made hereof within Her Majesty's Possessions abri>ad. 44« Colonial Cdbrgnct. 111;" ' ' -1 It. '■ im :, i BY THE QUEEN. •• . , A PUOCI.AMATIDN. For declaring Gold Coins made at the Branch Mint at Sydney, New South Wales, a legal tender throughout such parts of Her Majesty's Domiuiooa as ara speciHud in the St-hediUe hereunto annexed. Whereas by an Order in Council, hearing date the nineteenth dav of August, one thousand eight hundred and fifty-tbroe. We have thought nt to order that a Branch of Our Royal Mint should be established at or near Sydney, New South Wales. And wherejis, in the eighteenth year of Our Reign, bv an Order in Council, dated the eighteenth day of October, one thousand eight hundred and fifty- four. We have thought fit to order that certain pieces of Gold money should be coined at the said Branch of Our Royal Mint, to be called respectively, Australian Sovereigns and Australian Half-Sovereigus, and to be of the sjimo respective weights, fineness, and values with the Sovereigns and Half- Sovereigns now current within this Our Realm. And whereas, pursuant to and in virtue of the powers given in Our said Orders in Council, it is provided that a coinage of the said Australian Sovereigns and Half-Sovereigns shall be made, and that every such Australian Sovereign shall have for the obverse. Our Efligy, with the inscription " Victoria " D. G. Britanniar : Regina F. D." and the date of the year, and for the reverse, the word " Australia," placed in the centre of the piece, encircled by a laurel wreath, and surmounted hy the Royal Crown, with the inscription "Sydney Mint, One Sovereign, ' and with a graining on the edge ; and that every such Australian Half Sovereign shall have the obverse in every respect similar to that of the Sovereigns, and for the reverae the same word " AustraUa " in the centre, encircled and sur- mounted in like manner, but for the iiuscription the words " Sydney Mint, Half-Sovereign," and a graining on the edge. And whereas pieces of gold money have been and will be coined at Our said Branch of the Royal Mint in pursuance of orders issued and to be issued. And whereas by an Act passed in the twenty-ninth and thirtieth years of Our Reign, entitled " An Act to enable Her Majesty to declare Gold Coin to be issued from Her Majesty's Colonial Branch Mints a legal tender for payments, and for other purposes relating thereto," it is provided, that "It shall be lawful for Her Majesty from time to time by Proclamation, issued with the advice of Her Privy Council, to declare that for such period, subject to such conditions as may be specified in such Proclamation, Gold Coins made at such Colonial Branch Mint, of designs approved by Her Majesty, and being of the same weight and fineness as are required by law with respect to Gold Coins of the same denominations made at Her majesty's Mint in London, are to be a legal tender for payments within any part of Her Majesty's Dominions, to be specified in such Proclamations, in which Gold coins issued from Her Majesty s Mint in London shall, at the date of the issue of such Proclamation, be a legal tender, and upon such Proclamation being issued Gold Coins made of such designs, and being of such weight and fineness as aforesaid, shall be a legal tender for payments accordingly." And whereas Gold Coins issued from Our Mint in London, aie at present a legal tender in such parts of Our Dominions as are specified in the Schedule hereunto annexed. We, therefore, by and with the advice of Our Privy Council, have thought fit to issue this Our Royal Proclamation, and we do ordain, declare, and command that, from and after the date of the publication of this Our Proclamation by the Governor or other Officer administering the Govern- ment of such part or parts of Our Dominions aa are specified in the Schedule hereunto annexed. Coins made at the said Branch Mint, of designs approved by Us, at Sydney aforesaid, and being of the same weight and fineness as are required by law with respect to Gold Coins of the same denominations made at Our Mint in London, shall be a legal tender for payments within such part or parts of Our Dominions as are specified in the said Schedule, until such period as this Our Royal Proclamation shall be revoked, by and with the advice of Our Privy Council aforesaid. App. B. Imperial Leoislation, &c. 447 Schedule of Ilor MajoHty's PoBNeMtioiiH abroad referred to in the Onlor in Council, dated 10th day of November 1866, ami in the Draft Pro- clamatiou, the Ibbuo of which is ordered by the Haid Order in Council. Anfigua. Barbados. Bahainafl. Bermuda. Capo of Good Hope. British Columbia. Dominica. Falkland Iitlands. Gold Coast. Gambia. Gibraltar. British Guiana. Grenada. Honduras. Jamaica. Lagoa. Malta. Moutserrat. Nevis. Natal. Ht. Holeua. 'Sierra Leone. t. Vincent, ot. Lucia. Trinidad. Turk's and Caicos Islands. 8t. Christopher and its Depea- doncies. Tobago. Yancouvers Island. Virgin Islands. il (xxi.) Royal Proclamation of 7th August 18()9. For declaring Gold Coins made at the Branch Mint, at Melbourne, in Victoria, a Legal Tender within all parts of Her Majesty's Dominions in which Gold Coins issued from Her Majesty's Mint in London are now a Legal Tender. Victoria R. Wherkas by an Order in Council, bearing date the seventh day of August, one thousand eight hundred and sixty-nine, We have thought fit to order that a Branch of Our Royal Mint should be estabhshed at or near Melbourne, in Victoria : And whereas by the said Order We have thought fit to order that certain pieces of gold money should be coined at the said branch of Our Royal Mint, to be of the same designs, and of the same respective weights, fineness, and values with the sovereigns and half-sovereigns now current within this Our realm : And whereas pieces of gold money will hereafter be coined at our said branch of the Royal Mint, in pursuance of Orders to be issued : And whereas by an Act made and passed in the twenty-ninth and thirtieth years of Our reign, intituled, " An Act to enable Her Majesty to declare gold coins to be issued from Her Majesty's Colonial Branch Mints a legal tender for payments, and for other purposes relating thereto, " it is provided that "It shall be lawful for Her Majesty from time to time, by Proclamation issued with the advice of Her Privy Council, to declare that for such period, and subject to such conditions as maybe specified in such Proclamo- tion fold coins made at any such Colonial Branch Mint, of designs approved by Her Majesty, and being of the same weight and fineness as are required by law with respect to gold coins of the .'^ame denominations made at Her Majesty's Mint in London, are to bo a legal tender for payments within any part of Her Maji sty's dominions, to be specified in such Proclamavion, in which gold coins issued from Her Majesty's Mint in Loudon shall at the date of the issue of such Proclamation be a legal tender ; and upon such Proclamation being issued gold coins made of such designs, and being of such weight and fineness as aforesaid, shall be a legal tender for pay- ments accordingly." We, therefore, by .and with the advice of Our Privy Council, have thought fit to issue this Our Royal Proclamation, and We do ordain, declare, and coiuniaud, that from and after the date of the publicatif)n of this Ojf Proclamation in the " Loudon Gazette," coins made at the said Branch Mint, of designs approved by Us, at Melbourne aforesaid, and being of the same weight and fineness as are required by W\ with respect to gold coins ipr 448 Colonial Currency. Ml of the same denomination, made at Our Mint in London, shall be a legal ♦ ender for piiymentH witliin all pivits df (Mir Dominions in which gold coins issued from Our Mint iu London ure, lit tlie date of the issue of this Our Proclamation, a legal tundor. * Given at Our Court at (hbornr JIou»e, hie of Wif/ht, this seventh day of AiKjmt, in the year of Our Lord one thousand eight hundred and 8Jxty-uiue, and in the thirty-third year of Our Beign. God save the Queen. jit i n 'Mr Short title. Deflnitiont of terms. a Stendard of coiug. Xjtga.1 tender. P-olilbltloii of otlicr ooiUH aL'.. j of Commons, or vacate the seat of Ihe person who at the passing of this Act holds the office of Chancellor of the Exchequer. All duties, powers, and authorities imposed on or vested in or to be transacted before the master of the Mint may be performed and exercised by or transacted before him or his sufficient deputy. 15. The Treasury may from time to time appoint deputy masters and deputy masters other officers and persons for the purpose of carrying on the business of "'"' oiiice"- the Mint in the United Kingdom or elsewhere, and assign them their duties, and award them their salaries. The master of the Mint may from time to time promote, suspend, and remove any such deputy masters, officers, and persons. coins Standard Trial Plates and Weights. 