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 Sprccfeels ffittrtd 
 
 
TREATISE 
 
 COINS OF THE REALM 
 
EATISE 
 
 COINS OF THE REALM; 
 
 N' A 
 
 LETTEE TO THE . 
 
 CHARLES 1 ST EARL OF LIVERPOOL. 
 
 A R y 
 
 1 
 
 UNIVEHSH 
 
 LONDON : 
 EFFINGHAM WILSON, ROYAI, EXCHANGE. 
 
 1880. 
 
SPRECKELS 
 
 LONDON : 
 
 REPKINTED AT THE BANK OP ENGLAND ; 
 JOHN COE, SUPERINTENDENT. 
 
BANK OF ENGLAND, 
 
 10th December, 1879. 
 
 SIR, 
 
 THE discussions which have lately taken place on 
 International Currency, and the appeals which disputants on 
 both sides have made to the 1st Lord Liverpool's Letter to 
 the King on Coins, have brought to light the fact that the 
 work has been for some time virtually out of print. 
 
 We have considered that we should be rendering a service 
 to the public by using some of the means at our disposal to 
 republish this valuable treatise which deals exhaustively not 
 only with metallic circulation, but also with the abuses of 
 which the issue of Paper-Money is susceptible. 
 
 We trust that you will signify your approval of this 
 measure by permitting us to inscribe this new edition to you 
 in your double capacity of Chancellor of the Exchequer, and 
 Master of Her Majesty's Mint. 
 
 We remain, 
 Your obedient faithful Servants, 
 
 J. W. BIRCH, 
 H. R. 
 
 THE RIGHT HONORABLE 
 
 SIR STAFFORD NORTHCOTE, BART., M.P. 
 
 113669 
 
INTRODUCTION. 
 
 SIR CHAELES JENKINSON, 1st EAKL OF LIVER- 
 POOL, lived before the time when political success was 
 deemed to be " an ill-requited slavery mocked with the 
 name of power." 
 
 In the early part of the reign of George III. 
 fortune as well as fame rewarded the successful candi- 
 date of official life. Neither Civil Grand Crosses of 
 the Bath, Stars of India, or those of St. Michael and 
 St. George, were invented; but wealth could be accu- 
 mulated in politics and in the Church, as well as at 
 the Bar. 
 
 Among the numerous claimants for Royal favour 
 none seem to have more richly deserved it than the 
 writer of " The Letter to the King on Coins," and few 
 men seem to have been more eager to take advantage 
 of every opening which presented itself to obtain it. 
 
 He was born on the 10th May, 1727. 
 
 In 1756 he published a Dissertation on " The 
 Establishment of a Constitutional Force in England 
 
Viil INTRODUCTION. 
 
 Independent of the Standing Army," and soon after 
 a " Discourse on the Conduct of the Government of 
 Great Britain with respect to Neutral Nations during 
 the Present War." No doubt these works would show 
 great merit. But his advancement was not due to them, 
 but to an election song during the Oxfordshire Election 
 Petition, which disturbed the whole County of Oxford, 
 and occupied Parliament for weeks after all public 
 business had been completed. His friend, Sir Edward 
 Turner, was declared duly elected, and that gentleman 
 left no stone unturned to force Mr. Jenkinson on the 
 notice of the Earl of Bute. 
 
 The number of his places after this date was so 
 great that it is very difficult to verify them. 
 
 We find that, after filling several subordinate offices 
 under Government, he became in 1772 Vice-Treasurer 
 of Ireland ; that he purchased from Mr. Fox the place 
 of Clerk of the Pells in Ireland in 1775, and that he 
 was raised to the post of Secretary at War in 1778. 
 
 On the fall of Lord North he set to work to compile 
 a collection of Treaties; and in 1786, at the instance 
 of Mr. Pitt, he was made Chancellor of the Duchy of 
 Lancaster, President of the Board of Trade, and raised 
 to the peerage with the title of Lord Hawkesbury. 
 
 On the decease of his relative, Sir Banks Jenkinson, 
 he procured the lucrative place of Collector of the 
 Customs inwards. 
 
INTRODUCTION. IX 
 
 In 1796, he was made Earl of Liverpool. In 1799 
 and 1800, his son, Lord Hawkesbury, afterwards Prime 
 Minister and 2nd Earl, was Master of the Mint. In 
 the notices published on the death of the 1st Earl, he 
 is stated to have been Master of the Mint, but we can 
 find no trace of it in the records of that office. 
 
 On the 7th February, 1798, in consequence of an 
 address from the House of Commons, the then existing 
 Committee of Council on Coins was dissolved, and a. 
 new Committee appointed called the Select Committee 
 to take into consideration the Coins of the United 
 Kingdom, and Lord Liverpool was a member of both. 
 
 It appears from the " Letter," that he proposed to 
 the Committee " the mode in which he thought they 
 should proceed, and the principles on which they should 
 act," but obstructions were raised, which prevented the 
 completion of the proposed measures. These obstruc- 
 tions, which were said to be due to the opposition of 
 the Chief Justice of the Common Pleas, probably also 
 stopped the production of the Report. 
 
 Lord Liverpool was shortly afterwards seized with 
 illness, which confined him to his couch for more than 
 four years, so that the "Letter to the King" was not 
 published till 1805. He died on the 17th December, 
 1808, full of years and honors. 
 
 In reprinting this work, suggestions have been made 
 to us to continue the history of Currency and Coinage 
 
X INTRODUCTION. 
 
 down to the present day on the same plan, but it was 
 felt that the history of the Coinage would be more 
 properly undertaken by the authorities of the Mint ; 
 and that the great changes which, since 1805, have been 
 made in the laws affecting the Paper Currency had 
 already been made the subject of histories and treatises 
 too numerous to mention. 
 
 It will be sufficient to say that the present Mint 
 regulations are in exact conformity with Lord Liver- 
 pool's suggestions, and that the existing laws limiting 
 the issue of Bank Notes were devised to remedy the 
 evils to which he called public attention in his remarks 
 on Paper Currency, so that, after years of legislative 
 labour, his wishes are well-nigh fulfilled, that "every 
 branch of the circulating medium should be founded on 
 solid, wise, and Honest principles." 
 
 J. W. B. 
 H. R. G. 
 
 BANK OF ENGLAND, 
 
 Wtk December, 1879. 
 
TABLE OF CONTENTS. 
 
 I. An account of the state of the Coins in 1760, and in 
 
 subsequent years 1 
 
 II. Definition of Money or Coin, and of the Metals of which it 
 
 is made 9 
 
 III. Imperfections to which, as a standard Measure or equiva- 
 lent. Coins are subject 11 
 
 IV. The necessity of making such Coins as are the principal 
 measure of property of one Metal ; and the propriety of 
 making Coins of different Metals for the convenience of 
 traffic 15 
 
 V. Of the authority by which Coins are made current 21 
 
 VI. Of the English standard of Silver and Gold 29 
 
 VII. Of the Tower or Moneyer's Pound, and the Pound Troy. ... 34 
 
 VIII. Of the several ways in which Coins may be debased 37 
 
 IX. Of debasements in the Pound in tale 39 
 
 X. Of the first Gold Coins made in England 44 
 
 XI. Of relative values of Gold to Silver 49 
 
 XII. Of the great inconvenience and expence arising from the 
 
 fluctuations of the relative values of Gold to Silver 63 
 
 XIII. Of the alterations and debasements of the Coins by lower- 
 
 ing the standard or fineness of the Metal 97 
 
 XIV. Of profits made by exchanging Silver Coins for Gold Coins. 102 
 
Xii CONTENTS. 
 
 XV. Of the reformation in the Monetary System, begun in 1 
 
 the reign of Edward VI. and finished in that of 
 Queen Elizabeth 105 
 
 XVI. Of apparent motives for the alterations and debase- 
 ments made in the Coins at successive periods 115 
 
 XVII. Of the principles of Coinage, and reasons for adopting 
 
 or confirming them 128 
 
 XVIII. Variations of the value of Silver and Gold Bullion ... 166 
 
 XIX. Precautions necessary for regulating the principles of 
 
 Coinage 170 
 
 XX. Objections stated and considered 182 
 
 XXI. Of the Gold Coins previous to the year 1774, and of 
 
 those now in circulation 194 
 
 XXII. Of the art of Assaying, and the deficiency from standard 
 
 fineness in different Reigns 202 
 
 XXIII. Of the Silver Coins, and the deficiency of those in 
 
 circulation at different periods 206 
 
 XXIV. An account of several ways of calling in deficient Coins 211 
 XXV. Of Spanish Dollars now in circulation t 216 
 
 XXVI. Of the Copper Coins, and the relative expence of 
 
 coining Gold, Silver, and Copper 218 
 
 XXVII. Considerations on the state of the Mint 225 
 
 XXVIII. Of the necessity of regulations to prevent the dimi- 
 nution of the weight of Coins, and of the ancient 
 office of King's Exchanger 231 
 
 XXIX. Of Paper currency, so far as Coins are affected by it. . . 245 
 XXX. Conclusion . , 257 
 
 APPENDIX. Containing an account of relative values of Gold to 
 Silver among the ancient Persians, Grecians, and 
 Romans . . , 265 
 
A TEEATISE 
 
 COIN'S OF THE REALM; 
 
 LETTER TO THE KING, 
 
 CHAPTER I. 
 
 An Account of the state of the Coins in 1760, and in 
 subsequent years. 
 
 SIRE, 
 
 IT is a part of Your Royal Functions to 
 attend to the state of the Coins of Your Realm, and to 
 cause every defect to be removed, which mistaken policy 
 has introduced, or the waste of time may have wrought 
 in them. It is also, I well know, Your Majesty's earnest 
 wish and inclination, on this and on every other occasion, 
 to consult the convenience, and provide for the interests 
 of your People. For these reasons I have thought it my 
 duty to address to Your Majesty a Treatise, which has 
 for its object, to explain and elucidate the true principles 
 of Coinage ; to point out the errors committed in this 
 respect under the authority of Your Royal Predecessors, 
 and to suggest the best methods of preventing such evils 
 for the future. 
 
 B 
 
STATE OF THE COINS IX 1760,, 
 
 CHAT.I. AT Your Majesty's accession to the Throne in 1760, 
 
 the Coins of Your Realm were in an imperfect state; 
 those made of Silver, in particular. The Crown Pieces 
 had almost wholly disappeared ; though of these, there 
 had been coined, at the general liecoinage in the reign 
 of King William, and occasionally afterwards, a number 
 that amounted in value to 1,553,047/.* Great numbers 
 of the Half Crowns had in like manner disappeared ; and 
 the number that remained was by no means adequate to 
 the purposes for which they were intended; though, of 
 these, there had been coined, during the before-mentioned 
 period, a number that amounted in value to 2,329,570/. 
 Such of the Half Crowns as remained in circulation were, 
 in a certain degree, defaced and impaired. The Silver 
 Coins, which were then principally current, consisted of 
 Shillings and Sixpences. The number of Shillings, that 
 had been coined during the same period, amounted in 
 value to 3,232,6SO/. The number of Sixpences and 
 pieces of smaller denomination, so coined, amounted in 
 value to 960,7957. The Shillings had, at this time, lost 
 almost every mark of impression, whether of head, or 
 of reverse, or of inscription, or of graining at the edges. 
 The Sixpences were in a worse state. I do not know 
 of any account that was taken of their deficiency in 
 weight at this period ; but, from experiments that have 
 since been made, I think I may assert, that the defi- 
 ciency of the Shillings, even then, amounted to J of their 
 
 * According to an estimate made by the Officers of the Mint from 
 the accounts in their possession. 
 
AND IX SUBSEQUENT YEARS. 3 
 
 original weight ; and that of the Sixpences to at least a CHAP. i. 
 Fourth.* 
 
 The causes of the very impaired and deficient state 
 of these Silver Coins were, that the heavy pieces had in 
 general been melted down or exported, and the remainder 
 diminished by wear or by filing. A considerable profit 
 was derived from this last practice : and very little Silver 
 Bullion had been brought to the Mint to be coined ; for 
 the value of Silver Bullion, as estimated at Your Majesty's 
 Mint, was lower, compared with that of Gold, than the 
 prices at which these metals respectively sold in the 
 market. It appears, that from the year 1717 (when 
 Sir Isaac Newton made his report on the relative value 
 of Gold and Silver, as estimated at the Mint, and as 
 sold at the market) to the year 1760, the quantity of 
 Silver, which had been brought to the Mint to be coined, 
 amounted in value only to 584,5757. 14s. lljc?.; a very 
 small supply indeed, for so long a period as 43 years, of 
 that species of Coin which is most in currency, and 
 consequently is most exposed to deficiency by wear, 
 and to loss by other contingencies. 
 
 Though the Gold Coin was in a less imperfect state at 
 Your Majesty's accession to the Throne, it was, even then, 
 on the decline : and this decline increased so rapidly, that, 
 in the year 1773, the deficiency in weight, of the Gold 
 Coins then in circulation, was become very considerable; 
 
 * In the years 1787 and 1798, experiments were made by the Officers 
 of the Mint, to shew the deficiency of weight, at those times, of the 
 several sorts of Silver Coins. The results of these experiments will be 
 stated hereafter. 
 
 B 2 
 
4 STATE OF THE COINS IN 1760, 
 
 CHAP. i. go that, as soon as any new Gold Coin was brought from 
 the Mint, these perfect pieces were exchanged, or bought 
 up, for the old deficient Coins, and immediately melted 
 down or exported. Indeed, the general deficiency of the 
 Gold Coins in circulation was so notorious, that it was 
 estimated in all our exchanges with foreign countries ; 
 and all payments to such countries were enhanced in pro- 
 portion to the deficiency of these Coins: and such was, at 
 that time, the state of the currency of this country, that 
 there was very little of good or perfect Coin of any metal 
 circulating in it. The evil was so great, that Govern- 
 ment found it necessary to take this difficult subject into 
 their immediate consideration, and to endeavour to apply 
 a remedy to it. On this occasion I addressed a Letter to a 
 Noble Lord, who was then Chancellor of Your Majesty's 
 Exchequer, suggesting what appeared to me the proper 
 remedy for this evil. I proposed, that, with a view to 
 the general reform of the Coins of the Realm, all the 
 deficient Gold Coin should, in the first place, be called 
 in and recoined; that a compensation should be made 
 to the holders of this deficient Gold Coin, under certain 
 limits and restrictions ; and that, after this operation had 
 been completed, the currency of the Gold Coin should, 
 in future, be regulated by weight as well as by tale, 
 (which was conformable to the ancient laws of this king- 
 dom,) and that the several pieces should not be legal 
 tender, if they were diminished, by wearing or otherwise, 
 below a certain weight, to be determined by Your 
 Majesty's Proclamation. Your Majesty was pleased to 
 approve of this advice, and to propose to Your Parlia- 
 
AND IN SUBSEQUENT YEAKS. 5 
 
 ment, on the 13th day of January, 1774, the calling in CHAP. i. 
 and recoining all the deficient Gold Coins ; and the 
 Chancellor of Your Exchequer opened the whole of this 
 plan to the House of Commons, who approved of the 
 measure, which was carried into immediate execution, 
 without any complaint, and with great success. The 
 defects, which had previously existed in this species of 
 Coin, were thereby removed ; and the regulation, then 
 established, of weighing the Gold Coin, has been the 
 means of preserving it at nearly the state of perfection 
 to which it was then brought. I need not enter into any 
 further detail of the regulations at that time established ; 
 as they will appear in the Acts passed, and in the Pro- 
 clamations issued on that occasion. It is fortunate, that, 
 by this recoinage, the Gold Coin was brought to such 
 a state of perfection, and that so little is now left to be 
 performed for its farther improvement ; especially at a 
 time when we are under the necessity of entering on the 
 more difficult task of remedying the deficiencies in the 
 Coins made of other metals. 
 
 A difficulty then existed, and continues to exist, 
 which must necessarily be removed, before any plan can 
 be adopted for the improvement of the Silver Coin. I 
 have already observed, that Gold and Silver, in reference 
 to each other, are estimated at Your Majesty's Mint at a 
 different value or price, than these metals are generally 
 sold for at the market. As long as this difference sub- 
 sists, both these metals will not be brought, in a sufficient 
 quantity, to the Mint, to be coined: that metal only will 
 be brought, which is estimated at the lowest value with 
 
6 STATE OF THE COINS IN 1760, 
 
 CHAP. i. reference to the other; and Coins of both metals cannot 
 be sent into circulation at the same time, without exposing 
 the public to a traffic of one sort of Coin against the other; 
 by which the traders in money would make a considerable 
 profit, to the great detriment of Your Majesty's subjects. 
 And this mischievous practice, and the frauds committed 
 in carrying it on, are the more to be apprehended in this 
 country, where the Mint is free; that is, where every 
 one has a right to bring Gold or Silver to the Mint, to be 
 converted into Coin ; not at the charge of the person who 
 so brings it, but of the public : for, since the 18th 
 Charles II. ch. 3. the charge of coining Gold and Silver 
 has been born by the public; and, contrary to the prac- 
 tice of most other countries, no seigneurage has been 
 taken'. To prevent this evil, it is necessary to determine, 
 whether there must not be a standard, or superior Coin, 
 made of one metal only; and whether the Coins made of 
 other metals must not be made, and take their value, 
 with reference to this standard Coin, and become sub- 
 servient to it; and, in such case, of what metal this 
 standard Coin, to which the preeminence and preference 
 are to be given, should be made. These are delicate and 
 very difficult questions, which require great consideration. 
 Many persons, of acknowledged abilities and great au- 
 thority, have entertained different opinions on this subject. 
 I will not at present farther disclose my sentiments upon 
 it, as a considerable portion of what I intend to write will 
 be employed in the discussion of these questions; and I 
 wish that the opinion which I have formed should appear 
 to be the result of the reasons I shall offer, and of the 
 
AND IN SUBSEQUENT YEARS. 7 
 
 facts which I shall state: conscious, that any opinion I CHAP. i. 
 may deliver cannot derive any. weight from my single 
 judgment, in opposition to the respectable authorities 
 from which I am forced, on this occasion, to differ. 
 
 No farther measure was adopted for the improvement 
 of the Coins of the realm, and particularly of the Silver 
 Coin, though so very defective, for more than twenty 
 years; when, in consequence of an Address of the House 
 of Commons, recommending anew Copper Coinage, Your 
 Majesty was pleased, by Your Order in Council of the 
 7th Feb. 1798, to appoint a Committee, who were to 
 take into consideration the state of the Coins of this 
 kingdom, and the present establishment and constitution 
 of Your Majesty's Mint; and to propose such improve- 
 ments, in both these respects, as might appear to them 
 to be necessary. Your Majesty was also pleased to insert 
 my name among those members of Your Privy Council 
 who were to form this Committee. Having had some 
 experience in a business of this nature, and having 
 occasionally reflected upon it, I ventured to open to the 
 Committee, at their first meeting, the mode in which I 
 thought they should proceed in the execution of Your 
 Majesty's commands ; and I suggested the principles, 
 which, in my opinion, ought to be adopted for the further 
 improvement of the Coins of this realm. The Committee 
 fnade some progress in their enquiries on this extensive 
 and difficult subject ; and, in conformity with the wishes 
 of the House of Commons, they established the principles, 
 on which the Copper Coin should in future be made ; 
 and a certain quantity of Coins, made according to these 
 
8 STATE OF THE COINS IN 1760, ETC. 
 
 CHAP.I. principles, was sent into circulation, very much to the 
 satisfaction of Your Majesty's subjects : but obstructions 
 were raised, which prevented the completion of this 
 measure. At this period, I was seized with a violent 
 disease, which has now confined me to my house, and 
 generally to my couch, for more than four years; unable 
 to hold a pen, or to turn over the leaves of a book, from 
 which I might derive information. At intervals, however, 
 when I have of late providentially obtained some respite 
 from pain and extreme weakness, I have endeavoured to 
 revise so much as I had before occasionally written ; to 
 arrange other materials previously collected; and to 
 reduce the whole to a form not unfit for perusal. A 
 Treatise, written on so abstruse and complicated a subject, 
 by one exposed to great infirmities, must contain some 
 repetitions, slight inaccuracies, and other imperfections. 
 Arrived as I now am on the verge of life, I hasten to 
 present what I have thus written, though not exempt 
 from errors, to Your Majesty, as my last service, if it 
 shall deserve that name ; in grateful remembrance of 
 the generous protection, which Your Majesty has never 
 ceased to afford me, and of the many and great favours, 
 which You have graciously conferred upon me. 
 
CHAPTER II. 
 
 Definition of Money or Coin, and of the Metals of which 
 it is made. 
 
 THE Money or Coin of a country is the standard This definition of 
 measure, by which the value of all things, bought and no t always so 
 sold, is regulated and ascertained ; and it is itself, at the pressed, is given 
 same time, the value, or equivalent, for which goods are fr y m Aristotle to 
 
 exchanged, and in which contracts are generally made 
 payable. In this last respect, Money, as a measure, j 
 differs from all others ; and to the combination of the two i notation ' 
 qualities before defined, which constitute the essence of 
 Money, the principal difficulties, that attend it, in specula- 
 tion and practice, both as a measure and an equivalent, 
 are to be ascribed. These two qualities can never be 
 brought perfectly to unite and agree ; for if Money were 
 a measure alone, and made like all other measures of a 
 material of little or no value, it would not answer the 
 purpose of an equivalent. And if it is made, in order to 
 answer the purpose of an equivalent, of a material of 
 value, subject to frequent variations, according to the 
 price at which such material sells at the market, it fails 
 on that account in the quality of a standard or measure, 
 and will not continue to be perfectly uniform and at all 
 times the same. 
 
10 "DEFINITION OF MONEY OK COIN, ETC. 
 
 CHAP. 2. In all civilized nations, Money has been made either 
 
 of Gold, or Silver, or Copper, frequently of all three, 
 and sometimes of a metal composed of Silver and Copper, 
 in certain proportions, commonly called Billon. It has 
 been found by long experience, and by the concurrent 
 opinion of civilized nations in all ages, that these metals, 
 and particularly Gold and Silver, are the fittest mate- 
 rials, of which Money can be made. Gold and Silver 
 are perfectly homogeneous in themselves, for no physical 
 difference can be found in any pound of pure Gold, or of 
 pure Silver, whether the production of Europe, Asia, 
 Africa, or America. They are divisible with the greatest 
 accuracy into exact proportions or parts. From their 
 value they are not too bulky for the common purposes of 
 exchange ; and in all these respects they serve better 
 than any other material, as an equivalent. And lastly 
 they are less consumable or subject to decay, than most 
 other commodities. 
 
 Certain portions of these metals, with an impression 
 struck upon them, by order of the Sovereign, as a 
 guarantee of their purity and weight, serve as Coin. 
 
11 
 
 CHAPTER III. 
 
 Imperfections to which, as a standard Measure or 
 equivalent, Coins are subject. 
 
 COINS made of Gold,, or Silver, or of any other metal, 
 whether considered as a measure or equivalent, are how- 
 ever subject to the following imperfections. 
 
 As each of these metals varies in its value with 
 respect to the commodities, for which it is exchanged, so 
 it will vary for the same reason also in its value, in suc- 
 cessive periods, even with respect to itself; and this 
 variation is occasioned by the greater or less quantity 
 that may happen to be, at different times, in the market, 
 or in circulation. Any given quantity or weight of Gold 
 or Silver is at present of much less value, than the same 
 quantity or weight before the discovery of the mines of 
 America. And if any commodity is either manufactured 
 or produced at present, in exactly the same quantity as 
 it was in the reign of Henry VII. when these mines were 
 first discovered, and the demand for this commodity should 
 be equal, a pound of Gold or Silver will not purchase as 
 much of it now, as it would have purchased in the former 
 period. Coins are on that account an imperfect measure, 
 though they are made of one metal only. 
 
 But if Coins are made of two of these metals, a second 
 imperfection is then introduced ; for any two of these 
 
12 I3IPEKFECT1OXS TO WHICH 
 
 CHAP. a. metals, in successive periods, vary in value with respect 
 to each other. The value of fine Gold, compared with 
 that of fine Silver, was rated, in the 43d of Elizabeth, 
 at less than 11 to 1, at the English Mint. But when 
 Guineas were first coined in 1663, the value of fine Gold, 
 compared with that of fine Silver, was rated in the 
 English Mint at 14|J to 1. Guineas were then coined 
 as 20 Shilling Pieces, and declared by the Mint indenture 
 to be current as such. They have since been made 
 current by Proclamation as 21 Shilling Pieces. The 
 relative value therefore of fine Gold to fine Silver, in 
 the Coins of this kingdom, is now as 15 -ffff-Q to 1. And 
 in the] Mints of several foreign countries, the value of 
 Gold, compared with that of Silver, is rated still higher. 
 These metals will also occasionally vary in their value, 
 even at the same time, in different countries ; and Ex- 
 change Brokers, and many Bankers, are induced, on this 
 account, to carry on a traffic in these metals, and in the 
 Coins made of them, to their own profit, and to the loss 
 of others. 
 
 If the Sovereign takes upon himself to determine the 
 rate or value, at which Coins made of different metals 
 shall at the same time pass in currency, a third imper- 
 fection is introduced into the system ; for it is not pos- 
 sible that he should be able to pursue, with sufficient 
 accuracy, the various fluctuations and changes, that may 
 in a short time happen, in the relative values of these 
 different metals. Their prices at the market will there- 
 fore frequently differ from the rate, at which he has 
 valued them in his Coins; and when Coins made of 
 
COINS ARE SUBJECT. 13 
 
 different metals are equally legal tender, there will of CHAP.S, 
 
 course be two measures of property, differing occasionally 
 
 from each other. A profit will always in such case be 
 
 made by those who traffic in Coins, by exchanging that 
 
 Coin, which has the least intrinsic value, for that which 
 
 has the greatest. The debtor will find it his interest to 
 
 make his payments in the Coin made of that metal, which 
 
 is overvalued at the Mint ; and such Coins, as are made 
 
 of the metal undervalued at the Mint, will always be 
 
 melted down and exported. 
 
 Another imperfection arises from the gradual wear of 
 the Coins made of either of these metals ; for though the 
 materials, of which they are made, are less subject to 
 diminution, by daily and common use, than almost any 
 other commodity, they are still subject to it in a certain 
 degree, from friction, and sometimes from other causes. 
 If this diminution is considerable, the Money Jobber will 
 avail himself of the inequality, to which pieces of Coin of 
 the same denomination are, in this respect, subject; he 
 will collect and convert into Bullion the most weighty of 
 them, and make a profit thereby ; and those Coins only, 
 which are less perfect, will be left in general circulation. 
 
 Of the four imperfections before stated, the first, 
 which arises from the variation in the price or value of 
 any one metal, in successive periods, with respect to 
 itself, is so inherent in the very subject, that it does not 
 admit of a remedy. It produces however less incon- 
 venience than either of the other three. It chiefly affects 
 leases, contracts, and grants of long continuance. The 
 three other imperfections may in some degree be remedied. 
 
14 IMPERFECTIONS TO WHICH COIXS ARE SUBJECT. 
 
 3. I shall endeavour, in this Letter, humbly to submit to 
 Your Majesty such principles of Coinage, as will tend in 
 a great measure to remedy the second and third of these 
 imperfections : and if Your Majesty shall be pleased, 
 after full consideration, to approve of these principles, it 
 will be the duty of Your Majesty's servants to propose 
 such measures as shall make all the Coins of this kingdom 
 correspond in future with these principles; and also to 
 advise Your Majesty to establish such regulations as 
 shall remedy, as far as possible, the fourth and last of the 
 imperfections before stated. Of this last point however 
 I shall treat more at large in a subsequent part of this 
 Letter. 
 
15 
 
 CHAPTER IY. 
 
 The necessity of making such Coins as are the principal 
 measure of property of one Metal ; and tlie propriety 
 of making Coins of different Metals for the con- 
 venience of traffic. 
 
 THE Money or Coin, which, is to be the principal 
 measure of property, ought to be made of one metal only. 
 Such is the opinion of Sir William Petty, Mr. Locke, 
 Mr. Harris, and of all the eminent writers on Coin. Sir sir wm. Petty's 
 William Petty says, that one of the metals is the only fit Anatomy of 
 
 n -m IT -% r -r i ni p-i%/r Ireland, cli. 10. 
 
 matter for Money. Mr. Locke calls this sort of Money 
 the Money of Account, or the Measure of Commerce or 
 Contracts ; and he adds, "that two metals, such as Gold see Mr. Locke'3 
 
 further con- 
 
 "and Silver, cannot be the measure 01 commerce both ^rations on 
 
 r . ,, raising the value 
 
 "together in any country. Mr. Harris, in his Lssay on O f Money, Folio 
 
 - T/--I IT , i ji i edition, 1759. 
 
 Money and Coins, delivers it as his opinion, that only V oi. u. p. 75, 76. 
 
 , , -. .- T -, r* See Mr. Harris's 
 
 one metal can be the Money, or standard measure 01 Essay on Money 
 property and commerce in any country ; and he calls this j^ck fcsect,7. 
 sort of Money the Standard of Money. These three 
 authors assign their reasons in support of a principle in 
 which they all concur ; their reasons are, in substance, 
 the same ; and are so convincing, that the truth of this 
 principle can no longer be controverted. I shall be 
 obliged to have recourse to the reasons they have offered 
 4n support of their opinion, in a future part of this Letter; 
 
16' 
 
 NECESSITY FOR STANDARD COINS 
 
 CHAP. 4. so that it is not necessary to detain Your Majesty by 
 stating them at present. The truth of this principle in 
 fact results from the nature and uses of Money, as before 
 described. The before mentioned writers have assigned 
 different names to this superior sort of Money, or Coins, 
 by which the Coins made of other metals are to be regu- 
 lated, and to which they are to be subservient. The 
 Coins, which are to be the principal measure of property, 
 must of course be legal tender without limitation. I 
 shall call this superior sort of Money, or Coins, the prin- 
 cipal Measure of Property, or Standard Coin : and having 
 clearly defined my idea, I conceive I have a right to 
 make use of these terms in the sense which I have given 
 to them. 
 
 Certain, however, as the principle is, that the Money 
 or Coins of any country, which are to be the principal 
 measure of property, can be made of one metal only ; the 
 convenience of traffic necessarily requires, that in rich 
 and commercial countries, there should be Coins made of 
 several metals, adapted to the several sorts of purchases 
 or exchanges, for which they are intended. Coins made 
 of Gold alone, or of Silver alone, in such countries, will 
 not answer all the purposes of traffic. Coins of Gold are 
 not well adapted for the retail trade, in which sort of 
 traffic the greatest number of the subjects of every 
 country are principally concerned ; and Coins of Silver 
 are too bulky for larger payments, and are, in that 
 respect, inconvenient. It is necessary therefore, that 
 in commercial countries there should be Coins made of 
 different metals. And if the Coins, which are the prin- 
 
OF ONE METAL, ETC. 17 
 
 cipal measure of property and instrument of commerce, CHAP. 4. 
 can only be made of one of these metals ; the inferior 
 Coins, made of other metals, must be legal tender only 
 in a limited degree, as the Sovereign shall direct; and so 
 far only they are the measure of property : and if they 
 are accepted in payment for a larger sum, with the 
 consent of the receiver, (as may sometimes be the case,) 
 they may then be said to be the representatives of the 
 Coins which are the principal measure of property,* 
 and their value must be made to correspond with it, 
 as accurately as the nature of the subject will admit. 
 It is by adopting this rule, or principle, that the second 
 and third of the imperfections before stated will be 
 avoided, or at least the ill effects resulting from them 
 will be diminished as much as possible. This is the 
 highest state of perfection, to which any system of 
 Coinage can, in my opinion, be brought; and it is 
 sufficiently perfect to answer all the purposes of ex- 
 change, and commercial intercourse. But it must be 
 confessed, that, notwithstanding all the endeavours of 
 men of the greatest talents, and most acute under- 
 standings, such is the nature of this business, that 
 absolute perfection and complete accuracy, in practice 
 at least, cannot be attained. 
 
 * Such has been from the beginning the state of our legal Copper 
 Coins, and it continues to be so at present : and such has also been the 
 state of our present deficient Silver Coins, considered as Coins, from the 
 passing of the Act of 14 Geo. III. ch. 42. All this will be further 
 explained hereafter. So that this principle has already been approved 
 by the Legislature, though it has not been carried to its proper extent. 
 
 C 
 
18 
 
 NECESSITY FOR STANDARD COINS 
 
 CHAP. 4. 
 
 See Mr. Locke's 
 Treatise above 
 mentioned. 
 
 See Mr. Harris's 
 Essay above 
 mentioned. 
 Note, p. 64. 
 
 Mr. Locke, who thought that Silver Coins were the 
 only Money of account or measure of property, was of 
 opinion, that Coins of Gold might be left to take their 
 rate or value according to the relative price of Gold to 
 Silver at the market; and he was led to form this 
 opinion, from observing, that in his time, Guineas, and 
 other Gold Coins, had taken their relative value in 
 this manner, and passed in currency accordingly. But 
 finding afterwards that these Gold Coins had risen in 
 their value, compared with the defective Silver Coins 
 then in circulation, to an extravagant rate, he so far 
 changed his former opinion, as to acknowledge "that 
 " Gold Coin may safely have a price as well as stamp 
 sf set upon them by public authority, so that the value 
 " be set under the market price." And the Legislature 
 of this kingdom acted in conformity to this opinion, 
 when, in the reign of King William, they limited the 
 value of Guineas by two different Acts, so that they 
 should not pass in currency above a certain value 
 therein described. They left them however to be 
 exchanged at any rate under the limited value ; and 
 as the Gold Coin had risen to an extravagant value, 
 while the Recoinage of the Silver Coins was under 
 consideration, it actually happened, that when this 
 Kecoinage was completed, Guineas fell in their rate or 
 value below the value limited in these Acts, without 
 any interposition of public authority. But Mr. Harris 
 differed in this respect from the opinion of Mr. Locke. 
 He thought that the regulation of the value of Coins, 
 that is, the nominal value at which they were to be legal 
 
OF ONE METAL, ETC. 19 
 
 'tender, was a subject of too much importance to be CHAP. 4. 
 entrusted, at any time, to private judgment : and it is 
 certain, that there has generally been a clause in the 
 Mint indentures of Your Majesty, and all Your prede- 
 cessors, declaring at what nominal rate or value the 
 Coins therein directed to be made, should be current. 
 It is indeed hardly possible, that the people in general, 
 particularly those of an inferior class, should be able to 
 exercise any true judgment on the intrinsic or relative 
 value of the metals, of which any Coins are composed ; 
 and if they were to attempt to exercise such judgment, 
 they would be exposed to perpetual frauds and imposi- 
 tions from Money Jobbers and others, who understand 
 this business better than themselves. The practice of all 
 governments in every age has coincided with the opinion 
 of Mr. Harris ; and experience has evinced the necessity 
 of fixing, by public authority, the rate or value of Coins 
 of every denomination, permitted to be current as lawful 
 Money, or legal tender. 
 
 The Coins of every kingdom or state are the measure 
 of property and commerce, within every such kingdom 
 or state, according to the nominal value declared, and 
 authorised by the Sovereign, so far as they are made 
 legal tender. 
 