16. The standard trial plates of gold and silver used for determining the justness of the gold and silver coins of the r^alm issued from the Mint, which now exist or may hereafter be made, and all books, documents, and things used in connection therewith or in relation thereto, shall be in the custody of the Board of Trade, and shall be kept in such places 'and in such manner as the Board of Trade may from time to time direct ; and the performance of all duties in relation to such trial plates shall be part of the business of the Standard Weights and Measures Department of the Board of Trade. The Board of Trade shall from time to time, when necessary, cause new standard trial plates to be made and duly verified, of such standard fineness as may be in conformity with the provisions of this Act. 17. The standard weights for weighing and testing the coin of the realiri shall be placed in the custody of the Board of Trade, and be kept in such places and in such manner as the Board of Trade may from time to time direct ; and the performance of all duties in relation to such standard weights shall bo part of the business of the Standard Weights and Measures Department of the Board of Trade. The Board of Trade shall from time to time cause weights of each coin of the realm for the time being, and of multiples of such of those weisj;hts AS may be required, to be made and duly veritied ; and those weights, when approved' by Her Majesty in Council, shall be the standard weights for determining the justness of the weiglit of and for weighing such coin. The master of the Mint shall from time to time cause copies to be made of such standard weights, and once at least in every year the Board of Trade and the master of the Mint shall cause buch copies to be compared and duly verified with the standard weights in the custody of the Board of Trade. All weights which are not less in weight than the weight prescribed by the first schedule to this Act for the lightest coin, and are used for weighing coin, shall be compared with the said standard weights, and if found to be just shall, on pay men' of such fee, not exceeding five shillings, as the Board of Trade from time to time prescribe, be marked by some officer of the Standard Weights and Measures Department of the Board of Trade with a Custotly, .stiuidafd pliitea. &c. of trial Stmutnrd weights for coin. 452 Colonial Cubrenct. mark approved of by the Board of Trade, and notified in the " London Gazette ; " and a weight which is required by this section to be so compared, and is not so marked, shall not be deemed a just weight for determining the weight of gold and silver coin of the realm. If any person forges or counterfeits such mark, or any weight so marked, or wilfully increases or diminishes any weight so marked, or knowingly utters, sells, or uses any weight with such counterfeit mark, or any weight so increased or diminished, or knowingly uses any weight declared by this section not to be a just weight, such person shall be liable to a penalty not exceeding fifty pounds. All fees paid under this section shall be paid into the Exchequer, and carried to the Consolidated Fund. Summary procedure. Legal Proceedings. ' 18. Any summary proceeding under this Act may be taken, and any penalty under this Act may be recovered, — In England, before two justices of the peace in manner directed by the Act of the session of the eleventh and twelfth years of the reign of Her present Majesty, chapter forty-three, intituled " An Act to facilitate the " performance of the duties of justices of the peace out of sessions within " England and Wales with respect to summary convictions and orders," and any Act amending the same. Ic Scotland, in manner directed by The Summary Procedure Act, 1864. In Ireland, so far as respects Dublin, in manner directed by the Acts regulating the powers of justices of the peace or the police of the Dublin metropolis, and elsewhere in manner directed by The Petty Sessions (Ireland) Act, 1851, and any Act amending the same. In any British possession, in the courts, and before such justices or magistrates, and in the manner in which the like proceedings and penalties may be taken and recovered by the law of such possession, or as near thereto as circumstances admit, or in such other courts, or before such other justices or magistrates, or in such other manner as any Act or Ordinance having the force of law in such possession may from time to time provide. i Extent of Aot. Bepeal of Acta and parts of Acts in Second Schedule. Mi.ii'ellaneous. j 19. This Act, save as expressly provided by this Act, or by any Procla- mation made thereunder, shall not extend to any British possession. 20. The Acts mentioned in the first part of the Second Schedule to this Act are hereby repealed to the extent in the third column of such Schedule mentioned, and those mentioned in the second part of the same Schedule are hereby repealed entirely. Provided that, — (1.) This repeal shall not affect anything already done or suffered, or any right already acquired or accrued : (2.) All weights for weighing coin which have before the passing of this Act been marked at the Mint or by any proper officer shall be deemed to have been marked under this Act : (3.) Every branch of the Mint which at the passing of this Act issues coins in any British possession shall, until the date fixed by any proclamation made in pursuance of this Act with respect to such branch Mint, continue in all respects to have the same Eower of issuing coins and be in the same position as if this Act ad not passed, and coins so issued shall be deemed for the purpose of this Act to have been issued from the Mint : (4.) The said Acts (unloss relating to a bninih Mint and unless in the said schedule expressly otherwise mentioned) are not repealed so far as they apply to any British possession to which this Aot does not extend until a Proclamation directing that this Act or any part thereof, with or without any niodilication contained in the Proclamation, saall be iu force in such British possessioc comes into operation. App. B. Imperial Legislation, &c. SCHEDULES. 453 FrRST SCIIEDULK.** Stauaiiril Weight. Denomination of Ciiiu. ioi.D ; Five Pound Two Pounil Sovereign - Halt Sovereign SILVER : Crown Half Crown Florin Shilling - Sixpenue - Groat or Pourpence - Threepence Twopence Penny BROKZR : Penny Hiilfpanny Furtliing - • • - ■ • Imperial Weight. Grains. Metric Weight. Urams. Least Current Weight, Iniporiiil Weight. Grains. :utric Weight. Qrams. fil8'37239 39-P402M 612-50000 24a-84H95 15-97611 245-00000 123'27447 7-9H80fi 122-50000 61-63723 3-99402 61-12500 436'3fl30H 2S-27.')90 218 IHIHI 11-13795 _ 174-54545 ll-3103f - 87-27272 8-66518 - 4.3-63636 2-82759 _ 29-09090 1-88506 _ 21-81818 1-41370 _ 14-54S45 O-04253 _ 7-27272 U-47126 - 145-83333 9-44984 87-5()(K)0 6-66990 _ 43-76000 2-83495 - 39-68935 15-87574 7-93787 3-96083 Standard Fineness. Remedy Allowance.f Weight per Piece. Imperial Grains. Eleven-twelfths tine gold, one- twelith alloy; or millesimal flneuess 916-6(1. Thirty-seven fortietlis fine silver, tliroe- fortieths alloy ; or millesimal fineness 926 Mixed metal, copper, tin, and zinc. 11-00000 0-40000 0-20000 0-10000 1-81818 0-90909 0-72727 0-.36363 0-18181 0-12121 0-09090 0-06060 0-03030 ■ 2-91666 1-75000 0-87500 Metric Grams. Millesimal Fineness. 0-06479 0-02692 0-01296 0-00648 0-11781 0-06890 0-04712 0-02356 0-01178 0-00785 0-00689 000392 0-00196 0-18899 0-11339 0-06669 / 0-008 ) 0-004 None. The weight and fineness of the coins specified in tliis Schedule are according to what is provided hy the Act flfty-sit Beorge the Third, chapter sixty-eight, that the gold coin of the United Kingdom of (Jreat Britain and Ireland should Wil such weight and fineness as were prescribed in tliu then existing Mint indenture (that is to stiy), that there should If nine hundred and tliirty-four sovereigns and one ton shilling piece contained in twenty pounds' weight troy of lunilaril gold, of the fineness at the trial of the same of twenty-two carats tine gold and two carats of alloy in the [ouiid weight troy ; and further, as regards silver coin, that there should be sixty-six shillings in every pound troy of itandard silver of the flceness of eleven ounces two pennyweights of fine silver and eighteen pennyweights of alloy in ivery pound weight troy. (xxiii.) Royal Proclamation of 14th January 1871. For giving Currency to Gold Coins made at the Branch Mint at Sydney, New South Wales, of the like designs as those approved for the corresponding Coins of the Currency of the United Kingdom. Victoria R. WiiKREAS by an Order in Council bearing date the fourteenth day of January one thousand eight hundred and seventy-one, We have thought fit to order that the designs for gold coins to be coined at the Syduey Branch of Our Royal Mint, pursuant to Our Order in Council of the nineteenth day of August, one thousand eight hundred and iifty-three, establishing the said Branch of Our Royal Mint at Syilney, should be the like designs as now are and from hen( ot'orth may be from time to time approved by Us, and in force for the corresponding coins of the currency of this realm : And whereas, in pursuance of the said Order in Council, it is provided that a coinage of gold coins in accordance with the standards of weight and fineness of the various (U)ins of the currency of this realm, and of the designs aforesaid, shall be made at the said Sydney Branch of Our Royal Mint: And whereas, pieces of money of the above descriptions will be coined at the said Branch of our Royal Mint, in pursuance of Orders issued and to be issued by Us ; We have, therefore, by and with the advice • The Second and Third Sohedules, relating to repeals of earlier Acts, are omitted, t *<' Scliodulc to the Coinage Act of 1891 (infra) for rcviseil remody allowancea to h« eubitituted for those of 1870. 72642. Go ■I! I. ,ii 111 ■F 454 Colonial Currency. of Our Privy Council, thought fit to issue this Our Royal Proclamation and We do ordain, decslare, and command, that from and after the publica- tion of this Our Proclamation in ti.e London Oazette, all the said pieces of money so to be coined shall bo curre.