 In exchanges with foreign countries, and in payments 
 made to them, the intrinsic value of the metal, of which 
 the Coin is made, is the only measure of property and 
 commerce ; because the authority of Sovereigns cannot 
 extend to regulate payments made in foreign countries, 
 where they have no power or jurisdiction. 
 
 c 2 
 
20 NECESSITY FOR STANDARD COINS, ETC. 
 
 CHAP. 4. It follows, from what has just been said, that it is 
 
 necessary in this place to state, by what authority, and 
 in what manner, Coins are made current at a certain 
 rate or value, and become in that respect legal tender, 
 particularly within these Your Majesty's. dominions. 
 
21 
 
 CHAPTEE V. 
 
 Of the authority by which Coins are made current. 
 
 THERE is no doubt, 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 denomination, 
 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 Predecessors have always enjoyed and exercised 
 this right. Sir Matthew Hale reckons this right inter see sir Matthew 
 
 . . Hale's Pleas of 
 
 Jura Majestatis, and says, that it is an unquestionable the Crown, vol. i. 
 
 . , ch. 17. and Sir 
 
 prerogative of the Crown ; and he treats with great 
 ability of the nature and extent of this prerogative. In 
 very ancient times, some of the powerful and rebellious 
 Barons appear to have assumed this right contrary to 
 law, "which," as Sir Matthew Hale observes, "occa- 
 " sioned great confusion and corruption in Money and 
 "Commerce;" and he adds, that Henry II. coming to 
 
 -, , . sub anno 1149. 
 
 the crown reformed this usurpation and abuse: in the sirM.Haie,p.io9. 
 
 c~i -. i TT i an< * "Wilkins's 
 
 articles of peace between Stephen and Henry, there was Laws of Henry 
 
 one, which required, that the Silver Coin* should be one 
 
 and the same throughout the kingdom. In times less Mat. Paris, p. 159. 
 
 * There was at this time probably no Gold Coin in currency ; at 
 least, none that was made at the English Mint. 
 
sco a char 
 
 22 OF THE AUTHORITY BY WHICH 
 
 CHAP. s. ancient, the Monarchs of this kingdom have occasionally 
 conferred this right by special charters on divers eccle- 
 
 ter of siastical corporations, such as the Archbishops of Can- 
 terbury and York, the Bishop of Durham, &c., and on 
 Hubert, C Arch- some of the most dignified Abbots. But Sir Matthew 
 ry. Hale adds, " that they had only the profit of Coinage 
 
 p 355 " an( ^ tne residence of some moneyers at their cities, &c. 
 " and that they had not the pOAver of instituting either 
 " the alloy, the denomination, or the stamp." The stamps 
 were usually sent to them by the Treasurer and Barons 
 of the Exchequer, by the King's command, under his 
 Great Seal ; and the Masters of these Mints, or the chief 
 officers employed therein, were sworn to the King for the 
 just execution of their offices. It appears, from the Coins 
 made in these Mints, which have been preserved, that 
 they were in general of the smaller denominations ; and it 
 is probable that the right of coining, which was given to 
 them by these charters, was restrained to pieces of this des- 
 cription: but the practice of devolving this right of coining 
 Gold and Silver to the corporations before mentioned, has 
 never been exercised since the reign of Edward VI. 
 
 The Kings of this realm had frequently Mints of their 
 own, not only in London, but in Southwark, Calais, 
 Bristol, Hull, Dublin, and many other cities and towns 
 of England and Ireland ; but these were all Royal Mints, 
 and under the immediate management and direction of 
 the King's officers. 
 
 The right of setting a rate, or nominal value, on 
 Coins authorised to be current, has been exercised by the 
 Kings of this realm in two ways : 
 
COINS ARE MADE CURRENT. 23 
 
 First. By their Mint indentures, in which a clause is CHAP. 5. 
 inserted, declaring, at what rate or nominal value the 
 Coins, therein ordered to be made, shall be current. 
 
 Secondly. By Proclamation. 
 
 Sir M. Hale inclines to think, that proclamations are 
 not absolutely necessary to legitimate any Coin made at 
 the Mint, or to make it current ; but that the Mint 
 indenture, or general usage, is in this respect sufficient 
 evidence, except in the following cases : 
 
 First. To legitimate or make current base Coin, or 
 such as is below the standard of sterling. He observes, 
 that a proclamation is in this case necessary, in order to 
 dispense with the provisions of the statute of 25 Ed. III. 
 ch. 13. and the 9 Henry Y. Session 2. ch. 6.* 
 
 Secondly. To raise any Coin already in currency to 
 a higher denomination or extrinsic value. 
 
 Thirdly. To decry any Money already current, that 
 is, either to reject it wholly out of circulation, or to make 
 
 * Sir William Blackstone is of opinion, that by the statute of 
 25 Ed. III. ch. 13. the King's prerogative seemeth not to extend to the 
 debasing or enhancing the value of the Coin below or above the 
 sterling value. He acknowledges, however, that Sir Matthew Hale 
 appears to be of another opinion. But if this opinion of Sir William 
 Blackstone is true, the King is also restrained, by the same statute, 
 from diminishing the weight of his Gold or Silver Money. It will be 
 seen, in the subsequent parts of this Letter, whether this interpretation 
 of the statute was ever thought to be well founded. The Gold of all 
 the Gold Coins now circulating in the kingdom has more alloy in it, 
 and consequently is of a baser standard, than in 25 Ed. III. Blackstone's 
 Commentaries, book i. ch. 7. What is called in the text the 9 Henry V. 
 is, in Sir Matthew Kale's Pleas of the Crown, said to be the 4th Henry V. 
 ch. 6. which last statute has no relation to this subject : and this mistake 
 is probably owing to the copyists or printers of Sir Matthew Hale's work. 
 
24 OF THE AUTHORITY BY WHICH 
 
 CHAP. s. it pass at a less rate or value than that, at which it has 
 hitherto been current. In conformity to this rule, a pro- 
 clamation was issued on the 17th day of December, 1717, 
 reducing the value of Guineas from 21s. 6d. to 21s. : 
 and there are many other instances of the same kind in 
 preceding periods. 
 
 Fourthly. To make foreign Coin current at a deter- 
 mined rate or value. 
 
 The reasons, which make proclamations necessary in 
 the two last instances, are so evident, that there is no 
 occasion to state them. 
 
 In consequence of the great confusion introduced 
 into the system of our Coins by the frequent debase- 
 ments and alterations, that were made in them during the 
 latter part of the reign of Henry VIII. and the reign of 
 Edward VI. a new practice was introduced in the first 
 year of Edward VI. of notifying to the public the rate 
 or value of some of our Silver Coins, by placing on the 
 face of them figures, denoting at what rate, or value, 
 they should be taken in payment. The variety of Silver 
 Coins, then in circulation, of the same denominations, 
 though of different intrinsic values, made it highly con- 
 venient that the people should in this manner be apprised 
 of the rate, or value, at which the Sovereign intended 
 that they should be current. This practice continued in 
 use in some of the subsequent reigns, but not in that of 
 Elizabeth (none of whose Coins have any such figure 
 upon them) : and the same practice of placing figures on 
 some of our Gold Coins, to denote the nominal value at 
 which they should be current, was first introduced in the 
 
COINS ARE MADE CURRENT. 25 
 
 beginning of the reign of James I. But this manner of CHAP. 5. 
 ascertaining the nominal value of our Coins has been 
 discontinued for about a century past, except in small 
 Silver Coins, under the value of a Sixpence, which still 
 have figures denoting the rate, at which they are to pass, 
 on the reverse of them. It may yet be doubted, whether 
 this method of ascertaining the nominal value of Coins 
 would, in the sense of Sir Matthew Hale, legitimate these 
 Coins, especially as he wrote when this practice still 
 subsisted, and makes no mention of it. It is, however, 
 certainly a proof of the intention of the Sovereign in this 
 respect, and might be left to the decision of a jury in any 
 litigated question. 
 
 This great prerogative, however, which the Kings of 
 this realm have immemorially enjoyed and exercised, of 
 giving currency to the Coins made at their Mint, and 
 sometimes to foreign Coins, at a determinate rate or 
 value, and of enhancing them and debasing them at their 
 pleasure, is of so important and delicate a nature, and 
 the justice and honour of the Sovereign, as well as the 
 interests of his people, are so deeply concerned in it, that 
 it ought to be exercised with the greatest judgment and 
 discretion. It appears from the ancient histories and 
 chronicles of this country, that very serious evils have 
 occasionally resulted from the abuse of it ; and Parlia- 
 ment has frequently complained of these abuses, and has 
 sometimes endeavoured, on that account, to restrain this 
 branch of the prerogative : for in the 5th Ed. II. it was 
 provided by the Lords Ordainers, (persons, who at that 
 time were intrusted with the government of the kingdom,) 
 
26 OF THE AUTHORITY BY WHICH 
 
 CHAP. 5. that no change should be made in the Coin of this realm, 
 without the consent of the Barons in Parliament ; but 
 this, among other regulations made by these Lords 
 Ordainers, was repealed in a subsequent year of this 
 King's reign. Another attempt was made by the Com- 
 mons in the 20th Edward III. to restrain this prerogative; 
 but Edward III. frustrated their request, by returning 
 an evasive answer to their petition. The frequent de- 
 basements, made by this Monarch in his Coins, induced 
 the Commons, in the 25th year of his reign, to make a 
 further attempt ; and they petitioned that the Money of 
 Gold and Silver then current should not be impaired in 
 weight, or alloy. The answer returned to this petition 
 was a promise on the part of the King, "that as soon 
 " as a good way could be found, the Money of Gold 
 " and Silver should be put into its ancient state." In 
 imitation of this Monarch, the Kings of this realm, in 
 succeeding periods, very frequently exercised this pre- 
 rogative, as will be shewn in the subsequent parts of this 
 Letter ; and this prerogative was at length recognized 
 and confirmed by an Act of Parliament passed in the 
 19th Henry VII. ch. 5. by which it was enacted, that all 
 Gold and Silver Coins " shall be current for the sum 
 S( that they were coined for ; " and by an Act passed in 
 the 5th and 6th years of Edward VI. ch. 19. by which 
 it was enacted, that " if any person exchanged any coined 
 " Gold, or coined Silver, receiving or paying any more 
 " in value, than the same is, or shall be declared by His 
 " Majesty's Proclamation to be, current for, within His 
 " Majesty's dominions, the same shall be forfeited," and 
 
COINS ARE MADE CURRENT. 27 
 
 the persons so offending shall be punished in the manner CHAP. 5. 
 therein directed.* 
 
 Such is the history of the law of this kingdom, with 
 reference to the prerogative exercised by Your royal 
 Predecessors in the regulation of their Coins; and such 
 was the extent of this prerogative, as stated by Sir 
 Matthew Hale, when he wrote his History of the Pleas 
 of the Crown. Previous to that period, several statutes 
 were passed, establishing regulations with respect to the 
 royal Mints, and requiring that the Coins issued from 
 them should be of due weight ; but not one, that took 
 from the Sovereign the right of giving to the Coins, 
 circulating in his dominions, their denominative value. 
 In what respects the Legislature has thought fit to limit 
 the exercise of this prerogative, since the death of that 
 great lawyer, will be shewn hereafter. 
 
 Though this great prerogative is, however, unquestion- 
 able, it is certainly adviseable, that in the exercise of it, 
 whenever any great change is intended to be made, the 
 King should avail himself of the wisdom and support of 
 his Parliament. Sir Matthew Hale observes, that it is 
 neither safe, nor honourable, for the King to imbase his 
 Coin below sterling; "if it be at any time done, it is fit see sir Matthew 
 
 Hale's Pleas of 
 
 " to be done by the assent of Parliament ; " and he con- the crown, vol. i. 
 
 p. 194. ed. folio. 
 
 eludes, that, on such occasions, "fieri non debuit, factum 
 
 * In a subsequent period, that is, in the 6th and 7th William III. 
 ch. 17. this prerogative is farther confirmed and acknowledged, by 
 enacting additional penalties against those " who shall receive or pay 
 " any undipped Silver Money, of the Coin of this kingdom, for more 
 " than in tale it was coined for, and ought by law to go for." 
 
28 OF THE AUTHORITY BY WHICH, ETC. 
 
 CHAP. 5. valet? It has happened, that, since the Revolution, the 
 Kings of this realm have occasionally exercised this pre- 
 rogative, on smaller occasions, without consulting the two 
 Houses of Parliament : yet, on greater occasions, such as 
 a general Recoinage, they have always thought it right 
 to avail themselves of their advice and support. 
 
29 
 
 CHAPTER VI. 
 
 Of the English standard of Silver and Gold. 
 
 IT will be proper now to give Your Majesty some 
 account, in a short history of the Coins of this realm, of 
 the manner, in which Your royal Predecessors have 
 exercised this great prerogative. Many writers of ac- 
 knowledged abilities have treated of the principles of 
 Coinage, and have certainly thrown great light on the 
 subject ; but they have founded their systems too much 
 on principles merely speculative, and have not sufficiently 
 adverted to many facts, with which the history of this 
 and many other countries would have furnished them. 
 By these they would have learnt to correct the errors 
 they have sometimes committed, and they would have 
 applied their principles with more certainty, and better 
 success. It cannot be denied, that in all the affairs of 
 life, particularly such as relate to the private concerns of 
 a whole people, experience is the surest guide. In such 
 transactions there are little circumstances, with which the 
 merely speculative man is wholly unacquainted. These 
 can be learnt only from experience ; and, if proper atten- 
 tion be not paid to them, they will occasionally defeat 
 the advantages expected to be derived from the wisest 
 system founded on speculation alone. Mr. Locke became 
 sensible, that, by trusting solely to speculation, he had, 
 
30 OF THE ENGLISH STANDARD 
 
 CHAP. 6. at least in one instance, been led into an error. To avoid, 
 therefore, errors of this nature, I not only intend to treat 
 of the subject of Coinage in a speculative view, but I 
 shall endeavour to establish the opinions which I may 
 advance, by a discreet reference to facts, and by adverting 
 to many circumstances, which have occurred in the his- 
 tory of the Coins of this kingdom. In pursuing this plan, 
 I shall be obliged to take a larger range, and to lay before 
 Your Majesty some account of the Coins of the realm 
 from an early period, and of the alterations and debase- 
 ments, that, from time to time, have been made in them, 
 as well as the motives, which induced preceding Monarchs 
 to authorise these alterations and debasements, and the 
 consequences, salutary or mischievous, that resulted from 
 them. I am sensible that I shall thereby be obliged to 
 extend this Letter to a greater length than I could wish. 
 If however I should have the good fortune to place this 
 subject in a clear and satisfactory light, so as to enable 
 Your Majesty to form a more correct and safer judgment 
 on the improvements necessary to be made in the Coins 
 of Your kingdom ; I am induced to hope, that You will 
 condescend to pardon the length of this Letter, and not 
 think the time wholly misemployed, which may be neces- 
 sary for the perusal of it. 
 
 To elucidate what I have to offer, I will begin by 
 stating, as correctly as I am able, what was the standard 
 or fineness of the metals, of which these Coins were made, 
 in successive periods. 
 
 The true English standard of the Silver, of which our 
 Coins were made, was 11 oz. 2 dwts. fine r and 18 dwts. 
 
OF SILVER AND GOLD. 31 
 
 alloy. This is called the old standard, or the standard CHAP. 6. 
 of the old Sterling. It is the more general opinion, that 
 this was the standard of the Silver Coins made in the 
 reign of William I. The principal English writers on 
 Coins, who must be supposed to have assayed the Coins 
 made in those ancient times, and still preserved in the 
 cabinets of those who have collected them, are of this 
 opinion : there are, however, some lawyers and anti- 
 quaries, who express doubts on this subject, and infer, 
 from ancient records, that, previous to the reign of 
 Edward I. Silver Coins were occasionally made of a dif- 
 ferent standard, sometimes better, and sometimes worse. 
 But it is probable, that such of these Coins as were of a 
 more debased standard (if any such ever existed) were 
 made contrary to law, by the rebellious Barons, or by 
 others, who abused the privilege granted to them by 
 their Sovereigns, of having Mints within their respective 
 jurisdictions; for it appears, by an ordinance of Henry II. 
 which he published in his Duchy of Normandy, in the 
 year 1158; and by various other French records, pub- 
 lished by Mons. le Blanc, in his Traite Historique des vide Le 
 Monnoies de France, that the English Silver Pennies, 
 then called E sterlings, or Sterlings, were estimated by 
 foreign nations, from the year last mentioned, and for 
 more than a century subsequent thereto, to be equal to a 
 pennyweight of Silver, of the fineness or standard before 
 mentioned : and it is certain, that in the 28th year of the 
 reign of Edward I. an indented Trial Piece, of the fine- 
 ness of 11 oz. 2 dwts. fine, and 18 dwts. alloy, was lodged 
 in the Exchequer. This indented Trial Piece was at 
 
32 OF THE ENGLISH STANDARD 
 
 CHAP. 6. that time said to be of the old standard, which clearly 
 proves, that such must have been considered as the 
 standard of our Silver Coins, for a long time before. 
 There is no doubt, that, from the 28th year of Edward I. 
 all our Silver Coins have been made of this standard, 
 except for a short period of sixteen years, from the 34th 
 Henry VIII. to the 2d Elizabeth. 
 
 When Gold Coins were first made at the English 
 Mint, the standard of the Gold put into them was of 23 
 carats 3^ grains fine, and ^ grain of alloy ; and it so con- 
 tinued, without any variation, to the 18th Henry VIII. 
 who in that year first introduced a new standard of Gold 
 of 22 carats fine, and 2 carats alloy, of which he made 
 some of his Gold Coins. The first of these standards was 
 called the old standard ; the second was called the new 
 standard, or Crown Gold, because Crowns, or pieces of 
 the value of five Shillings, were first coined of this new 
 standard. 
 
 Henry VIII. made his Gold Coins of both these 
 standards, under different denominations ; and this prac- 
 tice was continued by his Successors to the year 1663, 
 that is, the 15th Charles II. From that period to the 
 present time, the Gold, of which the Coins of this king- 
 dom have been made, has been invariably of the new 
 standard, anciently called Crown Gold ; though some of 
 the Coins made of the old standard, previous to that 
 period, continued to be current till the year 1732, when, 
 by proclamation, they were forbidden to be any longer 
 current. 
 
OF SILVER AND GOLD. 33 
 
 It will enable Your Majesty the better to understand CHAP. c. 
 the changes, that have taken place in the Coins of the 
 realm, if I give, in the next place, an account of the 
 weights made use of at the Mint, for the purpose of 
 weighing and regulating these Coins. 
 
CHAPTER VII. 
 
 Of the Tower or Moneyer's Pound, and the Pound 
 
 Troy. 
 
 see Martin THE Pound weight, which was made use of in the 
 
 of English stiver Mints of this realm, till the 18th* Henry VIII. for 
 
 and Gold Coins, i /-^ t i -ic-i-i im 
 
 P. 3. Clarke on weighing Gold and Silver, was the Tower Pound, or 
 what is called the Moneyer's Pound ; it was lighter than 
 the Pound Troy, by three quarters of an ounce Troy. 
 It is certain, that this Tower Pound is the same that 
 had been used by our Saxon ancestors in weighing the 
 precious metals ; and nearly the same that was made 
 use of, for the same purpose, in the principal- cities of 
 Germany : this Pound was called by French writers the 
 
 * Mr. Clarke contends, that the Tower Pound was changed for the 
 Troy Pound, in the 12th Henry VII. and he quotes a statute of that year 
 in confirmation of it. This statute, as well as a preceding- one, to which 
 it refers, does not appear to me to introduce any new weights, but only 
 to regulate the existing ones, which had been made in a very imperfect 
 manner ; and, for that purpose, orders accurate specimens to be sent to 
 every city and great town. I have adhered therefore to Mr. Folkes's 
 decision on this point, (which indeed is of no great importance) as his 
 reasons appear to me to be sufficiently convincing. If the Tower Pound, 
 which had been in use at the Mint for many centuries, and preserved 
 there with great care, had then been changed for the Troy Pound, it 
 should have been expressly said so in the statute, as it is in the verdict 
 relating to the Coinage of the 30th Oct. 18 Henry VIII. which is pre- 
 served in the Exchequer. , 
 
OF THE TOWER POUND, ETC. 35 
 
 Rochelle Pound.* Henry VIII. in the 18th year of his CRAP.?. 
 reign forbade the use of the Tower Pound in his Mint, 
 and introduced the Troy Pound in its stead, which has 
 continued to be used there ever since. 
 
 'At the accession of William I. to the throne of 
 England, the Pound in tale of the Silver Coins cur- 
 rent in this kingdom was equal to the Pound weight 
 of standard Silver, that is, the Tower Pound before 
 mentioned. The Pound in tale was divided into twenty 
 Shillings, and each Shilling into twelve Pence or Ster- 
 lings. The Pound weight was divided into twelve ounces, 
 and each ounce into twenty pennyweights ; so that each 
 Penny or Sterling weighed one pennyweight or twenty- 
 four grains. The only Coins made in this early period 
 were Pennies or Sterlings. This simple system of Coinage, 
 by which the Pound in tale was made equal to the Pound 
 in weight, and was divided in the manner before men- 
 tioned, is supposed to have been first introduced by 
 Charlemagne into France and his other extensive do- 
 minions, towards the end of the eighth century. It 
 
 might have been introduced from thence into this island 
 in the time of our Saxon ancestors, by the influence of 
 the Norman Princes, who had a considerable connection 
 with this kingdom, before William, Duke of Normandy, 
 took possession of the throne. The system of Coinage, 
 thus described, continued without any alteration in the 
 
 * It is natural to conclude, that the English Pound and the Rochelle 
 Pound might be the same ; for, in ancient times, the city of Rochelle 
 was, for a long period, under the dominion of the English Princes. 
 
 D 2 
 
36 OF THE TOWER POUND, ETC. 
 
 CHAP. 7. weight of our Silver Monies till the 28th of Edward I. It 
 is true., that Half Pennies, then frequently called Mailles, 
 as well as Farthings, were introduced by Henry I. 
 Pennies however were still, during the whole of this 
 period, the highest denomination of our Silver Coins. 
 
 Edward I. in his 28th year, first debased our Silver 
 Coins. 
 
37 
 
 CHAPTER VIII. 
 
 Of the several ways in which Coins may be debased. 
 
 BEFORE I proceed to give an account of the suc- 
 cessive debasements, made in our Coins, it is proper to 
 observe, that Coins may be debased in three different 
 ways. 
 
 First, By diminishing the quantity or weight of the 
 metal of a certain standard, of which any Coin of a given 
 denomination is made. 
 
 Secondly, By raising the nominal value of Coins of a 
 given weight, and made of a metal of a certain standard; 
 that is, by making them current, or legal tender, at a 
 higher rate, than that at which they passed before. 
 
 Thirdly, By lowering the standard or fineness of the 
 metal, of which Coins of a given weight and denomination 
 are made; that is, by diminishing the quantity of pure 
 metal, and proportionally increasing the quantity of 
 alloy. 
 
 I shall be enabled to state in a clearer light the suc- 
 cessive debasements made in the Coins of this realm, if I 
 arrange them, in conformity to the different manners of 
 debasing Coins before stated, under the following heads. 
 
 First, The alterations and debasements made in the 
 Silver Coins of this realm, by diminishing the quantity 
 or weight of standard Silver put into them. The Silver 
 
38 OF THE SEVERAL WAYS OF DEBASING COINS. 
 
 CHAP. s. Coins have always been debased in this manner, except 
 in the short period of nine years, from the 34th 
 Henry VIII. to the 6th Edward VI. 
 
 Secondly, The alterations and debasements made in 
 the Gold Coins of this realm, either by diminishing the 
 quantity or weight of the Gold put into them, or by 
 raising the nominal value of the existing Coins, in order 
 to preserve the relative proportion or value of the Gold 
 Coins with that of the Silver Coins current at suc- 
 cessive periods. The Gold Coins of the realm have been 
 debased in both these manners, but more frequently in 
 the latter. 
 
 Thirdly, I shall reserve for a distinct head an account 
 of the extraordinary and violent alterations and debase- 
 ments, that were made in the Coins of this realm, par- 
 ticularly by lowering the standard of the metal put into 
 the Silver Coins, during the short period before men- 
 tioned. At the end of that period, a reformation of the 
 Coins of the realm, from the late unexampled debasements, 
 commenced, though it was not completed, and though the 
 old standard of the Silver put into our Coins was not 
 perfectly restored till the 2d Elizabeth. The various and 
 violent proceedings, which took place from the 34th 
 Henry VIII. to the 6th Edward VI. may be considered 
 as a sort of convulsion in the monetary system, and 
 proper therefore for a separate head. 
 
 It is necessary, in calculating these debasements, to 
 adhere to one and the same weight; and as the Tower 
 Pound was the longest in use, I shall make my calcula- 
 tions according to the Tower Pound. 
 
39 
 
 CHAPTER IX. 
 
 Of debasements in the Pound in tale. 
 
 IT has already been stated, that Edward I. in the 
 28th year of his reign, first debased the Silver Coins of 
 this realm. 
 
 In this year he diminished the quantity or weight 
 of Sterling Silver^ in the Silver Coins of the several 
 denominations made at his Mint. He coined the Pound 
 weight of Sterling Silver into twenty Shillings and three 
 Pence in tale ; so that the Pound Sterling in tale was 
 thereby debased 1 J|- per cent. 
 
 This King first coined Silver Groats of the value of 
 four Pennies, which took the name of Groats from their 
 being larger Coins, than any that had yet been made. 
 The Groats coined by this Prince were but few ; and 
 this denomination of Money did not become generally 
 current till the reign of Edward III. 
 
 The second debasement of our Silver Coins was in 
 the 18th Edward III. who then coined the Tower Pound 
 of Sterling Silver into twenty-two Shillings and two 
 Pence in tale ; and the Pound Sterling in tale was 
 thereby further debased S-fdffg per cent. 
 
 The third debasement of our Silver Coins was in 
 the 20th* year of the same King, who then coined 
 
 * Stow imputes this debasement to the advice of William Edington, 
 Bishop of Winchester, and Treasurer of England. He calls him a person 
 
40 OF DEBASEMENTS IN 
 
 CHAP. o. the Tower Pound of Sterling Silver into twenty -two 
 Shillings and six Pence in tale ; and the Pound Sterling 
 in tale was thereby further debased l-f$f per cent. 
 
 The fourth debasement of our Silver Coins was in 
 the 27th year of this King, who then coined the Tower 
 Pound of Sterling Silver into twenty-five Shillings in 
 tale ; and the Pound Sterling in tale was thereby further 
 debased 8 f per cent. 
 
 The fifth debasement of our Silver Coins was in the 
 13th Henry IV. who then coined the Tower Pound of 
 Sterling Silver into thirty Shillings in tale ; and the 
 Pound Sterling in tale was thereby further debased 13^ 
 per cent. 
 
 The sixth debasement of our Silver Coins was in the 
 4th of Edward IY. who then coined the Tower Pound 
 of Sterling Silver into thirty-seven Shillings and six 
 Pence in tale ; and the Pound Sterling in tale was 
 thereby further debased 13^ per cent. 
 
 Henry VII. who made no change in the weight of 
 his Silver Coins, first coined Shillings, which had before 
 be-en only a Money of Account. Shillings however did 
 not become generally current till the reign of his 
 successor Henry VIII. and they were then commonly 
 called Testons. 
 
 The seventh debasement of our Silver Coins was in 
 the 18th year of Henry VIII. who then coined the 
 
 " loving the King's commoditie more than the wealth of the realme 
 " and common people," and adds, that "victuals and merchandise 
 " became dearer through the whole realme." 
 
THE POUND IN TALE. 41 
 
 Pound Troy of Sterling Silver into forty-five Shillings, CUAI>. . 
 or according to the Tower Pound into 42s. 2\d. ; and 
 the Pound Sterling in tale was thereby further debased 
 5 if ^ per cent. 
 
 This King first coined Crown Pieces of Silver of the 
 nominal value of five Shillings ; but it is supposed that 
 he made but few of them, and that they did not become 
 generally current till the reign of Queen Mary. 
 
 In the reign of Queen Mary Silver Half Crowns 
 were first Coined, and Silver Crowns became generally 
 current. 
 
 The eighth debasement, of which I shall take notice 
 under this head, was in the 2d year of Queen Elizabeth. 
 Of the great and extraordinary debasements in the 
 standard of the metal of which our Coins were made, 
 between the 18th Henry VIII. and the 6th Edward VI. 
 as well as of the proceedings for the reformation of the 
 Coin in the last year of the reign of Edward VI. and also 
 during the whole of the reign of Queen Mary to the 2d 
 of Elizabeth, I shall give a separate account hereafter. 
 
 Queen Elizabeth, in the second year of her reign, 
 restored the Silver Coins of her realm to the standard, of . 
 old Sterling, and she coined the Pound Troy of Sterling 
 Silver into sixty Shillings in tale, or according to the 
 Tower Pound into 56s. 3^.; and the Pound Sterling in 
 tale, compared with what it had been in the 18th 
 Henry VIII. was thereby further debased 11 ff- per 
 cent. 
 
 The ninth and last debasement of our Silver Coins 
 was in the 43d Elizabeth, 'who then coined the Pound 
 
42 
 
 OF DEBASEMENTS IN 
 
 CHAP. 9. Troy of Sterling Silver into sixty-two Shillings, or 
 according to the Tower Pound into 58s. l\d. ; and the 
 Pound Sterling in tale was thereby further debased 
 1 fflg per cent. 
 
 The total of the debasements from the 1st William I. 
 when the Tower Pound in weight and the Pound in tale 
 were the same, was now 6 ^ or 65 |f per cent. 
 
 So that the value of a Pound in tale is now less than 
 it was in the 1st of William I. in the ratio of | to 1, or 
 32 to 93. 
 
 It appears, from the history of this country, that 
 other proposals for debasing the Silver Coins of the 
 realm were under consideration, but were never carried 
 into execution. In the year 1561, the 3d Elizabeth, 
 many of the ministers of this Queen advised her Majesty 
 to make a neAv debasement in these Coins ; but the Lord 
 see sir Robert Treasurer Burleigh opposed this measure, and prevented 
 humou S S works, it ; and he resisted with spirit every attempt of the like 
 nature, as long as he continued in power. After his 
 decease, Queen Elizabeth was induced, in the 43d year 
 of her reign, to make the ninth and last debasement of 
 the Silver Coins, as before stated. 
 
 In 1612, the 9th James I. a proposition was made for 
 debasing the Silver Coins, by coming Silver at 10 oz. 
 10 dwts. fine, and by cutting the Pound Troy into 64 
 Shillings. Another proposition was made in the same 
 year for debasing the Silver Coins, by cutting a Pound 
 Troy of standard Silver into 64 Shillings. And in 
 1619, the 16th James I. directions were actually given 
 to the Attorney General to prepare new indentures, by 
 
THE POUND IN TALE. 43 
 
 which the Pound Troy of standard Silver should be CHAP. 9. 
 coined into 66 Shillings ; but these directions were soon 
 afterwards recalled ; and by the advice of eminent 
 merchants, as well as of the Officers of the Mint, and 
 occasionally of Sir Francis Bacon, afterwards Lord 
 Verulam, all these proposals were rejected. 
 
 In 1627, the 2d year of the reign of Charles I. 
 another proposition was made for debasing the Silver 
 Coins, by cutting the Pound Troy of standard Silver 
 into 70 Shillings and 6 Pence. On which occasion, Sir 
 Robert Cotton made the famous speech published in his see sir Robert 
 posthumous Works against the debasement of the Silver humous works, 
 Coin, which has been attributed to Sir Thomas Roe. p ' 2 
 And in 1640, the 15th Charles I. other proposals were 
 made for debasing the Silver Coin, by diminishing the 
 quantity of pure Silver put into these Coins, and propor- 
 tionally increasing the alloy ; but all these propositions 
 were rejected. 
 
 The proposition of Mr. Lowndes for debasing the 
 Silver Coins, in his Report to the Lords of the Treasury 
 in 1695, in which he recommends, that the Pound Troy 
 of standard Silver should be coined into 77,9. 6f/., is well 
 known. It was resisted by Mr. Locke in his Treatise, 
 intituled, " Further Considerations concerning raising 
 " the value of Money." Some of the members of the 
 Government at that time are supposed to have favoured 
 this proposition ; but King William and his Parliament 
 rejected it. 
 
44 
 
 CHAPTER X. 
 
 Of the first Gold Coins made in England. 
 
 I WILL, in the next place, proceed to the second 
 head, under which I have arranged the alterations and 
 debasements made in the Coins of this realm. The 
 alterations, under this head, were practised on our Gold 
 Coins ; and in two different ways ; sometimes, by 
 diminishing the quantity of Gold put into the current 
 Gold Coins of a given denomination ; but more 
 frequently, by raising the nominal value of these Coins, 
 with an evident intention of preserving a proportionate 
 value between them and the Silver Coins intended to be 
 current, according to the relative value of Gold to Silver 
 at the market in each respective period. 
 
 It is not necessary on this occasion to say any thing 
 on the question, so much agitated by antiquaries, 
 whether any, and what Coins of Gold were made by 
 the British or Saxon Monarchs of this country, at their 
 Mints. It is probable that, in times of peace and 
 prosperity, some Gold Coins might occasionally have 
 been made by the Monarchs of these two races ; but 
 after the kingdom had been wasted and reduced to a 
 state of the greatest poverty by the successive invasions 
 of the Saxons and Danes, there appears to have been an 
 interval of many years, in which no Gold Coins were 
 
OF THE FIRST GOLD COINS, ETC. 45 
 
 made at any Mint in this country. And as far as any CHAP. 10. 
 discovery has hitherto been made, it is certain, that no 
 such Coins were struck at the English Mint from the 1st 
 William I. to the 41st year of Henry III. that is, during 
 a period of one hundred and ninety-one years. 
 
 It was generally believed till the year 1732, that 
 Edward III. was the first of the English Kings who 
 coined at their Mints any Gold Coins: but in a manu- 
 script preserved in the Archives of the city of London, 
 it was then discovered, that Henry III. in the latter part 
 of his reign, that is, in his 41st year, made what was 
 called a Penny of fine Gold, weighing two Sterlings, or 
 the 120th part of the Tower Pound ; which Gold Penny 
 was to pass for twenty Sterlings or Silver Pennies in 
 tale ; and this information has since been confirmed by 
 the discovery of an original precept, directed to the Mayor 
 and Sheriffs of the City of London, to enforce the cur- 
 rency of this Gold Money, and by several liberates, in 
 which these Gold Pennies are mentioned, among the 
 records in the Tower. These Gold Coins were called 
 Pennies, because the word Penny, or, in the French 
 language, Denier, was in these early times the common 
 term for Money in general, of whatever metal it might 
 be made : and the French King St. Lewis, who was 
 cotemporary with Henry III. first made a Gold Coin, 
 which was called Denier a T Aigne], the figure of a lamb 
 or sheep being impressed upon it. It is probable how- 
 ever, that these Gold Pennies were not coined by 
 Henry III. in any great number : one only specimen of 
 his Gold Coins has yet been discovered. It is certain 
 
46 
 
 OF THE FIRST GOLD COINS 
 
 CHAP. 10. 
 
 See Madox's 
 History of the 
 Exchequer. 
 
 See Sir Matthew 
 Hale, p. 199. 
 where he refers 
 1p the Black 
 Book in the 
 Exchequer. 
 
 that the citizens of London made representations against 
 these Gold Coins very soon after they were first issued; 
 and the King put forth a proclamation, declaring that 
 nobody was obliged to take them, and whoever chose to 
 receive them in payment* might bring them to his 
 Exchange, and receive there the value, at which each 
 had been made current ; but half a Sterling, or the value 
 of half a Silver Penny, was to be deducted, probably to 
 compensate the charge of Coinage. From these circum- 
 stances it may be inferred, that these Gold Pennies did 
 not then get into general circulation. There is hitherto 
 no evidence, that the two immediate successors of this 
 King, that is, either Edward I. or Edward II. ever made 
 any Gold Coins at their Mints. It is not indeed sur- 
 prising, that in these early times no Gold should have been 
 coined at the English Mint. In the reigns of William I. 
 and William II. and during a great part of the reign of 
 Henry I. the King's rents, arising from his demesnes, 
 (which were at that time the principal part of the Royal 
 revenue), though reserved in Money, were answered in 
 cattle, corn, and other provisions, " because Money was 
 " then scarce among the people." The rents of private 
 landholders continued to be paid in kind to a still later 
 period. The commerce of the country, whether foreign 
 or internal, was during this period of no great extent. 
 It is probable therefore, that the quantity even of Silver 
 Money in circulation could not be great ; and the largest 
 denomination of it, hitherto in currency, was but a 
 Penny or Sterling, equal in value to something less than 
 three Pennies of our present Money. There could then 
 
MADE IN ENGLAND. 47 
 
 of course be little occasion, in the internal traffic of the CHAT.IO. 
 kingdom, for Coins made of Gold. It is not improbable 
 however that a small quantity of the Gold Coins of 
 foreign countries might be brought into the kingdom, by 
 means of our foreign commerce, and be occasionally cur- 
 rent within it. Our ancient records make frequent men- 
 tion of Byzants ; and it is certain, that there were at that 
 time circulating through every part of Europe, and 
 employed in the payment of larger sums, Gold Coins 
 made by the Greek Emperors of Constantinople, called 
 Byzants, or Byzantines. These were made of fine Gold, see DU cange's 
 
 Glossary and 
 
 that is, of 24 carats fine. Antiquaries are not agreed supplement, 
 
 . n t ~rt 111 article Byzant. 
 
 concerning the weight of the Byzants ; it is probable 
 however, that each of them originally weighed a 
 Drachma, or Dram, that is, the eighth part of an seeDuCange 
 
 as above. 
 
 ounce, so that its value was nearly equal to 10 Shillings 
 of our present Money. After the example of the Greek 
 Emperors, other Sovereigns of Europe made Gold Coins, 
 which they called Byzantines, though of a different 
 weight and value; and the several sorts of Byzantines 
 made in different countries were on this account occa- 
 sionally distinguished, by adding to their original name 
 that of the people, or country, where they were made. 
 In a subsequent period, that is, about the year 1252, 
 another sort of Gold Coin was introduced into circulation 
 among the nations of Europe ; they were first coined at 
 Florence, and therefore were called Florences. They seeDuCange's 
 were probably made in imitation of the Byzantines ; for supplement, 
 
 , . i /-* -I T* > n f article Florence. 
 
 about this time the Greek Refugees began to ny from 
 Constantinople, and sought an asylum principally in 
 
48 OF THE FIRST GOLD COINS, ETC. 
 
 CHAP. 10. Florence. These Florences were made also of fine Gold, 
 and an ounce was coined into eight of them ; and they 
 were therefore originally of the same weight and value 
 see Le Bianc, as the Byzantines. Le Blanc observes, that these Coins, 
 proiegomenes. called Florences, were very famous in every part of 
 Europe ; and that there was hardly a Sovereign, who 
 did not make them : he even thinks, that this name of 
 Florences was for some time given to every sort of Gold 
 Money, whatever the value or weight of it might be. It 
 is certain, however, that these Florences, or Florins, 
 were by degrees very much depreciated, and that at 
 length Coins of the same name were made of Silver ; 
 and Florins of this last description are the Money of 
 Account, in many countries, to this day. 
 
49 
 
 CHAPTER XL 
 
 Of relative values of Gold to Silver. 
 
 WHEN Edward III. at the commencement of the 
 18th year of his reign, began to make Gold Coins at the 
 English Mint, the people of this kingdom, following the 
 example set them in many countries on the continent, 
 frequently called these new Gold Coins, Florences, or 
 Florins : and in the Proclamation for giving them cur- see Martin 
 
 , ... . .. Folkes's Table 
 
 rency, they are said, to weigh "Deux petits florins de O f English Gold 
 " Florence de bons Pois." They were in fact nearly of p . 121', 122. 
 that weight, for they weighed 4 dwts. 19 J grs. They see nymer, v. 5. 
 were made of Gold of the old English standard, that is, prociamationa 
 23 carats 3^ grains fine, and gr. alloy; 50 of them endemic. 
 were coined out of a Tower Pound weight of Gold, 
 making in tale 157. of the Money of that time ; and each 
 of them was current for 6s. of that money, and was in- 
 trinsically worth about 19s. of our present Money. At 
 the same time he coined pieces, weighing, some of them, 
 half of that before mentioned, and others a quarter, but 
 all of the same fineness, and in due proportion : and as 
 the Tower Pound of standard Silver was then coined into 
 22s. 2d., the value of a Pound of fine Gold, compared 
 with the value of a Pound of fine Silver, was estimated 
 as 12 JJfJJ to 1. The Gold in these Coins was thought 
 to be overvalued, in proportion to the Silver Coin then 
 
 E 
 
50 
 
 OF RELATIVE VALUES 
 
 CHAP. 11. 
 
 Rymer, v. 5. 
 p,416. 
 
 Ibid. p. 424. 
 
 Ibid. p. 41G. 
 
 current, and they were on that account generally refused 
 in payment. For this reason, they were ordered by a 
 Proclamation, dated the 9th July in the same year, to 
 be taken in payment only with the consent of those, to 
 whom they were offered ; and by another Proclamation, 
 dated 20th August following, they were ordered to be no 
 longer current. It is probable that they were generally 
 brought to the Mint, and re coined ; for none of them 
 have yet been found, except a Quarter Florin. 
 
 On the 9th July of the same year, this King issued 
 three new sorts of Gold Money ; one to be called the 
 Noble d'Or, or Noble, ordered to be of the weight of 
 6 dwts. If gr., which was to pass at 6s. 8d., or half a 
 Mark in tale. It was made of Gold of the old standard. 
 At the same time he coined Half Nobles, sometimes 
 called Maille Nobles, and Quarter Nobles, sometimes 
 called Farthing Nobles, in due proportion. The Tower 
 Pound of Gold was to be coined into 39 J- of these 
 Nobles, and to pass in tale at 13/. 3s. 4d. of the Money 
 of that time ; and as the Tower Pound of Silver was still 
 coined into 22s. 2d., the value of a Pound of fine Gold, 
 compared with the value of a Pound of fine Silver, was 
 now estimated as H^sVoV to ! This new Gold Coin 
 was not at first acceptable to the people, and it was 
 therefore ordered, that no one should be obliged to take 
 it in payment for any sum less than twenty Shillings. 
 But as it probably became in a short time more acceptable, 
 it was soon afterwards ordered not to be refused in any 
 payment whatsoever. In this manner, Coins of Gold 
 made at the English Mint were at length introduced into 
 
OF GOLD TO SILVER. 51 
 
 general circulation among the people, though with some CHAP. 11. 
 difficulty. At this time the commerce of the kingdom 
 began greatly to increase ; and Edward III. had given 
 security to it, by several naval victories lately obtained, 
 particularly by one, in which he had destroyed the French 
 navy, off the coast of Flanders. In commemoration of this 
 great event, there was placed on the face of these Nobles, 
 the King, standing in the center of a ship, armed, with 
 his sword drawn in his right hand, and his shield in his 
 left ; and Gold Coins, with nearly a similar device, con- 
 tinued to be made at the English Mint, for more than 
 two centuries and a half, subsequent to this period. 
 
 In the 20th year of this King's reign, when he a 
 second time debased his Silver Money, he reduced the 
 weight of the Nobles to 5 dwts. 8^ grs. and he at the 
 same time coined Half and Quarter Nobles in due pro- 
 portion. The Nobles were to pass, as before, at 6s. 8d. 
 A Tower Pound of Gold of the old standard was to be 
 coined into 42 Nobles, and was to make in tale 14/. of 
 the Money of that time ; and as the Tower Pound of 
 Silver was then coined into 22s. 6d., the value of a 
 Pound of fine Gold, compared with the value of a Pound 
 of fine Silver, was estimated as ll^lis to * 
 
 In the 27th year of this King's reign, when he a third 
 time debased his Silver Money, he reduced the weight of 
 the Nobles to 5 dwts. 8 grs. making Half and Quarter 
 Nobles in due proportion. These Nobles were to pass, 
 as before, at 6s. 8d. A Tower Pound of Gold of the 
 old standard was to be coined into 45 Nobles, and was to 
 make in tale 15/. of the Money of that time ; and as the 
 
 E 2 
 
52 OF RELATIVE VALUES 
 
 CHAP. n. Tower Pound of Silver was then coined into 25s., the 
 value of a Pound of fine Gold, compared with the value 
 of a Pound of fine Silver, was estimated as 11-Jf-J- to 1. 
 In the 13th year of Henry IY. when this King 
 debased his Silver Coin, he reduced the weight of the 
 Nobles to 4 dwts. 19 grs. making Half and Quarter 
 Nobles in due proportion. The Nobles were to pass, as 
 before, at 6s. Sd. A Tower Pound of Gold of the old 
 standard was to be coined into 50 Nobles, and was to 
 make in tale 16Z. 13s. 4d. of the money of that time; 
 and as the Tower Pound of Silver was then coined into 
 30s., the value of a Pound of fine Gold, compared with 
 the value of a Pound of fine Silver, was estimated as 
 
 From that period, the Kings of this realm, when they 
 debased their Silver Coins, by. diminishing the weight of 
 them, introduced a new method of preserving the relative 
 value of Gold to Silver in their Coins, by frequently 
 raising the nominal value of the Gold Coins then in 
 currency, and by obliging their subjects to receive them 
 at this increased value. But as the people were, from 
 long usage, now accustomed to Gold Coins of a certain 
 nominal rate and value, that is, of half a Mark, or 6s. 8d., 
 and to its subdivisions 3s. 4d. and Is. 8d., the Kings of 
 this realm, when they so raised the nominal value of the 
 existing Gold Coins, generally introduced into circulation 
 new pieces of Gold Coin, of the same nominal values, 
 to which the people had been accustomed, though under 
 different names ; and when, in a subsequent period, Gold 
 Coins, of the nominal value of 20 Shillings, and 10 
 
OF GOLD TO SILVER. 53 
 
 Shillings, were introduced into currency, the same practice CnA ^- 1] - 
 was adopted, whenever any alterations were made in 
 such Gold Coins. 
 
 In the 4th year of the reign of Edward IV. when 
 this King debased his Silver Coin, he raised the value of 
 the Nobles then in circulation, from 6s. Sd. to Ss. 4d. 
 But he soon afterwards made a new Gold Coin, which 
 he called an Angel, because there was represented an 
 Angel on the face of it. He continued however the 
 figure of a ship ; but he placed it on the reverse of this 
 Coin. Each of these Angels was to be current at 6s. 8d., 
 weighing 3 dwts. 13^ grs. He made Angelets, or Half 
 Angels, in due proportion. A Tower Pound of Gold of 
 the old standard was to be coined into sixty-seven Angels 
 and a half, and was to make in tale 22 L 10s. This King 
 continued however to Coin Nobles, Half Nobles, and 
 Quarter Nobles, precisely of the same weights as those 
 made in the 27th year of Edward III. which were now 
 to pass at 10^. ; but they received a new name, and were 
 called Rials, or Rose Nobles. A Tower Pound of Gold 
 of the old standard was to be coined into 45 of these 
 Nobles, and was to make in tale 221. 10s. of the Money 
 of that time. An Angel and a Half were of the same 
 rate and value as one Rial, or Rose Noble ; and as the 
 Tower Pound of Silver was then coined into 37s. 6df., 
 the value of a Pound of fine Gold, compared with the 
 value of a Pound of fine Silver, was estimated, as in the 
 27th Edward III. in the proportion of H^gJ to 1. 
 
 Though Henry VII. did not debase either his Gold 
 or Silver Coins, he introduced a new sort of Gold Coin 
 
54 OF RELATIVE VALUES 
 
 >3 ^ * .jnto, 1 currency, which was to pass for 20 Shillings, and 
 weighed 10 dwts. 16 grs. which was exactly double the 
 weighiof the Rial, or Rose Noble, which then passed at 
 10 Shillings. It was called a Sovereign, or Double 
 Rial ; but very few of them were coined in this reign. 
 On this Sovereign, or Double Rial, the King was repre- 
 sented sitting on his throne in royal robes, and crowned. 
 In the 18th year of Henry VIII. when the Silver 
 Coin was again debased, this King raised the value of 
 the several Gold Coins then in circulation. .He raised 
 the Sovereign, or Double Rial, from 20s. to 22s. 6d. ; 
 the Rial, from 10s. to 11s. 3d.; the Angel, from 6s. Sd. 
 to Is. 6d.: but he at the same time made a new Gold 
 Coin of the old standard, which was to be current at 
 6s. 8d., weighing 2 dwts. 23 grs. Troy, (which weight 
 was at this time first introduced into the English Mint,) 
 and he called it a George Noble. He coined at the 
 same time Half George Nobles, (which were also called 
 Forty Penny Pieces) in due proportion. A Troy Pound 
 of Gold of the old standard was to be coined into 
 eighty-one of these George Nobles, and was to make in 
 tale 27/. of the Money of that time. This King coined 
 also at the same time pieces of Gold Coin of a new 
 standard, that is, 22 carats fine, and 2 alloy ; they were 
 called Crowns, and each of these Crowns was to weigh 
 2 dwts. 9 grs. of Gold of this new standard; and was 
 to pass for five Shillings. He made also Half Crowns 
 of Gold of the same standard in due proportion. A Troy 
 Pound of Gold of this new standard was to be coined 
 into 100J Crowns, and was to make in tale 251. 2s. 6d. 
 
OF GOLD TO SILVER. OO 
 
 of the Money of that time; and as the Tower Pound of CHAP. n. 
 Silver was then coined into 45s. the value of a Pound of 
 fine Gold in Coins of the old standard, compared with the 
 value of a Pound of fine Silver, was estimated as in the 
 4th Edward IV. in the proportion of 11-JJJ- to 1, and the 
 value of a Pound of fine Gold in Coins of the new 
 standard, compared with the value of a Pound of fine 
 Silver, was estimated in the proportion of ll-^o ^ * 
 
 For reasons already stated, I shall pass over all the 
 proceedings with respect to the Gold Coin, from the 18th 
 Henry VIII. to the 2d Elizabeth. Yet it will be proper 
 to observe, that Edward VI. in the 6th year of his reign, 
 raised the value of the Sovereigns of the old standard to 
 30 Shillings, the old Rials to 15 Shillings, the Angels to 
 10 Shillings, and their respective subdivisions in due 
 proportion. He coined also, in the 6th year of his reign, 
 Gold Crowns of the new standard, weighing 1 dwt. 
 18 J grs. and Half Crowns in proportion. His Father 
 coined, in the 34th year of his reign, Gold Sovereigns of 
 the new standard, which were to pass at twenty Shillings, 
 weighing 8 dwts. 8 grs. These he afterwards reduced to 
 8 dwts. and they were farther reduced by Edward VI. 
 in the said 6th year of his reign, to 7 dwts. 6J grs. In 
 this state the Gold Coins continued during all the reign 
 of Queen Mary, and Queen Elizabeth found them in this 
 state at her accession. She made no alteration at this 
 time, either in the weight or the value, at which these 
 Gold Coins were to be current, with respect to the Pound 
 in tale; but, by restoring the Silver to 11 oz. 2 dwts. 
 fine, and 18 dwts. alloy, she altered the value of the 
 
56 OF RELATIVE VALUES 
 
 CHAP. 11. Gold Coins, compared with those of Silver. According 
 to several indentures, before her 43d year, a Troy Pound 
 of Gold of the old standard was to be coined into twenty- 
 four Sovereigns, and the smaller pieces of Gold Coin of 
 the old standard in due proportion; and was to make in 
 tale 36/. of the Money of that time. And the Troy 
 Pound of Crown Gold of the new standard was to be 
 coined into 33 Sovereigns, and the smaller Gold Coins 
 of the new standard in due proportion ; and was to make 
 in tale 33 /. of the Money of that time. And as the 
 Pound of Silver was then coined into 60 Shillings, the 
 value of a Pound of fine Gold in Coins of the old 
 standard, compared with the value of a Pound of fine 
 Silver, was estimated in the proportion of 1 1 J J to 1 ; 
 and the value of a Pound of fine Gold in Coins of the 
 new standard, compared with the value of a Pound of 
 fine Silver, was estimated as 11 -^ to 1. In Coins of 
 the old standard therefore, the relative value of Gold to 
 Silver was as in the 18th of Henry VIII. but in Coins 
 of the new standard, the value of Gold, when compared 
 with Silver, was less by ^Q, than in that period. 
 
 In the 43d of Elizabeth, when the Silver Coin was 
 again debased, and put upon the footing on which it 
 stands at present, this Queen diminished the quantity of 
 Gold, which she put into her Coins, both of the old and 
 new standard. She reduced the weight of the Angel of 
 the old standard, which had before weighed 3 dwts. 8 grs. 
 to 3 dwts. 7 grs. and the Half and Quarter Angels in 
 due proportion. The Troy Pound of Gold of this standard 
 was to be coined into 73 Angels, and was to pass in tale 
 
OF GOLD TO SILVER. 57 
 
 at 36/. 10^. of the Money of that time. She reduced the CHAP.II. 
 Sovereigns of the new standard, which had before weighed 
 7 dvvts. 6J grs. to 7 dwts. 4 grs. and the smaller Coins of 
 this new standard in due proportion. The Troy Pound 
 of Gold of this standard was to be coined into 33 
 Sovereigns and an half, and was to pass in tale at 
 33/. 105. of the Money of that time ; and as the Pound 
 of Silver was then coined into 62s., the value of a 
 Pound of fine Gold in Coins of the old standard, com- 
 pared with the value of a Pound of fine Silver, was 
 estimated as 10^ to 1 ; and the value of a Pound of 
 fine Gold in Coins of the new standard, compared with 
 the value of a Pound of fine Silver, was estimated as 
 
 lojJS- to i. 
 
 As from this period no further alteration or debase- 
 ment has been made in our Silver Coins, I am now only 
 to consider, what alteration was henceforth made in our 
 Gold Coins, in order to bring the value of them in tale 
 to a due proportion with the value in tale of our Silver 
 Coins, according to the relative value of Gold to Silver 
 in each respective period. 
 
 It is singular, that to this period, though the Mines of 
 America had long been discovered, and great quantities 
 of the precious metals had in consequence thereof been 
 imported into Europe, the relative prices of these metals 
 do not appear from the Mint indentures to have very 
 much varied from what they had been in former times. 
 It is possible that the increasing luxury of the different 
 countries of Europe, in plate and other articles during 
 this time, might have employed and absorbed a consider- 
 
58 OF RELATIVE VALUES 
 
 CHAP. 11. able part of the Silver, that had been hitherto imported ; 
 and it should be recollected, that the productive Silver 
 Mines of Potosi had not then been discovered above 
 fifty-five years. However, it can hardly be conceived, 
 that some rise in the value of Gold, compared with 
 Silver, had not at that time taken place in the market, 
 though it had not been observed, and though the value 
 of it in our Gold Coins had not been raised in con- 
 sequence thereof, by those who had the direction of 
 the English Mint. Queen Elizabeth, in her 43d year, 
 estimated the value of Gold to Silver, even in a less 
 proportion than it had ever been, in any period since the 
 18th Edward III. except in the 13th Henry IV. and 
 except in the nine years from the 34th Henry VIII. to 
 the 6th Edward VI. when no attention appears to have 
 been paid to the relative values of these precious metals, 
 as will be stated hereafter. But from this period, the 
 value of Gold, compared with Silver, appears, even from 
 the Mint indentures, to have risen rapidly ; for in the 2d 
 and 3d of James I. this Monarch found it necessary, on 
 that account, to diminish the weight of his Gold Coins. 
 He reduced the weight of the Angel of the old standard 
 from 3 dwts. 7 grs. to 2 dwts. 23 grs. and the other Gold 
 Coins of this standard in due proportion. The Troy 
 Pound of Gold of this standard was to be coined into 
 81 Angels, and was to pass in tale at 40/. 10,?. of the 
 Money of that time. He reduced the Sovereign, or 
 Piece of 20 Shillings of the new standard, from 7 dwts. 
 4 grs. to 6 dwts. 10| grs. and the smaller Gold Coins of 
 this standard in proportion. The Troy Pound of Gold 
 
OF GOLD TO SILVER. 59 
 
 of this standard was to be coined into 37 J Sovereigns; CHAP.II. 
 -tttH*a<s to pass in tale at 37 1. 4s. of the Money of that 
 time : ana>-as the Pound of Silver was then coined into 
 62s., the valueNrf a Pound of fine Gold in Coins of the 
 old standard, compared with the value of a Pound of fine 
 Silver, was estimated as 12 5 8 9 7 ^ r to 1 ; and the value of 
 a Pound of fine Gold in Coins of the new standard, 
 compared with the value of a Pound of fine Silver, was 
 estimated as I2^ff$ s to 1. This was a rise in the value 
 of Gold in the old standard of 10 1 per cent, and in the 
 new standard of 1 1 ^ per cent. 
 
 To distinguish the new Sovereigns, or Twenty Shilling 
 Pieces, made by this King, from the old, he changed their 
 name, and called them Unites ; and further, to enable his 
 subjects more easily to distinguish the nominal value of 
 this, as well as of the other Gold Coins made by him, he 
 now began to put figures on the face of them, denoting 
 the nominal value, at which they were respectively to be 
 current. The practice of thus ascertaining the nominal 
 value of Coins had hitherto been applied to the Silver 
 Coins only. 
 
 This King, in the 9th year of his reign, raised, by 
 proclamation, all Gold Coins hitherto in circulation, two 
 Shillings in the Pound, or 10 per cent, so that the Rose 
 Rial was to pass for 33 Shillings, and the smaller Coins 
 of this standard in due proportion. The Unite was to 
 pass for 22 Shillings, and the smaller Gold Coins of this 
 standard in due proportion ; which, added to the former 
 rise in the 2d and 3d year of his reign, made a total rise, 
 during the short space of seven years, in the value of 
 
60 OF RELATIVE VALUES 
 
 CHAP. 11. Gold, compared with that of Silver, of 20 fj per cent, in 
 Coins of the old standard, and of 21^ per cent, in Coins 
 of the new standard. The value of a Pound of fine Gold 
 in Coins of the old standard, compared with the value of 
 a Pound of fine Silver, was now estimated as 13^f 
 to 1 ; and the value of a Pound of fine Gold, in Coins of 
 the new standard, compared with the value of a Pound 
 of fine Silver, was estimated as 13f^f to 1. This King, 
 in the next year, coined Pieces of Gold of the old 
 standard to pass for 30s., 15.?., and 10s., proportionally 
 diminishing their weight. 
 
 In the 17th year of this King, he a third time raised 
 the value of Gold in his Coins. The last mentioned 
 Piece of Gold Coin of the old standard, which in the 
 10th year of his reign weighed 8 dwts. 4^ grs. and was 
 to pass for 30s., was reduced to 8 dwts. 2 grs. and the 
 other Gold Coins of the same standard, in like propor- 
 tion. He now made 20s. Pieces of the new standard, 
 weighing 5 dwts. 20J grs. which were called Laurels ; 
 and new 10s. Pieces called Double Crowns, and 5s. 
 Pieces called Crowns, diminishing their weight in due 
 proportion ; and thereby further raised the value of Gold 
 compared with that of Silver 1^- per cent, in Coins of 
 the old standard, and JgJ per cent, in Coins of the new 
 standard. The value of a Pound of fine Gold, in Coins 
 of the old standard, compared with the value of a Pound 
 of fine Silver, was now estimated as 13 f ff to 1 ; and 
 the value of a Pound of fine Gold, in Coins of the new 
 standard, compared with the value of a Pound of fine 
 Silver, was estimated as 13 jj-f to 1. 
 
OF GOLD TO SILVER. 61 
 
 No further alteration was made in the weight of the CHAP.II. 
 Gold Coins, or in their relative value with respect to the 
 Silver Coins, during the remainder of this King's reign ; 
 and no alteration in either of these respects was ever 
 made through the whole of the reign of Charles I. nor 
 during the time of the Commonwealth ; but the persons, 
 who during this last period governed the kingdom, . 
 changed the devices on the face and reverse, both of our 
 Gold and Silver Coins. 
 
 Charles II. at his Restoration, by his first indenture 
 with the Master of the Mint, ordered, that his Coins 
 should be made exactly the same in weight and fineness, 
 as those, that had been made in the time of his Father, 
 Charles I. : but in his 15th year, that is, the 3d year 
 after the Restoration, he reduced the quantity of Gold, 
 which he put into his Coins of the new standard. There 
 is no reason to believe, that any Gold Coins of the old 
 standard were made at the Mint of that King, or in any 
 subsequent reign. The weight of the last Twenty 
 Shilling Piece of the new standard, which was called a 
 Laurel, was 5 dwts. 20^ grs. The weight of the new 
 Piece of the same standard, which was intended in like 
 manner to pass for 20s. was 5 dwts. 9J grs. This Piece 
 was afterwards called a Guinea. He coined also Pieces, 
 which were to pass for 10 Shillings, and were called 
 Half Guineas. He coined no other Gold Coins of this 
 standard, except a few double Guineas and Five Pound 
 Pieces, all which were made in due proportion. The 
 Troy Pound of Gold, of the new standard, was to be 
 coined into 44^ of these 205. Pieces or Guineas, which 
 
62 
 
 OF RELATIVE VALUES OF GOLD TO SILVER. 
 
 CHAP. 11. were intended to pass in tale for 44Z. 10s.; and the value 
 of a Pound of fine Gold, compared with the value of a 
 Pound of fine Silver, was then estimated as 14 |^ to 1 ; 
 and the value of Gold, compared with that of Silver, was 
 at this time raised 8 f f per cent. As upon the accession 
 of James I. to the English Crown, the value of a Pound 
 of fine Gold, compared with the value of a Pound of fine 
 Silver, was estimated as 10 |JJ to 1, the rise in the value 
 of Gold in the space of sixty years was upon the whole 
 32 |f per cent.: and as it can hardly be doubted, that 
 see rieetwood's most other articles, as well as Gold, increased in their 
 
 Chronicon Pre- . . . . 
 
 tiosum, and sir price, compared with Silver, during the whole of this 
 
 Geo. Shuck- . .IT c 
 
 burgh's Tables period, those who were entitled to receipts from ancient 
 feefarm or other rents, as well as annuities, which had 
 subsisted at the commencement of this period, must have 
 lost in effect, by this diminution of the price of Silver, 
 nearly one third of the original value of such rents and 
 annuities. 
 
63 
 
 CHAPTER XII. 
 
 Of the great inconvenience and expence arising from 
 the fluctuations of the relative values of Gold to 
 Silver. 
 
 FROM the account thus laid before Your Majesty of 
 the variation in the relative values of Gold and Silver, 
 as estimated in the Mints of this kingdom, from the 
 time when Gold Coins were first made therein, after 
 the accession of William I. it appears, that in the 41st 
 Henry III. fine Gold compared with fine Silver was 
 estimated in the Gold Coins or Pennies made by that 
 King, at a lower value, than in any subsequent period ; 
 that is, as O^y to 1 : and that in the beginning of the 
 18th year of Edward III. when he first made Florences, 
 or Florins, the value of fine Gold, compared with the 
 value of fine Silver, was estimated at a higher rate than 
 in any subsequent period previous to the 9th James I. 
 that is, as 12^f^4 to 1. It has already been stated, 
 that the people were dissatisfied with both these valua- 
 tions, and refused to take either these Gold Pennies or 
 Florins in payment ; though it may seem extraordinary, 
 that they should not have ben ready to take in payment 
 the Gold Coins made by Henry III. as the Gold in 
 them was valued so very low. On the other hand, the 
 complaints of the people in the 18th Edward III. were 
 
64 OF THE GREAT INCONVENIENCE 
 
 ciiAr.12. probably well founded; for by comparing the value 
 which this King set on the Gold in his Florins, with the 
 value at w r hich it was estimated in the Gold Pennies of 
 Henry III. the rise in the value of Gold at the market 
 during this interval must indeed have been very great, 
 to justify Edward III. in setting so high a value on it 
 in his Florins. In consequence however of these com- 
 plaints, this King, in a subsequent part of the same year, 
 when he first coined Nobles, reduced the value of Gold, 
 compared with Silver, in these Nobles, to the proportion 
 of ll^V/dV to 1, as has been before stated. The people 
 still complained that the value of the Gold in these 
 Nobles was rated too high, and for a short time refused 
 to take them in payment; but soon afterwards they 
 became satisfied with this valuation, and were ready to 
 receive them in all payments whatsoever, so that they 
 became generally current. 
 
 It is difficult to explain, on any just principles, the 
 transactions last stated, or the motives which influenced 
 the opinions of the people with respect to these Coins. 
 The most probable conjecture is, that as no Gold Coin 
 had been made at the English Mints for at least 195 
 years previous to the 41st of Henry III. and probably 
 for a much longer period ; and as the people had during 
 that time carried on but little commercial intercourse 
 with foreign nations, the price of Gold in this kingdom 
 might be very low, because there had been, during the 
 whole of that time, the less use and demand for it. The 
 people might further object to these new Gold Pennies, 
 from a natural aversion to novelty in a business, in which 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 65 
 
 their interests were so deeply concerned : but, with the CHAP. 12. 
 increasing commerce of the kingdom, this metal might 
 gradually rise in its value before the 18th Edward III. 
 and he might on this account be induced to estimate the 
 value of it in his Florins at the high rate before stated. 
 It is not improbable also, that this great Monarch, who 
 was constantly in want of Money for his foreign wars, 
 and who had, on that account, at three different times 
 debased his Silver Coins, might expect, by over-rating 
 the Gold in Coins of that metal, to increase his revenue. 
 He certainly rated it too high ; and for this reason, when 
 he coined Nobles in a subsequent part of the same year, 
 he considerably reduced the value, at which he rated the 
 Gold put into them. The people for a short time thought 
 the Gold in these Nobles was still over-rated ; but con- 
 siderable quantities of it being brought to the Mint to be 
 coined, and these Coins becoming generally current, the 
 price of Gold naturally rose in consequence of this new -f 
 use and demand for it, and the people then became 
 satisfied with the value at which this King had estimated 
 it in his Nobles. 
 
 From the 18th of Edward III. to the 2d of James I. 
 the highest valuation of fine Gold compared with fine 
 Silver was in the 20th Edward III. when it was esti- 
 mated as HMtll to 1. The lowest valuation was in the 
 
 o o O 
 
 13th Henry IV. when it was estimated as 10 ^fg to 1 ; 
 so that the variation during this long period was 12 per 
 cent. I have not been able to find in the records or 
 chronicles of this kingdom any symptoms of dissatis- 
 faction or complaint, during the whole of this time, 
 
66 OF THE GREAT INCONVENIENCE 
 
 CHAP. 12. either as to any excess or defect in the valuation of 
 Gold compared with Silver in the Coins made at the 
 English Mint, except in the short space of about nine 
 years, from the 34th Henry VIII. to the 6th Edward VI. 
 (of which some account will be given under the next 
 head of this Letter ; ) so that it is probable, that there 
 was no great excess or defect in the relative values of the 
 two precious metals, as estimated at the English Mint, 
 compared with the price of them at the market, during 
 more than two centuries and a half. 
 
 It is certain also, that the currency of the country, 
 during those times, consisted chiefly of Silver Coins; and 
 that the number of Gold Coins then in circulation bore 
 but a very small proportion to those of Silver. The 
 people might perhaps on that account be induced to pay 
 less attention to the relative value of the two precious 
 metals in the different sorts of Coin, and to estimate it 
 with less accuracy. Besides, it is possible, that the 
 Mines and other sources, from which these metals are 
 procured, might, in the whole of that period, have 
 afforded a more regular and proportionate supply of 
 each of them, than they have done in later times. 
 
 /From the 2d James I. inclusive, to the 15th of 
 Charles II. the rise in the value of Gold, compared with 
 Silver, was very great and rapid. It has already been 
 stated, according to the different estimates made of it in 
 the Mints of this kingdom, that this rise amounted in 
 sixty years to 32 1^ per cent, or nearly one third. The 
 great inconveniences, which the people of this kingdom 
 suffered from the many and sudden changes in the value 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 67 
 
 of these metals, during these sixty years, and the diffi- CHAP. 12. 
 culties, to which Government was on that account 
 exposed, are fully proved by many entries in the Books 
 of Your Majesty's Privy Council, and by the chronicles 
 and writings of those times. The ministers who then 
 served the Crown, among whom there were men of great 
 knowledge and talents, and particularly Sir Francis 
 Bacon, the first philosopher of the age, had frequent 
 consultations on this subject, by order of their Sovereign; 
 and they took the advice of merchants, bankers, and 
 other persons, supposed to be best versed in a business 
 of this nature : but they were never able to discover any 
 sufficient remedy for the evil. It is certain, that the rise 
 in the value of Gold made by James I. in the 2d and 3d 
 year of his reign, was rendered necessary by the expor- 
 tation of the Gold Coin, which had for some time been 
 experienced, and by the very small quantity of it that 
 was then left in circulation. This rise, which was equal 
 to 10 g per cent, in the Gold Coins of the old standard, 
 and to ll^f per cent, in the Gold Coins of the new 
 standard, as before stated, produced a partial and tem- 
 porary relief ; for Stowe, in his Chronicle, observes, that stowe-s chro- 
 
 nicle, p. 912. 
 
 subsequent to it, <f and for six years after, here was more 
 " plentie of Golde than ever was before;" but he con- 
 fesses, that this plenty of Gold Coin did not continue in 
 circulation for any length of time, and that it afterwards 
 began to be exported. It soon became evident, that the 
 last mentioned rise of the value of Gold in the Coins of 
 this kingdom was not sufficient to make it equal to the 
 relative value of Gold to Silver at the market: King 
 
 F 2 
 
68 
 
 OF THE GREAT INCONVENIENCE 
 
 CHAP. 12. 
 
 See Stowe's 
 Chronicle, 
 p. 911. 
 
 See Munn's 
 England's 
 Treasure, ch. 8. 
 