-f and lawful money within the United Kingdom of Great Britain and Ireland ; and that from and after the promulgation of this Our Proclamation by the Governors or Officers administering the Government of the hereinafter-mentioned Colonies and Possessions respectively, that is to say : — Antigua. Bahamas. Barbados. Bermuda. British Columbia. British Guiana. Canada. Cape of Good Hope. Dominica. Falkland Islands. Gambia. Gibraltar. Gold Coast Grenada. Honduras. Jamaica. Lagos. Mivlta. Mauritius. Montserrat. Natal. Nevis. Newfoundland. New South Wales. New Zealand. Prince Edward Island. Queensland. St. Christopher and its Dependencies. St. Helena. St. Lucia. St. Vincent. Sierra Leone. ', South Australia. Tasmania. Tobago. Trinidad. Turk's and Caicos Islands. Virgin Islands. Western Australia. ail the said pieces of money so to bo coined shall be current and lawful money in Our said several Colonies and Possessions, and shall pass and be received as current and lawful money, and be a legal tender in the United Kinjjdom and the said Colonies and Possessions respectively, from the times aforesaid, at the like values and by the like names as the corre- sponding coins of the currency of this realm, and concurrently with any coins now current in the United Kingdom and the said Colonies and Possessions respectively. Given at Our Court at Osborne House, Isle of Wight, this fourteenth day of January, in the year of Our Lord one thousand eight hundred and seventy-one, and in the thirty-fourth year of Our Reign. God save the Queen. (xxiv.) Royal Proclamation of 24th March 1871 . For giving Currency in certain Colonies to Gold Coins made at Sydney, New South Wales, of the like designs of those approved for the corre- sponding Coins of the Currency of the United Kingdom. Victoria R. Whereas, in pursuance of Orders issued and to be issued by Us, a coinage of Gold Coins, in accordiince with the Standards of Weight and Fineness of the Coins of the Curn icy of the United Kingdom of Hreat Britain and Ireland, and of the like designs as now are and from henceforth may be from time to time approved by Us, and in force for the corre- sponding (JoinM of the Currencv of the said United Kingdom, is being or Avill be made at the Sydney Branch of Our Royal Mint, We have, by and with the advice of Our Privy Council, thought fit to issue this Our Royal roclamation. And Wc do Ordain, Declare, and Command that, upon and 1' App, B. Imperial Legislation, &c. 455 from and after the promulgation thereof by the respective Govtrnors or Officers administering the (xovernments of Our Colony of Victoria and all or any other of Our Colonies and Possessions wherein C4old Coins, issued from Our Mint in London, are a legal tender, other than the Colonies and Possessions specified in the Proclamation promulgated in pursuance of Our Order in Council of the 14th January 1871, relating to the aforesaid Gold Coins, all the said pieces of Gold money so coined or to be coined shall be, and shall pass, and be received aa current and lawful money, and be a legal tender for payments in Our said Colony of Victoria, and Our said other Colonies and Possessions respectively from the times aforesaid, at the like values and by the like names as the corresponding Coins of the Currency of the United Kingdom of Great Britain and Ireland, and concurrently with any Coins now current in the said Colony of Victoria, and the said other Colonies and Possessions respectively. Given at Our Court at Windsor, this Twenty-fourth day of March, in the Year of Our Lord One Thousand Eight Hundred and Seventy-one, and in the Thirty-foi'rth Year of Our Reign. , ,.'■ God save the Queen. (xxv.) Okder in Council and Proclamation of 24th March 1876. Whereas by Her Majesty's Royal Proclamation bearing date the thirteenth day of May one thousand eight hundred and sixty-nine, Her Majesty did, with the advice of Her Privy Council, declare and command that no copper monies wh.atsoever. her than and except such bronze monies as were then or are r-i- -".rrent by virtue of Her Majesty's Proclamation bearing date the st a ^"y of December one thousand eight hundred and sixty, or any 1. ' . .na.i.,n dated subsequently to the said seventeenth day of December one thousand eight hundred and sixty, should be allowed to pass or be current in any payment whatsoever within the United Kingdom of Great Britain and Ireland after the thirty-first day of December one thousand eight immlred and sixty-nine; and whereas it hath been represented unto Her Majesty in Council by the Lords Com- missioners of Her Majesty's Treasury that it would be expedient that the provisions of the said Proclamation, bearing date the thirteenth day of May one thousand eight hundred and sixty-nine, should be extended to certain of the Colonies and Pos.sossions ; and whereiis there was this day read at the Board a Draft of a Proclamation extondinfi; the provisions of the said Proclamation bearing date the thirtei-nth of May one thouvand eight hundred and sixty-nine, accordingly licr Majesty, having taken the same into consideration, was pleased, by and with the advice of life Privy Council, to approve thereof, and to order, and it is hereby ordered,, that the said Proclamation do t.ike effect and come into force in such of the said Colonies. Possessinns. and Dominions wherein proclamation shall have been made or shall be made for decrying the same copper monies from tbo date named in such last-mentioned Proclamation. And the Lords Comniissioners of Her Majesty's Treasury and the Right Honourable the Earl of Carnarvon, one of Hoi Majesty's Principal Secre- taries of State, are to give the requisite directions for causing publication to be made thereof in Her Majesty's said Colonies and Possessions, and for the other purposes referred to therein accordingly. GO 2 ,155 wjr V\l 456 Colonial Currency. BY THE QUEEN. A PllOfLAMATION. w hi'' " i ■ i l 1 1 1' • I' -1 111 i Victoria R. Whereas by Our Royal Proclamation beariag date the thirteenth day of May one thonsaml ei!,'ht hundred and sixty-nine, after reciting that We had taken into consideration the stiite of tlie copper coin of this Kingdom, and had deemed it expedient, with the advice of Our I'rivy Council, that all copper monies of this realm, commonly called a peimy, a half-penny, a farthing, and a half-farthing, coined at our Mint and current in Our Dominions hy virtue of any Proclamation prior to the seventeenth day of December one thousand eight hundred and sixty, should be called in and re-coined : And further reciting that considerable (juantities of the said copper tnonies before-mentioned had been received and exchanged at Our Mint, so that only a small portion of such monies was remaining in circu- lation at the date aforesaid. We did, with the advice of Our Privy Council, declare and command that no copper monies whatsoever (other than and except such bronzi; monies as were then '^nd are now current by virtue of Our Proclamation bearing date the .> ;nteenth daj- of December one thousand eight hundred and sixty, or any Proclamation dated subseijuently to the said seventeenth day of De mber one thousand eight hundred and sixty), should be allowed to pass or bo current in any payment whatsoever within the United Kingdom of Groat Britain and Ireland after the thirty- first day of December one thousand eight hundred and sixty-nine. Now, therefore, by this Our Royal Proclamation, and with the advice of Our Privy Council, We do think proper to declare and command, and Wo do hereby declare and command accordingly, that, in whatsoever of Our Colonies, Plantations, Possessions, md Dominions there be current copper monies of this realm, commonly called a penny, a half-penny, a farthing, and a half -farthing, other than and except such bronze monies as aforesaid, such copper monies be no longer allowed to pass or be current in any payment whatever within any of the said Colonies, Plantations, Possessions, and Dominions wherein proclamation shall have been made or shall be made for decrying the same copper monies from the date named in such Proclamation. (xxvi.) Regulations for the Supply of British Silver and Bronze Coinage to the Colonies. 2l8t February 1881. New silver and bronze coin (half-crowns, florins, shillings, sixpences, and threepences, and pence, halfpence, aftd farthings) can be supplied to Colonial Governments from the Royal Mint on the following conditions : — 1. On receiving an application from the agent of the Colonial Govern- ment in London, the Master of the Mint will cause to be packed, and held , to his order, such an amount of silver or bronze coin as may be required i on behalf of the Colony. 2. The Master of Mint will undertake the payment of all expenses, including packing, freight, and shipping charges, connected with the ship- ment of silver and bronze coin to the port in the Colony agreed upon by the Master of the Mint and the agent of the Colony in London. 3. The agent of the Colonial Government will be required to pay to the accoun*^ of the Master of the Mint at the Bank of England, on or before the delivery of the coin, the sum representing the nominal value of the new silver or bronze coin ordered. 4. The Colonial Government will be required to make such arrangements as may bQ deemed necessary for the withdral of worn silver coin from :i ,jlitj s. f ¥<'] App. li. Impeuial Legislation, &c. 457 circulation, and to cause the coin so witlidrawn to be forwarded to the Mint or one of its branches (at Sydney or Mellioiune), for recoinage. The Master of the Mint will defray all expenses, including freight and shij)ping charges, incurred in the transmission of worn coin to London, Sydney, or Melbourne, from a port of shipment to be agreed upon by the Master of the Mint, or the Deputy Master at Sydney or Melbourne, and the agent of the Colony. 5. The Imperial Government will pay to the Colonial Government, or its agent, the nominal value of the worn coin so withdrawn from circu- lation, as soon as it is received at the Boyal Mint or one of its branches. » ^-I'-'Ji to the Defore of the (xxvii.) Royal Proclamation of 1.3th May 1887. '•* Victorian. ' '• •.'' ' ' ' " " ' ' Whereas by an A.ct passed in the thirty-third year of Our reign, intituled " An Act to consolidate and amend the law relating to the Coinage and Her Majesty's Mint," it is amongst other things enacted, That We, by and with the advice of Our Privy Council, shall from time to time, by Proclamation, determine the design for any coin. We have, therefore, thought fit to order that certain of the coins made at the Mint, mentioned in the first schedule to the aforesaid Act, of the weight and fineness specified in that schedule, shall bear designs as follows : — That every Five Pound Piece should have for the obverse impression Our etfigy, with the inscription '' Victoria D. G. Britt : Reg : F. D.," and for the rever. "^^.Z ^>. 'W '■'»►>* -* »v a <,i>^ <^ '^"^^ <^ Is ,i; ^, 460 Colonial Currency. 