 James therefore was under the necessity, in the 9th year 
 of his reign, of farther raising the value of his Gold 
 Coins 10 per cent. The proclamation, by which this 
 second rise was commanded, assigns the reasons, on 
 which it was founded, and the principles, on which this 
 Monarch, by the advice of his Privy Council, proceeded, 
 on that occasion ; for it is there expressly said, " that 
 " the Unite or Gold Coin, that passed for 20 Shillings 
 " in England, was valued in foreign countries, and par- 
 " ticularly in Holland, at 22 Shillings ;" that is, at 
 10 per cent, more than the value at which it was 
 current in England ; and it was on this account that 
 he raised the value of his Gold Coin then in circu- 
 lation 10 per cent. Experience however soon proved, 
 that the Government had now erred in the opposite 
 extreme, and that this rise was too great; for it 
 appears, from undoubted testimonies, that, subsequent 
 to it, the Silver Coin began to be exported, in like 
 manner as the Gold Coin had been before. It is ob- 
 served by Mr. Munn, that "this last raising of Gold 
 "10 in the hundred did bring in great store thereof, 
 (f more than we were accustomed to have in the king- 
 " dom ; but that it carried away all, or the most part of 
 " our Silver." And it is acknowledged by a Letter 
 from the Lords of the Privy Council to King James, 
 dated the 30th November 1618, that for the last seven 
 years " Silver had been scarce at the Mint, though Gold 
 " had been plentiful." This fact is confirmed by a 
 Certificate of the Officers of the Mint annexed to the 
 Letter before mentioned, by which it is proved, that in 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 69 
 
 seven years previous to the year 1616 there had been CHAP. 12. 
 coined no more than 57,6897. 9.?. of Silver ; and in the 
 last of these years no more than 2167. 4.?. 6d. ; but that 
 in the same seven years there had been coined of Gold 
 1,546,3097. Is. lOd. ; and in the same Certificate it is 
 shewn, that in the last seven years of the reign of 
 Queen Elizabeth, there had been coined of Silver 
 844,4337. 4s. 4d., and of Gold no more than 104,2807. 12s. ' 
 This want of Silver Coin continued afterwards to increase, 
 and very small quantities of Silver Bullion were brought 
 to the Mint. The Gold Coins, which were then issued 
 from it in great plenty, were immediately clipped, or 
 otherwise diminished in their value. To remove both 
 these evils, by a proclamation issued on the 14th May, see this procia- 
 in the 10th year of his reign, that is, in the year 1612, to in the pro.. 
 entitled, " For the better staying of Treasure within the 4th February 
 " Realm, and also for the procuring and inviting of the hereafter/ 
 " same to be brought as well to his kingdom as to his 
 " Mint," King James thought fit " to set the prices of 
 "foreign Gold and Silver in their several species." 
 . By another proclamation issued on the 23d day of see collection of 
 
 ., , r -i i i Proclamations in 
 
 March, in the 12th year 01 his reign, that is, in the thecoundi- 
 year 1614, King James having first declared, that the 
 Treasure of Gold and Silver brought into the Realm 
 hath bene by sundry Acts of Parliament ordained to be 
 as an immoveable and perpetuall stocke, which should 
 never go forth agaihe, but should receive a daily increase 
 icithout diminution, and be conserved as well for the 
 making and maintaining of just and honourable warres, 
 either offensive or defensive, as for adorning the kingdom 
 
70 OF THE GREAT INCONVENIENCE 
 
 CHAP. 12. i n time of peace; and having complained, that great 
 quantities of Gold and Silver are continually carried 
 forth into forraigne parts, not only for supply of Com- 
 merce in respect of the excesse of forreigne commodities 
 (which is a thing in itselfe intolerable), but also upon 
 secret and subtill gaines, made at the Mints abroad, 
 which artifices as he does not approve nor much lesse 
 emulate, but is desirous to frustrate, orders, that the 
 statutes made and in force against the exportation of 
 Gold or Silver in coin, Jewells, plate, or vessell, or how- 
 soever, should be strictly carried into execution under 
 the severest penalties. 
 
 In a subsequent period the Privy Council were 
 ordered by the King to take this subject into considera- 
 tion. Sir Francis Bacon, then Lord Chancellor, and 
 Sir Edward Coke frequently attended. There were 
 many consultations in the years 1618 and 1619 ; and the 
 Officers of the Mint, and the principal Merchants of the 
 city of London, were called on for their advice ; but it 
 appears, that these Officers and the Merchants differed 
 greatly in their opinions, with respect to the remedy. 
 When it was found that they could not agree, they w r ere 
 ordered to hold separate meetings, and each of them to 
 see the Pro- make a separate report. The Privy Council, after 
 
 ceedings in the , . , -, . . . ~, , , 
 
 council Books in having heard various propositions offered to them, 
 1619^1620. thought fit to order, that the East India Company and 
 
 the Goldsmith's Company should make bye-laws, binding 
 themselves not to give a higher price for Silver, than 
 that at which it was received at the Mint: and when 
 these bye-laws were presented to the Board on the 21st 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 71 
 
 January 16 ^g, " the Lords found them defective in point CHAP. 12. 
 " of penalty ;" and they add, that this penalty " ought 
 " to have been expressed by a clause to the following 
 " effect, upon such further penalty as his Majesty shall 
 (i be pleased to lay upon the Company" Another 
 proposition was at that time made, and at first adopted 
 by the Privy Council, for coining the Pound Troy of 
 standard Silver into 66 Shillings ; but upon further con- 
 sideration the execution of this measure was suspended. 
 
 When it is considered that the real cause of this 
 great evil, and the many ill consequences which it pro- 
 duced, was the high price at which Gold had been 
 estimated in the Coins of this realm for some years past, 
 it is matter of astonishment, that King James should, 
 just at that time, that is in his 17th year, again. raise the 
 value of the Gold in his Coins, and thereby increase the 
 difficulties to which his subjects were exposed. There is 
 reason however to suspect, that it was intended to keep 
 this measure secret. Mr. Lowndes has published no 
 Mint Indenture of this King of a later date than his 
 10th year ; and it is probable, that he could not find 
 any. Diligent search has been made in the repositories 
 where such Indentures are usually kept, and no Mint 
 Indenture made in the 17th year of James I. can be 
 found. In a manuscript Treatise, which appears to have 
 been written at that time by a person of eminence, King 
 James is advised to keep for some time secret all altera- 
 tions made in his Coins ; but a Mint Indenture of the 
 21st of James I. has been found, in which this rise in the 
 value of Gold in the Coins is ordered. It was probably 
 
72 
 
 OF THE GREAT INCONVENIENCE 
 
 CHAP. 12. 
 
 Eushworth's 
 Hist. Collec. 
 part ii. vol. i. 
 p. 149, 150. 
 
 See Rymer's 
 Feed. vol. 17. 
 p. 133. and 
 Collection of 
 Proclamations 
 in the Council- 
 Office, vol. 2. 
 
 made as early as his 17th year, by some private order, of 
 which no trace can be discovered; and indeed all the 
 writers on Coin agree that it was then made. This rise 
 was however but small ; it was 1 ^ P er c en k in the old 
 standard, and J^ per cent, in the Coins of the new 
 standard, as before stated. The necessary consequence 
 was, that a still greater scarcity of Silver Coin ensued, 
 and that a very small quantity of Silver Bullion was 
 brought by the merchants to the Mint during the re- 
 mainder of this reign, and during the whole, or at least 
 a considerable part of the reign of Charles I. and it is 
 mentioned in Rushworth, in his account of the year 
 1632, "that there was such plenty of Gold, and such 
 " scarcity of Silver, that the drovers and farmers, who 
 " brought cattle to Smithfield, -would ordinarily make 
 " their bargain to be paid in Silver ; and that it was 
 " usual to give two pence, and sometimes more, to 
 " change a 20s. Piece of full weight." 
 
 It appears that, during this period, the Government 
 adopted other measures to remove the great inconveni- 
 ences, to which the commerce of the kingdom continued 
 to be exposed, from this inequality in the intrinsic value 
 of the Coins made of the two metals. By another 
 proclamation issued on the 4th February 1618, King 
 James confirmed his proclamation of the 14th May 1612; 
 and observing, that the drawing of Moneys into the 
 Goldsmith's hand, by turning Silver into Gold, upon 
 profit of Exchange, doth make it the more ready to be 
 ingrossed into the merchant's hand for transportation to 
 Mints abroad, he prohibited the melting down the Gold 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 73 
 
 or Silver Coin of the realm., in order to convert the. same CHAP. 12. 
 into plate. He also prohibited the " excessive use of 
 " Gold and Silver Foliate in every sort of ornament, 
 " except in making armour, or at funerals." 
 
 On the llth June 1622, that is in the 20th year of s ee Rymer, vol. 
 James I. a third proclamation was issued by this King, collection of 
 acknowledging the scarcity of Gold and Silver, in conse- intheOonnoa- 
 quence of the exportation thereof from this kingdom, and 
 complaining that his former proclamations had not been 
 obeyed, " notwithstanding some remarkable examples of 
 " Justice in his High Court of Star Chamber." He 
 thereby confirms the foregoing proclamation, and also 
 prohibits the exportation of these metals, not only in 
 Coin, but in Bullion, and in every other state or con- 
 dition whatsoever, under the severest penalties. He also 
 prohibits the making any Gold or Silver thread, or the 
 selling of Gold or Silver Bullion to any person, except 
 to the Officers of his Majesty' 1 s Mint and Changes, unless 
 it " be for making of Amells*, or repairing old Plate, so 
 " as to make it as good as Sterling ;" and he further 
 prohibits the selling of any fine Silver, or Silver allayed, 
 molten into mass, to any person whatsoever, or by one 
 Goldsmith to another. 
 
 By a subsequent proclamation, dated the 10th July see Rymer, vol. 
 1624, that is in the 22d,year of his reign, King James collection of 
 again acknowledging that his former proclamations had m the coundi- 
 not produced the effect that was expected from them, 
 
 * An old term for works in enamel, or other fine works in Gold or 
 Silver. See Stat. 4th Hen. VII. ch. 2. 
 
7-1 OF THE GREAT INCONVENIENCE 
 
 CHAP. 12. thought fit, in consequence of a complaint of the House 
 of Commons, to revoke a Charter he had granted to the 
 Company of Gold Wire Drawers, who were charged 
 with having contributed to the waste of Gold and Silver. 
 He again prohibits the sale of Silver or Gold, except to 
 the Officers of his Majesty's Mint and Changes, and to 
 the Goldsmiths within the realm, " for the augmentation 
 " and mending of Coin and Plate ; " and he requires, 
 " that no refiner sell to any person any manner of Silver 
 "in mass;" and "that no Goldsmith sell any fine 
 " Silver allayed, or molten into mass, to any person or 
 te persons whatsoever, nor one Goldsmith to another, 
 " except for the making of Amells, or the amending of 
 " Plate to make it as good as Sterling." 
 
 Charles I. on the 21st December 1626, that is in the 
 2d year of his reign, revived the ancient office of King's 
 Exchanger, and granted the same to the Earl of Holland; 
 and in a proclamation dated 25th May following, this 
 King, complaining that the former proclamations of his 
 Father had not been carried into due execution, and that 
 the weightiest and best Moneys were culled out and 
 molten down, so that there was a great scarcity, par- 
 ticularly of Silver Coin, and that such as remained was 
 greatly " enfeebled ; " and that the price of Silver at the 
 market being raised above the price, at which it was 
 valued at the Mint, no Silver Bullion was brought to it, 
 because the merchants lost thereby ; therefore ordered, 
 that no person, except the said Earl of Holland, should 
 presume to exchange or buy any manner of Bullion in 
 any species of foreign Coin, or in Ingots, or in any 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 75 
 
 other form whatsoever. He also confirmed all the before CHAP. 12. 
 mentioned proclamations of his Father, and issued long 
 instructions for carrying strictly into execution this pro- 
 clamation, as well as those of his Father. 
 
 By a decree in the Star Chamber Court on the 7th 
 
 -ni -!-./> -i ^ T i Historical Col- 
 
 Jbebruary Io3o, seven persons, convicted ol culling out lections, vol. 2. 
 the most weighty Pieces of the Coin of this realm, and 
 melting them down, and exporting the same, as well as 
 foreign Coin and Bullion, to foreign parts, were fined 
 8,1007., and committed prisoners to the Fleet till they 
 paid the fines so set upon them. It is asserted, that 
 individuals had by those practices made a profit of 7 or 
 8,000/. per annum. There were several other proceed- 
 ings for offences of this nature, in the Court of Star 
 Chamber ; and some men of great consideration in the 
 commercial world, who were accused of these practices, 
 received the King's.pardon. 
 
 But notwithstanding the proclamations before men- 
 tioned, and the severities exercised for enforcing the 
 execution of them, it appears, from a writer who lived in vioietfs humble 
 
 Declaration, &c. 
 
 those times, that Silver, either in foreign Coin or Bullion, 4to. 1643. p. 23. 
 
 was sold during the whole of this reign at ld. } 2d., 
 
 3d., &c. per oz. above the Mint price ; and he alledges, 
 
 that 30,,000/. in Sixpences, Shillings, and Half Crowns, vioiett's p ro - 
 
 i r> i n ,/! r> sals to Oliver 
 
 were melted annually by one single Cjoldsmith, lor six cronrweii, M. 
 years together, from 1624 to 1630. 
 
 In the reign of Charles I. Lord Cottington, by virtue seeLeakeon 
 
 Coins, p. SOI. 
 
 of a commission under the Great Seal, made an advan- 
 tageous contract with the King of Spain for bringing 
 Silver into England. A great quantity was imported; 
 
76 
 
 OF THE GREAT INCONVENIENCE 
 
 CHAP. 12. 
 
 Commons 
 Journals, vol. 5. 
 p. 286. 
 
 See Scobel's 
 Collection, 
 p. 132. 
 
 and in consequence of the conditions imposed on the 
 merchants, who were parties to this contract, a con- 
 siderable proportion of it was brought to the Mint 
 to be coined, from 1630 to 1643. This measure, 
 though of an extraordinary nature, appears to have 
 been the most effectual remedy for affording a supply 
 of Silver Coin, that was adopted in the course of that 
 reign. 
 
 On the 18th March 1640, information was given to 
 the House of Commons of the exportation of Coin; and 
 they appointed a Committee to take the same into con- 
 sideration. Mr. Violett, who during this time wrote 
 many treatises on Coin, was ordered to attend, together 
 with other persons : but it does not appear from their 
 proceedings that they did any thing effectual in this 
 business. 
 
 On the 1st September 1647, the Parliament again 
 took this subject into consideration ; they ordered a 
 declaration to be prepared for the security of such mer- 
 chants as should bring any Bullion into the Tower; 
 and the Lords and Commons passed an ordinance, on 
 the 6th September in that year, prohibiting the currency 
 of any clipped or unlawful diminished Silver Coins ; but 
 declaring that such diminished Silver Coins might be 
 received in payments for a limited time at 4s. lOd. per 
 oz. Troy, or 4s. 4^d. per oz. Avoirdupoise. 
 
 There is an entry in the Journals of the House of 
 Commons, on the 3rd November 1647, permitting the 
 exportation to the East Indies of 6,0007. in foreign Coin 
 and foreign Bullion of Silver ; which clearly proves that 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 77 
 
 the Parliament at this time would not suffer even foreign CHAP. 12. 
 Coin and Bullion, without their permission, to be ex- 
 ported from this country. 
 
 The foregoing facts have been stated as proofs of the 
 distresses, which prevailed during those times, in the 
 monetary system of the kingdom, and of the embarrass- 
 ments, to which the commerce of it was on that account 
 exposed. Many of the remedies then applied are 
 precedents by no means worthy of imitation. Further 
 proofs, if they were necessary, might be adduced from 
 the Records, the Journals, and the Pamphlets then 
 published ; but it is proper to observe, that the general 
 histories of those times are, as usual, very deficient in 
 information of this nature. 
 
 It happened, however, that the evils resulting from 
 an imperfect estimation of the relative values of the two 
 precious metals, by degrees diminished ; for during the 
 whole of this period the price of Gold continued gradually 
 to rise, and at length became so high, as to administer a 
 complete remedy, by preventing the exportation of the 
 Silver Coin. It is impossible, at this distance of time, to 
 say precisely when this event took place; it probably 
 happened about the commencement of the government 
 of the Commonwealth ; for it appears, by the best 
 account that can be procured, though it is not official, 
 of the quantity of Money coined at the Mint from the 
 year 1649 to 1658, that much more Silver was then 
 brought to the Mint than Gold. The quantity of Silver 
 coined there during that period is stated by Sir William see Davenant's 
 
 Discourses, 
 
 Davenant at 1,000,000/. ; the quantity of Gold coined P . 33 to 39. 
 
78 OF THE GREAT INCONVENIENCE 
 
 CHAP. 12. there during the same period is stated by another writer 
 at no more than 154,0007. 
 
 However, the price of Gold compared with that of 
 Silver continued still to rise; so that Charles II. was 
 under the necessity, soon after the Restoration, that is in 
 1663, to raise the value of Gold in his Coins. It has 
 already been stated, that the weight of the 20s. Piece, 
 which in the 17th James I. was 5 dwts. 20 J grs. was 
 reduced by Charles II. to 5 dwts. 9J grs. and this was a 
 rise in the value of Gold of 8ff per cent. This last 
 mentioned Coin, since called a Guinea, was ordered in 
 the Mint Indenture to pass for 20s. ; but it immediately 
 became current at a higher rate, by general consent, 
 without any authority from Government. Mr. Locke, 
 and other writers, who lived during these times, asserts, 
 that during the reigns of Charles II. and James II. the 
 Guinea passed at from 21s. to 22s.; and Mr. Locke 
 further adds, " that the Gold Coins varied in their value 
 " according to the current rate ; " that is, according to 
 the relative value of Gold to Silver at the market. The 
 subjects of this country paid no attention on this occasion 
 to the rate set upon these Coins in the Mint Indenture. 
 There is indeed an order in the Council Books, directing 
 the Attorney General to prepare a proclamation for 
 making these new Coins current, according to the rate 
 prescribed in the Mint Indenture : but it does not 
 appear that any such proclamation was ever issued, or 
 that any other measure was taken to enforce obedience 
 to the intention of Government, as expressed in the said 
 Indenture. 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 
 
 79 
 
 Those who advised their Sovereign no further to 
 interpose his authority on this occasion, certainly acted 
 wisely ; for if he had obliged the people to receive these 
 Gold Coins at the low rate before mentioned, they would 
 certainly all have been melted down and exported, as fast 
 as they were issued from the Mint ; and the additional 
 value, which the people gave to these Gold Coins, above 
 the nominal value, at which they were rated in the Mint 
 Indenture, evidently proves, that the public was then 
 disposed to measure the value of every thing bought and 
 sold, by the Silver Coins, as best adapted to the state of 
 our commerce at that time. These Gold Coins therefore 
 took their natural or intrinsic value, compared with those 
 of Silver, and rose in their price in like manner with 
 every other commodity. 
 
 In the reigns of Charles II. and James II. the Silver 
 Coins, of which the old hammered Money constituted a 
 considerable part, had been gradually diminished, by 
 clipping, and other frauds. In the beginning of the 
 reign of King William III. these practices increased 
 rapidly ; and the Silver Coins were in general become 
 so very defective, that it was found, upon experiments 
 made by the Officers of the Exchequer, in the year 
 1695, that they wanted, upon the whole, nearly one half 
 of their weight. The great evils, to which the people, 
 as well as the Government, were thereby exposed, are 
 fully described by Mr. Lowndes, who was then Secretary 
 of the Treasury, in a Report made by him on the 12th 
 September of that year, to the Lords Commissioners of 
 his Majesty's Treasury. He informs their Lordships, 
 
 CHAP. 12. 
 
 The great 
 Recoinage under 
 William III. 
 
 See a Table at 
 the end of 
 Mr. Lowndes's 
 Report on the 
 Silver Coins, in 
 which these 
 experiments are 
 accurately 
 stated. 
 
80 OF THE GREAT INCONVENIENCE 
 
 CHAP. 12. that in consequence of the defective state of the Silver 
 " Coin, great contentions daily arose among the King's 
 " subjects, in fairs, markets, shops, and other places 
 " throughout the kingdom, to the disturbance of the 
 Sf public peace ; that many bargains and dealings were 
 " totally prevented and laid aside, which lessened trade 
 " in general; that persons, before they concluded any 
 " bargain, were necessitated first to settle the price or 
 <e value of the very Money they were to receive for their 
 " goods ; and that they set a price on their goods accord- 
 <( ingly ; that these practices had been one great cause 
 ff of the raising the price, not only of all merchandises, 
 " but of every article necessary for the sustenance of the 
 " common people, to their great grievance*; that the 
 " receipt and collection of the public taxes, revenues, 
 " and debts, were extremely retarded, to the damage of 
 " his Majesty, and to the prejudice of a vigorous prose- 
 " cution of the war ; so that there never were in his 
 " remembrance so many bonds given and lying unsatisfied 
 66 at the Custom House, or so vast an arrear of excises ; 
 66 that, from the same cause, many complaints were 
 " daily transmitted from the Commissioners, Receivers, 
 " and Collectors of the land-tax." And in proof of the 
 degree to which the receipt of that tax had been affected, 
 by the defective state of the Coin, Mr. Lowndes referred 
 the Lords of the Treasury to the account of the sum 
 brought into the Exchequer in the course of that year, 
 
 * Mr. Locke, in his Answer to Mr. Lowndes, confirms this account 
 of Mr. Lowndes, that all sorts of provisions and commodities had risen 
 excessively. 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 81 
 
 compared with the timely payments of the like tax in CHAP. 12. 
 preceding years. With respect to the foreign commerce, 
 Mr. Lowndes observes, "that the exchange with the Low 
 " Countries was fallen so very low, that the public lost 
 " about four Shillings in the Pound upon all Monies 
 "remitted thither; that the exchange to Hamburgh 
 " and the East countries for all naval stores and other 
 " goods was still lower ; and to all places in the Medi- 
 " terranean, the exchange was yet more to the prejudice 
 " of this country ; and that there were very great losses, 
 " on that account, in remitting Money for the payment 
 " of our fleets and armies : " and he further observes, 
 " that the price of Silver in Bullion was risen to 65. 5d. 
 " per ounce, and that the Guinea having risen to 30s., 
 " passed in currency at a much higher value than the 
 " price of Silver in Bullion would then justify." * The 
 consequence was, that all the Silver Bullion in the king- 
 dom, that could be collected, instead of being brought 
 to the Mint, was exported in return for Gold Bullion, 
 in which foreigners made their payments to their own 
 advantage, and to the great detriment of the merchants 
 and manufacturers of this country, who had any com- 
 mercial intercourse with them. 
 
 Such was the alarming situation of the kingdom at a 
 period when it was engaged in a foreign war, on the 
 success of which depended the preservation of our 
 liberties, and all the benefits derived from the Revolution. 
 
 * Silver Bullion had risen in price 24 1 per cent. The Gold Coin in 
 tale had risen about 36 i per cent. 
 
 G 
 
82 
 
 OF THE GREAT INCONVENIENCE 
 
 CHAP. 12. 
 
 6th and 7th 
 William III. 
 ch. 17. sec. 2. 
 
 See Mr. 
 Lowndes's 
 Report, p. 114. 
 See also Mr. 
 
 Locke's Essay. 
 
 Among the various parties, into which the kingdom was 
 at that time divided, there was not one, which did not 
 think that some remedy was absolutely necessary. Many 
 propositions were made. Two of these most attracted 
 the attention of the public ; one, offered by Mr. Lowndes, 
 who had long been Secretary of the Treasury ; the other, 
 by Mr. John Locke. The conduct of this difficult 
 business fell to the lot of Mr. Charles Montague, then 
 Chancellor of the Exchequer. He followed principally 
 the plan proposed by Mr. Locke, and called to his 
 assistance Mr. Newton, afterwards Sir Isaac Newton, 
 whom he then made Warden of the Mint, and Dr. Halley. 
 The kingdom was then divided chiefly into two great 
 factions ; so that from political motives Mr. Montague 
 met with opposition in every measure he proposed. He 
 lost, in the House of Commons, at first, many questions, 
 essential to the success of his measures ; but by bringing 
 the same propositions repeatedly under the consideration 
 of the House, he at last carried them, though with very 
 small majorities. 
 
 The old hammered Coins, which had been most re- 
 duced, began at this time to be exchanged for such of 
 the remaining Silver Coins as were more perfect, and 
 less clipped, at a premium. The first measure therefore, 
 which the Parliament adopted, was to pass an Act, for- 
 bidding the receiving or paying of any broad Silver 
 Money, or Silver Money undipped, of the Coin of this 
 kingdom, for more than its nominal value in tale. But 
 this measure produced another evil ; for, in consequence 
 of it, all the perfect and undipped Silver Coins began 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 83 
 
 to be hoarded, so that they appeared no longer in circu- CHAP. 12. 
 lation ; and as the Parliament had not forbidden the 
 exchange of the deficient or clipped Silver Coins for 
 Guineas, or other Gold Coins, the former were then i 
 exchanged for the Gold Coin ; and the Guinea, which 
 had passed before generally for 21s. 6d., or 22s., began 
 now to pass for 30s.; and it would have risen to a 
 greater value, if the Officers of the Exchequer, and the 
 Receivers of the public revenue, had not refused to 
 receive it in payment, at a higher rate. To remedy this 
 last evil, the Parliament passed two Acts, mentioned in , 7th and sth 
 a former part of this Letter, forbidding first the currency C h. 10. sec, is. 
 of Guineas at any higher rate than 26s. each ; and after- 
 wards, at any higher rate than 22s. each. They also 
 passed an Act, suspending, for a limited time, the coining 7th and sth 
 
 . . William III. 
 
 of Guineas ; and as it was foreseen, that Guineas, either ch. 10. sec. 12. 
 such as had been formerly remitted to foreign countries, 7th and sth 
 
 . . William III. 
 
 or had been counterfeited abroad, would be imported in ch. 13. 
 great quantities, the Parliament at the same time pro- 
 hibited the importation of Guineas. 
 
 To support the currency of the clipped and deficient 
 Silver Coins, the Parliament enacted, that all taxes and 
 debts due to the Crown, for excise, customs, &c. and the 
 whole year's land-tax, might be paid to the collectors, at 
 any time before the 4th May 1696, in the clipped Coins; Tthandsth 
 
 William III. 
 
 and that all loans of Money, borrowed on the authority ch.i. 
 
 of Parliament, might also be paid in the clipped Coins, 
 
 as if the same were good and lawful Money, unless sth wmiam m. 
 
 otherwise specially directed. And in subsequent Acts sthandoth 
 
 William III. 
 
 the remainder of the clipped Coins was ordered to be ch.o. 
 
 G 2 
 
OF THE GREAT INCONVENIENCE 
 
 CHAP. 12. 
 
 7th William III. 
 ch. 1. sec. 2. 
 This clause of 
 the Act is not 
 printed in the 
 common edition 
 of the Statutes. 
 
 7th and 8th 
 William III. 
 ch. 19. sec. 2. 
 
 received at the Mint, and by the Receivers of the public 
 revenue for a limited time, by weight, but at a value 
 exceeding the Mint price of Bullion. 
 
 To give additional credit to the new Silver Coins, as 
 soon as they should be issued, the Parliament enacted, 
 that the clipped Money " should be recoined by the Mill 
 " and Press into current Money of this realm, to hold 
 " such weight and fineness as are prescribed by the 
 " present Indenture of the Mint, which weight and fine- 
 " ness are declared to be, and shall remain to be, the 
 " standard of, and for the lawful Silver Coin of this 
 " realm." 
 
 Encouragements were at the same time given for 
 bringing Plate to the Mint, and 6d. for every ounce of 
 standard Silver so brought in was to be paid as a pre- 
 mium : and all persons keeping inns, or other public 
 houses, were forbidden to have any Silver Plate in their 
 houses, except spoons. It was further, enacted, that no 
 Bullion, either of Gold or Silver, in Ingots, or otherwise, 
 should be exported, except upon proof before the Lord 
 Mayor of London, that the same was not made of the 
 Coins of this realm, or clippings thereof, or of Plate 
 wrought within the kingdom. They permitted, however, 
 Bullion, equal in value to 200,000/. sterling, to be ex- 
 ported by licence from the King, for the payment of his 
 Majesty's forces in foreign countries. 
 
 As it was of great importance to bring the new 
 Silver Money into currency as speedily as possible, the 
 Recoinage was carried on not only at the Tower, but 
 Mints were established for this purpose in different parts 
 
KUOM FLUCTUATIONS OF RELATIVE VALUES. 85 
 
 of the country, and persons of science were sent to these CnAI> 
 Mints, to superintend and control the operations there 
 carried on. 
 
 This important business was very far advanced in 
 the first two years ; but it appears by accounts received 
 from the Officers of the Mint, that four years were 
 necessary for the completion of this Recoinage. The 
 quantity of Silver Coins made on this occasion amounted 
 in tale to 6,812,9087. 19s. 7d. ; of which, 5,091,1217. 7s. Id. 
 was coined at the Tower, and 1,791,7877. 12s. was coined 
 at the country Mints. 
 
 I have not been able to find, in any public office, an 
 account of the whole charge and loss, which the public 
 incurred by this Recoinage. The Officers of the Mint 
 have indeed furnished an account of the charges for the 
 making or fabrication of the new Money, or what may 
 properly be called the Mint charges. They amounted to 
 179,4317. 6s.', but the losses sustained by the receipt of 
 the principal part of the clipped and deficient Coins, at 
 their nominal value, as well as the charge for premiums 
 paid to induce persons to bring in the remainder, and to 
 bring Plate and Bullion to be coined, are no where stated 
 with any certainty. It is presumed however, that these 
 charges and losses could not amount in the whole to less 
 than 2,700,0007.* 
 
 * It appears, that the actual quantity of Silver Money either recoined 
 or made of Plate, brought to the Mint, was 6,8S2.908Z. 19*. Id. If we 
 suppose, that only two thirds of this eum, that is, 4,588,6057. 19*. 8d., 
 were worn and clipped Coins, which were diminished nearly one half, 
 and received at the Exchequer in payment of the public revenues, and 
 of loans, at their nominal value, the loss to the public on this account 
 
86 OF THE GREAT INCONVENIENCE 
 
 Great as this charge was, the losses which the Govern- 
 ment, as well as the people of this kingdom, continued 
 daily to suffer, till the Recoinage was completed, justified 
 almost any expence, which might be incurred for their 
 relief. To the great losses already stated, as occasioned 
 by the defective state of the Silver Coin, it may be 
 proper to add, that in every contract made by Govern- 
 ment, or individuals, the deficiency of the Coin must 
 have been taken into consideration, and the price of 
 every article augmented, probably in a much greater 
 proportion, than this deficiency would justify. 
 
 Mr. Locke, whose advice on this occasion was princi- 
 pally followed, as before observed, had considered the 
 
 would amount to 2,294,3027. 19*. W%d. If again we suppose that the 
 remaining- third being 2,294,3027. 19*. 10^7., cost the public no more 
 than Gd. per ounce, or about 10 per cent., this is a further loss to the 
 public of 229,4307. Add to this the charges of coining, or Mint 
 charges, amounting to 1 79,43 11. 6s. These three sums make together 
 2,703,1647. 5*. l()d. This is a very moderate estimate of the whole loss 
 incurred by the public by this Recoinage. Mr. Lowndes, in his Report 
 to the Lords of the Treasury, estimated the quantity of the worn and 
 clipped Silver Money, then current, at 4,000,0007.; and the loss, which 
 the public would incur by recoining it according to the old standard, 
 at 2,000,0007. Anderson, in his History of Commerce, says, that the 
 Recoinage cost near 3,000,0007. The common histories estimate it at 
 2,200,0007. It does not appear from the Journals, that the Parliament 
 ever voted so large a sum, expressly for this purpose ; but it is probable, 
 that a considerable part of this loss shewed itself only in deficiencies of 
 several branches of the revenue ; and that the House of Commons, in 
 making it good, did no more than vote sums to supply these deficiencies. 
 It is extraordinary, however, that no account should have been made 
 out at that time, of the actual loss occasioned by the Recoinage ; or if 
 any such account was made out, that it should not have been preserved 
 in some of the public offices. 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 87 
 
 subject with that depth of thought, by which all his CHAP. 12. 
 writings are distinguished ; and he had treated of it in a 
 philosophical and speculative view, with great ability ; 
 but he appears not to have adverted to many circum- 
 stances of a practical nature, necessarily connected with 
 this subject; and it is probable that he was not well 
 informed of the history of our Coins, which would 
 have pointed out these circumstances to him. He 
 asserted as a certain fact, " that Silver Coins made the 
 " Money of Account, or Measure of Commerce, in 
 " England and the neighbouring countries." How far 
 this assertion is well founded, we shall have occasion 
 to shew hereafter. He then laid it down as a prin- see Mr. Locke's 
 ciple which could not be controverted, that " an ounce Member of 
 " of Silver, whether in Pence, Groats, or Crown miesi. 
 " Pieces, Stivers or Ducatoons, or in Bullion, is, and 
 " always eternally will be, of equal value to any other 
 " ounce of Silver, under what stamp or denomination 
 " soever." Of this principle there can be no doubt: 
 but from these two premises he drew the following 
 conclusions : 
 
 First, That the high price of Silver Bullion at that 
 time was to be ascribed to the defective state of the 
 Silver Coins then in currency ; and that whenever the 
 Silver Coins were restored to their due weight, the price 
 of Silver Bullion would fall, so as to be nearly the same 
 as that, at which it was valued at the Mint. Secondly, 
 that the Gold Coins, if their value in currency was not 
 fixed by public authority, would pass in payment, with 
 reference to the Silver Coins, according to the current 
 
88 OF THE GREAT INCONVENIENCE 
 
 CHAT. 12. ra t e ; that is, according to the relative value of Gold to 
 Silver at the market. 
 
 If the conclusions resulting from the foregoing pre- 
 mises were universally true, and had operated on the 
 present occasion to their full extent, it is certain, that as 
 the Silver Coins then wanted nearly one half of their 
 weight, the price of Silver in Bullion should have risen 
 in the same proportion ; that is, to about 10s. per ounce : 
 and that the Guinea should have risen to nearly twice 
 the value, at which it had hitherto passed in currency, 
 that is, to about 44s.; but neither of these consequences 
 happened. The price of Silver in Bullion rose to no 
 more than 6s. 5d. per ounce ; and the Guinea rose only 
 to the value of 30s. It is true, that the further rise of 
 the Guinea was prevented, by orders given to the Officers 
 of the Exchequer, and to the Receivers of the public 
 revenue, not to receive it in payment at a higher rate ; 
 and some time afterwards the value of the Guinea was 
 still further limited, by the two Acts of Parliament, as 
 before mentioned. 
 
 As the Silver Coin was so very defective, before the 
 general Recoinage was undertaken, and as during this 
 Recoinage there could have been very little of it in 
 currency, it is certain, that the Silver Bullion, which 
 was then purchased, must have been paid for principally 
 in the Gold Coin. It was natural therefore to expect, 
 that Silver Bullion would have taken its price in due 
 proportion, with reference to the current value of the 
 Gold Coin. But it is singular, that as the Gold Coin 
 had not taken its value in a due proportion with reference 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 89 
 
 to the deficient Silver Coins, so Silver Bullion did not CHAP. 12. 
 take its price in a due proportion with reference to 
 the current value of the Gold Coins. The Gold 
 Coins, though they had risen 36^- per cent, passed in 
 currency at 46 per cent, less than their true value, 
 compared with the deficient state of the Silver Coins ; 
 and Silver Bullion, though it had risen 24^- per cent, 
 was then sold at 9-|J^ per cent, less than its true 
 value, compared with the current value of the Gold 
 Coins. 
 
 Mr. Lowndes says, that the Guinea then passed 
 at 30s., with the almost unanimous consent and agree- 
 ment of the common people; and he adds, that there 
 was no other visible reason for this extraordinary rise 
 in the value of the Gold Coins above the price at 
 which Silver Bullion then sold, except the danger and 
 vexation, which the people had experienced from every 
 Money transaction in the clipped and deficient Silver 
 Coins. 
 
 Whatever may have been the causes of these strange 
 incongruities in the value of the Gold and Silver Coins, 
 and of the price of Bullion with reference to these Coins, 
 as before stated, they serve at least to prove, that the 
 events, which then happened, by no means corresponded 
 with the conclusions, which, in Mr. Locke's opinion, 
 resulted from the principles laid down by him, and on 
 which he so much relied. They afford also strong 
 reason to infer, that there are other causes, which may 
 sometimes influence the value of Coins, while they are 
 current only within the realm, as well as the price of the 
 
90 OF THE GREAT INCONVENIENCE 
 
 CHAP. 12. precious metals in reference to them, besides the intrinsic 
 value of the metal in such Coins.* 
 
 It may however be said, that those were times of 
 confusion, and that no principles, however true, were 
 likely in such times to produce their full effect. Let us 
 see then what effect these principles produced, when the 
 Recoinage was completed, and when all the clipped and 
 deficient Silver Coins were driven out of circulation, and 
 such only as were thought to be perfect were permitted 
 to be current. 
 
 When the Recoinage of the Silver Coin was com- 
 pleted, the price of Silver Bullion did not even then fall, 
 so as to be nearly f the same as the Mint price ; and the 
 Guinea, the value of which in currency had been reduced 
 by an Act of Parliament to 22s., became current, without 
 any interposition of public authority, at 2ls. 6d.; but it 
 
 * There cannot be a stronger proof of the truth of this observation, 
 than that which is afforded by the currency of the present deficient 
 Silver Coins, which now circulate at their nominal value, and even 
 sometimes bear a premium, though they are deficient, to the degree that 
 will be stated hereafter. 
 
 f Whenever the balance of commerce is against this country, and 
 there is a want of Bullion to be exported, Bullion will always sell at a 
 small advance above the price at which it is valued at the Mint, in 
 consequence of the laws prohibiting the exportation of Coin. This 
 advance must always be sufficient to compensate the risk of melting 
 down or exporting the Coin, and this compensation is generally esti- 
 mated at about 1 per cent. And whenever the demand for Bullion to 
 be exported is very great, the price of it will rise still higher, and it is 
 probable that the value of the Coin would in such case rise in a like 
 proportion, if that value was not limited by public authority. In such 
 case however there will be always a greater temptation to melt down 
 and export the Coin. 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 91 
 
 did not fall in so great a degree as it ought to have CHAP. 12. 
 fallen, according to the relative value of Gold to Silver 
 at the market. The consequence was, that the new 
 Silver Coins were immediately melted down and ex- 
 ported ; and though 6,882,908/. 19s. 7d. in tale had been 
 lately coined, the most considerable part of this great 
 sum, in the course of eighteen years, disappeared, and 
 the public were deprived of the use of it; so that Sir 
 Isaac Newton, in his Report of the 21st September 1717, 
 says, "that if Silver Money should become a little 
 " scarcer, people would in a little time refuse to make 
 " payments in Silver, without a premium." Another 
 consequence resulted from the same cause ; very little 
 Silver Bullion was brought to the Mint to be coined. 
 From the year 1699, when the general Recoinage was 
 completed, to the end of the year 1717, no more than 
 674,8317. 15s. 9%d. in tale was coined ; and of this sum 
 320,372Z. 12s. were ancient Scottish Silver Coins, or 
 foreign Coins permitted to be current in Scotland before 
 the Union, which were recoined at Edinburgh into 
 Coins of the English standard, by virtue of the 
 Treaty of Union. Two other parts of this sum, that is 
 
 78,8117. 6s., coined in the year 1709, and 76,780/. 16s., Martin 
 
 Table of English 
 
 coined in the year 1711, were principally made 01 silver coins. 
 Plate, brought to the Mint in consequence of special 
 encouragements then given. From the Plate so brought 
 in, 144,000/. was converted into Coin, and only 
 11,592/. 2s. was coined from Silver Bullion brought 
 into the Mint in the usual course, during these two 
 years : so that the natural or ordinary coinage of Silver, 
 
92 OF THE GREAT INCONVENIENCE 
 
 CHAP. 12. during this period of eighteen years, amounted to no 
 more than 210,4597. 3*. 9%d. 
 
 The exportation of the Silver Coins was at that time 
 occasioned by the high price of Silver Bullion at the 
 market, and by the high rate, at which the Gold Coins 
 continued to be current, compared with that of the Silver 
 Coins. The high rate of the Gold Coins, to which the 
 people then voluntarily submitted, can only be ascribed 
 to the preference, which at that time began to be given 
 to the use of Gold Coins in all payments, at least of 
 considerable amount. It is evident, that during the late 
 Recoinage the common people had become accustomed 
 to the use of the Gold Coins ; and the reason, which 
 induced them still to prefer them, was perhaps the con- 
 venience of making large payments in Coins of that 
 metal. This change, from what had been the case in the 
 reign of Charles II. was probably owing to the great 
 increase in the commerce of the country, and to an 
 augmentation in the price of every commodity, so that 
 payments in general required Coins made of the most 
 valuable metal. The fact certainly is, that from this 
 period the Gold Coins began to take the ascendency, and 
 to become the more usual instrument of commerce and 
 measure of property, in preference to the Silver Coins. 
 In the reign of King William, when the Silver Coins 
 were so very deficient, Mr. Locke had said, It is no 
 wonder, if the prices and value of things be confounded 
 and uncertain, when the Measure itself is lost. To restore 
 this Measure the public had expended 2,700,0007. But 
 notwithstanding so great an expence, this Measure of 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 93 
 
 Property, in the lapse of a very few years, was a second CHAP. 12. 
 time lost, and had again no existence, unless it had 
 passed into the Gold Coin. 
 
 In this state were the Coins of this kingdom in the 
 year 1717, when the ministers of George I. alarmed at 
 the great diminution of the Silver Coins, which had been 
 made in such great quantities not twenty years before, 
 took the subject into consideration. They applied to Sir 
 Isaac Newton, then Master of the Mint, for his advice. 
 The subject was referred to him, and he reported, "that 
 " the principal cause of the exportation of the Silver Coin 
 e( was, that a Guinea, which then passed for 21s. 6d., was 
 " generally worth no more than 20s. 8d., according to 
 " the relative value of Gold to Silver at the market, 
 " though its value occasionally varied, and it might be 
 " worth something less, whenever there was a great 
 <e demand for the export of Silver, particularly to the 
 " East Indies, and perhaps something more, whenever 
 " a Plate fleet was just arrived from Spanish America." 
 He then suggested, that 6d. should be taken off from the 
 value of the Guinea, in order to diminish the temptation 
 to export and melt down the Silver Coin ; acknoivledging 
 however that lOd. or I2d. ought to be taken from the 
 Guinea, in order that Gold may bear the same proportion 
 with the Silver Money in England, which it ought to do 
 by the course of trade and exchange in Europe. This 
 proposal of the Master of the Mint may be considered as 
 a second attempt to restore to the Silver Coin the quality 
 of a measure. But it is evident, that Sir Isaac Newton, 
 who was no less distinguished for modesty, candour, and 
 
94 OF THE GREAT INCONVENIENCE 
 
 CHAP. 12. caution, in every opinion which he advanced, than for 
 the accuracy and strength of his understanding, and for 
 the large and extensive view which he took of every 
 subject that came under his consideration, offered this 
 proposal only as an experiment; and he adds, that the 
 effects of this measure ivould shew hereafter, better than 
 can appear at present, what further reduction ivould he 
 most convenient for the public. This great man appears 
 to have been apprised of the fluctuation which frequently 
 happens in the relative value of the two precious metals ; 
 and he was probably apprehensive, that if the rate, at 
 which the Gold Coins were to pass, had then been re- 
 duced, in full proportion, compared with the value of the 
 Silver Coins, there would be the greatest danger* that 
 these Gold Coins, which were at that time almost the 
 only instrument of commerce remaining in the kingdom, 
 might in their turn be melted down and exported; and yet, 
 if they were not lowered still further, the Silver Coins 
 would, in a degree, be subject to the same evils as before. 
 In pursuance of the advice of Sir Isaac Newton, the 
 Lords of the Privy Council recommended to His Majesty, 
 King George I. to lower, by proclamation,! the value of the 
 Guinea to 21s. ; and the other Gold Coins in proportion. 
 
 * When the value of the Gold Coins is in exact proportion with that 
 of the Silver Coins, the Gold Coins will certainly be exported before the 
 Silver Coins, because the bulk of the Gold Coins is less than that of the 
 Silver Coins, and consequently there is less risk, trouble, and charge, in 
 exporting- them. 
 
 f In all the Mint indentures from the 15th of Charles II. the 
 Guinea had been called a Twenty Shilling Piece ; and it was ordered to 
 pass at that rate. But on this occasion a new indenture was made, 
 
FROM FLUCTUATIONS OF RELATIVE VALUES. 95 
 
 By this measure, which gave in effect the legal value of CHAP. 12. 
 21 s. to a Piece originally intended to be current at 20s. , 
 the value of fine Gold, compared with that of fine Silver, 
 was estimated, in the Coins of this country, as 15^ s \ 9 
 to 1 ; and this last rise in the value of fine Gold com- 
 pared with fine Silver was 5 per cent. ; and the whole 
 rise in the value of Gold from the 1st James I. that is, 
 in a space of 115 years, was 39 |f per cent.; considerably 
 more than one third. 
 
 But the Lords of the Privy Council, in executing 
 this measure, did not conform to the principle adopted 
 by Parliament, in the 7th and 8th of William III. of 
 leaving the Guinea and other Gold Coins to be paid or 
 received at any value under the rates by them limited. 
 In the proclamation issued on this occasion, it was not 
 simply said, that each Guinea should not pass for more 
 than 21s., and the other Gold Coins in proportion; but it 
 is expressly declared, that the said respective Pieces of 
 coined Gold shall be current at the rates and values then 
 set upon them. By this injunction, the Guinea and all 
 the other Gold Coins became legal tender, at the rates 
 therein declared. They could no longer vary in their 
 value, according to the relative value of Gold to Silver, 
 as they had varied since the year 1663. 
 
 But though the Guinea was then reduced to 21s., 
 from 21s. 6d., it was still rated at a higher value than it 
 ought to be, compared with the Silver Coins, by at least 
 
 dated Gth May 1718, in which this Piece of Gold Coin was called a 
 Guinea, or a Twenty-one Shilling Piece ; and it was ordered to pass for 
 twenty-one Shillings Sterling. 
 
96 OF THE GREAT INCONVENIENCE, ETC. 
 
 CHAP. 12. 4d iy or 1 Jf per cent. Experience has proved, that when 
 Coins of two metals are made legal tender at given rates, 
 those who have any payments to make, will prefer to 
 discharge their debts or obligations, by paying in that 
 Coin which is over-rated. From that period, therefore, 
 all considerable payments have been made in the Gold 
 Coin ; and the Silver Coins have generally served only 
 in making small payments, or in exchange for the frac- 
 tional parts of the Gold Coins. It has before been 
 observed, that, previous to this proclamation, the people 
 were disposed to make their payments in the Gold Coins, 
 in preference to those of Silver. This last measure 
 tended to confirm what was before the disposition of the 
 people, and gave the Gold Coins a complete ascendency 
 in the currency of the kingdom ; and the Silver Coins 
 have since become a mere representative of the Gold 
 Coins, for the purposes before stated. The greatest part 
 of the good and weighty Silver Coins, which then remained, 
 have since been melted down and exported. And it ap- 
 pears by the accounts presented by the Officers of the Mint, 
 that from the year 1717 to the end of the last century, 
 that is, in a period of eighty-three years, no more than 
 584,7647. 17 s. 5^d* in tale of Silver has been coined: and 
 from the year 1760 to the end of the same century, that is, 
 in a period of forty years, no more than 63,983Z. 155. 5d. 
 in tale has been coined; and the Silver currency has 
 gradually fallen into its present state of imperfection. 
 
 * A considerable part of this Silver Coin was made from the Silver 
 brought into the kingdom by Lord Anson, taken in the Acapulco ship. 
 Other parts were produced from Silver taken in other prizes. 
 
97 
 
 CHAPTEK XIII. 
 
 Of the alterations and debasements of the Coins by 
 lowering the standard or fineness of the Metal. 
 
 I HAVE now completed the account of the alterations 
 and debasements made in the Coins of the realm, under 
 the two first heads ; and will therefore proceed to treat 
 of them under a third head, that is, by lowering the 
 standard or fineness of the metal, of which the Coins 
 were made ; or, in other words, by diminishing the 
 quantity of pure metal, and proportionally increasing 
 the quantity of alloy. The reasons for treating this part 
 of the subject under a separate head have already been 
 assigned. The whole of these extraordinary transactions 
 were indeed a convulsion in the monetary system, which 
 never happened in this kingdom, except in the short 
 period from the 34th Henry VIII. to the 6th Edward VI. 
 But this mode of debasing Coins has been frequently 
 practised in other countries, particularly in France, during 
 the reigns of Philip de Valois, of his son John, who was 
 some time a prisoner in England, of Charles VI. and of 
 his son Charles VII. During a great part of the reign 
 of these Sovereigns, the kingdom of France was dis- 
 tracted by internal factions, and by the invasions of the 
 English under those great Monarchs Edward III. and 
 Henry V. ; and the French Kings before mentioned 
 
 n 
 
98 OF THE ALTERATIONS AND DEBASEMENTS 
 
 CHAP. is. were in great want of revenue to resist the wars, that 
 were then successfully waged against them. 
 
 It is proper to begin by observing, that Henry VIII. 
 in the 18th year of his reign, that is, in the year 1527, 
 had ordered, that the Tower Pound should no longer be 
 used in his Mints, and had adopted the Troy Pound in 
 its stead. The only reason, that can be assigned for this 
 change, is, that his Father, Henry VII. had, in the llth 
 and 12th years of his reign, by statutes enacted "for the 
 " purpose of regulating weights and measures," intro- 
 duced the Troy Pound into more general use, and made 
 it the standard, by which all other weights were to be 
 regulated ; and Henry VIII. may perhaps have thought 
 it right, on that account, to order, that the same sort of 
 weight should be used in his Mint. This King, in his 
 34th year, that is, in the year 1543, began to debase the 
 standard of the Silver put into his Coins, by reducing 
 the old standard of 11 oz. 2 dwts. fine, and 18 dwts. alloy, 
 to 10 oz. fine, and 2 oz. alloy. He at the same time 
 reduced in a small degree the weight of his new Silver 
 Coins, by putting into his Groats only 1 dwt. 16 grs. of 
 Silver of the last mentioned standard, instead of 1 dwt. 
 18 grs. of Silver of the old standard, which had been the 
 weight of them in his 18th year ; and by these two dif- 
 ferent sorts of debasement he made the Pound of Silver 
 of the old standard pass in tale for 2L 13s. 3 J JJdf., instead 
 of 21. 5s., at which it had passed in his 18th year ; and 
 the Pound in tale was thereby debased 7-|J per cent. 
 
 This King, in his 36th year, further debased the 
 standard of the Silver put into his Coins, by reducing it 
 
BY LOWERING THE STANDARD OF THE METAL. 99 
 
 to 6 oz. fine, and 6 oz. alloy; and he thereby made the CHAP. is. 
 Pound of Silver of the old standard pass in tale for 
 41. Ss. 9Jft?. ; and the Pound in tale was thereby further 
 debased 16 y^g per cent. 
 
 The same King, in his 37th year, again debased 
 the standard of the Silver put into his Coins, by re- 
 ducing it to 4 oz. fine, and 8 oz. alloy ; and he thereby 
 made the Pound of Silver of the old standard pass in 
 tale for 6/. 13s. 2e?.; and the Pound in tale was 
 thereby further debased 8-gf^ per cent. The Silver 
 Coins of this Monarch continued in this state till his 
 demise. 
 
 Edward VI. during the four first years of his reign, 
 continued his Silver Coins upon the same footing, on 
 which his Father had left them. But in his fifth year he 
 debased the standard of the Silver put into his Coins, by 
 reducing it to 3 oz. fine, and 9 oz. alloy ; and he thereby 
 made the Pound of Silver of the old standard pass in 
 tale for 13/. 6s. 4f \d. ; and the Pound in tale was 
 thereby further debased 8 g |^ per cent. As, during 
 these debasements, the several Coins continued nearly 
 of the same weight as they were before, the diminution 
 of fine Silver was in a great degree compensated in 
 weight, by a proportional quantity of alloy. It is proper 
 also to observe, that Edward VI. in the 3d year of his 
 reign, made Shillings of a better standard than his other 
 Silver Coins, that is, of 6 oz. fine, and 6 oz. alloy. He 
 is supposed also to have made a few Shillings of a still 
 better standard, but he diminished the weight of such 
 Shillings, so as to make their intrinsic value to be the 
 
 H 2 
 
100 OF THE ALTERATIONS AND DEBASEMENTS 
 
 CHAP. is. same as that of his other Coins, of which the metal was 
 more debased. 
 
 It has been already shewn, that Henry VIII. in the 
 18th year of his reign, had made an alteration in the 
 standard of the Gold in some of his Gold Coins, by 
 reducing it to 22 carats fine, and 2 carats alloy. In his 
 37th year he further reduced the standard of the Gold 
 put into some of his Coins, to 20 carats fine, and 4 carats 
 alloy. 
 
 Edward VI. in the 5th year of his reign, followed the 
 example of his Father, by making his Gold Coins of 20 
 carats fine, and 4 carats alloy ; but he afterwards reverted 
 to the former standard of 22 carats fine, and 2 carats 
 alloy, called the new standard, and made no more Gold 
 Coins of an inferior standard. 
 
 Henry VIII. in the 36th year of his reign, reduced 
 the weight of his 20s. Pieces of Gold of the new standard 
 from 8 dwts. 8 grs. to 8 dwts. 
 
 Edward VI. in the 3d year of his reign, again 
 reduced the weight of these 20s. Pieces of the new 
 standard, by making them of 7 dwts. 1 grs. And in 
 his 4th year he raised the nominal value of the Sovereigns 
 of the old standard, which had for some time passed at 
 225. 6d., to 24s.; and the other Gold Coins of this 
 standard in due proportion. He continued however still 
 to make his coins of the old standard of the same weight 
 as they were before. 
 
 It is evident from what has been stated, that these 
 two Monarchs, in the preceding debasements, observed 
 no proportion in the nominal value of their Gold and 
 
BY LOWERING THE STANDARD OF THE METAL. 101 
 
 Silver Coins, compared with their intrinsic value. These CHAP. is. 
 last were more debased, and were rendered intrinsically 
 much less valuable than those of Gold, compared with 
 the nominal value, at which they were respectively made 
 current. This great inequality will appear more clearly 
 from the following table. 
 
 Fine Gold, compared with fine Silver, was estimated, 
 In the 36th Hen. VIII. as 6f r to 1. 
 In the 37th Hen. VIII. as 5 to 1. 
 In the 3d Edw. VI. as 5^ to 1. 
 In the 4th Edw. VI. as 4$ff to 1. 
 In the 5th Edw. VI. as 2 |J to 1. 
 
102 
 
 CHAPTER XIV. 
 
 Of profits made by exchanging Silver Coins for Gold 
 
 Coins. 
 
 THE necessary consequence resulting from this dis- 
 proportion ed and very unequal value set on the Gold and 
 Silver Coins, was, that enormous profits were made by 
 exchanging Silver Coins for Gold Coins at their respective 
 nominal values. 
 
 This profit was, 
 
 In the 36th Hen. VIII. . . 61 
 In the 37th Hen. VIII.. . 120 
 
 In the 3d Edw. VI 
 
 In the 4th Edw. VI ..... 127 \ 
 
 In the 5th Edw. VI ..... 355 
 
 per cent. 
 
 It followed that all the Gold Coins were in a short 
 
 time either hoarded, melted, exported, or in some way or 
 
 other driven out of circulation. King Edward VI. in his 
 
 Journal, acknowledges, that Gold Coins were not freely 
 
 exchanged for those of Silver without a premium; and 
 
 stowe's survey Stowe, in his Survey of London, says, " that he had seen 
 
 vol. i. p. 88. " twenty-one Shillings current given for one old Angel 
 
 " to gild withal." It should be remembered, that ten 
 
 Shillings was the highest nominal value, at which the 
 
OF PROFITS MADE BY EXCHANGING, ETC. 103 
 
 Coin called an Angel was made current during this CHAP. u. 
 period. 
 
 So great was the confusion then introduced into the 
 Coins of this country, that I have found it difficult to 
 state and explain, with any degree of perspicuity, the 
 several debasements and alterations made in them ; nor 
 is it easy to conceive, in what manner any exchanges or 
 payments could at that time be made. The fact is, that 
 all commerce was nearly at a stand. The farmers were 
 unwilling to bring provisions to market ; and when they 
 offered them to sale, they did not know what price to set 
 upon them. Merchants and tradesmen also greatly in- 
 creased the price of every article, which they had to sell. 
 The Government tried every method to keep up the 
 value of the debased Coins then in circulation, and pro- 
 clamations were issued for that purpose, which were not 
 obeyed. To enforce obedience, Parliament passed a law sth and cth 
 already quoted, for inflicting penalties on those " who C h. 19. 
 " should exchange any coined Gold or coined Silver at 
 " a greater value than the same was, or ^hould be, 
 " declared by His Majesty's Proclamation to be current 
 " for, within his dominions." Other Proclamations were 
 issued, for obliging persons, under severe penalties, to 
 bring their corn and provisions to market, and for setting 
 prices on all the necessary articles of consumption. The 
 Parliament passed laws for regulating the manner of sd and 4th 
 
 Edward VI. 
 
 buying and selling all sorts of beasts and cattle, as well en. ID. 
 
 as butter and cheese; and for limiting the prices at which 3d and 4th 
 
 all sorts of wine should be sold. There w T as an act also C n. 21. 
 subjecting fuel to an assize, which, in order to exclude 
 
104 OF PROFITS MADE BY EXCHANGING, ETC. 
 
 GHAP.14. from this trade such as were disposed to monopolize, 
 7th Edward vi. forbad any person to buy fuel, "except such as burn it, 
 
 stii and 6th " or retail the same." The law against regraters, fore- 
 Edward VI. ,n -i iii , i 
 
 C h. 14. stallers, and engrossers, which has some time since been 
 
 repealed, was passed on that occasion, and owed its origin 
 to the obstructions, to which every species of internal 
 traffic was at that time exposed. The farmers were dis- 
 posed to export to foreign countries many of the most 
 necessary articles of life, rather than bring them to the 
 country markets to be sold and exchanged for the base 
 Coin; and on this account the exportation of these articles 
 was prohibited. 
 
 It was however at length discovered, that no effectual 
 remedy could be applied to the evils then existing, but 
 a total reformation of the Coins of the realm. This 
 measure was undertaken in the last year of the reign of 
 Edward VI. It is extraordinary, that the ministers of 
 this Prince, who had hitherto committed such gross 
 errors in debasing the Coins of the kingdom, should 
 instantly adopt principles, which led to a system, not 
 perfect indeed, but nearly as perfect as any, to which 
 the other nations of Europe have hitherto attained in 
 their Coins ; and they carried on this reform with so 
 much diligence and vigour, that, even before the death 
 of this King, it was in part executed, to the general 
 satisfaction of the public. Queen Mary suffered the 
 Coins to remain in nearly the same state, in which her 
 brother had left them : but Queen Elizabeth completed 
 the plan of reform, which he had projected, and had 
 begun to carry into execution. 
 
105 
 
 CHAPTER XV. 
 
 Of the reformation in the Monetary System, begun in 
 the reign of Edward VI. and finished in that of 
 Queen Elizabeth. 
 
 HAVING thus presented to Your Majesty a short 
 history of the great and extraordinary debasements 
 made at that time in the Coins of the realm, it would 
 be improper to omit some account of the principles 
 adopted, and of the measures pursued, in bringing about 
 this memorable reform ; especially as the historians of 
 those times, and the writers on Coins, have not given 
 any satisfactory explanation of them. I shall also be 
 thereby enabled to assign the causes, which have pro- 
 duced many of the defects now existing in our system of 
 Silver Coins. 
 
 In conducting this reform, the ministers of Edward VI. 
 first considered, what should be the standard of the Silver, 
 of which the new Coins should be made. They deter- 
 mined not to make them of Silver of the old standard, 
 that is, of 11 oz. 2 dwts. fine, and 18 dwts. alloy, but of 
 the standard of 1 1 oz. 1 dwt. fine, and 1 9 dwts. alloy. 
 
 It is singular, that if they departed from the ancient 
 standard, they should make so small an alteration ; and 
 if they made any, that they should not have brought it 
 precisely to the same standard, of which some of the Gold 
 
106 OF THE REFORM IN THE MONETARY SYSTEM 
 
 CHAP. is. Coins were then made ; that is, the standard of what is 
 called Crown Gold, and which is since become the only 
 standard of the Gold in our Coins. The standard of the 
 metals in these two sorts of Coin would, in such case, 
 have been the same ; and the quantity of alloy in each of 
 them would have been in the same proportion, that is, 
 one twelfth part; and such a regulation would have 
 facilitated in future a comparison of the relative value of 
 the two precious metals in our Coins. 
 
 The ministers of Edward VI. in the next place con- 
 sidered, what the weight of the Silver Coins should be 
 in future. They probably thought it too violent a 
 measure to return to the nominal Pound, or Pound in 
 tale, as it was settled in the 18th of Henry VIII. ; that 
 is, before this Prince began to debase the standard of 
 the Silver, of which his Coins were made, and when 
 the Pound Troy of standard Silver was coined into 45 
 Shillings. They determined to take a middle course, 
 and to coin the Troy Pound of Silver, of the standard 
 before mentioned, into 60 Shillings by tale, and thereby 
 to augment in nominal value, by one third, the Pound in 
 tale. By adopting this rule they obtained the following 
 advantage, that the Crown Piece weighed exactly an 
 ounce Troy, the Half Crown Piece half an ounce, the 
 Shilling 4 dwts. that is, one fifth of an ounce, or the 
 sixtieth part of a Pound Troy ; and the Sixpence 2 dwts. 
 that is, one tenth of an ounce, or the hundred and 
 twentieth part of a Pound Troy ; all of which are aliquot 
 parts of the Pound Troy ; so that the people could 
 thereby more easily understand what the weight of these 
 
OF EDWARD VI. AND QUEEN ELIZABETH. 107 
 
 Coins ought to be, and on that account be the more CHAP. is. 
 induced to weigh them. 
 
 In carrying these principles into execution, the min- 
 isters of Edward VI. determined, in the first place, to 
 endeavour to bring into circulation all the Gold Coins, 
 which they understood to be hoarded in great quantities, 
 and to make them the basis of their future proceedings. 
 It should be remembered, that these Gold Coins had 
 been debased in a very small degree, compared with the 
 several debasements of the Silver Coins ; and if brought 
 into circulation, they would serve to supply, or at least 
 in some degree diminish, the want of good Silver Coins, 
 until the new Silver Coins could be made and issued. 
 For the reason above mentioned, they advised the King 
 to raise the Gold Coins of the old standard one third 
 higher in value in tale, than that, at which they were 
 made current in the 18th Henry VIII. ; and for this 
 purpose, to order by Proclamation, that the Sovereign, 
 or Double Rial, which had been made current in the 
 18th Henry VIII. for 22s. 6d. 9 should pass in future for 
 30.9., and the other Gold Coins of the old standard in due 
 proportion. The Gold Coins of the new standard were 
 also raised nearly one third higher than that, at which 
 they were made current in the 18th of Henry VIII. 
 This measure produced the effect which was expected 
 from it; the Gold Coins, which had been hoarded, 
 were brought immediately again into circulation. These 
 ministers then took measures for making and issuing, 
 with the greatest expedition, new Silver Coins, at the 
 rate of 60s. to the Pound Troy ; that is, one third more 
 
108 OF THE REFORM IN THE MONETARY SYSTEM 
 
 CHAP. is. i n nominal value, than that, at which they had passed in 
 the 18th of Henry VIII. It appears therefore, that the 
 principal object, which they had in view, was, to raise 
 both the Gold and Silver Coins one third more in 
 nominal value, than the rate or value, at which they 
 had been current in the 18th of Henry VIII. In Gold 
 Coins of the old standard, and in the Silver Coins, their 
 design was exactly carried into execution; and in the 
 Gold Coins of the new standard it was as nearly executed 
 as existing circumstances would permit. The value of 
 fine Gold, compared with that of fine Silver, was now 
 therefore estimated, in Coins of the old standard, as 
 11 955 to 1 5 an d m Coins of the new standard, as 11^ 
 to 1. The difference of these relative values of Gold to 
 Silver, from those in the 18th of Henry VIII. is almost 
 entirely to be attributed to the difference in fineness of 
 the metal, of which the Silver Coins of the two periods 
 were made. 
 
 The ministers of this King proceeded, in the last 
 place, to decry the debased Silver Coins, that had been 
 issued since the 34th of Henry VIII. They determined 
 to do it by degrees, but with as little delay as possible. 
 They adopted a plan for this purpose, not entirely con- 
 sonant to the principles of justice. Having carefully 
 examined into the intrinsic value of the several sorts of 
 the debased Silver Coins then in currency, that is, of 
 those of 9 oz. fine, of 6 oz. fine, and of 3 oz. fine, they 
 found, that the whole taken together were worth intrin- 
 sically one half of their nominal value. By a proclamation 
 they first decried them all one fourth of their former 
 
OF EDWARD VI. AND QUEEN ELIZABETH. 109 
 
 nominal value. And by another proclamation, issued CHAP. is. 
 very soon afterwards, they decried them another fourth, 
 that is, upon the whole, to one half of their nominal 
 value ; being what they had estimated the whole, taken 
 in a mass, to be intrinsically worth : but they made no 
 distinction in their nominal value, though they were of 
 different degrees of debasement. 
 
 Such were the measures pursued by Edward VI. in 
 reforming the Coins of the realm. He died a short time 
 afterwards. Queen Mary made 110 alteration, except 
 that, in the first year of her reign, she reduced the 
 standard of the Silver in her Coins to 11 oz. fine, and 
 1 oz. alloy, or eleven twelfths of fine metal, and one 
 twelfth alloy, by which the Pound Sterling in tale was 
 debased -J-|~- per cent, from what it had been made by 
 her brother Edward VI. in the last year of his reign. 
 
 The debased Silver Coins continued to be current at 
 the same nominal value, to which Edward VI. by his 
 last Proclamation had reduced them, during all the reign 
 of Queen Mary, and to the second of Elizabeth, while 
 the new Silver Coins were making, and getting by 
 degrees into circulation. 
 
 It appears by a proclamation of Queen Elizabeth, of 
 the 29th September 1560, that as long as the debased 
 Coins continued in circulation, they were the cause of 
 great embarrassment, in all payments made within the 
 realm, as well as in our exchanges with foreign countries. 
 The people however made no complaints, but were satis- 
 fied with the measures that were taking for completing 
 this reform. Terrified at the evils they had already 
 
110 OF THE REFORM IN THE MONETARY SYSTEM 
 
 CHAP. is. suffered, they only apprehended some new project of 
 debasement. 
 
 These apprehensions were not without foundation : 
 Queen Elizabeth, at that time, had counsellors, who 
 advised her to recur, for the sake of profit, to the same 
 measures, which had been pursued by her Father and 
 Brother, in debasing their Coins ; but she rejected these 
 counsels, by the advice of the Lord Treasurer Burleigh. 
 In the 2d year of her reign she restored the standard of 
 the Silver in her Coins, to 11 oz. 2 dwts. fine, and 
 18 dwts. alloy; that is, the standard of old Sterling; by 
 which the Pound Sterling in tale was raised ||-J per 
 cent, above what it had been made by Queen Mary, in 
 the first year of her reign. In the next place, she further 
 decried such of the debased Silver Coins remaining in 
 circulation, as were of 9 oz. fine, and 6 oz. fine, not in 
 the same manner, and in the gross, as in the 6th of 
 Edward VI. but in different proportions, according to the 
 different degrees of their debasement : and she ordered, 
 that the third and worst sort of these debased Monies, 
 which were only 3 oz. fine, should be no longer current. 
 In order that the people might distinguish the different 
 sorts left in currency, she caused different marks to be 
 put upon them; and at the foot of her proclamation, 
 issued for this purpose, there were engravings of the 
 several sorts of these debased Monies, with the marks 
 she had ordered to be put upon them. In a short time 
 afterwards she issued another proclamation, ordering, 
 that the two sorts of debased Money, so left in currency, 
 should no longer pass in any payment whatever, but that 
 
OF EDAVARD VI. AND QUEEN ELIZABETH. Ill 
 
 they should be received at her Mint, and be exchanged CHAP. is. 
 for the new Silver Money, according to the value which 
 she had lately set upon them by her proclamation. All 
 this debased Money was thus at length driven out of 
 circulation, and the reform was completed. 
 
 The joy expressed at the completion of this reform 
 Avas very great. The Parliament and people, in their 
 addresses to Queen Elizabeth, ahvays mentioned the 
 reformation of the Coin, after that of religion, as one 
 of the principal merits of her reign ; and it is recorded 
 as such in the epitaph upon her tomb. Her historian, 
 Camden, after having placed in a very strong light the 
 evils, to which the people had been exposed, by the 
 debasements made by Henry VIII. and Edward VI. 
 commends very highly this last act of Queen Elizabeth, 
 by Avhich she at length drove out of circulation all the 
 debased Coins. In language above his usual style, he 
 
 Elizabeth, 
 
 calls it magnum sane, et memorandum, quod neque p . ei. 
 Edwardus potuit, neque Maria ausa. It must be ac- 
 knowledged however, that the Queen was not entitled to 
 all the merit in this business, which she herself exclusively 
 assumed, and which historians and posterity have in 
 general ascribed to her. The principles adopted by 
 Edward VI. in the last year of his reign, comprehended 
 the whole of this important measure, and were in general 
 correctly conceived. Queen Elizabeth departed from 
 some of these principles, and thereby rendered our 
 system of Coins less perfect than he intended. The 
 measures which Edward VI. pursued, were upon a 
 larger scale, and more difficult to be executed, and 
 
112 
 
 OF THE REFORM IN THE MONETARY SYSTEM 
 
 CHAP" 15. 
 