5>{1 (xxix.) RovAL Proclamation of 22nd November 1890. Whereas by " The Coinage Act, 1870," We are empowered, with the advice of Our Privy Council, by Proclamation to call in coins of any date or denomination, or any coins coined before the date in such Proclamation mentioned. And whereas by " The Coinage Act, 1889," it was provided that any Gold Coin of the realm, coined before Our Reign which should be below the least current weight as provided by "The Coinage Act, 1870," might, within the time and in the manner, from time to time, directed by Us in Council, be tendered for exchange, and if it had not been illegally dealt with, should be exchanged or paid for by or on behalf of the Mint at its nominal value. And whereas We, by Orders in Council made, pursuant to " The Coinage Act, 1889," on the thirteenth day of December, one thousand eight hundred and eighty-nine, and eighth day of February, one thousand eight hundred and ninety, ordered that the time within which any coin mentioned in section one of '* The Coinage Act, 1889," might be tendered for exchange should be the thirty-first day of March, one thousand eight hundred and ninety, and in the manner in the said Orders respectively mentioned. And whereas a large number of Qold Coins coined before Our Reign have been so exchanged or paid for, and a few only remain in circulation, and it is expedient to call in all such coins. Now therefore We do, with the advice of Our Privy Council, and in pursuance of "The Coinage Act, 1870," and of all other powers enabling Us in this behalf, by this Our Royal Proclamation, call in by the twenty- eighth day of February one thousand eight hundred and ninety-one all Gold Coins of the realm coined before Our Reign, and declare and command that, from and after such twenty-eighth day of February, one thousand eight hundred and ninety-one, such coins shall not be current or legal tender within Our United Kingdom of Great Britain and Ireland."* roviidon as to xchange of litrht )lil coins, J & 34 VIot. .lU. u (xxx.) Coinage Act, 1891 (54 & 55 Vict. c. 72). An Act to amend the Coinage Act 1870. [5th August 1891.] Be it enacted by the Queen's Most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows : 1. — (1.) It shall be lawful for Her Majesty, by Order in Council, to direct that gold coins of the realm which have not been called in by Procla- mation and are below the least current weight as provided by the Coinage Act, 1870, shall, if they have not been illegally dealt with, and subject to such conditions as to time, manner, and order of presentation, as may be menti(med in the Order, be exchanged or paid for by or on behalf of the Mint at their nominal value. (2.) For the purposes of this Act a gold coin shall be deemed to have been illegally dealt with where the coin has been impaired, diminished, or lightened otherwise than by fair wear and tear, or has been defaced by having any name, word, devicif, or number stamped tliereon, whether the coin has or has not been thereby diminished or lightened. C-^. ) In a sovereign or half sovereign loss of weight exceeding three grains from the standard weight shall, for the purposes of this Act, be primA facio evidence that the coin has been impaired, diminished, or lightened otherwise than by fair wear and tear. (4.) Towards meeting the expenses to be incurred in pursuance of this section the sum of four hundred thousand pounds shall be charged on ojid * By Order in Council of 21st March 1890, pre- Victorian gold coins were allowed to Ix; i)rcsented for exchange at the Sydney and MeUx)urne Mints up to 30th April 18'jO m , with the E any date )Glamation 1 that any I be below rO," might, d by Us in gaily dealt \Lint at its he Coinage it hundred it hnndred antioned in : exchange andred and oned. Our Reign circulation, icil, and in rs enabling he twenty- lety-one all d command e thousand nt or legal d.'» 891.] id with the ommons, in le same, as Council, to by Procla- the Coinage subject to as may be (half of the led to have niuished, or defaced by vhether the eding three this Act, be linishod, or nice of this rged on and were allowed up to 30th App. B. IMPBAIAL tiUOlSLAtlON, &c. 4^1 iuued from the Consolidated Fund in the year ending the thirty first day of March, one thousand eight hundred and ninety-two, and, so far as not immediately required, may be invested in such manner us the Treasury direct ; and any interest thereon shall be applied for the purposes of this section. 2. The remedy allowances for gold, silver, and bronze coins shall be such Remedy ' as are specified in the schedule to this Act ; and in all copies of the ooinT*" Coinage Act, 1870, printed after the passing oi this Act, the First Schedule to that Act shall be printed so as to give effect to the amendments made by this section. f 3. — (1.) This Act may be cited as the Coinage Act, 1891. (2.) This Act and the Coinage Act, 1870, may be cited together as the Coinage Acts, 1870 and 1891. (3.) Expressions used in this Act have the same meaning as in the Coinage Act, 1870. Short tltlei ami ooDitruoUon. SCHEDULE. 1 of Coin. Standard Fineneaa. Remedy Allowance. Denomiuatloi Weight per Piece. M Fi llesimal Imperial Metric neuess. Grains. Grama. Gold: Five-pound - Two-pound - - Eleven-twelfths fine gold, r 1-00 J 0-40 06479 C 02692 1 Sovereign - • ^ one-twelfth alloy ; or mil- ] 0-20 L 0-15 0-01296 ( S Half-sovereign - J leaimal fineness 916-6. 0-00972 1 SILVBB : Crown . / 2-000 0-1296 Double-florin • 1-678 0-1087 Half-crown . 1-264 0-0788 Florin - Thirty-seven fortieths fine 0-997 0-0646 Shilling - silver, three-fortieths al- loy ; or millesimal fine- ; 0-578 0-0376 \ 4 Sixpence - ] 0-346 0-0224 I Groat or Fourpence - uesa 93S. 0-262 0-0170 Threepence - 0-212. 0-"138 Twopence - • 0-144 0-0093 Penny - - ■/ I 0-087 0-0056 ) Bronze : Penny - Halfpenny • ; : 1 1 Mixad metal, copper, tin, ( 3-91668 ' 1-75000 0-18899 0-11.S39 ] Nona. FartUiug - " ■ / »nJ >='"<:- ,[ 0-87500 0-05069 1 (xxxi.) Order in Council of 16th March 1892. W11KREA.S by the Coinage Act, 1891, it is enacted as follows : — (1.) It shall be lawful for Her Majesty, by Order in Council, to direct that gold coins of the realm which have not been called in by proclamation and are below the least current weight as provided by the Coinage Act, 1870, shall, if they have not been illegally dealt with, and subject to such conditions as to time, manner, and order of presentation as may be mentioned in the Order, be exchanged or paid for by or on buhalf of the Mint at their nominal value : (2.) For the purposes of this Act a gold coin shall be deemed to have been illegally dealt with where the coin has been impaired, diminished, or lightened otherwise than by fair wear and tear, or has been defaced by having any nanre, word, device, or number stamped therion, whether the coin has or has not been thereby diminished or lightened. And whereas it is expedient to provide for the exchange of luch gold ooini : ¥i' fl'l 11 L! '"•1 I li m Colonial Cubrenct. Now, therefore. Her Majesty, by and with the advice of Her Privy Council, iu pursuance of the said Act, and of all other powers enabling Her Majesty in this behalf, is pleased to order, and it is hereby ordered, as follows : — A.ny gold coins of the realm which have not been called in by procla- mation and are below the least current weight as provided by the Coinage Act, 1870, shall at any time after the seventeenth day of March 1892, if they have not been illegally dealt with, be exchanged or paid for by or on behalf of the Mint at their nominal value, subject to the condition that they must be tendered during business hours at the Bank of England in London, in parcels of a nominal value of not less than one hundred pounds oach, and must be left there for such time before the exchange or payment as may be reasonably necessary for examination and weighing in order to ascertain whether any coin has been illegally dealt with within the meaning of the said Act. And the Master of Her Majesty's Royal Mint is hereby directed to carry into effect tlie provisions of the said Act for exchanging or paying for at their nominal value all such coins as are so tendered, and have not been illegally dealt with. (xxxii.) Charge for Coining Gold at the Sydney Mint. Date ok Bkgui.ations. CHARUB. Remarks. 10 Mar ix&s - I per cent.; not less tUun 1,000 oz. receive 1. " The S)dney Mint is not open for melt- ing and refining plate and jewellery or bullion which ha.s l)een previously wrought, or for converting such into coin. Unsuitable importations will be returned." 18 Juue 186S - From 10,000 oz. upwarils, J per cent. Under 10,000 oz., but abovu li uz., 1 per cent. An additional J per cent, charged in cases requiring early payment (within three days of delivery at Mint). 33 September 1855 From 1,000 oz. upwards, J pur cent. Under 1,000 oz. but abovs 13 ot., 1 per cent. An additional i per cent, charged in cases requiring early payment (within two days of delivery). 34 Ootuber 1859 - A reduction of | per oent. made from tlie foregoing charge in favour of gold produccil in any otlier part of i tstralasia tliau New Soutli Wales. 1( August 1866 • Over 1,000 oz. 6d.» per oz. stanc'ard. Under 1,000 oz. 8 d. pcroz.* sttunlard. (Minimum weight received, 12 oz.) A reiiuction of 3 d. per oz. made in favour of gold from other countries tlian New South Wales. 80 June 1869 Over 1,000 oz. 6d. * per oz. standard. Under l.lMH) oz. 8 d.' poroz. standard. (Minimum weight received, H) oz.) Ditto - - - ditto. 33 Auguit 1870 - Over 1,000 oz. 6d.» per oz. standard. Under 1,000 oz. 8 er cent, jmid for at a rate to be from time to time notifled in the Gazttte. 36 September 187» Ovtr 6,000 oz. 2 (1. i)er oz. standard. 600 to 5,000 oz. 4 d. pi II Jamaica It I, Leeward lands II ,1 Mauritius It I, Mauritius and West Indies 21, [22 „ „ St. Helena - 224 11 II St. Lucia - 88 11 11 St. Vincent (1831) - 89 ,1 Trinidafl 119, 121 Anglo-Indian Coins, weight and 11 II fineness of various issues of . 