 Mr. Locke ap- 
 pears to have 
 been of this 
 opinion. See 
 his answer to 
 Mr. Lowndes. 
 
 therefore of a bolder character. King Edward, by one 
 proclamation, brought into circulation all the Gold Coin 
 that had been hoarded; and, by two subsequent pro- 
 clamations, he in a very short space of time decried the 
 whole of the Silver Coin then in currency, to half the 
 nominal value, at which it had hitherto passed. Queen 
 Elizabeth indeed, after an interval of seven years, 
 further decried what remained of this debased Money, 
 in a much smaller degree indeed, but upon better prin- 
 ciples. It is evident, however, that she took this measure 
 with a view of bringing these debased Coins to her Mint, 
 without any loss to her revenue ; and, for this purpose, 
 she soon afterwards declared, that they should be no 
 longer current. The principles, on which King Edward 
 acted, laid the foundation for every future step in the 
 proceeding ; but it was his misfortune, that he did not 
 live long enough to carry his plan fully into execution. 
 It was the good fortune of Queen Elizabeth to ascend 
 the throne, after sufficient time had been allowed for 
 making and issuing a quantity of new Silver Coin, 
 adequate to all the purposes of circulation : and she was 
 thereby enabled to relieve the public, by taking out of 
 currency all the debased Money, which still continued 
 to embarrass commercial transactions ; and to claim the 
 merit of having brought this business to a conclusion. 
 
 It is at least doubtful whether this Queen acted 
 wisely in altering the standard of the Silver in the Coins 
 of the realm, as settled by Queen Mary at 11 oz. fine, 
 and 1 oz. alloy ; and in reverting to the standard of old 
 Sterling, of 11 oz. 2 dwts. fine, and 18 dwts. alloy; for 
 
OF EDWARD VI. AND QUEEN ELIZABETH. 113 
 
 by this measure she again rendered the two metals,, of 
 which our Coins are made, of different and unequal 
 standards ; so that from thenceforth they became not of 
 the same proportion or degree of fineness ; and, for that 
 reason, their relative values cannot now be so easily 
 compared. 
 
 But Queen Elizabeth, in the subsequent years of her 
 reign, pursued measures with respect to her Coins, which 
 greatly diminish the merit, to which her former conduct 
 had given her pretensions ; for she authorised, by special sir Martin 
 commissions, small occasional deviations, from time to pp. M and 66, 
 time, both in the weight of some of her Coins, and in the 
 
 of 
 
 standard of the metals, contrary to the very terms of her 
 Mint indentures. She made also, in the 43d year of her 
 reign, Silver Coins, very much debased, for the use of 
 her kingdom of Ireland;* and though this practice was 
 in some degree justified by former precedents, it pro- 
 duced great embarrassments in the internal trade of that 
 kingdom ; and some merchants, who carried on commerce 
 with it, were great sufferers thereby. The legality, how- see the case of 
 
 P -. -.. , . mixed Monies 
 
 ever, 01 her proceedings in this respect, was sustained by in sir John 
 a decision of her ministers of justice in that kingdom. 
 And lastly, in the same year, that is her 43d, when her 
 
 * The Gold and Silver Coins of Great Britain and Ireland are now 
 the same ; and they have been so for a considerable period. The rate, 
 however, at which these Coins are current in the two kingdoms, that 
 is, the nominal value at which they pass as Money of account, is 
 different ; it is 8^ per cent, more in Ireland than in Great Britain. 
 This difference was made by a proclamation of James II. dated 25 March 
 1689, when he returned to Ireland from France, after his abdication; 
 and it has continued so ever since. See Simon's Irish Coins, p. 150. 
 
 I 
 
114 OF THE REFORM IN THE MONETARY SYSTEM, ETC. 
 
 CHAP. is. honest Treasurer and faithful Minister Lord Burleigh 
 was no more, she followed the example of her Father in 
 the latter years of his reign, and of her Brother during 
 the whole of his reign, except the last year, by debasing 
 her Silver Coins. She then coined the Pound Troy of 
 standard Silver into 62 Shillings, instead of 60, whereby 
 the Pound Sterling was debased 1 ^Vg per cent, from 
 what it had continued to be since the 2d year of her 
 reign; and by this measure she defeated one of the 
 objects, which her Brother had in view, in the excellent 
 plan, which he projected in the last year of his reign, 
 and thereby acted contrary to a principle, wisely adopted 
 by him, of making all the Silver Coins of known weights, 
 and aliquot parts of the Pound Troy ; and to this im- 
 perfection the Silver Coins of this kingdom have ever 
 since been subject. 
 
113 
 
 CHAPTER XVI. 
 
 Of apparent motives for the alterations and debasements 
 made in the Coins at successive periods. 
 
 I SHALL conclude this history of the alterations and 
 debasements made in the Coins of the realm, at successive 
 periods, by giving a short account of the motives, which 
 appear to have influenced the Ministers, by whose advice 
 they were made, and the Sovereigns, by whose commands 
 they were executed. 
 
 These motives were, first, a desire of augmenting the 
 royal revenue. Secondly, principles of mistaken policy. 
 
 Augmentation of revenue was expected from the ad- 
 ditional profits, which would in such case arise, from the 
 right of Seigneurage. This Seigneurage was a certain 
 portion or allowance of all the Gold and Silver brought 
 to the Mint to be converted into Coin. It consisted of 
 two parts. The first was such a portion as would be 
 sufficient to defray the charges of coining the metals so 
 brought to the Mint. This portion was called in the 
 French Mints, Brassage, a term, which some writers 
 derive from the two Latin words, Brachiorum Labor. 
 The second portion was a profit which the Sovereign 
 claimed, by virtue of his prerogative ; and it is to this 
 last, that the word Seigneurage most properly belongs. 
 These were avowed profits ; but in addition to these, some 
 
 I 2 
 
116 
 
 OF APPARENT MOTIVES FOR ALTERING 
 
 CHAP. if>. 
 
 Le Blanc, p. 90. 
 
 Le Blanc, p. 87. 
 and 90. 
 
 N acker's Ad- 
 ministration of 
 the Finances 
 of France, 
 vol. ui. p. 9. 
 and 11. 
 
 Sovereigns occasionally derived profits from practices of 
 a fraudulent nature. There is reason to suspect, as is 
 before stated, that, by special orders, they sometimes 
 authorised the principal Officers of their Mints to make 
 their Coins either of less weight, or with more alloy, than 
 was required by the terms of their Mint indentures ; or 
 they authorised a large remedy to be taken, (which 
 remedy is nothing more than an allowance for errors in 
 coining,) and did not require the Officers of the Mint to 
 make their Coins as perfect as possible, but authorised 
 or suffered them to coin just within the remedy; that is, 
 they permitted them to take out of the Coins, either by 
 diminishing the weight, or increasing the alloy, as much 
 as the remedy would justify. These practices, however, 
 were generally kept secret. This right or prerogative of 
 Seigneurage was probably of Gothic institution ; for the 
 ancient Governments of Europe, prior to the invasion of 
 the Goths, do not appear to have derived any profit from 
 the making of their Coins. Some of them took indeed 
 sufficient to defray the charge of the fabrication : but Le 
 Blanc says, that the Roman Government did not take 
 any allowance for it, and that it was defrayed out of 
 the public revenue. After the invasion of the Goths, 
 the profits of Seigneurage began to be taken by the 
 Sovereigns of every state in Europe. Le Blanc has pro- 
 duced an ordinance of King Pepin, which shews, that this 
 right of Seigneurage existed in France, as early as the 
 year 755 ; he thinks it was of more ancient institution. 
 
 Mr. Necker, in his Treatise on the Administration of 
 the French Finances, says, that the profits of Seigneurage 
 
THE COINS AT SUCCESSIVE PERIODS. 117 
 
 \ 
 
 on the Coinage of Gold in France, at the time, when he CHAP.IG. 
 wrote, amounted to 1 per cent. ; and on the Coinage of 
 Silver to 1 2 7 ? per cent, independent of what was retained 
 for Brassage, or the charge of Fabrication, which was 
 2 Livres per Marc for coining Gold, and 14J Sols per iwa. vol. L p. 20. 
 Marc for coining Silver ; and that it produced a revenue 
 of about 500,000 Livres, or 20,833/. per annum. Mr. 
 Necker adds, "that the compensation for the expences of 
 " Coinage is found in the value given to the specie, and 
 " by that means falls on the people." From whence it 
 may be concluded, that the French Government gave a 
 nominal value to their Coins beyond the intrinsic value 
 of the metal that was in them, sufficient to compensate 
 the charge of Fabrication, and to pay to the Sovereign 
 the profits of Seigneurage, in the proportion before 
 stated. He observes however, that the profits derived 
 from Seigneurage were formerly more considerable. The 
 right of Seigneurage is still enjoyed by most of the 
 Sovereigns of Europe. There are no records, which 
 
 enable us to decide when this ris;ht first commenced in 
 
 . / 
 
 this kingdom. It was extinguished by an Act passed in 
 
 the 18th Charles II. ch. 5. The profits derived from 
 Seigneurage were in former times so much considered as 
 a branch of the royal revenue, that they were occasion- 
 ally granted, in whole, or in part, to corporate bodies, seeLeBiancin 
 
 />-,/>. . i various parts, 
 
 for their advantage, or for defraying certain charges andDuCange, 
 
 -. . , ., -.f. m-, ,. under the words 
 
 expressed in the grant itself. I hey were sometimes Seigneurage and 
 granted to individuals by way of pension. And when 
 the right of Seigneurage was extinguished in this king- see isth 
 dom, by the before mentioned Act of Charles II. there ch. 5. sec. 12. 
 
118 OF APPARENT MOTIVES FOR ALTERING 
 
 CHAP. ic. W as a pension, payable out of the profits derived from it, 
 granted for twenty-one years to Dame Barbara Villiers, 
 by Letters Patent under the Great Seal, of two pence by 
 tale out of every pound weight Troy of Silver Coins 
 made at the English Mint : and the Legislature, from a 
 principle of justice, ordered the payment of it to be 
 continued out of the Coinage duties, imposed by that 
 Act. 
 
 When the Sovereign was in great want of revenue, it 
 was usual for him to increase the portion or allowance, 
 which he took of the precious metals brought to his 
 Mint. The profits derived from this source were of 
 course various. An account of those received by the 
 Kings of this realm, from the 28th Edward III. to the 
 15th Charles II. may be seen in the tables inserted at 
 the end of Snelling's Views of the Gold and Silver Coin, 
 taken, as he alleges, from a manuscript treatise in his 
 possession. An account of those received by the Kings 
 of France may be extracted from the tables at the end of 
 Le Blanc's Traite Historique des Monnoyes de France. 
 It appears from these accounts, that the profits so taken 
 were sometimes enormous : they were particularly so 
 in this country, during the latter end of the reign of 
 Henry VIII. and the first five years of Edward VI. 
 camden's The historian Camden, in his observations on these 
 
 Elizabeth, 
 
 P. 6i, 62. transactions, imputes the debasements made by these two 
 
 Monarchs in their Coins to a desire of augmenting their 
 revenue ; and Edward VI. in his* Journal, expressly ac- 
 knowledges, that such was the motive of his government 
 for pursuing these measures. On these occasions the 
 
THE COINS AT SUCCESSIVE PERIODS. 119 
 
 merchant sometimes received, in return for his Bullion, a CH ^- 16 - 
 smaller number or portion of Coins ; and the Coin itself 
 was not diminished or debased. This was the more usual 
 practice in the English Mint ; but this manner of taking 
 the Seigneurage, by which the merchant received fewer 
 Coins in tale than the number that might have been 
 made from the quantity of Bullion which he furnished, 
 must have had the effect of discouraging the bringing of 
 Bullion to the Mint. At other times this profit was 
 taken out of the Coin itself, by diminishing its weight, 
 which operated as a small debasement. But the far 
 greatest profits were derived from this right of Seigneu- 
 rage, when the Sovereign made a general debasement of 
 all his Coins ; for the ancient Coins then in circulation 
 being of a greater intrinsic value than the new Coins of 
 the same denomination debased, the holders of these 
 ancient Coins brought them in general to the Mint to 
 be recoined, for they obtained some profit thereby ; so 
 that by a general debasement of his Coins the King 
 received his profits of Seigneurage from nearly all the 
 Coins of the same description, then current in his do- 
 minions. It was, on this account, more usual to practise 
 these debasements on the Silver Coins, than on those 
 made of Gold ; for the profits of Seigneurage on the 
 Recoinage of the former were much greater than they 
 would have been on that of the latter. As the old 
 Coins were brought in voluntarily, it was not thought 
 necessary, on these occasions, to issue a proclamation 
 for calling them in ; nor have I found any proclamation 
 for that purpose. These debasements were certainly 
 
120 OF APPARENT MOTIVES FOR ALTERING 
 
 CHAP. itf. high acts of injustice; they injured all those who derived 
 their income from any subsisting grant or lease ; they 
 diminished the property of all creditors ; they exposed 
 the poor man, who could not accurately estimate the 
 diminished value of the new Coins, to be imposed on in 
 his purchases, by those who understood the business 
 better than himself; they introduced confusion into all 
 markets, and caused a sudden check and obstruction to 
 traffic and commerce of every description ; and they 
 frequently produced discontents, and sometimes a ten- 
 dency to insurrection. And though the Sovereign might 
 obtain some temporary profit from these debasements, 
 their natural effect was to dimmish all the ancient 
 revenues of the Crown ; and it became on that account 
 necessary to augment former taxes, or to impose new 
 ones, to make the royal revenue equal to what it was 
 before. 
 
 It appears, from the historians of France and of other 
 
 foreign countries, that the people so severely felt the 
 
 see Le Bianc, effects of these debasements, that they voluntarily paid a 
 
 p. 156. 
 
 tax to the Sovereign, to induce him not to exercise his 
 see Da cange, right in this respect; and this tax was called Monetaqium. 
 
 article 
 
 . Le Blanc states many instances of this nature, and adds, 
 that Charles VII. of France, when he had driven the 
 English out of his kingdom, and determined to restore 
 his Coins from the great state of debasement, to which 
 he had been forced to reduce them, consented to reserve 
 only so much of his profits of Seigneurage, as was 
 necessary to pay his officers for the Fabrication of the 
 new Coins ; but that his subjects gave him in return the 
 
THE COINS AT SUCCESSIVE 1'EKIODS. 121 
 
 Tallies and Aides; and he observes, " que V imposition CHAP.IG. 
 
 "fixe des Tallies et des Aydes fut substitute a la place Le Bianc, p. 02. 
 
 " (fun ancien tribut, infinimeni plus incommode, que 
 
 " rfetoient alors ces deux nouvelles impositions" In the 
 
 Duchy of Normandy, when it was governed by the 
 
 English Monarchs, there was a tax on hearths, paid 
 
 every three years, called Monetagium ; in return for 
 
 which, the Sovereign of that Duchy engaged not to 
 
 debase his Coins. Sir Matthew Hale, in his History of Haie-s History 
 
 the Common Law, acknowledges, that our Kings of the Law, p. no. 
 
 ^ . . Matthew Paris, 
 
 jNorman race had introduced this tax or custom into p . 38.001.2. 
 England; but that Henry I. in the first year of his 
 reign, was induced to renounce his right to it; and it 
 does not appear that any claim of this sort has ever since 
 been revived. 
 
 The principles of mistaken policy, being the second 
 motive, which induced the Kings of this realm to debase 
 their Coins, were of two sorts. First, an idea, enter- 
 tained by these Kings and their ministers, that the 
 Coins, though debased, and containing less pure metal 
 than before, would continue to pass, according to their 
 respective denominations, for the same nominal value ; 
 and that they should not only augment their own 
 revenues, but that the value of the income of their 
 subjects would not be thereby impaired. They idly 
 supposed, that the new Coins, after such debasement, 
 would be taken in payment, without any attention to 
 the quantity of pure metal that was in them, and that 
 the prices of commodities would not be augmented, in 
 consequence of any debasements in the Coins, with 
 
122 OF APPARENT MOTIVES FOR ALTERING 
 
 CHAP. iG. which they were purchased. The folly of such an idea, 
 in the extent to which it was carried, has been so fully 
 exposed, not only by those who have written on this 
 subject, but by the experience, which every attempt of 
 this kind has afforded, that any discussion on this point 
 appears to be unnecessary; and we need only refer to 
 facts already stated, in the preceding history of the 
 alterations and debasements made in the Coins of this 
 realm, and to the consequences resulting from them. 
 
 The second motive was an idea, that they should 
 thereby prevent the national Coins from being exported, 
 and that they should be better able to retain them within 
 the kingdom. It appears by the Rolls of Parliament, 
 that in the 13th year of Henry IV. the scarcity of 
 Roils of Money at that time was assigned as a reason by the 
 
 voLiii.iJ.668. Lords and Commons for requesting that King to debase 
 his Coins, and he debased them accordingly: but the 
 Parliament seems even then to have entertained a doubt 
 of the wisdom of this measure ; for the Lords and 
 Commons at the same time expressed a desire, " that 
 " the King would not continue to follow this advice, if 
 " at the end of two years he should find by experience, 
 " that it was not for the benefit of his kingdom." 
 
 I have already stated the strange maxim of James I. 
 expressed in the preamble of a proclamation issued by 
 him, in the 12th year of his reign, where he says, "that 
 " the treasure of Gold and Silver brought into the realm 
 " should be considered as an immoveable and perpetual 
 " stock, which should never go forth again ; " and an 
 account has also been given of the many futile attempts 
 
THE COINS AT SUCCESSIVE PERIODS. 123 
 
 made by that King, and his Son and Successor Charles I. 
 to enforce the observance of this rule. It must likewise 
 be admitted, that in former times persons of some 
 eminence have entertained and supported the idea, 
 that, by diminishing the intrinsic value of our Coins, 
 they were more likely to be retained within the realm. 
 This idea has been wholly exploded, since the principles 
 of commerce and of foreign exchanges have been well 
 understood. Mr. Locke, and many other writers, have 
 clearly demonstrated, that the Coins of any country can 
 only be retained within it, when the general balance of 
 commerce or payments is not unfavourable ; and that 
 they will necessarily be exported, when the value of the 
 whole of the merchandize imported exceeds the value of 
 the whole of the merchandize exported, in order to pay 
 the deficiency. If indeed the goods so imported are only 
 an unusual quantity of stock, intended for re-exportation, 
 and not to be used or consumed in the country, it is 
 certain, that, upon the sale and re-exportation of such 
 stock, the Coins will in due proportion again return, or a 
 quantity of Bullion sufficient to replace them. These 
 principles are indeed self-evident. 
 
 It will however certainly happen, that when Coins 
 made of two different metals are current at the same 
 time in a country, and the value of the metal, of which 
 one of them is made, is under-rated at the Mint, com- 
 pared with the price, at which it is sold at the market, 
 the Coins of the metal so under-rated at the Mint will be 
 exported ; and, in return, a quantity of that metal, which 
 is over-rated at the Mint, will be imported, in order to 
 
12-1 OF APPARENT MOTIVES FOll ALTERING 
 
 CHAP. IG. b e converted into Coins. But this is a mere traffic in 
 Coins, and it is not probable, that this traffic, though it 
 produces a loss to the public, and is in that respect 
 highly detrimental, will occasion much diminution in the 
 mass or quantity of Coins circulating in any country, as 
 long as the balance of commerce, or of payments to 
 foreign countries, is not unfavourable. This traffic will 
 in general only diminish the quantity of Coins made of 
 one metal, and proportionally increase that of the other. 
 
 Upon a full view of this important subject, in which 
 it has been necessary occasionally to censure some of 
 the Sovereigns of this kingdom, for their conduct with 
 respect to their Coins, I think myself bound in justice to 
 observe, that the Government of England has in general 
 committed fewer errors in regulating their Coins, than 
 that of any other country of Europe. The debasements 
 of the Coins of this kingdom have been less frequent, 
 and in a less degree. In France, the Livre, or Pound 
 in tale, contained originally a Pound of Silver in weight, 
 as in England. By successive debasements made by the 
 French government, the Livre in tale is now reduced to 
 about a 74th part of what it was, when the Pound in tale 
 and the Pound in weight were the same. In Scotland, 
 where the Pound in tale originally contained also a 
 Pound of Silver in weight, and continued in this state 
 till the year 1296, the Scottish Pound in tale had been 
 by successive debasements, before the union of the two 
 kingdoms, reduced to a 36th part of its original value. 
 In many parts of Germany, the Florin, which is still 
 the integer or Money of account of those countries, was 
 
THE COTXS AT SUCCESSIVE PERIODS. 125 
 
 originally a Gold Coin, of the value of about 10 Shillings CHAP.IG. 
 
 of our present Money. It is now become a Silver Coin, 
 
 of the value of only 20d. ; and its present value therefore 
 
 is only equal to a 6th part of what it was formerly. In 
 
 Spain, the Maravedi, which was in its origin a Moorish 
 
 Coin,* and is still the Money of account of that kingdom, 
 
 was in ancient times most frequently made of Gold. Le 
 
 Blanc observes, that in 1220 the Maravedi weighed 84 Le Bianc, p. IBS. 
 
 grains of Gold, equal in value to about 14 Shillings of 
 
 our present Money ; but he adds, that the weight of 
 
 it was soon afterwards very much diminished. This 
 
 Maravedi, though its value is not quite the same in 
 
 the different provinces of Spain, is now become a small 
 
 Copper Coin, equal in general only to -f% of an English 
 
 Penny. In Portugal, the Re,f or Reis, which is still 
 
 the Money of account in that kingdom, is become of no 
 
 greater value than ^j- of an English Penny : it is so 
 
 small, that, in estimating its value in other Coins, it is 
 
 reckoned by thousands and hundreds. The Moeda, or 
 
 Moidore, is equal to 4800 Reis ; and this little Coin, 
 
 * The name itself of this Coin is derived from an Arabic word, or 
 rather from the name of certain Moors called Almoravides, who passed 
 from Africa into Spain, and gave their name to the Money coined by 
 them. This name has since been corrupted into Maravedi. There is 
 another more fanciful derivation of the name of this Coin, which in 
 Latin is called Marabitinus. It is said to mean " Maurorum spolia," 
 because the Spaniards, in driving 1 the Moors out of Spain, frequently 
 obtained these Coins among the spoils taken by them. Botino, in 
 Spanish, signifies booty, or spoils. See the Great Dictionnaire de 
 Trevoux, article Maravedis. 
 
 f I have not been able to discover what was the original value of 
 the Re. 
 
126 OF APPARENT MOTIVES FOR ALTERING 
 
 CHAP. 16. called a Reis, has now in fact no existence but in name. 
 Such has been the fate of all these Coins, and such 
 is their present state of depreciation. In this Your 
 Majesty's kingdom of England, where the Pound in tale 
 and the Pound in weight were originally the same, and 
 continued in that state till the 28th Edward I. that is, 
 the year 1300, the Pound in tale has, by nine successive 
 debasements, been reduced to not quite one third of its 
 original value, the present value being to the original 
 value as 32 to 93. It is evident therefore, that the 
 Government of England has debased its Coins in a less 
 degree than the governments of any of the countries 
 before mentioned; and Le Blanc, in his excellent History 
 of the Coins of France, thinks himself bound to render 
 Le Bianc, p. 266. this tribute of justice to the English nation, "that the 
 " subject of Coins has in general been understood in few 
 " countries so well as in England." 
 
 I have now completed the account, which I proposed 
 to lay before Your Majesty, of the several alterations 
 and debasements made in the Coins of this realm, during 
 a period of nearly seven centuries and a half. This 
 account has necessarily extended to a greater length 
 than I could have wished. The intricacy of a subject, 
 which has never yet been sufficiently explained or un- 
 derstood, must serve as my justification. Many useful 
 inferences may however be drawn from these trans- 
 actions. The errors committed by our ancestors, and 
 the ill consequences resulting from them, will serve as 
 instructions, by which we may be enabled to avoid the 
 evils and embarrassments, to which they were exposed, 
 
THE COINS AT SUCCESSIVE PERIODS. 127 
 
 and to establish a more perfect monetary system in CHAP.IG. 
 future. 
 
 The various calculations, to which it has been neces- 
 sary to resort, have been made, under my direction, by a 
 Professor of great eminence in every branch of the 
 Mathematics.* Calculations of a like nature may indeed 
 be found in some of the books already written on Coin ; 
 but these books frequently contradict each other, and 
 occasionally fall into error. 
 
 * The Professor mentioned in the text has furnished me with a 
 paper, which shews, that Snelling has committed errors in most of the 
 calculations he has made, or has been mistaken in the conclusions he 
 has drawn from them. 
 
128 
 
 CHAPTER XVII. 
 
 Of the principles of Coinage, and reasons for adopting 
 or confirming them. 
 
 I WILL now revert to the principles of Coinage, 
 briefly stated in an early part of this Letter. 
 
 First, I will endeavour to prove, that the Coins, 
 which are to be the principal measure of property, ought 
 to be made of one metal only. 
 
 Secondly, I will shew of what metal the Coins of 
 this kingdom, which are to be the principal measure of 
 property, ought to be made. 
 
 Thirdly, I will shew upon what principles the Coins 
 of the other metals ought to be made ; and I will 
 endeavour to illustrate the whole by the facts related 
 in the foregoing history of our Coins. 
 
 The first of these positions has been shortly treated 
 of in an early part of this Letter ; and I have observed, 
 that Sir William Petty, Mr. Locke, and Mr. Harris, are 
 decidedly of opinion, that the Coins, which are to be the 
 principal measure of property, must be made of one metal 
 only ; and it has been assumed, that their opinion on this 
 point is too well founded to be shaken. Lest however 
 this assumption should be supposed to have been pre- 
 mature, I will here insert the passages themselves, which 
 so fully justify it. 
 
OF THE PRINCIPLES OF COINAGE, KTC. 129 
 
 Sir William Petty observes, that Money is understood CHAT. IT. 
 to be the uniform measure of the value of all commodities; sirw. Petty's 
 
 Political Ana- 
 and then adds, that the proportion of value between pure tomy of Ireland, 
 
 Gold and fine Silver alters, as the earth and industry of 
 men produce more of one than the other. That Gold has 
 been worth but twelve times its own weight of Silver, but 
 that of late it has been worth fourteen ; so there can be 
 but one of the two metals of Gold and Silver to be a Jit 
 matter for Money. 
 
 Mr. Locke observes, that two metals, as Gold and see Mr. Locke's 
 
 further con- 
 
 Silver, cannot be the measure of commerce both together siderations 
 
 7 .7 / , concerning 
 
 in any country ; because me measure oj commerce must ra i s ingthe 
 be perpetually the same, invariable, and keeping the same voUi.p. 78/ra.' 
 proportion of value in all its parts ; but so only one metal 
 does and can do to itself. An ounce of Silver is always 
 of equal value to an ounce of Silver, and an ounce of 
 Gold to an ounce of Gold ; but Gold and Silver change 
 their value one to another ; and one may as well make a 
 measure, namely a yard, whose parts lengthen and shrink, 
 as a measure of trade, of materials, that have not always 
 a settled unvariable value to one another. One metal 
 therefore alone can be the Money of account and contract, 
 and the measure of commerce in any country. 
 
 Mr. Harris says, that one only of these metals, that is, see Mr. Harris's 
 
 . i jr Essay on Money 
 
 Gold or Silver, can be the Money or standard measure of and coins, part i. 
 
 ch. 2. sec. 7. 
 
 commerce in any country ; jor the standard measure must 
 be invariable, and keep the same proportion of value in 
 all its parts. Such is Silver with respect to Silver, and 
 Gold to Gold. But Silver and Gold with respect to one 
 another are like other commodities, variable in their value, 
 
 K 
 
130 OF THE PRINCIPLES OF COINAGE, 
 
 CHAP. n. according as the plenty of either may be increased or 
 diminished ; and an ounc'e of Gold, that is worth a given 
 quantity of Silver to-day, may be worth more or less 
 Silver a while hence. It is therefore impossible, that both 
 these metals can be a standard measure of the value of 
 other things at the same time. 
 
 In the earlier periods of our history, when Silver 
 Coins only were current, and no Gold Coins were made 
 at the English Mint, the Monarchs of this kingdom had 
 no occasion to advert to this principle. But when Gold 
 Coins began to be made in the reign of Henry III. the 
 rate, at which they were to be current, was always fixed 
 in the Mint indenture, and they became at that rate 
 legal tender, and consequently the measure of property, 
 as well as the Silver Coins, which were current at the 
 same time with them. 
 
 The Sovereigns of this country endeavoured to regu- 
 late the rate, at which these Gold Coins should be 
 current, according to the relative value, at which Gold 
 and Silver Bullion, in each respective period, sold at the 
 market. It will be seen in the foregoing history, that 
 they sometimes committed great errors in this respect; 
 and the evil consequences resulting from these errors 
 have been stated; but in general our Monarchs were 
 for a long time more correct than might have been 
 expected.* There was indeed less difficulty in those 
 times in preserving the relative value of the Gold and 
 
 * I always except the eight years that elapsed from the 34th of 
 Henry VIII. to the 6th of Edward VI. which I have treated as an 
 unusual convulsion in the monetary system. 
 
AND REASONS FOIt ADOPTING THEM. 131 
 
 Silver Coins, according to the price of these precious CHAJM; 
 metals at the market, than at present: for before the 
 discovery of the Mines of America, the relative value of 
 Gold and Silver fluctuated in a less degree than in later 
 times. It should also be observed, that Gold Coins then 
 constituted but a small part of the currency of the 
 kingdom ; and the commerce of this country with foreign 
 nations was much less extensive, than it has been in the 
 two last centuries ; so that the circulation of our Coins 
 was confined in a great measure within the kingdom, 
 where the authority of the Sovereign, in giving a nominal 
 value to his Coins, has a greater influence, and is more 
 readily and correctly obeyed. In those early times, the 
 traffic in exchanges with foreign nations was not much 
 practised, or well understood. 
 
 It is certain, that so late as the reign of Queen 
 Elizabeth, at least in the earlier parts of it, there did not 
 appear to be any great fluctuation in the value of the 
 two precious metals, compared with each other. But 
 men of knowledge and foresight became at that time 
 sensible of the diminution of the value of Money in 
 general, compared with other commodities ; and they 
 began on that account to be convinced, that Coins were 
 not a correct measure of property, when the value of 
 them was to be estimated at distant periods. It was 
 for this reason, that, by the advice of Lord Treasurer 
 Burleigh, and of Sir Thomas Smith, then Secretary of 
 State, the method of estimating a portion of the rents of 
 colleges by the value of corn, and not of Money, was 
 first introduced, in order to maintain the revenues of 
 
 K 2 
 
132 OF THE PRINCIPLES OF COINAGE, 
 
 these colleges, in a due proportion with the price or 
 value of the necessaries of life in successive periods ; so 
 that such revenues might at all times be sufficient to 
 answer the wise and laudable purposes for which they 
 were intended. This method of estimating the value of 
 land of such description in leases has since been called 
 a corn rent ; and it was established by an Act passed 
 in the 18th year of Queen Elizabeth, in which it was 
 enacted, " that in all future leases for life, or for a term 
 of years, made by the several colleges in Oxford or 
 Cambridge, and by those of Winchester and Eton, one 
 third part at least of the old rent should be reserved in 
 corn, according to the value of good wheat and good corn, 
 to be taken after the rate at which they should be sold at 
 their respective markets, on the next market day before 
 such rents should be due. I have mentioned this fact in 
 order to shew, that the great men of those times were 
 not inattentive to the value of Money or Coins ; but 
 the evil, which they intended to correct, arose from the 
 diminution of the value of Money in general, compared 
 with commodities, as is before observed ; for no mention 
 is made in the chronicles or histories of that period, of 
 any fluctuation at that time in the relative prices of the 
 precious metals. The evils resulting from the fluctua- 
 tions in the relative prices of these metals, do not appear 
 to have shewn themselves in any great extent, or at least 
 to have been the subject of general complaint, till the 
 reign of James I. 
 
 At this last period these evils were felt in a most 
 alarming degree. I have so fully stated, in a former 
 
AND REASONS FOR ADOPTING THEM. 133 
 
 part of this Letter, the extent of these evils, and the CHAP. 17. 
 embarrassments, that were thereby introduced into all 
 commercial transactions, that I will not trouble Your 
 Majesty with a repetition of them. I will only observe, 
 that in the first years of the reign of this Monarch, the 
 complaints of the exportation of the Gold Coin, on 
 account of the low value, at which Gold was then 
 estimated at the English Mint, compared with the value, 
 at which Silver was there estimated, were great and 
 incessant. To remedy this evil, King James raised the 
 value of Gold in his Coins, by successive proclamations ; 
 but he at last raised it beyond the due proportion ; so 
 that during the remainder of his reign, and the whole of 
 the reign of Charles I. the Silver Coins were in their 
 turn exported, and a very small quantity of these last 
 remained in circulation. The complaints of the w^ant of 
 Silver Coins were then as great as the complaints of the 
 want of Gold Coins had been before. During a short 
 period, in the middle of the 17th century, the relative 
 prices, at which the precious metals were estimated at 
 the Mint in our Coins, appear to have been in a sort of 
 equilibrium, or to have maintained a due proportion with 
 the prices, at which they respectively sold at the market. 
 But in the loth year of the reign of Charles II. that is, 
 in the year 1663, when a new estimate was made of the 
 relative value of Gold to Silver at .the English Mint, 
 that of Gold was under-rated. Charles II. then indeed 
 raised the value of Gold in his Coins, but not sufficiently; 
 and all the Gold Coins then made would have been im- 
 mediately exported, if the Government had obliged the 
 
134 OF THE PRINCIPLES OF COINAGE, 
 
 CHAP. 17. people to receive them as legal tender, at the nominal 
 value given to them in the Mint indenture: but Govern- 
 ment suffered these Coins to take the value, which the 
 people set upon them, according to the relative price of 
 Gold and Silver at the market. In a subsequent period 
 the Silver Coins became greatly defective in weight, so 
 that it was necessary to call them in and recoin them. A 
 general Coinage took place by the advice of Parliament, 
 in the reign of King William III. After this Recoinage, 
 the Gold Coins passed in payment at a higher value than 
 that at which they were still rated in the Mint indenture, 
 or than the relative value of Gold to Silver at that time 
 would justify ; not however by authority of Government, 
 but by the general consent of the people. The conse- 
 quence was, that the new Silver Coins began immediately 
 to be melted down and exported, notwithstanding the 
 very great charge which the public had incurred in re- 
 coining them. A very considerable part, in the course 
 of not more than seventeen years, had disappeared, and 
 there was found to be a want of them in circulation. 
 The same deficiency .in the number as well as weight of 
 the Silver Coins has remained to the present day, to the 
 great inconvenience of Your Majesty's people. From 
 the beginning of the reign of James I. to the period of 
 which I am now speaking, Gold and Silver Coins were 
 alternately exported, for the reasons just stated, to the 
 great detriment of the public, as often as individuals 
 could profit thereby. 
 
 It is proper to observe, that James I. consulted 
 Sir Francis Bacon, Sir Edward Coke, and many other 
 
AND REASONS FOli ADOPTING THEM. 135 
 
 eminent men who lived in those times ; but they all CHAP, i: 
 appear to have been at a loss for a remedy to the evil, 
 to which the country was then exposed. The Treatise 
 of Sir William Petty, entitled, The Political Anatomy 
 of Irela7id, in which he delivered his opinion, that the 
 Coins, which were to be the principal measure of pro- 
 perty, could be made of one metal only, was among his 
 posthumous Works, published in the year 1691 ; and as 
 far as I am informed, this extraordinary man was one of 
 the first who fully asserted and maintained this opinion, 
 suggesting thereby the remedy so long sought for in 
 vain. Mr. Locke and others followed him in supporting 
 the same opinion ; but this true principle, which solved 
 the difficulty, has never yet been carried effectually into 
 practice. 
 