406 Proclamation by, 1704 - 14.68,206 Antigua, xev also Leeward Islands. Act of 1699 - . 66,67 „ Gold coins current by weight, silver by tale - 74 „ insufficient coinage in - 76 „ rating of various coins in, 1699 - ... 67 Army Bills, in Canada - - . 182 Assay Office, established in South Australia (1852) - 274 Australasia - - . . 242-294 „ forty shillings limit of t/>nV „ copper pence for (IHO(i) - l(i4 „ note issue - - - iJO „ notes and coin per heiwl of jiopulation - - - 168 „ practically part of United States currency area - ;U) „ rating of ffold coin in (1750 anil 1788) - 162,163 „ sterling denomiiiiitions adopted - - - 27 „ United States gold coin over- valued - -167 Bank Acts of 1844-45 - - 32, 33 *' Bank Circulation Redemption Fund " in Canada - - 36 Bank of Nassau - - - 836, 16 Banking policy of England - - 32 regulations for Colonies, 1840 and 1846 - 421M34 „ in Hong Kong, 379 „ New Hoiith Wales - 261 „ „ Queensland 279 „ „ Tasmania 271 ,, „ Victoria 2()7,268 „ „ Western Australia 284 „ statistics in Western Aus- tralia . - - - 285 Bank Notes. See Notes. Banks, control of exchanges by - 31 „ in Colonies, regulations re- garding - - - 32, 33 Barbados ... - 46-59 „ Act of 21 August 1848 - 57 „ coin and notes per head of population - - 85 „ currency history of spe- cial interest - - 46 n •t II n II •I Page Harbailos, dearth of coin in -49, 50, 51 „ dcmonctisiition of dol- lars in - - - 58 „ denominational currency [48-58 „ light and debase*! coins in - - - 50, 61 „ n\erchants raise rating of Doubloon - - - 55 „ metallic stanilai'd adoptwl - - 47, 49 „ i>aper curreiK'y - 51, 52 „ price of gold bullion in - 51 „ probable hoards of coin in - - - - 58 „ rating of Ileal - -19 I, ,1 sugar in - - 47 „ tokens the only metallic currency - - - 58 Barbary Ducat, account of - - 397 Barter in British Colonies 5, 6, 10, 46, [50, 60-63 See iiImo under the following : Beaver-skins. Cotltish. Cominotlities. Corn. Cotton. Cotton- wool. Empty bottles. Fur. Fnstick wood. Ginger. Grain. Indigo, JjOgWOxl. Mahogany. Molasses. Mus(;ovado sugar. Uum. Skins. Timber. Tobacco. Wampompeag. Barter in Bermudas ... 151 „ „ Canada - - . - 175 „ „ Gambia - • - - 220 „ „ Newfoundland - - 170 „ „ New South Wales - - 242 [243, 244 Basutoland 239 Bay Shillings (nee Boston Shillings, al*o New England coinage) Beaver-skins, as money, in Canada 175 Bechuanaland, British, currency of 239 Bengal Furukhabad Rupee - - 406 Berbice (see alto British Guiana) . 125, [126 „ paper currency of 125, [134, 135 - 125 150-160 „ scarcity of coin in Bermudas, The „ coin per hca^l of popu- lation - - - 160 „ pennies for - - 157, 158 „ rating of various coins in - - 155, 156, 157 „ sj)ecial coin struck for (1616) - - - 150 „ stock of coin in - • 160 " Bits," in Antigua - - - 76 „ „ Barbados - 53, 55, 56 „ „ British Guiana - - 137 „ „ Demerara and Essiquibo 127 „ „ Dominica, stamped - 76 „ „ Grenada - - 82, 83 i : rage - 4!t, 50, 51 (lol- . 58 irrency [48- -58 1 COlllH 5(1, 51 ratiuK of . 65 nnilaiil - 47, 49 51, 62 ion in - 61 of coin . 68 . 19 47 uetallic . 58 . ^97 5, 6, 10, 46, [60, 60 -6Fi living : Hi. my. 2H. ado sugar. 0. >niiicag. 151 . 175 . 220 . 170 • 242 [243, 244 . 239 lillings. nage) Canada 175 ency of 239 . 406 ana) - 125, 126 . 125. [134 135 . 125 - 150-160 f popu- . 160 - 157 158 8 coins 55, 156 ,167 ack for . 160 . 160 . 76 53, 55, 56 . 137 wiquibo 127 xl . 75 - 82, 83 INDEX. Pago legal . 88 105, 108 - Ill " Bits," in Grenada, limite(t) 191 „ „ in Wiiidwanl Islands (1838) ... 90 „ South Africa Co., currency of territory of - - - 240 Bronze cents for Caniwla (1858) - 188 „ coin, in Gambia - - - 220 „ „ „ LapoH, discount on - 217 „ „ „ Hievra Leone - - 211 „ „ regulations for supply of, to Colonies - 456 Brown, P., notes issuetl by, in West- ern Australia .... 283 Buccaneers increase the stock of coin in Jamaica - • - - 97 Burgundian Thaler • - - 390 Caicos Island, demonetisation of copper coin in .... 113 " Cainie " (Turkish) in Cyprus 325, 329 Canada 175-206 „ Act, 34 Vict. cap. 4 - .198 „ adoption of dollar and cent system of currency - 187 „ Austrr'ian gold coin legal tender in - - - 29 „ "bank circulation re. demption fund " . - 203 „ coin per head of population in Canada ... 199 „ coinage - . 188,198,199 „ coins and notes per head of ])opulation ... 206 „ Dominion of . - 197-206 „ exchange Ixitween London and,complicate8 Bermudas - 160 11 Canada - 199 ») Ceylon- - 358 M Cyprus - 334 Jl Fiji - - 293 t» Gibraltar - 306 II Gold Coast - 215 11 Hong Kong - 378 n India - - 340 It Malta - - 324 ti Mauritius - 369 It St. Helena - 227 It Straits Settle- ments - 387 Coin, rated in terms of commoditieH 62 Coinage Act, 1870 . 448-453 II 5J application of, to Colonies - 43 t' - applied to Bar- b&los - 42, 58 )i )) api)lie - 137 guilders „ „ ;, 129-132 of copper cents for Ceylon (1872) ... - 357 o^ li ii it A dollar ' • 2L H h2 472 INDBX. \l' PHI, II 'I Hi i| ilf I! Page Coiuagc of Uix doHars for Coylon B63, [354, 355 „ Sierra Leone - • • 208 „ token, for Canmla 188, 198, 199 Ooinod money, scarcity of, in plan- tations 5 Coininfi;, in New England • 9, 10 Oolonato 390 Colonial Bank - 57, 78, 91, 95, 112, 113 137 "Colonial Hank of Issue," New Zealand - • 287-290 "Colonial Branch Mint Act, 18G6" 29, 444 Colonial currency, historical evolu- tion ... 3 „ „ history divided into three epochs 3 „ gold standard coin, only instance of - . - 30 „ Ijaws recognised by Horre Government . . - 39 „ Ordinance can over.rule Uoyal Proclamation, kc. 43 Colonies, Imnks in - - - 32, 33 „ list of, showing the various monetary standards • 30, 31 „ proposed uniform currency for (1728) ... 17 „ with power to regulate currency - - 40, 4 1 Commodities and coin, a dual standard - - 60 „ as money • 5, 6, 10, [46, 47, 50 30, 61, 62, 6:5 See aho under the following : Barter. Indigo. Beavcr-skins. Logwood. Codfish. Mahogany. Corn. Molasses. Cotton. Muscovado sugar. Cotton-wool. Rum. Empty 1 iwttles. Skins. Fur. Timljer. Fustick wood. Tobacco. Ginger. Wampompeag. Grain. Commodit ies as money in Barbados • 46 >i )i 1) Bermudas 151, 152 Canmla 175, 176 V Jamaica 99, 100 » II 11 Nova Scotia (1846) - 190 II 11 11 TheBemru- das - 151, 152 «• II 11 not generally used in Ja- maica - 97 II II 11 superseded by coin in Lee- - ward Islands 63 II II 11 use of, illegal in Jamaica (1761) - 102 " Gopangg, " in Penang .. - 382, 383 Page Copjier and bronze coins demonetiseil in Jamaica- - ■ - 113 bars, as money, in St. Helena (1683) - . - - 221 „ cents for Ceylon (1872) - 357 „ coin, demonetised in Colo- nies (1876) - 455,456 „ „ disliked by Negroes, in Jamaica, 110, 113 II II II II '^ Trinidad - 118 „ „ for Plantations - - 18 „ „ for The Bermudas, 157, 158 „ „ in Newfoundland - 172 „ „ „ Nova Hcotia ■ 190, 191 „ „ legal tender of, in British Guiana • 136 „ „ rating of, in Canada (1765) - - - 179 „ „ refuseil by Negroes in Gold Coast - - 215 „ „ 8hipt)ed to New South Wales (1800) - - 243 „ coinage for Ceylon (1815") - 354 „ „ „ St.Helena(1821) 223 „ jience, for Bahamas, refusal of Negroes to use (1806). . - 165 „ „ for Bahamas ^' Hi) S4, 165 „ piastres (Britis)" <■ C Corn aa money, #re-Victorian gold coin - 4B, 460 silver dollars in Gambia - Currency, abol- iBhe St. ,, Helena [222-225 „ ., » 3^- Lucia - 87, [90, 91 „ „ „ St. Vincent - 85, [86, 89 „ „ „ Tasmania - 269 „ „ „ ToUgo - - 95 „ „ „ Trinidad 114-121 „ II „ Virgin Islands 76 „ I, „ W i n d w a r d I s 1 a n d 8 (18"8) „ Ring, in St. Vincent - „ „ profit on manufacture „ Rix, at Cape of Good Hope, rating of, under Trea- sury Minute of 11 Fob. 1825- - 421, 422 „ „ coinage of, at Royal Mint(1821) 355 II II II in Ceylon 353, 354 „ „ in Barbados • -48 „ „ „ Cape of Good Hope 230 231 „ „ „ Ceylon 21, 360, 353, 354 „ „ „ Malacca - - - 383 „ „ (Paper), depreciation of, in Ca|)e of Goo „ Virt^in Islands - - 80 II „ West Indies (1825) - 25 II rated at bullion value in West Indies - - 27 It rating of, in Antigua • 67 n „ „ Bahamas - 164 II „ „ Barl>ados • 64, [56, 57, 58 n „ „ British Guiana (1838) . 133 99 „ „ Caniula - 179, [181,182,187 99 „ „ Cape of Good Hope (1806) - 231 19 „ „ Dominica - 74 99 „ „ Gibraltar - 298 [300, 301 99 „ „ Gold Coast 212 99 „ „ Grenada - 89 99 „ „ licewanl Islands 77, 78 It „ „ Mauritius (1824, 1825, and 1843) - 363, [364, 366 19 „ „ NeviB, in 1740 - 72 Page •)oubloon, rating of, in New Br u n s- wick (1805) - 192 „ „ „ Newfound- land - 170, [171, 172 „ „ „ Nova Scotia - 189, [190, 191 II II II Prince Edward Island 196, 197 „ „ „ St. Helena, 223, [224, 225 „ „ „ St. Lucia, 87, 91 II II II St. Vin- cent - 86, 89 II II ., Tobago - 95 „ „ „ Trinidad - 114, [115, 120,121, [122 M II II various Colonies, 25, [26.27 I, „ „ Windward Islands (1838) - 90 „ Spanish, in Gibraltar - 27 „ standard in West Indies 27 „ overrated, in West In- dies - - - 25, 26 „ weight and fineness of various issues - - 407 Dual standard, Coin and Commodities 60 Ducat, Barbary, account of - - 397 „ rating of, in Antigua - - 67 II „ Capeof OooilHope (1806) - - 231 „ „ Ceylon - - 350 „ „ New South Wales (1800) - - 243 Ducatoon (Dutch) weight and fine- ness of - - - 405 „ Cape of Gootl Hope • 230 „ Malacca - - . 383 „ rating, in Ceylon - - 350 „ „ St, Helena - 222, [223, 224, 225 " Dudoes," in St. Helena - - 223 Duits, in Ceylon - - - -351 „ Straits Settlements - - 383 " Dumps," in New South Wales (1813) - 21, 244, 245, 247, 248 Dutch coin in Ceylon ... 350 „ „ Gold Coast . 213, 214 „ „ Malacca . - . 383 „ money of account in British Guiana . • - .124 „ money of account in Cape of Good Hope . - - 230 „ money of account in Ceylon, 350 „ notes in Ceylon ... 351 „ paper currency, in British Colonies - . . - 22 „ subsidiary coin in Capo of Qcod Hope (1806) - . 232 1 ' i ' ) ^1' p 111. Si" It i *'l I I 478 INDBX. Eagle in Bahamas „ Barbados - „ Canmla - „ Gold Coast „ Jamaica „ Lapos „ Leeward Islands ,, Newfoundland Page - 167 57, 58 181, 185, 186 . 212, 214 - 112 - 216,217 - 78 - 172 „ New Brunswick, 192, 193, 194 „ Prince Edward Island - 196 „ Sierra Leone - - - 210 „ weight and fineness of various issues - - 410 ficu, account of - - - - 397 „ in Canada .... 