 It is certain, however, that during the whole of this 
 period, when our Coins were in so great a state of con- 
 fusion, the commerce of the kingdom was progressively 
 improving, and the balance of trade was almost always 
 in favour of this country ; so that these evils did not 
 spring from a want of the precious metals, but from a 
 continued conflict between the Coins made of different 
 metals ; and this circumstance introduced and promoted 
 the practice of melting down and exporting one or other 
 sort of Coin, whenever the metal, of which either of them 
 was made, happened to be under-rated at the Mint, and 
 a profit could be made thereby ; a species of traffic, from 
 which the public cannot derive the smallest advantage, 
 but must always be a sufferer ; a traffic, carried on by a 
 class of men, who are constantly preying upon the public, 
 
136 OF THE PRINCIPLES OF COINAGE, 
 
 CHAP. IT. and who sometimes defraud individuals, by collecting 
 the most valuable and weighty Coins, and returning 
 into circulation those that are least valuable and most 
 defective. The profits of such a traffic are not the result 
 of public-spirited or laudable industry, and ought, on 
 that account, to be discouraged as much as possible, by 
 every wise government. 
 
 There is no circumstance that more clearly proves 
 and illustrates the truth of this principle, " That Coins, 
 " which are to be the principal measure of property, can 
 " be made of one metal only," than the practice, which 
 has long prevailed in several commercial states and 
 countries on the continent, of making foreign bills of 
 exchange, and sometimes other bills, exceeding a certain 
 amount, payable in what is usually called Bank-Money. 
 These states are subject, no less than others, to the 
 inconvenience of having their Coins of different metals, 
 ill constructed with respect to their relative value, and 
 of having them frequently very defective. But being 
 generally of small extent of territory, they are exposed 
 also to another and still greater inconvenience: from 
 being surrounded by many other countries, there is a 
 constant influx of the Coins of all the neighbouring states 
 into them, particularly if their commercial transactions 
 are of great extent ; so that their general currency con- 
 sists of a mixture of their own Coins, and of those of the 
 neighbouring countries, however ill-regulated or defective 
 they may be. If bills of exchange were therefore to be 
 paid in this mixed and imperfect currency, the uncertainty 
 of the value of any sum, for which these bills might be 
 
AND REASONS FOR ADOPTING THEM. 137 
 
 drawn, would not only produce great embarrassment in CHAP. n. 
 all mercantile dealings, but it would render the exchange 
 always very much against such a state or country ; for 
 the merchants of all nations are induced, from motives of 
 prudence, rather to undervalue the Coins of every state, 
 with which they have any commercial intercourse. To 
 provide against this evil, the governments of Venice, 
 Genoa, Amsterdam, and Hamburgh, and some others, 
 have introduced a system, well adapted for their purpose. 
 They have formed banks of deposit. The regulations of 
 these different banks are various ; but the general prin- 
 ciple, on which they are all founded, is as follows. The 
 directors or managers of these banks give recipisses, 
 receipts, or notes, in return for the Gold or Silver 
 Bullion, or Coins considered as such, and sometimes for 
 other objects of value, placed by individuals in their 
 custody ; or they give them credit in their books t'o the smith's wealth 
 
 of Nations, 8 vo. 
 
 amount of the value thereof, with a right of transferring vol. a. P . 219. 
 the same. 
 
 These receipts, and this right of making transfers, in sir jas. stuart's 
 
 . " Political Eco- 
 
 some countries called Bank-Money, are regulated by, nomy, vol. u. 
 and therefore represent, some one of the national Coins 
 current in each of these states, exactly according to the 
 standard of their respective Mints ; and they are under- 
 stood therefore to retain, on this account, a certain and 
 undisputed value ; and as they are substantially worth 
 more than the defective Coins in currency, they often bear, 
 in reference to them, a premium, or what is called an Agio : 
 this Agio is occasionally increased or diminished, in pro- 
 portion to the scarcity and demand for these receipts 
 
138 OF THE PRINCIPLES OF COINAGE, 
 
 CHAP. IT. or transfers. As it is required by the laws of these 
 states, that foreign bills of exchange in general, and 
 sometimes other bills of a certain amount, should be paid 
 only in this Bank-Money, it has gradually become the 
 fixed standard or measure, according to which great 
 mercantile payments are principally made. The inferior 
 branches of traffic within those countries are left to be 
 carried on in the Coins which are commonly current, 
 whatever may be their intrinsic value. 
 
 But in extensive kingdoms, which are at the same 
 time greatly commercial, such as Great Britain, no such 
 . establishment has ever existed. In such countries, where 
 the business of commerce is not confined to one or a few 
 cities or towns, but is spread over a large extent of 
 territory, in every part of which trade and manufactures 
 are in great activity, it would hardly be possible to 
 carry such a system into execution. One bank of this 
 description would not be sufficient, and great incon- 
 veniences might result from the establishment of many 
 in different parts of the kingdom. It is expressly said 
 by the writers on these banks of deposit, that one of the 
 objects for establishing them was, to fix the residence 
 of rich merchants in the places where such banks were 
 situated. In Great Britain such an establishment is 
 even less necessary than in any other country. The 
 situation of Great Britain, as an island, preserves it 
 in a great degree from the influx of foreign Coins, 
 particularly of the smaller denominations : if any of a 
 larger denomination are imported, (and great numbers 
 of Portugal Gold Coins were imported in the reign of 
 
AND REASONS FOR ADOl'TING THEM. 139 
 
 Your royal Grandfather,) they are none of them legal CHAP. 17. 
 tender, except by the authority of Your Majesty. And 
 if such Coins sometimes pass in currency, (as has hap- 
 pened in the case before mentioned,) it is the voluntary 
 act of the person who receives them, and at his risk. 
 As a system of the nature before described has never 
 subsisted in Great Britain, and could not be introduced 
 into it with advantage, the Coins of the kingdom are 
 necessarily the principal measure of all property, and 
 the instruments of commerce ; or, in other words, they 
 are the only* legal tender in payment of all sums, 
 whatever their amount may be, both to natives and 
 foreigners ; and from thence results the necessity, in this 
 country, of having Coins made of one metal only, which 
 should serve as an invariable measure for the purposes 
 above mentioned ; and for the same reason these Coins 
 should be kept in the greatest possible perfection. 
 
 From the view I have thus given of this part of 
 the argument, it appears, not only from the clearest 
 deduction of reason, and by the concurrent opinion of 
 the most eminent writers, but by the evidence, which 
 long experience in this kingdom has afforded, to be a 
 certain and incontrovertible principle, that Coins, which 
 are to be the principal measure of property, can be made 
 but of one metal only. The Coins made of other metals 
 
 * I do not think it necessary here to advert to the Acts for 
 suspending payment in Cash at the Bank of England, though these 
 Acts have made Notes of the Bank of England legal tender in certain 
 cases : for these Acts are in force for a limited time only, and are no 
 part of the permanent monetaiy system of the kingdom. 
 
140 
 
 OF THE PRINCIPLES OF COINAGE, 
 
 CHAP. 17. 
 
 See Mr. Locke's 
 further con- 
 siderations 
 concerning 
 raising the 
 value of Money, 
 p. 75. 76. 
 
 See Mr. Harris's 
 Essay on Money 
 and Coins, part i, 
 ch. 2. sec. 7. 
 
 may be useful, and even necessary ; but they must take 
 their value, and pass in currency, according to the rate 
 or value given to them by the Sovereign, with reference 
 to that sort of Coin, which is the principal measure of 
 property, that is, of the standard Coins. 
 
 As it is clear, that the Coins, which are to be the 
 principal measure of property, can only be made of one 
 metal, I will now proceed to the second head, and will 
 endeavour to prove of what metal the Coins of this 
 kingdom, which are to be the principal measure of pro- 
 perty, ought to be made. This is a very controverted 
 point, and more difficult than any of which I have to 
 treat. It was the opinion of Mr. Locke, that Silver 
 Coins make the Money of account, or measure of com- 
 merce, all through the world; and he adds, he was sure 
 they were so in England and the neighbouring countries. 
 He also asserts, that Gold is not the Money of the world, 
 or measure of commerce, nor Jit to be so ; yet it may and 
 ought to be coined, to ascertain its weight and fineness. 
 Mr. Harris, in his Essay on Coins, concurs with Mr. 
 Locke in this opinion. He says, that in these parts of 
 the world, Silver is, and for time immemorial hath been, 
 the Money standard; and that it is the fittest material 
 for a standard. In another part of his Essay he asserts, 
 that all other metals, Gold as well as lead, are but 
 commodities rateable by Silver. He supports his opinion 
 by the authority of many great and eminent men, whose 
 writings and speeches on this subject he quotes in his 
 Essay. Sir William Petty, who had certainly great 
 abilities, and was more a man of business, and of the 
 
AND REASONS FOR ADOPTING THEM. 141 
 
 world, than either Mr. Locke or Mr. Harris, in that part CHAP: IT. 
 
 of his Political Anatomy of Ireland, where he treats of 
 
 Money, says, that Money is understood to be the uniform sir w. Petty's 
 
 Political Ana- 
 
 measure and rule for the value of all commodities; that tomy of Ireland, 
 
 ch. 10. 
 
 one of the two precious metals is only a Jit matter for 
 Money ; and, as matters now stand, Silver is the matter 
 of Money. But he expresses a doubt, whether, in that 
 sense, there be any such Money or rule in the world. So 
 that he confirms the principle, but doubts whether the 
 governments of the world have ever conformed to it. 
 Sir William Petty judged rightly. It is certain, that 
 the governments of Europe have not in general paid 
 attention to this rule ; nor is it surprising, that persons, 
 wholly occupied in official business, should not have had 
 leisure to study or understand a subject, which is in its 
 nature so abstruse and complicated. 
 
 In treating this part of the subject, as far as it relates 
 to the Coins of this realm, I will consider it in two views. 
 
 First, As a question of law. 
 
 Secondly, As a question of fact ; that is, with refer- 
 ence to the practice and opinions of the people. 
 
 It will be fortunate, if this principal measure of 
 property shall be found within these realms to be in 
 Coins of one metal only ; for I am of opinion, that, 
 wherever it so exists, it is best that there it should 
 remain ; and that the true principle being thus ascer- 
 tained, all change should be avoided if possible : for 
 this measure of property, like every other measure, 
 should continue to be always the same. But if this 
 measure of property should now in a certain degree 
 
142 OF THE PRINCIPLES OF COINAGE, 
 
 CHAP. 17. b e found to reside and exist in Coins made of different 
 metals, the Coins should in such case be so regulated, 
 that as little change as possible be made ; that is, no 
 more than what is absolutely necessary to make our 
 monetary system, according to the principles before 
 stated, as perfect as the nature of the subject will 
 admit; or at least to diminish the evils, to which it 
 has hitherto been exposed. 
 
 I must now refer to what I have said, in an 
 early part of this Letter, concerning the high pre- 
 rogative, which the Kings of this realm have enjoyed 
 and exercised for time immemorial, of giving to the 
 Coins current within the realm their denominated value. 
 Sir Matthew Hale has expressly delivered it as his 
 Kale's pieas of opinion, that the legitimation of Money., and the giving 
 
 the Crown, . 
 
 ch. 17. it its denominative value, is justly reckoned inter jura 
 
 Majestatis; and in England, it is one special part of 
 the King's prerogative. And in treating afterwards of 
 the " denominated or extrinsic value " of Coins, he 
 immediately adds, that it is, and of right ought to be, 
 given by the King, as his unquestionable prerogative. 
 What is called by Sir M. Hale " denominated or ex- 
 trinsic" value, is the rate or value, at which Coins are 
 made legal tender; that is, the rate or value, at which 
 they are to be paid or received in all bargains and 
 contracts : and Coins, so far as they are made legal 
 tender, are by law the measure of property. 
 
 I have stated in a former part of this Letter other 
 authorities, in confirmation of this doctrine ; and it is not 
 necessary here to repeat them. 
 
AND REASONS FOR ADOPTING THEM. 143 
 
 From the accession of William I. to the 41st of 
 Henry III. Coins of Silver were the only Coins made 
 in the Mints of this kingdom, as far at least as has 
 hitherto been discovered. During that period therefore, 
 Silver Coins were the only legal measure of property, 
 except it be supposed, that foreign Gold Coins, such 
 as Byzants and Florins, which might be occasionally 
 current in this kingdom, were made, by royal proclama- 
 tion, or other sufficient authority, legal tender, at a 
 certain denominated value. Of this fact, however, no 
 certain information has yet been obtained. From the 
 41st of Henry III. when Gold Coins began to be coined 
 in the Mints of this kingdom, and the Coins so made of 
 Gold were ordered to be current at a certain nominal 
 value, it must be admitted, that these Gold Coins became 
 legal tender no less than the Silver Coins, and conse- 
 quently that they were from thenceforth, equally with 
 the Silver Coins, the legal measure of property. And 
 from this last period, Gold and Silver Coins continued 
 to be the legal measure of property through all their 
 various changes and debasements, at the rate or value, 
 which the Sovereigns successively set upon them, till the 
 15th of Charles II. when the Guinea, which was then 
 first coined, and the other Gold Coins then circulating 
 with it, were permitted to take their value according to 
 the relative value of Gold to Silver at the market. It 
 may be said, and with truth, that by the rule of law, the 
 Guinea, according to the Mint indenture, ought at that 
 time to liave been current at 20 Shillings, and the other 
 Gold Coins in proportion ; but the people, in their pay- 
 
OF THE PRINCIPLES OF COINAGE, 
 
 CHAP. 17. 
 
 Stat. 14. 
 Geo. III. c. 42. 
 
 Stat. 16. 
 Geo. III. c. 54. 
 
 Stat. 18. 
 Geo. III. c. 45. 
 
 Stat. 38. 
 Geo. III. c. 59. 
 
 ments, never conformed to this rule, and the Government 
 never enforced the observance of it. This last practice 
 continued to prevail till the 3d of George I. that is, till 
 the year 17 17, when the rate or value of the Guinea in 
 currency was fixed at 21 Shillings by proclamation. It 
 was then evident, that Government meant to enforce this 
 regulation ; and the Guinea, and the other Gold Coins 
 in proportion, became from thenceforth at that rate legal 
 tender. Subsequent to this period the Gold and Silver 
 Coins were equally legal tender, or the measure of 
 property, in all payments whatsoever, till the 14th year 
 of Your Majesty's reign (1774), when, by a Bill, which 
 passed the tw r o Houses, and received Your royal assent, 
 it was enacted, that no tender in payment of Money made 
 in the Silver Coin of this realm, of any sum exceeding 
 the sum of 25L, at any one time., shall be reputed in law, 
 or allowed to be, legal tender, within Great Britain or 
 Ireland, for more than according to its value by weight, 
 after the rate of 5s. 2d. for each ounce of Silver. This 
 regulation with respect to the Silver Coins, which was 
 made in consequence of a general Reeoinage of the 
 defective Gold Coins, was intended by the Legislature 
 as an experiment ; accordingly, the Act was made to 
 continue to the 1st of May 1776. The same regulation 
 was continued by an Act, passed in the 16th year of 
 Your Majesty's reign, for two years longer. It was 
 further continued by an Act passed in the 18th year 
 of Your Majesty's reign, to the 1st of May 1783, when, 
 by neglect, it was suffered to expire. But the same 
 regulation was revived by an Act passed in the year 
 
AND REASONS FOR ADOPTING THEM. 14o 
 
 1798, and is now in force. During the whole time that CHAP. 17. 
 this regulation has subsisted, no objection has been made 
 to it. 
 
 Copper Coins,* or, as they were originally called, 
 Copper Tokens, were first made by royal authority in 
 the llth year of James I. that is, 1613. Coins of this 
 metal were introduced into our monetary system to 
 prevent the currency of private Tokens, made chiefly 
 of Lead, of which there were at that time very great 
 quantities in circulation. The practice of making Tokens cotton's Pieces, 
 of Lead first began in the latter end of the reign of p. 190, 200. 
 Queen Elizabeth, who would never suffer Tokens of any 
 kind to be made by royal authority. King James, when 
 
 Proclamations 
 in the same 
 * Though the Kings of this realm, while they were in possession of reign. 
 
 parts of France, occasionally coined Money of Billion at their Mints,* 
 in the territories they possessed in that kingdom, for the use of their 
 subjects there, it does not appear that any Billion Money was ever 
 coined at the King's Mints in England, unless the very debased Silver 
 Money, coined at the end of the reign of Henry VIII. and through a 
 great part of the reign of Edward VI. ought to be called Money of 
 Billion, rather than Silver Money. There were also coined during the 
 reign of Edward VI. Pence, Halfpence, and Farthings, of a baser 
 standard than even the other Silver Monies then current, at some 
 of the King's Mints, particularly at the Mints of Canterbury and 
 York.f Queen Elizabeth also, in the 43d year of her reign, coined 
 Monies for the use of her kingdom of Ireland, which were called mixed 
 Monies, and declared to be lawful and current Money in that kingdom, 
 of a baser standard than Sterling. J I have sometimes thought that, 
 from this period, the Coins circulating in Ireland began to be -estimated 
 as of less value, according to their respective denominations, than those 
 circulating in England ; but I know of no authority for this conjecture. 
 
 * See Le Blanc, p. 244, 245. 
 
 t Martin Folkes, p. 48. Stowe's Chronicle, p. 606. 
 t Sir John Davies's Report on the Case of mixed Monies. 
 
146 OF THE PRINCIPLES OF COINAGE, 
 
 CHAP. 17. } ie authorized* the making of these Copper Farthings or 
 Tokens, prohibited by proclamation the use or currency 
 of all private Tokens. But he did not oblige his subjects 
 to take the Copper Farthings or Tokens made by his 
 authority, otherwise than " with their own good liking ; " 
 and he expressly says in his proclamation, that he did 
 not intend to make them " Monies or Coins." These 
 Copper Tokens continued to be current, subject to the 
 rule before mentioned, to the year 1672, when Copper 
 Halfpence, which were then first coined at the royal 
 see Prociama- Mint,f were ordered to pass in all payments under the 
 1672. value of a Sixpence ; and from that time all the Copper 
 
 Coins made at the royal Mint have been ordered to be 
 current upon the terms last stated. But in 1797, when 
 Copper Twopences and Pence were first made by royal 
 authority, it was ordered by Your Majesty's proclamation 
 of the 26th of July of that year, that no person should 
 be obliged to take them in any one payment that shall 
 exceed the value of one Shilling. And since by Your 
 
 * The right of making- these Copper Tokens was given to individuals 
 by patent, who sometimes made a very great profit thereby ; for the 
 intrinsic value of these tokens was in no degree equal to their nominal 
 value. The Patentees pledged themselves however to take them back 
 for something less than their nominal value ; but it is not probable 
 that they were ever returned to them in any great quantities. 
 
 f In the republic of Athens Copper Coins were the last introduced 
 into circulation, as well as in England ; though it was natural to 
 suppose, that they would have been made use of in that republic in its 
 less affluent state, and before its commerce had been carried to so 
 great an extent. The succession of Coins made of different metals in 
 Athens was first Silver, then Gold, and afterwards Copper ; just as it 
 has been in England. See Voyage du Jeune Anacharsis, Edition 4, in 
 4to. vol. iv. p. 357. and the authors referred to therein. 
 
AXD REASONS FOR ADOPTING THEM. 147 
 
 Majesty's proclamation of Dec. 4, 1199, it was ordered, CHAP. IT. 
 that no person should be obliged to take the Copper 
 Halfpence and Farthings, authorized in like manner to 
 be made by Your Majesty, in any one payment that 
 shall exceed the value of Sixpence. 
 
 From the foregoing short statement it is evident, first, 
 that from the time when Gold Coins were first made 
 in the Mints of this kingdom, these Gold Coins have 
 been equally with the Silver Coins legal tender, and 
 consequently the measure of property, according to the 
 rate or value, which the Sovereign thought fit to set 
 upon them. I do not think it necessary here to repeat 
 what I have stated already, that Gold Coins, during a 
 subsequent period, took a value superior to that at which 
 they were rated in the Mint indenture. This was by 
 general consent, and, consequently, at the option of the 
 person who received them in payment, and not by the 
 authority of Government; so that this superior value 
 was not in truth the legal value. Secondly, that the 
 Silver Coins of this realm, considered as Coins, are now 
 legal tender only in sums not exceeding 257. Thirdly, 
 that the Copper Halfpence and Farthings, made at the 
 royal Mint, are legal tender only in sums that do not 
 amount to Sixpence. That the Copper Twopences and 
 Pence, lately authorized to be made by Your Majesty 
 by a private Artist, are legal tender only in sums not 
 exceeding twelve pence. And that the Copper Half- 
 pence and Farthings, in like manner authorized to be 
 made by Your Majesty, are legal tender in sums not 
 exceeding Sixpence. 
 
 L 2 
 
148 OF THE PRINCIPLES OP COINAGE, 
 
 CHAP. IT. Such appears to be the law on this subject. I will 
 
 in the next place consider the question of fact, with 
 reference to the practice and opinions of the people ; and 
 it will be found that the fact, except in a few instances, 
 has corresponded with the law as I have stated it. 
 
 I have already observed, that in very early times 
 Silver Coins were weights, as well as Coins, or, in other 
 words, that a Pound in tale of Silver Coins was equal to 
 a Pound weight of standard Silver; and that a Silver 
 Penny, which was probably the only Coin then in 
 currency, was the 240th part of a Pound in weight, 
 and was intended to contain exactly a Pennyweight of 
 standard Silver; so that these Coins expressed and 
 defined the precise quantity of Silver, which they were 
 
 Remains. / r -r 
 
 intended to represent. The reverse of the Penny was 
 stowe's Annais, stamped with a cross through the middle of it; the 
 people therefore broke this Penny in the part where 
 the cross divided it, and then it passed as a Maille, or 
 Halfpenny. And they sometimes broke the half of this 
 Penny into two equal parts, and each of these passed 
 for the fourth of a Penny, that is, a Fourtking, or 
 Farthing. This practice continued till Silver Halfpence 
 and Farthings were coined. 
 
 During this period, so correct were our ancestors in 
 
 regulating their payments in the Coins then current, 
 
 seeMadox's that rules were adopted to remedy any defect, either in 
 
 History of the . -rr'-i 
 
 Exchequer, weight or fineness, that might be found in them. W hen 
 
 cli 9 
 
 these Coins were deficient in weight, from wear, or any 
 other cause, they practised a method of payment, which 
 was called Compensatio ad Pensum ; the Coins were 
 
AND REASONS FOR ADOPTING THEM. 149 
 
 in such case put into a scale, and taken by weight, CHAP. 17. 
 without any regard to their number. At other times 
 the deficiency in weight was compensated by an esti- 
 mated proportion or allowance, in order to save the 
 trouble of weighing them. This proportion or allowance 
 w r as a 40th part, or six Pennies in each Pound, and 
 this was called Compensatio ad Scalam. And when a 
 suspicion was entertained, that any of these Coins were 
 not made of standard Silver, either from errors committed 
 by the Officers of the Mint, (which in those early times 
 were not uncommon,) or from other causes, a method 
 was practised of ascertaining the fineness of these Coins, 
 by a certain mode of assaying them, called Trial by 
 Combustion. It is certain, that all these rules were 
 observed by the Sheriffs in receiving the King's rents, 
 and by them and others in making payments into the 
 Exchequer. And as the Kings of this realm had at that 
 time great estates in every county of England, from 
 which their principal revenue was derived, it is probable, 
 that the same rules were generally known and practised 
 in all payments whatsoever. 
 
 This system of Coins, simple in all its parts, con- 
 tinued to subsist to the 28th of Edward I. In that 
 year this Monarch first debased the Silver Coins of the 
 realm ; and from that time a Pound in tale no longer 
 contained in weight a Pound of standard Silver ; so that 
 the Coins then made did not contain so much Silver as 
 their names implied; and in all the successive debase- 
 ments made in our Coins, of which an account has 
 already been given, the quantity of standard Silver, 
 
150 OF THE PRINCIPLES OF COINAGE, 
 
 CHAP. IT. which the Pound in tale was understood to represent, 
 was by degrees further diminished ; and the Pound in 
 tale gradually differed, or as it were diverged, in a 
 still greater degree from the Pound in weight. The 
 denomination therefore of a Pound in tale, and of the 
 Coins representing all its parts, became from thenceforth 
 merely arbitrary, dependant on the will of the Sovereign. 
 The Coins of different denominations were indeed un- 
 derstood to contain and represent a certain weight or 
 quantity of standard Silver; but they did not contain so 
 much as their names implied. And the weight of these 
 Silver Coins frequently did not correspond with any 
 aliquot part of the Pound, according to the weights then 
 in use, but was sometimes made up of the fractional 
 parts even of a grain. The practice of weighing then 
 began, on that account, to be abandoned ; for the people 
 in general could not know what the precise weight of 
 each Coin should be. The Gold Coins however con- 
 tinued to be weighed, and it was required, that these 
 Coins should be whole and iveight ; and new laws were 
 passed, and new proclamations were issued, concerning 
 the weight of Coins ; and these laws and proclamations 
 wisely conformed to the state of the Coins in each re- 
 spective period. At length an allowance for reasonable 
 wear was authorized, first, with respect to the Silver 
 Coins, and afterwards, with respect to those made of 
 Gold. When in process of time Silver Coins of greater 
 value than Pennies and Halfpennies were made, names 
 were given to them, which were also arbitrary, and had 
 no reference to the quantity or weight of Silver, which 
 
AND REASONS FOR ADOPTING THEM. 151 
 
 they contained, or to the value, at which they were to CIIAP.H 
 pass in currency. Such were the Groat and Half 
 Groat, the Crown and Half Crown. There were Gold 
 Crowns and Half Crowns, as well as Silver Crowns 
 and Half Crowns : and even the Shilling, though the 
 name of an aliquot part of the Pound in tale, was 
 soon after it was brought into circulation called no 
 longer a Shilling, but a Teston, as has been already 
 observed, and continued to be so called for a considerable 
 period. 
 
 From the time when Gold Coins were introduced 
 into currency, under the authority of the Sovereign, of a 
 certain weight, and at a certain rate or value, the Pound 
 Sterling in tale represented a certain quantity or weight 
 of standard Gold, in like manner as it represented a 
 certain quantity or weight of standard Silver. The 
 nominal value of the Gold Coins was from time to time 
 enhanced, or their weight diminished, in proportion as 
 the Silver Coins were debased, by diminishing the 
 weight of them. And these Gold Coins equally passed 
 in payment at the rate or value, which the Sovereign 
 thought fit to give them. And from that time the Gold 
 and Silver Coins were in fact, as well as by law, equally 
 the measure of property. 
 
 It is certain, that during all this period the Silver 
 Coins were the more common currency of the country, 
 because they were better adapted to the extent of our 
 commercial transactions at that time. But great pay- 
 ments were even then frequently made in Gold Coins, 
 at the rate or value before mentioned. 
 
152 OF THE PRINCIPLES OF COINAGE, 
 
 CHAP. 17. it sometimes happened, however, that both Gold and 
 
 Silver Coins were, by various causes, alternately driven, 
 in a great degree, out of circulation ; and one of them 
 remained in currency, and became in fact the principal 
 measure of property. In the latter end of the reign of 
 Henry VIII. and during almost the whole reign of 
 Edward VI. the Gold Coins were driven out of circu- 
 lation, and were melted down, or hoarded, as before 
 stated; and from the 2d of James I. to the llth of 
 that King, the Gold Coins were again driven out of 
 circulation, by being melted down or exported. During 
 the whole of those periods the Silver Coins were in fact 
 almost the only measure of property. From the llth of 
 James I. to about the middle of the last century, the 
 Silver Coins were in a like manner driven in a great 
 degree out of circulation, by being melted down or 
 exported; the Gold Coins then became in fact the 
 principal measure of property; but smaller payments 
 must still have been made in the Silver Coins, though 
 probably in such of them as were very defective. The 
 causes, which produced these changes, have been fully 
 explained already ; and instances have been produced, 
 when the people, in consequence of these confusions,* 
 
 * In Scotland, where the changes in the value of Money were more 
 frequent, and in a greater degree than in England, conditions were 
 sometimes inserted in contracts, to prevent any losses by such change. 
 Thus Gavin Dunbar, Bishop of Aberdeen, in a contract with William 
 Sutherland, of Duff us, dated the 5th of August, 1529, stipulated, "that 
 "if it should happen that the Money of Scotland, or of any other 
 " kingdom, which passes in Scotland, be raised to a higher price than 
 "it is now taken in payment for. by which the Reverend Father, his 
 
AND REASONS FOR ADOPTING THEM. 153 
 
 stipulated, at the time they sold their commodities, in CHAP. 17. 
 what sort of Coins they would be paid. All these facts 
 clearly prove, that the measure of property was not in 
 fact confined solely to the Silver Coins, and that the 
 people occasionally adopted in practice Coins of one 
 metal or the other, as the measure of property, according 
 to existing circumstances. 
 
 From the year 1663, the Silver Coins became in fact 
 the only principal measure of property, according to the 
 rate or value, which the Sovereign had set upon them. 
 At that time there was however a great quantity of Gold 
 Coins in currency, and the rate or value, at which they 
 were to pass, -was determined by the Sovereign in the 
 Mint indentures. Such was in truth their legal value, 
 for the reasons already stated, but, by general consent, 
 the value of them rose or fell, like that of every other 
 commodity ; and they did not pass in currency according 
 to the rate or value authorized by the Mint indentures, 
 but according to the estimated value of Gold with 
 reference to that of Silver at the market. After the 
 general Recoinage, in the reign of King William III. 
 when the Silver Coins were restored to a state of per- 
 fection, these Gold Coins did not even then pass in 
 currency according to the rate or value given them by 
 
 " heirs or assigns whatever, be made poorer, or in a worse condition, 
 " he the said William Sutherland should pay to the possessors, whoever 
 " they may be, of the annual rent therein reserved, for every Mark 
 " and 32 Pennies one ounce of pure Silver, which should be at least 
 " Alewyne Penny fine, (that is, eleven Pence fine,) or else its true value 
 " in the usual Money of the kingdom of Scotland." See Ruddiman's 
 Introduction to Anderson's Thesaurus, 8vo. p. 148. 
 
154 OF THE PRINCIPLES OF COINAGE, 
 
 CHAT. 17. the Mint indentures, or even according to their intrinsic 
 value, with reference to the price of Gold to Silver at 
 the market. The Guinea was then current for 21s. 6r/., 
 which was about Wd. more than its intrinsic value, 
 compared with the perfect Silver Coins, that had lately 
 been issued, and the other Gold Coins in proportion. 
 This nominal value exceeded the intrinsic value of these 
 Gold Coins, by 4^- per cent.; and at this rate they 
 were paid and received in all contracts or bargains. It 
 is impossible to suppose, that the people would have 
 received the Gold Coins in payment at a greater rate 
 than their intrinsic value, compared with the new and 
 perfect Silver Coins, unless they had preferred these 
 Gold Coins to those of Silver as the measure of property, 
 either from considerations of convenience, or from some 
 other motive. Whatever the motive may have been, the 
 fact is certain. It is equally certain, that a great part of 
 the perfect Silver Coins, which had been so lately issued 
 in great plenty, in a short time disappeared, and were 
 either melted down or exported. From all these facts it 
 may fairly be inferred, that the Gold Coins were in fact 
 preferred, and from that time became the measure of 
 property, in the opinion and practice of the people. 
 *>j^ In the year 1717, the rate or nominal value of the 
 Gold Coins was fixed by proclamation, and the Mint 
 indenture was altered, and made in this respect con- 
 formable to the proclamation: the Guinea was ordered 
 to pass at 21 5., and the other Gold Coins in proportion ; 
 at this rate the several Gold Coins have continued to be 
 current ever since ; they became from thenceforth legal 
 
AND REASONS FOR ADOPTING THEM. 155 
 
 tender at this rate ; and the receiver, who before had CHAP. i< 
 voluntarily taken them at a higher rate, could not object 
 to take them at the rate which Government had then set 
 upon them, though this rate or nominal value was still 
 greater than their intrinsic value, compared with the 
 perfect Silver Coins. Before this time great payments 
 had frequently been made at the Exchequer in bags of 
 Silver, in like manner as they are now made in some 
 foreign countries; but from that period to the present 
 time no considerable payment has been made, either at 
 the Exchequer, or by individuals, in Silver Coins ; the 
 only use, in which they have been employed, is in 
 payment of small sums, or in exchange for Gold Coins. 
 These Silver Coins have become therefore subordinate 
 and subservient to the Gold Coins, being reserved for 
 small payments. And the Gold Coins are now become, 
 in the practice and opinion of the people, the principal 
 measure of property ; and the Silver and Copper Coins 
 are only so in the degree before described. 
 
 I have hitherto treated the very important point now 
 under consideration simply as a question of law, or as a 
 question of fact, and have adduced no other reasons 
 but such as result from sources, that have immediate 
 reference to law or history: but as many able writers 
 have entertained sentiments very different from mine on 
 this point, I think it necessary now to offer to Your 
 Majesty, in confirmation of my opinion, other reasons, 
 which appear to me to be incontrovertible. 
 
 On this occasion I am under the necessity of recalling 
 to Your Majesty's attention some particulars stated in a 
 
156 OF THE PRINCIPLES OF COINAGE, 
 
 former part of this Letter. It has been shewn, that 
 when the Silver Coins were very defective, in the reign 
 of King William, immediately preceding and during the 
 see Mr. general Recoinage, great contentions daily arose in all 
 
 Report to the fairs, markets, shops, and other places throughout the 
 Treasury of the kingdom, to the disturbance of the public peace, in conse- 
 quence of the defective state of the Silver Coins. That 
 trade in general was on that account greatly lessened; 
 that persons, before they concluded any bargains, were 
 under the necessity of settling the price or value of the 
 very Money they were to receive for their goods, and that 
 they set a price upon their goods accordingly. That these, 
 practices had been one great cause of raising the price 
 not only of all merchandizes, but of every article neces- 
 sary for the sustenance of the people. That the receipt 
 and collection of the public taxes, revenues, and debts 
 were greatly retarded. The cause of these evils was at 
 that time evident. The Silver Coins, which were then 
 the principal measure of property, were greatly deficient; 
 every commodity then rose in its value in proportion to 
 this deficiency ; they all took their value in reference to 
 the Silver Coins : but none of these evils have happened 
 for many years past, in consequence of the existing defect 
 of our Silver Coins. There is no reason to suppose that 
 any commodity has on this account risen in its price or 
 value. The cause that these evils do not now exist 
 results from a change in the practice and opinion of 
 the people, with reference to the principal measure of 
 property. The Silver Coins are no longer the principal 
 measure of property : all commodities now take their 
 
AND REASONS FOR ADOPTING THEM. 157 
 
 price or value in reference to the Gold Coins, that is, CHAP.IT. 
 in reference to the quantity of Gold Coins, for which 
 they could be exchanged; in like manner as they took 
 their value in a former period, in reference to the Silver 
 Coins. On this account the present deficiency of the 
 Silver Coins, great as it is, is not taken into considera- 
 tion, in paying the price of any commodity, to the extent 
 in which they are legal tender. It is clear therefore, that 
 the Gold Coins are now become, in the practice and 
 opinion of the people, the principal measure of property. 
 **A. like conclusion may be drawn from the present 
 state of our Gold Coins, and from the value at which 
 they now pass in currency. The Mint indentures of 
 Charles II. James II. William III. and Queen Anne, 
 and even of a part of the reign of George I. to the year 
 17 17, had determined, that the Guinea should pass at 
 the rate or value of 20s., and the other Gold Coins in 
 proportion ; yet they did not pass at that, which was 
 then their legal rate or value, but at a much higher rate 
 or value : and in a part of the reign of King William 
 the Guinea was current at even so high a value as 30s. 
 This increased rate or value was not owing singly to 
 a mistaken estimation at the Mint of the relative value 
 of Gold to Silver, but the Gold Coins rose or fell, as 
 the Silver Coins were less or more perfect. No such 
 increase or variation in the value of the Gold Coin has 
 taken place since the year 1717, when the rate or value 
 of the Guinea was determined by proclamation, and the 
 Mint indenture, to be 21s., and the other Gold Coins in 
 proportion ; though the Silver Coins now current have 
 
1.58 OF THE PRINCIPLES OF COINAGE, 
 
 long been, and are still, at least as deficient as they were 
 in the beginning of the reign of King William. The 
 Guinea and the other Gold Coins have notwithstanding 
 constantly passed, since 1717, at the rate or value given 
 them by the Mint indentures. 
 