175 „ „ Jamaica - - - - 99 „ legally current in Leeward Islands - - - 65, 66 „ rating of, in Nevis, in 1740 - 72 „ weight and fineness of, - - 404 Empty Bottles, as money, in British Guiana - • - - . 136 Escalin (or Bit) in St. Lucia - .87 Escudo de Plata - - ■ - 390 Escudo, weight and fineness of various issues - - - 407, 408 Essiquibo, see also British Guiana 126- [133 Estampees, in Tobago - ■ - 95 Exchange between Canada and London ... 206 „ on London, rates of, in New South Wales (1847-1858)- -250,251 Falkland Islands ■ - - 147-149 „ „ scarcity of coin 147, 148 „ „ various coins cir- culating in - 149 Fanam, in Ceylon - - 349, 350, 354 „ demonetised 357 „ „ India - - . 337, 338 „ „ St. Helena - - - 222 Farthing (bronze), weight of (1870) 453 „ in Leeward Islands - 65 Fiduciary basis for note issue 33, 34 „ in Bahamas - - 168 „ ,. Canaila 36, 187, 200, [201 Fifty-shilling limit of tender for British coins in New Brunswick - - - 194 „ pounds limit of tender for silver coins in Nova Scotia 189 Fiji 292-294 „ Coinage Act, 1870, applied to - 293 coin per head of population - 293 rating of various coins in (1875) 292, [293 „ Treasury Notes in • - - 292 Fine silver, coins received by weight of, in Hong Kong - ■ - 373 Fipence (3d.) in Jamaica - 110, 111 Five-frano piece of " Latin " Union 398 „ „ in Bahamas • • 166 „ „ „ Canada (1841) - 186 Page Five-franc piece in Gambia • 219, 220 „ „ „ Gold Coast .212 II It „ Lagos . . 216 „ „ „ Mauritius (1824, 1826, and 1843) 363, 364, 366 „ „ „ Prince Edward Island - 196, 197 „ „ „ Sierrfi jeone210,211 „ „ „ St. Helena - 224 „ „ under Treasury Minute of 11 February 1825 - 424 „ „ weight and fine- ness of - - 404 Five-pound limit of legal tender for silver token coins proposed in British Guiana 30,32, [111, 136 ,4 „ „ coins in Malta • 324 „ shilling notes in Bahamas - 163 Florin, weight and fineness of - 463 Fond, rating, in St. Lucia (1840) - 91 Foreign coins in British and French colonies overvalued (1704) ... 14 „ „ in use in Plantations, Act of Parliament fixing ratings (6 Anne, cap. 67) 414, 416 „ „ rating of, in West Indies - - -20 „ gold coins, absence of rating for, in colonies 15, [16,24 „ „ in Plantations, rated at one- third more than sterling value • 17 „ standards, colonies using - 30 Forty-H.l lilting limit of legal tender' of silver token coins - 30 „ „ tender for ., certain Britith „ tilver coin* in Jamaica, 112 „ „ tender for silver coin ex- tended to certain colonies (1852) -254, [434, 436 Forty-shillings limit of legal tender extended to Hong Kong 374 „ „ for British sil- ver, projwsed adoption of, in Trinidad . 121 1.!^ . INDF.X. * • 47» Page Fourpences, for British Guianu and Page Gibraltar Spanish doubloon in - 27 West Indies - 58,137 II under-valuation of British II for Leeward Islands - 78 coins (1825) - - - 25 )y in Barba „ „ Lagos . 216, 217 tion in - - - 215 II „ „ Leeward Islands 65, [67 II demonetisation of gold dust and nuggets - 215 -M „ „ West African II export of gold dust from 215 Colonies and II Orders in Council - - 41 Mauritius . 27 II rating of gold dust and II „ rating of, in Canada 180, nuggets in- - . 214 [181, 184 „ legal tender of, in 11 sto k of coin in - . 215 II Gold coin, absence of, in West Indies 31 Bahamas - -166 1) (Australian), legal tender II crowns, in Leeward Islands 71 in Ceylon (1856) - 356 II currency, superseded by British, in Canmla - - 178 It British, legal tender in Ceylon (1852) 356 II denominational currency in St. Lucia abolished (1840) 91 II „ weightand fine- ness of, 400, 412 (I gold coin, rating of, in Gold Coast - - - 212, 214 II chief currency in Lee- ward Islands (1 739) - 68, II silver coin, demonetised in [69 '^ Upper Canada 184 It earliest reconl of, in II „ in Trinidad - 121 Colonial Enactments - 98 II „ standard in Lower Canada 183 II French, rating of, in Can- ada 178-187i Fur, ae money, in Canaila - .175 II „ „ in Gold Fustick-wood, as money, «ee also Coast 212 Commodities - - • - 46 [214 It „ „ in Lagos 216 . » II It in St. Helena 223, Gambia 219, 220 [224, 225 1, Orders in Council - - 41 It „ ,, in S erra Georgia, tee Plantations Leone 210 Gibraltar .... 296-306 II in Barbaflos, proportional M adoption of sterling de- ratings - - 54, 55 nominations - - - 27 II „ Bahamas - 162, 163 II attempt to introduce British coin . - .299 It „ Bermudas, rating of .157 It „ British Honduras, scar- fp «' Bimetallic " standard - 30 city of . - 143, 144 It coin per head of popula- tion - ■ . - 806 II „ Canada, few in circula- tion - 198, 205 it coins current in, in 1841 and 1844 302 It „ „ list of, legal tender by If „ „ in 1878 305 weight 11 „ „ in 1892 306 (1841) . 187 II copper cuartOB (British) struck for . - 301, 302 11 „ India, legal tender of, suggested (1866) - 346 II dollar in, as bullion only 27 II „ Leeward Islands 66, 72, 73 It rating of Spanish coins in 296, [297 It „ Plantations, absence of Imperial rating for 16,17 ft scarcity of small coin in - 297, II „ St. Vincent - • 84 [298 II „ Victoria, amount in cir- II Bpanish currency adopted [303-306 culation ... 266 •I „ West Indies . 15, 16 480 INDE7« n. I i:l hi s '1, i:| if t ^ Page Gold coin lifrht, withilrawn and ex- chani(0(l at it8 nominal value- - - 468-462 „ Newfoundland • -173 „ pre-Victorian, demone- tised (1890) 460 „ „ from Cape Colony.ex- chanKcl - 236 „ ,, withdraw- al of - 458 „ rare in colonies in 17th century - - - 10 „ Spanish and Portuguese, ratings in Jamaica (1774) - - - 106 „ (Sydney Mint) legal ten- der in certain colonies (1866) - „ Unitetl States, legal t ender in Canada n M M II M II n I* »» • 446 198 220 212 112 216 78 Gambia Gold Coast Jamaica Lagos - Leeward Islands „ „ „ Sierra Leone 210 II II »» " est Indies (1853) 435, [436 „ (Melbourne Mint), legal tender of - - - 447 Qold, discovery and production of, in Australasia 27, 28 „ dust and nuggets, in Gold Coast, demonetised (1889) 215 „ „ legal tender in Lagos - 217 „ imports of, into India „ monometallism, ailopted by England - - - - „ over-valuation of, in Sj)ain - „ standard, adoption proposed in B. Honduras in India failure of, in Hong Kong, &c, in Barbados „ Bermudas „ Canatia - „ Leeward Is- lands - „ Newfoundland - „ Tobago - „ West Indies H II II II It n - 346 21 296 146 345 30 52. 63 - 154 - 198 •I II 68 173 - 94 11, 16, [19 „ "tokens," struck and issued in South Australia - - 275 "Good fors," ill Cape of Good Hoi« 233 " Goods," issue of, in Berbice- - 126 „ „ Demerara and Essiquibo 127-130, [133 Page. Gourde 390 „ in SU Lucia - - 87, 88 Government, British, first interven- tion in colonial cur- rency - . - 11 „ note issue, in Barba«los 61 „ „ Ceylon 358, [369 „ „ Mauri- tius - 367 „ „ New Zea- land - 288 „ ^ Prince Edwanl Island- 195 „ notes in Canada, nee Notes " Provincial " and " Dominion." Grain, as money, in Canada - - 175 " Grain," in Malta - - - - "824 Grenada Act of 2l8t March 1787 - 82 „ „ 24th August 1840 - 90 „ and St. Vincent denomi- national currency abolished (1839 and 1840) ... 90 „ British silver coin intro- duced - - - - 89 „ coins stamped G • 82, 83 „ cutanddebaseil money in 82,83 „ demonetisation of dollar 92 „ fourpences in (1891) - 92 „ scarcity of coin (1814) • 84 Groat. See Fourpence. Guatemalan dollar, see nl»o Dollar, „ „ in British Hon- duras . 143, 144 „ „ standard of value in British Hon- duras - 139, 146 „ silver coins in British Honduras - - 143 " Gubbers," gold, in St. Helena - 222 Guilder of account in British Guiana • - - - 124 „ rating of,-- ->rbice(1816) 125 „ „ „ . Helena 224, 226 „ „ „ JNew South Wales (1800) 243 „ token, in Barbados - - 58 „ „ British Guiana 124, [125, 129-132 Guinea, account of - - - 400 „ a " pound sterling " (1660) 400 „ French - - - - 398 „ in Barbados - 51, 53, 54 „ rating of, in Antigua- - 67 „ „ „ Bahamas (1788) - 163 „ „ „ Bermudas - 156 „ „ „ Canatla 178, 179, [181, 186 „ II M Cape of Good Hope (1806) 231 ,, ,, ,, Grenada - 83 INDEX. 481 Guinea, rating of, in Jamaica Gulden ami stivers, in Ceylon „ groschen • Page 101, 104, [108 Nevis, in 1740 72 New Bruns- wick (178«) 192 Now South Wales - 243 St. Vincent 84, 86 - 350 - 390 Half-crowns, in Newfoundland - 172 „ worn, proposed impor- tation into Falkland Islands - • - 148 „ weight and fineness of (1870) - - - 4i)3 Half-farthings in Ceylon - - 355 Half-Johannes - - 19, 20, 396 „ standard in Lee- ward Islands - 74 Halfpenny (bronze) weight of, 1870 453 " Half-Shiner," rating of, in Gibral- tar 298 HaUf ax currency - - 7,179,183 Hammered coins in Jamaica 102, 104, 105 Hoardetl coin in Barbadoes - - 58 „ Jamaica - 98, 113 „ Lagos - - - 218 „ Sierra Leone - 215 „ „ Windwarrl Islands 93 " Hogge " money, in the Bermudas (1616) I* n Holey dollar" 151 21 m 269 and "dumps," Tasmania - „ „ in New SouthWales (1813) - 244,247 „ money, in British Honduras 146 Honduras, British. See British Hon- duras. Hong Kong . . - - 371-380 „ „ adoption of sterling de- nominations - - 27 „ „ attempt Lo introduce British silver coin 372, 373 „ „ coinage for - - - 374 „ „ coin per head of popula- tion- - - - 378 „ „ coins in circulation (1842 and 1892) 372, 377 coins received by weight 373 forty shilling limit of ten- der for British silver coin extended to(1852)435 gold standard impracti- cable - - - 30 legal adoption of silver standard (1863) - 374 Mint. .SfeeaZ«w Mint 375, 376 notes per head of popu- lation . - . 380 subsidiary coins for 374-378 theoretical gold stan- 374 dard of (1853) - 1) Page Imperial coins in colonies, legal by 8|)cciai enactment only - 40 „ Government, control over colonial currency - 41, 42 Indentures, Mint ... - 38 India 336-348 „ British, paper currency of - 4 „ „ currency distinct from that of other col- onies, &e. - - 3, 4 „ „ weight and fineness of various coins - - 406 „ coins current in, since 1870 338, 339 „ „ of Native States and Por- guese India - - 339 „ free coinage of silver - - 339 „ gold coins - - - 340-346 „ imj)orts of gold - - . 346 „ notes j)er head of population - 348 „ paper currency of - - 346-348 „ security for note issue of 34f>, 347 „ silver and copj)ercoin per heatl of ))opu- lation - 340 II », .1 II struck 1835-9] 339 „ sovereigns rated at 20 ru{)ees in 334 Indigo, as money. See aho Commo- dities 6, 61, 62 Ingots, gold, assayed and stamped in Adelaide - - . - . 274 Ireland, moidores in - - - 396 Irredeemable paper currency in Berbice - 125 „ „ „ Cape of Good Hope 230—236 „ „ „ Ceylon- 361 — 365 II I) >, currency of Demerara and Essi- quibo - 133 Isle du Vent, or Crimbal Bits 51, 56 Jacobus, English, rating of in An- tigua 67 Jamaica ----- 97, 113 „ Act 3 Vic. cap. 39 - - 111 i> ,1 6 „ ,,28 - - 112 6 ,, „ 40 - - 112 7 „ „ 5 - - 112 British currency adoptetl 111 bullion business of, 97, 109, 112 „ centre of British Possessions 97, 109 clippefl coin, a standard in, 100 coin, insteail of commotli- ties, used in - - 97 „ stamped " G. R." - 103 currency, in British Hon- duras - - - 140, 142 forty shilling limit for certain Brituh silver coins . - - . 112 Government, bankrupt con- dition of (1838) - - 111 large stock of coin in - 97 notes issued by Government 36 »i II II II II •I m 482 INDEX. II I"' fill, r «• !■' t! II Page Jamaica, ratinK of real - - - 11) „ sterling denominations atlopted - - - 27 Three-halfitcnny pieces • 20 Turkn Irsliuid and Caieos IwhuK 1, e< )i)i)er aiK 1 bronze coins demonetise*!- - 113 ,, undur-vahiation of coin in 'JH, [104, 107, 110 JochiniHthaler .... 390 Joes. See Johannes. Johannes, account of • - - 390 „ as standard, in Wind. ward Islands - -82 clipped, in West Indies 19, 20 double, in Mt. Vincent (179S) ... 84 in Bahamas - 102, 163 ,, Barbiulos - 53, 54 „ Bermudas - • 157 Canada - 178,179,181 Cape of Good Hope (1800) - 231 Demerara - - 120 Dominica • - 74 (Jreniula - - - 83 Jamaica lOtJ, 108, 109 Nevis, in 1740 - 72 New Brunswick (1780) - - 192 New South Wales (1800) - • 243 St. Helena - 224, 225 St. Vincent - Tobago • Trinidad - West Indies (1825) light, in St. Vincent „ staiida' coin of Lee\\..rd Is- lands scarcity of, in St. Vin cent (1798) suceeedeil by Doubloon in Leewani Islands II II II (I II )i II II i> n It II II 11 11 II tt II II II II . ". 80, 89 - 94 - lie - 25 - 85 73 - 84 Lagos . . - - „ importation of dollars - „ Orders in Council „ stock of coin in - " Latin " Union, " bimetallism " of - „ „ currency of, ailop- tal in Gibraltar - Laws, Colonial, recognised by Home Government „ (Currency), Imperial, tlo not necessarily relate to Colonies 76 216-218 - 216 41 218 398 305 39 40 Leeward Islands - - - 9, 00-81 „ „ Act of 1694, regu- lating currency' 65, 66 „ „ Commodities su- pcreefletl by coin as money 63 Page Leeward Islands, Conimcxlities the chief medium uf exchange - 02 „ „ currency legisla- tion - - 78 „ „ Metallic currency of - - - 64 „ „ cut coins in- 75,76 „ „ depleted of Pieces- of-Kight, ice. - 08, [09, 70 „ „ gold coins Jn • 06 „ „ gold coin, the chief currency in - - (>8, 09 „ y, legal tender, limit of com- modities in - 63 „ „ metallic currency intnxluced 02, OS „ „ metallic currency of, first Law relating to - 64 „ „ Notes and token coins the sole cur- rency - 78 „ „ „ per head of pojjula- tion - 81 „ „ Rating of coins cur- rent in (1740) 72 „ „ „ Dollar and Doub- locm - 78 „ „ „ Real - 19 „ „ scarcity of coin in 68 „ „ uniform rating of gold in - - 71 „ „ Unife7 rating of, in Antigua - 67 „ „ Harbaflos • 54 „ „ Canada - 178, [179, 181, 182 '- „ „ „ St. Helena 224, 225 „ „ „ NcviB, in 1740 - 72 .' ■ „ „ „ New Bruns- wick (1805). 192 ' „ weight and fineness of 409, 410 Lucknow Rupee, weight and fine, ness of - . - - . 406 "Maccaroni" pieces,in British Hon- duras . 141 „ „ Jamaica 109, 110 Macuta currency - - - - 208 Mahogany, as money, see ah o Com- m'xiities . 6 „ „ in British Honduras 139, 140 Malacca .... 381-388 „ Dutch coins in - - 383 Malta 307-324 „ adoption of sterlirg denomi- nations - - - - 27 „ attcmj)t to introduce British silver coin . . - 312 „ British coin, the sole legal tender (1855) - - 321, 322 „ coin and notes per head of population - - 324 in circulation in, in 1797 308 „ in 1823 310 „ in 1844 320 „ „ „ in 1845 318 issue of one-third farthings - 313 Merchants fix valuation of various coins (1845) ■ - 319, [320, 321 Malta, old Maltese coins incircula- Pagc w »i i> I »» >» ti tion in 1H25 Sicilian dollar in • 311 308, 309, [317-323 309, 310 legal . 30 currency 319, 320 5 12 5 13 240 Boston 360-370 21 „ Spanish coin in - „ Silver token coitis, tender in . „ two concurrent systems (1851) , Maltese coins, demonetised in 1886 324 Maria Theresa Thalers, rating, in St. Helena 224 Marqu6 (Mauritius) - . 364, 365 Maryland, nee aUo Plantations ,, coin struck iu „ " Dogg " dollars in „ Mint in ... „ scarcity of coins in (1702) Mashonaland, currency of Massachusetts Mint (see Mint). Mauritius „ Anchor Money in „ British coin tlrives out rupee (1851). . . 367 „ coin per heml of popula- tion .... 369 „ coinage of J. }, ^, and ^ dollars f(u-- . - .362 „ forty shilling limit of tender for British silver coin extended to (1852) 435 „ French and East Indian coins in • - „ Indian currency adoptetl (1876) „ large importation of francs and 2-franc (1837) „ Notes issued by Govern- ment >y „ per hea^l of popula- tion - - . 370 „ ratings of coins in (1843) 366 i> I) „ in 1824 and 1826 - 363, 364 „ rupee, as standard • - 30 II „ divitled into cents 368, 369 „ Rupees rei)laced in cir- culation (1866) - ,, Spanish dollar overrated in (1824) . „ sterling denominations a 444, 462, 463 „ for coining gold at Colonial Mints - 446 examination of gold coins from Plantations by - 17 Hong Kong- - • - 30 Indentures . - - - 38 in American plantations, pro- jMDsed - ■ - 12, 13 in Barba It Pag« Mint, Sydney, papers relating to the establish- mcnt, iLC, of 436-447 •1 „ Proclamation (1871). Gold coins of same design as those struck in London to be current 29, [268, 463 If „ Proclamation (1871) Gold coins of, to be current in Vic- toria, &c. • - 464 »» „ proposed establish- ment of - - 251, [252, 263 »» „ pyx coins of - - 265 ri „ Select Committee of House of Commons on coins of - - 267 II „ silver and bronze coin put into circulation by - 269 fi „ coins, current in Hong Kong, Ceylon, and Mauritius • - 256 Mints, Australian, legal tender of coins struck at - • • 28, 29 Minute , Treasury, see Treasury. Mocos, in Leeward Islamls • • 79 ft St. Lucia - 87, 88, 90, 91 n Jamaica .... 109 Moeda de Ouro - - 396, 408 Mohur, account of - - 340-342 II Bengal, Madras, and Bom- bay, rating of, in Mauritius • - 363,364 •1 rating of, in Bombay - - 341 » „ „ Cape of Good Hope (1806), 231 u „ „ sterling, in Hong Kong - 378 •> „ „ Mauritius (1843) - - 366 ll „ „ New South Wales (1800) 243 >l „ „ St. Helena - 223, [224, 225 ft various issues, weight and fineness of - - 411, 412 Moidorc. See aUo Moeda de Ouro. II and " Joes " in the Ber- mudas - - • 167 11 in Barbados • • 60, 63, 64 »i „ Ireland • - - 396 >i rating of, in Bahamas (1750 and 1788) 162, 163 i> „ „ Canada - 178 [179, 181 fi „ „ Grenada- 83 !• „ „ Jamaica - 101, [104, 106 iNbEX. 465 Id I2, 163 178 », 181 83 101, 14,106 I'ngc Uoidorc, rating of, in Novis, in 1740 - 72 Brunswick (IWC.) - 102 H 11 ,1 !^t. Holena 224, 22r> „ „ „ St. Vin- cent MoInsHcs, ns money, see almi Com- modities MoiKjy of Account, 'ee Denomina- tional Currency u..il "(.hirruiicy UatingM." Monomctalliam, Gold, ivloptal by Kngland - „ Silver, of India - Montserrat, nee aho Lccwaril lalaiids. cut coins in Irish Colonists in sterling denominations a „ „ coinage - - „ „ coins current in St. Kitts - - - 64 „ „ Mint in - - 9, 10, 11 „ „ „ refusal to re- establish 11, 12 Newfoundland - - - 170-174 „ Australian gold coin legal tender in - 29 72642. II 173 174 172 172 30 ,172 31 170 392 amount (18(i6— 1891) - „ coin and notes per head of )M>puln- tion • „ copper coin recalled (1872) „ dollar currency sya- tem iiildptcd „ gold two-dollar piece - „ issue of Government notes - - 171, „ sovereign in - „ " sterling " • "New Plate," dollar of New South Wales - ■ 242-262 „ „ Act, No, III., of 1855 - 254, 256 „ „ Banking regula- tions - - 261 „ „ coin and notes per head of population -260, [261,262 ,, „ doll.ir, cut and stamped (1813) - - 244 „ „ "dollar system" in - 246-249 „ „ note issue - 23, 35, 36 „ „ private promis- sory notes - 23, [242-246 „ „ rating of various coins in (1800) 243 „ „ Treasury Minute (11th Feb. 1825) respect- ing intrixlue- tion of British silver and copper coin - 420 „ „ various coins in circulation, in 1829 - Newton, Sir Isaac, assay of Barbary Ducat by „ „ report on Pieces- of-Eight „ „ report Spanish coin New York, tee Plantations. New Zealand - - - 286-291 „ Banking Statistics (1891) - - - 291 „ conditions of private note issue - - 290 „ fc' ihilling limit of ier for silver coin adopted (1852) 435 „ issue of Government notes - - 35, 287, [288, 289 „ notes and coin per heml of population 291 II 249 397 391 on gold 395, 396 tf in It ' \ I 4»6 tKbtX. »> n ti.) It Page N!ckcl |)encc and halfpence in Janmicn - - - - - 1 13 North American Colonies, tee I'lan- tutions. „ Borneo Co., copper coins of, in Straits SettlomcntH - 387 KotcH and Coin, stock of, in HahanntH KiH „ „ Harbn Octol)er 1852, forty - shilling liiidl, of tender extande*! toeer- toiu colonica 28, 435 i Onlers in Council, 19 August 1853, and 9 March 1854, legal tender of United States gold coin in West Indies I'ago 28, 435 It „ 19 August 1853 ( S y d n e y Mint) - - 255 II „ 18 0ctol)erl854, Australian sovereign and a n d h a 1 f- sovereign - 441 It ,1 10 November 18(i(), Sydney Mint gold coins, legal tender in cer- tain colonies 445 II ,1 24 March 187() ; demonetisa- tion of eo|)pcr coin - 455, 456 II I, 16 March 1892, light gold coin e X - changed at Jiominal value 461 Oriental Bank Cor|)o rat ion, failure 35,36 II II I, Notes of, guaran teed by *v : Govern- ment, in C e y 1 o n II II ti Notes of, in Straits Settle- ments - currency in Over-issne of pajier United Stales Over- valuation of c( 358 388 18 48 14 M coins in Barba- dos „ in British and French colonics (1704) - foreign coins in l/ceward Is- lands - gold in Planta- tions I, in Spain I. coin in 'r r i n i- dad - ti coin in SjiaiiiKh Bahanutsl()3, [164 shilling in Ore- .lada - - 89 Spauish dollar 24, [25. 2ft 21 296 114 r' II 'I. ' 4$S Index. Page I. -I Over-valuation of Spanifih dollar in Lee- w a r (1 Islands 77 „ „ „ dollar in Mau- ritius (1824) 363 „ „ „ dollar in New- found- land - 170 „ „ United States pold coin, in Bahamas - 167 Packets of coin, circulation of, in British Hon- duras 146 ,, ., .. of. in Jamaica (1817) 108 [100 Pagoda, in Ceylon • - - 349, 350 „ rating of, in Cape of Goo4, [65, 67-^4 „ „ „ Nevis - - - 72 „ „ „ Plantations - 5 „ „ „ St. Helena - - 221 „ „ light, as tokens, in Jamaica 101 „ „ „ Leeward Islands 74 „ „ Pillar - 48,49,98,99 „ ,, of Mexico, 48, 49, 98, 99 „ „ of Peru, in Jamaica 99 „ „ of Seville 48,49,98,99 „ ,, of, in sterling - 6-11 „ „ title " Dollar " al n >i >i M I) l» ») II I) II II II 59 72642. Barbados British Guiana - 138 Canada ■ Jamaica Leeward Islands ■ Malta ■ Natal - 229 New- foundland 174 206 113 58 324 Page » If Population, coin and notes per heail of, in New South Wales - 260, [261, 262 New Zea- land - 291 Queens- land 280,281 South Australia 276, [277 Trinidail 123 Western Australia 285 „ „ Wind- ward Is- lands - 93 coin per head of, in „ „ Bermudas [160 „ „ British Honduras 146 Canarla - 199 Cape Colony - 236 Ceylon - 358 Cyprus. - 334 Fiji - 293 Gibraltar 306 Gold Coast - 215 Hong Kong - 378 Mauritius 369 St. He- lena - 227 „ „ Straits Settle- ments - 387 „ „ Tasmania 271 „ „ Victoria 267 „ silver and copper, per head of, in India 340 notes, Dominion, per heati of, in Cannula - 201 „ private, per head of, in Canada - 204 „ per head of, in Cape Colony 238 „ „ Ceylon - 359 „ „ Hong Kong - 380 „ India - - 348 „ Mauritius - 370 „ Straits Set- tlements - 388 „ Tasmania - 272 „ Victoria - 268 Portland, Duke of. Governor of Jamaicjv - . . . 100, 101 " Porto Novo," Pagoda, in St. He- lena .... 223, .224, 225 Portuguese coi n , Sec also Johannes and Moidore, „ in Ceylon - - 349, 360 Kk II II II II II II II II II II II II II l> If II II II II II II >l M >I II 11 II II II II II II II II 4D0 INDKX. r, •' Page Poi>uguese coins, various weight and fineness of - 396, 408 „ rupee, legal tender in Ceylon - - -357 Pound, of sterling siiver - - 399 Pre-Victorian golil coin, current in Colonies though not in Uniteil Kingdom 43 „ „ demoneti- sation of 400 „ " ,, from Cape Colony, exchanged 236 ,, ,, with5 - 72 - 19 INDEX. 491 -336, [340 - 392 Page Real, Mexican, in Cana«iii - - 183 „ „ ratcfl at sixpence - fi. H „ „ rating in Jamaica - 108 „ „ rating, in Trinidatl (182()) - - 120 „ of new plate - - - 392, 395 „ „ weight and fine- ness of - - 403 Redemption fund, for Canmlian Bank notes 203 Reforms in Colonial currency, sug- gested - - - .31, 43, Kiy Regulations for banking in C'oloin'cs, 1840 and 1846 - 429-434 „ for supply of British silver coin to Colonies (1881) - - - 4r)6 Rcichsthaler 390 " Remedy " allowances, new (Coin- age Act, 1891) ... - 461 Reserve, cash, held against ])rivate notes, in Canada - 202-204 >» n >» against Colonial notes 34 „ held against notes, British Indian - 346, 347 Ceylon (Govt.) (1891) 359 Mauritius (Govt.),'369, 370 Rider, 48, 54 Ring, or round, dollar Qire altio un- der rut money) - - 21, 75, 79 Rix dollar, see dollar, rix Robinson, Sir Hercules - - - 30 Royal-of-Eight - - 390, 402, 4o3 Royal Prerogative, as to currency, 38-43 Rum, as money, nee also Commo- dities --...- 6 Rupee, Arcot - - - 337, 338 „ „ weight and fineness of (1788-1835) - - 406 ,. juloptedasstandard.in Mauri- tius (1876) - - - 368 „ and cents for Ceylon - - 357 „ „ ,, Penang (1788), 382 „ „ „ Straits Settle- ments - .383 „ Benares, weight and fineness 406 ,, Bombay or Surat, weight and fineness of (1760-1835) - 406 „ British, first issue of - - 337 „ Company's - - : - 338 „ „ in Hong Kong - 372 „ „ rating of, in Mauritius (1843) „ „ weight and fine- ness of „ gold, in St. Helena „ „ of Mmlra8(1818)- „ Government „ im])orted into Natal „ in C'ape of Good Hope „ Ceylon - „ „ Hong Kong „ „ Malacca - - 366 406 223 341 338 228 231 - 350, 355, 356 - 373 - 383 Page Rui)ee in Straits Settlements - 383-.S86 „ „ New South Wales - 243, 249 „ „ St. Helena - - 223, 224 „ „ Tasmania, ])ropo8al rating 270 „ Madras, current in Ceylon (1823) .... 3.-,5 „ of Shor Shah - - - 336 „ overrated in Cyprus (1879) - 330 „ Portuguese - - - 339, 357 „ Sicca, in Ceylon - .837, 355, 356 „ „ Mauritius - 361, 364 „ „ weight and fineness of (1766-1836) - - 406 „ Surat 337 St. Helena . . - . 221-227 „ a, 110 rating of, in BahamaH - 104 Barbados - 56 British Guiana, 133, 134 Cape of Good Hope (1806), 231 Cana«la 17i)-181, [184, 185 Demerara and Essiqui- Ijo - 131, 133 Janmicn, 101, 111 New Bruns- wick • Newfound- land - 1 70, New South Wales (1800) 243 Nova Scotia, 188- [lao Prince EtX- ward Island, Trinidad (1826), 119, West Indies - Windwanl Islands (1838) „ various ratings of, in Lee- wanl Islands „ weight and fineness of (1601-1816) „ „ and fineness of (1870) Shi[)ment of British silver coin to and from Colonies Sicilian dollar in Malta, after de- nionetisatiuii, 322. 323 „ introiUK'e „ withdrawn from circulation in Malta (1885) - 323 Sierra Leone ... - 208-211 „ Brazilian coin in - 210 „ coinage - - - 208 „ cut money W.R. ■- „ ratings of various coins in „ Treasury Minute (11th February 1825) res- ])ectingintroduction of British silver and copper coin - Silver and bronze coin put in circu- lation by Sydney Mint „ certificates, in Unite, 107, [396 „ Trial Plates and weights • - 461 Standards, monetary, list showing various, useil by Colonies - 30, 31 State issues, wc Notes, Government. Sterling, currency, Colonies using, list of - - 30 „ short account of - - 400 »» )» )l •> II II »l Page Stiver, copi)er, struck for Demerara and Essiquibo (1813) 130 „ „ struck for Ceylon - 352 „ Danish, in Virgin Islands - 79 „ Dutch, rating of, in Berbiee (1816) - "Store Receipt*" in New South Wales Straits Settlements - - 381- „ „ coin per head of - 125 243 -388 387 l)opulation „ „ gold standard impracticable 30 „ „ notes i)er heml of population 388 „ „ Oriental Bank's notes guaran- teetl by other banks - - 36 „ „ rupees unsuit- able for use in - 383-386 „ „ subsidiary silver coins for 386, 387 Sugar, as money (*2, 151, [152 Tobago 94-!»(5 „ cut money stamped " T " - 95 „ debased coin in - - 94, 95 „ pold standard in - - 94 Token coinage (silver), introduced in England (181(J) - - 400 ..„ coins, unlimited legal tender of 30, 31 „ „ „ „ in West Indies - 31 „ silver and bronze coins for Newfoundland - 173 „ „ coinage, adoption of, by Home Govern- ment - - - 21 „ „ early lack of, in Colonies - 21, 24 Tokens, cojiper and tin, struck in New England - - - .10 " Tokens," gold, struck and issucfl in South Australia - 275 „ (Mauritius) of base silver, struck at t/'alcutta - 3(52 Tortola, i, i, and |, in Virgin Is- lands - - - . 80 „ stamped on coins - - 75 Tower pound of sterling silver - 400 Treasury bills - - 24, 25, 26 „ Minute, llth February 1825 directing pay- ments to trcMps, &c., throughout the Colonies to be maile in British silver and co])per coins 24, 417-424 „ „ 19th June 1835 - - 26 „ „ 12th October 1852, respect- ing forty- shilling limit of tender for silver coins in colonies - 434 „ ,, 22nd March 1853, respect- ing erection, &c., of a Mint at Sydney 436- [441 „ notes in Ceylon (1801) - 352 ■ (1827) . 355 „ iu Fiji - - -292 II 19 Page Treasury notes in Mauritius (J and J dollars) - - 362 „ „ proposed in South Australia (1889) - 278 Trial plates and weights (standanls) 451 Trinidiul - - - - 114 123 „ accounts kej)t in dollars and cents - - - 123 „ British silver coin intro- duced . - - - 119 „ coin and notes per heaaper - - 11,15 Unlimited liability for note issues - 36, [379 " Venetians," rating, in St. Helena - 223 [224, 225 Victoria 263-268 „ amount of notes in circu- lation - - - - 268 „ banking regulations in 267, 268 „ coin per head of popula- tion in - - - - 267 „ establishment of a mint proposed - - - 264 INDEX. 495 Victoria, Rold coin of Sydney mint to \>c current in, 2(13, 265, 454 «. gold coin in circulation in 266 legal tender of silver coins i" 263 „ note issue - - . 3(j Virginia (gee also Plantations) - 5 Virgin Islands {see also Leeward Islands). cut money in - 75, 7!», HO 79 » If Danish coins in debased currency of rating of coins dollar half Jo- hannes - shillings - » 79 «0 76 74 77 Wamiwmpeag, as money (sic also Commalities) - 1 . . g Weight and fineness of Anglo - In- dian coins, [406,411,412 H ' n British coins (Coinage Act, 1870) 453 » n Cruza' >. I. Canada - 187 » ft „ N e w Brunswick 192 II of Imperial coins, new "remedy" for (1891) . 461 „ rating of PisJorecn by, in Barbiulos ■ - . -51 Western Australia - - . 282-285 'I -I banking regula- tions in - . 284 » .» bankingstatistics (1891) - . 285 " »i coin and notes in circulation in (1835) . . 283 >i .» coin and notes per head of population . 285 >» I. Governmentissue of notes (1830) 282, [283 'I II acarcityof coinin282, w . T .■ , r283 w est Indies, adojjtion of sterling denominations in • 27 >i II appreciated silver dol- lar, disappearance of 28 11 „ counterfeit coin im- portai . . 20,417 V ., fourpences for - . 58 i» II gold standard - 15. 16 II „ rating of Real - - 19 '» >• typical of currency history ... 3 II „ United States gold coin legal tender in (185.3), 28. 435, 436 II „ unlimited legal tender of token coins - 31, Windward Islands - - .' j<2_93 1! II coin and notes per head of population - 93 » II cun-ency derived from Leeward Islands - . 82 » II debased coin in 82 If ,, demonetisation of dollar . 92 f» ,! estimated total currency of - 93 II II tokens the only metallic cur- rency . . 92 W 1 ves, young and virtuous, value of, 6 Wood, Win., survey of trade (1718) 5 Worn silver coin, withdrawn by Sydney Mint - - . Xerafin, in CeyloL 269 350 >i: 496 INDEX. Page Yen (Japanese) - - - 377, 392 „ „ in Straits Settle- ments - - 387 York Sliilling." in Canaila - - 183 Page Zay, French Colonial Currency, 10, 67, [175, 263,342 Zecchins (Maltese) - - - 307 " Zequecn," or Barbary Uucat. 72, 397 if I i.'tt Page •, 10.67, , 263, 342 - 307 72, 397