 The two foregoing arguments clearly prove the 
 opinion of the people of Great Britain on this subject, 
 in their interior commerce and domestic concerns. I 
 will in the next place shew, what has been the opinion 
 of foreign nations concerning it. At the time of the 
 general Recoinage of the Silver Coins, in the reign of 
 King William, the exchanges with all foreign countries 
 rose or fell, according to the defect or perfection of our 
 Silver Coins. It has already been stated, that at this 
 see Mr. period the exchanges to the Low Countries were so very 
 
 Report to the low, that the public lost about 4s. in the Pound on all 
 Treasury, Monies remitted there; that the exchange to Hamburgh 
 
 and to the East Countries was still lower, and to all 
 places in the Mediterranean it was even more to our 
 disadvantage. The most favourable, therefore, of our 
 exchanges, was, during this period, 20 per cent, against 
 this kingdom. All these facts are confirmed by the most 
 eminent writers on exchanges. The reason that the 
 exchanges were then so low is also evident. Foreigners 
 at that time considered the Silver Coins of this realm, 
 then very defective, as the principal measure of property, 
 and consequently of foreign commerce, and they rated 
 their exchanges accordingly. The same evil however 
 has never existed since the year 1717, though our Silver 
 Coins have, during all this interval, been very defective. 
 
AND REASONS FOR ADOPTING THEM. 159 
 
 But, on the other hand, our exchanges with foreign CHAP. 17. 
 countries were very much influenced to our disadvantage, 
 when our Gold Coins were defective ; that is, previous 
 to the reformation of our Gold Coins, in the year 1774 : 
 and this circumstance was one of the principal causes, 
 which then induced the Government to reform the Gold 
 Coins, by recoining them, at a great charge to the public. 
 The conclusion, naturally resulting from these premises, 
 is, that foreigners have, for a considerable period, no 
 longer considered our Silver Coins as the principal 
 measure of property, and consequently of foreign com- 
 merce ; but they consider our Gold Coin as such, and 
 thereby estimate their exchanges. 
 
 Lest these arguments should not be thought sufficient, 
 I will proceed to another, which ought, in my judgment, 
 to have its weight. For many years previous to the 
 Recoinage of the Gold Coins in 1774, Gold Bullion 
 advanced in its price, considerably above the rate or 
 value, at which it was estimated at the British Mint. 
 It was frequently at 31. 18s. and 3/. 19s. per oz. and 
 sometimes even above 4/. per oz. On an average of 
 its price for sixteen years, from 1757 to 1773, it was 
 3/. 19s. *2\d. per oz. which is Is. 4Jrf. per oz. or 1-J^-f-J- per 
 cent, above the Mint price. But immediately after the 
 Recoinage of the Gold Coin, in the year 1774, by which 
 that Coin was brought to its present state of perfection, 
 Gold Bullion fell to something under the Mint price ; 
 and for 20 years previous to the year 1797, the Directors 
 of the Bank of England have, as I am informed, paid 
 for it, on an average, not more than 3/. 17s. 7J^/., which 
 
160 OF THE PRINCIPLES OF COINAGE, 
 
 CHAP. 17. i s 2fd. per oz. or -fffg per cent, under the Mint price. 
 It is evident from these facts, that the price of Gold 
 Bullion was affected by the state or condition of our 
 Gold Coins, though the price of this Bullion had not, 
 since the year 1717, been so affected by the defective 
 state or condition of our Silver Coins ; that is, it rose in 
 its price when the Gold Coin was defective, and it again 
 fell in its price when this Coin was brought to its present 
 state of perfection. The deficient or perfect state of our 
 Gold Coins has influenced the price even of Silver 
 Bullion in like manner. The price of Silver Bullion 
 rose or fell from the same cause, which affected the price 
 of Gold Bullion. From 1757 inclusive, to 1773, when 
 the Gold Coin was defective, the average price, which 
 the Directors of the Bank paid for Silver Dollars, was 
 64 |d. per oz. which is equal to 66 %d. per oz. for standard 
 Silver. But immediately after the Recoinage of the Gold 
 Coin, by which it was restored to its present state of 
 perfection, the price of these Dollars fell, so that on 
 an average of 24 years, to the 31st of December 1797 
 inclusive, the Bank Directors, as I am informed, have 
 paid for these Dollars 6l^d. per oz. which is equal to 
 63 %d. per oz. for standard Silver, and is less than the 
 average price of Silver, for the 16 years previous to 
 the Recoinage of the Gold Coins, by 3fd. per oz. or 
 >5% per cent. It does not however appear, that the 
 price either of Gold or Silver Bullion was ever affected 
 immediately before or since the Recoinage of the Gold 
 Coin, by the very defective state of our Silver Coins. 
 From all which it is evident, that the value of Gold 
 
AND REASONS FO1S ADOPTING THEM. 161 
 
 or Silver Bullion has, for 40 years at least, been esti- CHAP, i; 
 mated according to the state of our Gold Coin solely, 
 and not according to that of Silver Coin. The price of 
 both these metals rose when our Gold Coin was defective ; 
 it fell when our Gold Coin was brought to its present 
 state of perfection ; and it may therefore justly be in- 
 ferred, that, in the opinion of the dealers in these precious 
 metals, (who must be considered as the best judges on a 
 subject of this nature,) the Gold Coin has in this respect 
 become the principal measure of property, and conse- 
 quently the instrument of commerce. 
 
 Thus it appears, that not only the people of Great 
 Britain, but the merchants of foreign nations, who have 
 any intercourse with us, and even those who deal in the 
 precious metals, of which our Coins are made, concur in 
 opinion, that the Gold Coins are now the principal 
 measure of property in this kingdom. 
 
 Mr. Locke has said, that Gold is not the Money of 
 the world and measure of commerce, NOR FIT TO BE SO. 
 It is difficult to determine what Mr. Locke means, when 
 he asserts, that Gold is not Jit to be the Money of the 
 world. Gold, as a metal, is equally homogeneous, 
 equally divisible into exact portions or parts, and not 
 more consumable, or more subject to decay, than Silver ; 
 Gold has some of these qualities even in a higher degree 
 than Silver. Mr. Locke must mean therefore, that Gold 
 is, on account of its value, not Jit to be the Money of the 
 world, or the measure of property and commerce. It 
 cannot, I think, be doubted, that the metal, of which 
 this principal measure of property is made, should cor- 
 
 M 
 
162 OF THE PRINCIPLES OF COINAGE, 
 
 CHAT. 17. respond with the wealth and commerce of the country 
 for which it is intended. Coins should be made of metals 
 more or less valuable, in proportion to the wealth and 
 commerce of the country, in which they are to be the 
 measure of property. 
 
 In very poor countries Coins have been, and still are, 
 principally made of Copper ; and sometimes even of less 
 valuable materials. 
 
 In countries advanced to a certain degree of com- 
 , merce and opulence, Silver is the metal of which Coins 
 are principally made. 
 
 In very rich countries, and especially in those where 
 great and extensive commerce is carried on, Gold is the 
 most proper metal, of which this principal measure of 
 property, and this instrument of commerce, should be 
 made : in such countries Gold will in practice become 
 the principal measure of property, and the instrument of 
 commerce, with the general consent of the people, not 
 only without the support of law, but in spite of almost 
 any law that may be enacted to the contrary ; for the 
 principal purchases and exchanges cannot there be made, 
 with any convenience, in Coins of a less valuable metal. 
 In this Your Majesty's kingdom, so great is its wealth, 
 and so various and extensive is its commerce, that it is 
 become inconvenient to carry on many of the principal 
 branches of trade, or to make great payments, even in 
 Coins of Gold, the most precious of metals : on this 
 account a very extensive Paper currency has been called 
 to its aid: but this Paper can never be considered as 
 Coin, for it has no value in itself; it only obtains its 
 
AXD REASONS FOR ADOPTIXG THEM. 163 
 
 value with reference to the Coins which it represents. CHAP, i 
 Certain descriptions of this Paper currency have, how- 
 ever, from a thirst of gain, been carried by many, and 
 from a love of speculation defended by others, to an 
 extravagant, and, I think, to a dangerous, extent. Paper 
 currency should only be employed, where payment in 
 Coins becomes inconvenient. 
 
 In illustration of the truth of what I have advanced, 
 that Gold is now the proper metal, of which the principal 
 measure of property and instrument of commerce should 
 be made, it may be observed, that the value of Silver in 
 this kingdom, at the accession of William I. compared 
 with the price of other articles, was nearly as great as 
 that of Gold is at present : the Silver Coins were then, 
 and for two hundred and fifty years subsequent to that 
 period, the only Money in currency ; and the largest 
 Piece was a Silver Penny, equal in value to something 
 less than 3d. of our present Money. The rents of the 
 Crown, as well as of individuals, were at that time 
 usually paid in kind : and it is natural to conclude, that 
 there must then have been but a small quantity of these 
 Silver Coins in circulation. Every article of commerce 
 is also supposed to have increased in price, since the 
 1st of William I. at least fifteen times, in the opinion 
 of those, whose estimate in this respect has been the 
 lowest ; that is, the Pound Sterling in tale has been 
 reduced to about one third of what it was at the period 
 before mentioned: and the price of every commodity, 
 compared with the Pound Sterling in tale, has at least 
 augmented in a quintuple proportion : a Pound of Gold, 
 
 M2 
 
164 OF THE PRINCIPLES OF COINAGE, 
 
 CHAP. 17. therefore, compared with the present price of commodities, 
 is of about the same value as a Pound of Silver was in 
 the eleventh century, compared with the price of com- 
 modities at that early period : and, in this view of the 
 subject, the Gold Coin is now as well adapted to serve 
 as the principal measure of property, or instrument of 
 commerce, as the Silver Coin was at the accession of the 
 Norman Prince to the throne of this kingdom. 
 
 So true is the principle, that Coins must bear a due 
 proportion to the wealth and commerce of every country 
 in which they are current, that in former times it was 
 found necessary gradually to introduce into the currency 
 of this kingdom, Silver Coins, of a greater weight and 
 value, in proportion as the wealth and commerce of it 
 advanced. Thus Pennies, Halfpennies, or Mailles, and 
 Farthings, were at first the only Silver Coins in currency. 
 Groats and Half Groats were afterwards introduced; and 
 in subsequent periods, first Shillings, or Testoons,* and 
 afterwards Crowns and Half Crowns were coined, and 
 for the same reason brought into currency. In like 
 manner, when the commerce of the kingdom had in- 
 creased to a certain extent, Coins made of Gold were 
 first struck at the English Mint, and introduced into 
 
 * It is singular, however, that Sixpences or Testers, (or, as they are 
 sometimes called in the Mint indentures, Half Shillings,) were one of 
 the last Coins introduced into the English series of Coins. They were 
 first coined in the 6th of Edward VI. when he began to reform the 
 Coins of the realm. Their places had hitherto been supplied by Silver 
 Groats, Half Groats, and Pence : but when Copper Halfpence and 
 Farthings were coined, these smaller Pieces of Silver Coin were no 
 longer necessary, and therefore disappeared. 
 
AND REASONS FOR ADOPTING THEM. 165 
 
 circulation. It was natural, that Gold Coins, as of less CHAP, i; 
 bulk, and of greater value, should be so introduced, and 
 should become legal tender, equally with our Silver 
 Coins ; and, in proportion as our commerce continued 
 to augment, that they should gradually take the place 
 of the Silver Coins; and at length, when our trade had 
 attained the very great degree of extent and splendour, 
 at which it has arrived in the course of the last 50 years, 
 that they should become the principal measure of pro- 
 perty and instrument of commerce, and leave to the 
 Silver Coins the function of being employed only in 
 the smaller and inferior branches of it. Hence it is 
 evident, that the history of the Coins of a country throws 
 great light on its progress in wealth and commerce. 
 
166 
 
 CHAPTER XVIII. 
 
 Variations of the value of Silver and Gold Bullion. 
 
 THERE is still further reason for preferring at present 
 the Gold Coins to those made of Silver, as the principal 
 measure of property and instrument of commerce in these 
 Your Majesty's dominions. This measure ought certainly 
 to be made of that metal, which varies least in its price 
 or value at the market. It is difficult to conceive, that 
 in a commercial light the price or value of any commodity 
 can be estimated, but with reference to some other com- 
 modity, either Gold or Silver, or something else ; and 
 the price or value of the precious metals is generally 
 estimated with reference to each other ; that is, according 
 to the plenty or scarcity, and the demand there may be 
 for each of them. It is certain too, that the price or 
 value of Gold Bullion, in the British market, has for 
 many years varied less than the price or value of Silver 
 Bullion. From an account I have seen of the price of 
 Dollars for 41 years previous to the year 1797, it appears, 
 that the price of Dollars, during that period, has varied 
 l^rfr P er cen ^* It is true, that, before the general 
 Recoinage of the Gold Coin, the prices, both of Gold 
 and Silver Bullion, advanced, in consequence of the then 
 defective state of our Gold Coins, as has been observed 
 already: the true variation therefore in the price of Silver 
 
VARIATIONS OF THE VALUE, ETC. 167 
 
 will be more accurately taken, by giving an account of CHAP. is. 
 this variation, subsequent to the general Recoinage of 
 our Gold Coin. It appears by the account last stated, 
 that the price of Silver in Dollars has varied in twenty- 
 two years, that is, from the end of the year 1774, to the 
 31st of December 1797, ll^f per cent, and even in the 
 course of one year, that is, the year 1797, no less than 
 9^ per cent. 
 
 The variation in the price of Silver Bullion appears 
 to have been still greater, by another account, with 
 which I have been favoured by the late Mr. Garbett, 
 an eminent merchant and manufacturer at Birmingham : 
 it there appears, that the Silver purchased by him, as 
 a refiner, with Bank Notes, varied, according to his 
 calculation, in the course of ten years, to 1793, more 
 than 19 per cent, and in one year only, more than 
 13 J per cent. 
 
 From information, on which I can rely, it appears, 
 that the Bank Directors have in general paid for Gold 
 Bullion, during twenty years previous to the year 1797, 
 not more than 3L 17 s. 6d. per ounce. But occasionally, 
 when they have been in want of Gold, and particularly 
 during the six months previous to March 1798, they 
 have raised the price 4^d. per oz. to encourage the im- 
 portation of it ; so that they then paid for it 3/. 17s. lO^d. 
 per oz. being the full Mint price. But, as stated in 
 another place, the average price, which these Directors 
 have paid for Gold, during the before-mentioned twenty 
 years, was 37. 17.?. l\d. per oz. or 2%d. per oz. less than 
 the Mint price ; so that the variation in the price of 
 
168 VARIATIONS OF THE VALUE 
 
 CHAP. is. Gold has not amounted, during the whole of this period, 
 to i per cent. It appears, by the account before men- 
 tioned, received from Mr. Garbett, that during the forty 
 years in which he has bought and sold Gold Bullion, as 
 a refiner, the price of Gold purchased with Bank Notes 
 has varied in London nearly 5^ per cent. It is true, 
 that by the same account the price of Gold has varied 
 in a greater degree at Paris, Amsterdam, and Hamburgh, 
 but by no means in the same degree as Silver. 
 
 It is possible, that as the Bank Directors are the 
 only purchasers in this kingdom of Gold, for the purpose 
 of converting it into Coin, the rule they have laid down 
 of paying in general but one certain price for it, may 
 have had the effect of keeping the price of this metal 
 more steady than it would otherwise have been, and of 
 preventing a greater fluctuation in it : and this circum- 
 stance accounts for the greater variation there has been 
 in the prices of Gold and Silver Bullion, in the pur- 
 chases made by Mr. Garbett, than in those made by the 
 Directors of the Bank of England. As Silver Bullion 
 is employed in manufactures, and in making plate, in a 
 much greater proportion than Gold Bullion, and as a 
 considerable quantity of it is annually exported to the 
 East Indies, and as this metal is, on all these accounts, 
 more an article of commerce than Gold Bullion, it is 
 possible, that these circumstances may have contributed 
 to produce a greater fluctuation in the price of Silver. 
 
 But to whatever causes the difference in the variation 
 of the prices of these precious metals is to be attributed, 
 the fact, that Gold Bullion varies in this kingdom less in 
 
OF SILVER AND GOLD BULLION. 169 
 
 its price than Silver Bullion, as before stated, is incon- 
 trovertible, from the accounts, with which I have been 
 furnished. It is equally certain, that the Bank Directors, 
 who, being at the head of all circulation, are obliged to 
 supply the quantity of Gold Coin essentially necessary 
 for carrying on the commerce of the kingdom, have not 
 generally, during the period to which these accounts 
 refer, found any difficulty in procuring Gold Bullion at 
 the before -mentioned prices. I am told, that it was 
 offered to them at these prices, and that, except on 
 extraordinary occasions, they were not obliged to seek 
 it, or to send to foreign countries for it. It may fairly 
 therefore be concluded, that the price, at which they 
 obtain this precious metal, is nearly the average price of 
 it in the market of this kingdom ; and, as it varies less in 
 its price than Silver Bullion, it is in this respect the 
 most proper and convenient metal, of which a steady 
 and uniform measure of property and instrument of com- 
 merce can be made. 
 
170 
 
 CHAPTEK XIX. 
 
 Precautions necessary for regulating the principles of 
 
 Coinage. 
 
 FROM all that has hitherto been offered, many of the 
 conclusions are obvious ; several of them indeed have 
 already been stated, in former parts of this Letter, 
 where the reasons have been adduced in support of 
 them. These conclusions, however, it is necessary now 
 to repeat, in order to collect together, and bring into one 
 view, every principle intended to be established as the 
 foundation of a new system of Coins. 
 
 After full consideration of this extensive, abstruse, 
 and intricate subject, I humbly offer to Your Majesty, 
 as the result of my opinion, 
 
 First, That the Coins of this realm, which are to 
 be the principal measure of property and instrument of 
 commerce, should be made of one metal only. 
 
 Secondly, That in this kingdom the Gold Coins only 
 have been for many years past, and are now, in the 
 practice and opinion of the people, the principal measure 
 of property and instrument of commerce. The Integer, 
 or Pound Sterling, which, at the accession of William I. 
 was a Pound weight of Silver, and which, by successive 
 debasements made by the Monarchs of this realm, was 
 reduced, in the 43d year of the reign of Queen Elizabeth, 
 
PRECAUTIONS NECESSARY FOR REGULATING, ETC. 171 
 
 to the ff parts of a Pound Troy of standard Silver, is CUAP.I. 
 now become, by the course of events, and by the general 
 consent of the people, the f^ parts of a Guinea, or of 
 5 dwts. 9J grs. of standard Gold. At as early a period 
 as the year 1485, that is, the 1st of Henry VII. a Gold 
 Coin, called a Sovereign, then first introduced into circu- 
 lation, was intended to represent this Integer, or Pound 
 Sterling. In every subsequent reign to that of James I. 
 Gold Coins of the same name, and intended to represent 
 this Integer, were made at the Mint of this kingdom ; 
 their weight was generally diminished in proportion as 
 the Gold Coins were, during that period, debased. From 
 the accession of James I. all the new Gold Coins intro- 
 duced into circulation were also intended to represent 
 this Integer, or Pound Sterling ; such as the Unite, the 
 Laurel, and the Guinea ; for the Guinea was originally 
 rated in the Mint indenture at One Pound Sterling. It 
 has been shewn, that in a country like Great Britain, so 
 distinguished for its affluence, and for the extent of its 
 commercial connections, the Gold Coins are best adapted 
 to be the principal measure of property : in this kingdom, 
 therefore, the Gold Coin is now the principal measure of 
 property and standard Coin, or as it were the sovereign 
 archetype, by which the weight and value of all other 
 Coins should be regulated. It is the measure of almost 
 all contracts and bargains ; and by it, as a measure, the 
 price of all commodities bought and sold is adjusted 
 and ascertained. For these reasons the Gold Coins 
 should be made as perfect, and be kept as perfect, as 
 possible. 
 
172 PRECAUTIONS NECESSARY FOR REGULATING 
 
 CHAP. ij). It is, and has long been, a dispute among the writers 
 
 on Coins, whether the charge of fabricating Coins, and 
 even a Seigneurage payable to the Sovereign, should 
 not be taken out of our Coins, as is practised in most 
 foreign countries ; and many eminent men have differed 
 on this point. I incline to think, that the charge of 
 fabrication should not be taken from those Coins, which 
 are the principal measure of property and instrument 
 of commerce ; and still less any profit derived from 
 Seigneurage payable to the Sovereign. 
 
 Because this principal measure of property would not 
 in such case be perfect. 
 
 Because the merchants of foreign nations, who have 
 any commercial intercourse with this country, estimate 
 the value of our Coins only according to the intrinsic 
 value of the metal that is in them ; so that the British 
 merchant would, in such case, be forced to pay, in 
 his exchanges, a compensation for any defect, which 
 might be in these Coins ; and he must necessarily either 
 raise the price of all merchandize and manufactures 
 sold to foreign nations in proportion, or submit to this 
 loss. 
 
 Because no such charge of fabrication has been taken 
 at the British Mint for nearly a century and a half past : 
 and, if it were now to be taken, the weight of the 
 new Gold Coins must' be diminished, to pay for this 
 fabrication. 
 
 And lastly, Because these new Gold Coins would 
 either differ in weight from those now in currency, or, 
 to prevent this evil, the whole of our present Gold Coins 
 
THE PRINCIPLES OF COINAGE. 173 
 
 must be taken out of circulation, brought to the Mint, CHAP. in. 
 and be recoined. 
 
 If the system now recommended should be adopted, 
 and the Gold Coins be made the principal measure of 
 property and standard Coin, all the multiples of this 
 measure of property will be in the Gold Coins ; and all 
 its parts, below the value of the smallest Piece of Gold 
 Coin, will be in Coins made of other metals, that is, of 
 Silver and Copper. This system is much more simple, 
 than if the Silver Coins were to be made the principal 
 measure of property ; for, in such case, these Silver Coins 
 would be placed, as it were, between the more valuable 
 Coins of Gold, and the less valuable Coins of Copper; 
 and many of its multiples, as well as many of its parts, 
 must be made of a metal different from that, of which 
 this standard Coin is made. 
 
 Thirdly, it is evident, that where the function of the 
 Gold Coins, as a measure of property, ceases, there that 
 of the Silver Coins should begin; and that where the 
 function of the Silver Coins in this respect ceases, there 
 that of Copper should begin : it is clear, therefore, that 
 so far only these Silver and Copper Coins should be 
 made legal tender, and no further, at least not in any 
 great degree : and it follows, that the Coins both of 
 Silver and Copper are subordinate, subservient, and 
 merely representative Coins, and must take their value 
 with reference to the Gold Coins, according to the rate, 
 which the Sovereign sets upon each of them. 
 
 The charge of workmanship should be taken out of 
 these inferior Coins, because there can be no doubt, 
 
174 PRECAUTIONS NECESSARY FOR REGULATING 
 
 CHAP. ID. that they will pass in payment at their nominal rate or 
 value, provided that their intrinsic value in metal and 
 workmanship is equal to such nominal rate or value : 
 they will take their value according to the rate, at which 
 they can be exchanged for the several denominations 
 of Gold Coins, especially as they will be current only 
 within the kingdom, where the authority of the Sovereign 
 will be sufficient to support their currency ; and as they 
 will be legal tender only for small sums, it is not pro- 
 bable, that they will ever be employed in payments of 
 our balances with foreign nations, except in sums for 
 which they are made legal tender, or be included in the 
 estimate of our foreign exchanges, or in the least degree 
 affect them. 
 
 The charge of workmanship may be taken out of 
 these Coins, because it would be highly improper to 
 bring this charge on the public revenue, when in truth 
 it will no longer be necessary. The charge, to which 
 the nation is already exposed in coining Gold* Coins 
 only at the public expence, is greater than is generally 
 imagined. The charge incurred for coining alone, from 
 the year 1777 to 1803, was 273,4397. 15s. 6d. There 
 were also other incidental charges, incurred on account 
 of the Mint, during the same period, which amounted to 
 215,0027. 3s. 3d. The charge of coining Silver would 
 
 * An account of the charge and expences at His Majesty's Mint 
 from the year 1777 to 1803, inclusive. 
 
 Charge 
 
 of Coining. 
 
 273,4397. 15s. Gd. 
 
 Amount of 
 
 salaries. 
 110,2337. 14. 4 
 
 Contingencies 
 and incidents. 
 59,5857. 3.?. Id. 
 
 Buildings and 
 
 repairs. 
 
 45,1837. 5s. 4(7. 
 
 Total. 
 488,4417. 18*. M. 
 
 Very little Silver was coined during this period. 
 
THE PRINCIPLES OF COINAGE. 1?O 
 
 be still much greater; and indeed so great, that the CHAT.. 
 public ought not to bear it, unless it can be shewn, that 
 some great public advantage would be derived from it. 
 
 By taking the charge of workmanship out of these 
 Silver Coins, they will be retained within the kingdom 
 for the purposes of internal traffic, for which they are 
 intended, in like manner as the Copper Coins are at 
 present ; for no foreign merchant will receive his balance 
 in Coins of this description, in payment of any sum 
 greater than that for which they 'are made legal tender, 
 if there is not a want of a sufficient quantity of Gold 
 Coins, as the intrinsic value of the Silver Coins will be 
 less than their nominal value. And it is further certain, 
 that, in such case, the nation will be no longer exposed 
 to the evils arising from a conflict between Coins made 
 of different metals, or to the iniquitous practice of ex- 
 porting them, whenever a profit can be made thereby; 
 or to that of melting them down, for the purpose of 
 converting them into plate, which frequently happened 
 in the course of the last century, whenever the price of 
 either Gold or Silver Bullion at the market rose above 
 the Mint price. 
 
 The value of the metal, of which these Silver Coins 
 are to be made, should be estimated, not according to 
 the actual price of such metal at any given time, but 
 according to the average price, which such metal has 
 born for a certain number of years past, or which it 
 is likely to bear in future in the market. For as these 
 Silver Coins are to represent those of Gold in small 
 payments, they should be made to represent them, not 
 
176 PRECAUTIONS NECESSARY FOR REGULATING 
 
 on.\iMf). in any one time, but for a continued space of time, as 
 truly and as correctly as the fluctuating value of the 
 two precious metals will permit. It has already been 
 shewn, that when Coins are made of two different metals, 
 and intended to be current according to their intrinsic 
 value, it is impossible that the Sovereign should follow 
 with sufficient accuracy the various fluctuations and 
 changes, which in a short time happen in the relative 
 prices of these metals at the market, and thereby regu- 
 late the nominal value, at which the different Coins, 
 made of these metals, should at all times be current. 
 Experience has proved, that every attempt for this pur- 
 pose has been unsuccessful. It follows therefore, that 
 the metal of those Coins, which are intended to represent 
 those of Gold in small payments, should be estimated 
 according to a fair average of what is likely to be its 
 value in future at the market, with due attention to 
 every circumstance, which is likely to influence the price 
 of it, and to the rate, at which this metal is estimated in 
 the Mints of foreign countries. Coins of this description 
 ought to be so made, that they may truly represent, but 
 not rival, that Coin, which is to be the standard Coin, or 
 ever come into competition with it. 
 
 Mr. Locke's idea, that Coins made of any other metal 
 than that of which the standard Coin is made, should be 
 suffered to pass in currency according to the relative 
 value of these metals at the market, is not conformable 
 to practice, and is without example, except in what 
 happened to our Gold Coins for a certain number of 
 years after the 16th year of Charles II. during a part 
 
THE PRINCIPLES OF COINAGE, 177 
 
 of which time our monetary system was in a state of CHAP. 19. 
 confusion. How are those who reside in the country, 
 or in many great commercial and manufacturing towns, 
 to estimate the relative value of Gold to Silver, where 
 no Gold or Silver Bullion is bought or sold? Such a 
 proceeding is also contrary to law ; for in effect it 
 transfers the right of setting a rate or value on the 
 Coins, from the Sovereign to individuals : Coins ought 
 always to pass in tale according to the rate or value, 
 which the Sovereign sets upon them in his Mint inden- 
 tures. But Mr. Locke's idea of the manner of valuing 
 Coins according to the relative prices of the metals, of 
 which they are made, at the market, is, with respect to 
 those of Silver and Copper, absolutely impracticable. 
 How are the poorer classes in particular, who principally 
 make use of these Coins, to know what the relative prices 
 are ? Such a system would introduce confusion into all 
 our commercial transactions, and would afford an oppor- 
 tunity to the money-changer, or dealer in metals, to raise 
 a fortune by practising the worst of frauds on ignorant 
 individuals, who must, in this case, be the greatest part 
 of Your Majesty's subjects. 
 
 If it should be objected, that the principles of Coinage,' 
 which I humbly offer for Your Majesty's consideration, 
 are wholly new, I think they should not be rejected 
 merely on that account, in case they should be found 
 to be reasonable. But what I maintain is, that a system 
 consonant to these principles actually exists in a certain 
 degree at present, though it has not been formally 
 adopted by Your Majesty's Government. The present 
 
 N 
 
178 PRECAUTIONS NECESSARY FOR REGULATING 
 
 CHAP. ID. Silver Coins, such as they are, are subordinate and 
 subservient to the Gold Coins ; and in this quality only 
 are current. In proposing these principles, it has been 
 my earnest wish, that as few alterations as possible 
 should be made in the system of Coins, which at present 
 exists. I am fully sensible of the embarrassments and 
 confusion in commercial transactions, which any such 
 alteration will at all times produce ; my principal object 
 therefore has been to shew, what is the present practice, 
 and to prove, that the system, which now prevails, ought, 
 as nearly as possible, to be continued, as well as to 
 remove the prejudices, which some men of abilities 
 entertain against it. The plan which I propose is ex- 
 pressly calculated for this purpose. My opinion is, and 
 I hope I shall be excused in repeating it, that the Gold 
 Coins should continue to be the principal measure of 
 property and instrument of commerce ; that the Silver 
 and Copper Coins should continue to be subservient to, 
 and representative of, these Gold Coins, as they are at 
 present. Influenced by the same desire of not making 
 any unnecessary change, I am also of opinion, that there 
 should be no alteration in the present names, or relative 
 value or rate of the Coins of this realm, as they are now 
 settled in the Mint indentures, and pass in currency. I 
 am sensible, that if a system wholly new were now to be 
 introduced, the weight, the size, and the denomination 
 of our Coins might perhaps be changed to advantage, 
 and better arranged for general convenience. But I am 
 apprehensive that any such change would produce great 
 embarrassments, at least among the inferior classes of 
 
THE PRINCIPLES OF COINAGE. 179 
 
 Your Majesty's subjects, in their ordinary traffic and CHAP. 
 dealings. In all concerns, which so nearly affect the 
 interests of men, they are naturally attached to systems 
 and to names, which have long prevailed, because they 
 are better acquainted with them, and are, for that 
 reason, less exposed to fraud and imposition. Your 
 Majesty may have observed, in the short history which 
 I have given of the Coins of this realm, with what 
 difficulty the several Coins of a new denomination have, 
 in successive periods, been introduced into currency : it 
 required, in most instances, many years to reconcile the 
 people to them, and to establish their general use. It is 
 certainly, therefore, most advisable to continue all the 
 present denominations of our Coins, and to make them 
 pass at the same nominal value, at which they are 
 respectively rated in the present Mint indentures. 
 
 I do not pretend, that a new system of Coinage, 
 founded on the principles, which I have endeavoured to 
 establish, will be in all respects perfect; for the nature 
 of the subject does not admit of absolute perfection : 
 I am sensible, that it will be liable to the first of the 
 imperfections stated in an early part of this Letter ; 
 that is, that the metal, of which this standard Coin, or 
 principal measure of property, is to be made, will vary 
 in its value in successive periods, even with respect to 
 itself: it has already been shewn, that this imperfection 
 is so inherent in the subject, that it does not admit of 
 a remedy : this variation may be occasioned either by a 
 greater or less production of the Mines, from which one 
 or other of these precious metals is obtained. It was 
 
 N 2 
 
180 
 
 PRECAUTIONS NECESSARY FOR REGULATING 
 
 CHAP. 10. 
 
 See the Appen- 
 dix to this 
 Letter, and the 
 authorities 
 there quoted. 
 
 owing to an unusual production of the Silver Mines in 
 South America, that the value of Silver decreased in so 
 rapid and great a degree, in the 17th century, and that 
 the relative value of Gold rose in proportion : or, this 
 variation may be occasioned by the effects resulting from 
 extraordinary revolutions in the political world, such as 
 have lately happened in France, and in the countries 
 subdued by its arms ;* where the persons who govern 
 France have, under the pretence of making them free, 
 first plundered, and then enslaved, the people ; and 
 where vast quantities of Silver Plate, hitherto employed 
 for holy purposes, or for private splendour, have been 
 melted down, and brought to the market ; so that the 
 price of Silver in that country was for a short time con- 
 siderably reduced : or, this variation may be occasioned 
 by great and memorable conquests, which sometimes 
 bring an unusual influx of one or other of the precious 
 metals into the conquering country ; such as happened 
 in ancient times at Rome, where Gold, when it was 
 first coined, that is, during the second Punic war, 
 A. U. C. 546, was estimated, in reference to Silver, 
 as high as 17 if to 1: the relative value of Gold to 
 
 * The Plate of all the churches and monasteries, as well as of 
 individuals, chiefly of Silver, was melted soon after the beginning 
 of the French Revolution, and converted into Coin. It is asserted in 
 some of the French papers, that the quantity of Silver Coin, thus 
 introduced into circulation, reduced the price of Silver in so great a 
 degree, as to make the relative value of Gold compared to Silver as 
 17 to 1 ; but for this fact I do not answer. It is however asserted, 
 that for some reason or other the National Institute of France have 
 long had under consideration a new system of Coins, particularly with 
 the view of regulating the relative price of the two precious metals. 
 
THE PRINCIPLES OF COINAGE. 181 
 
 Silver fell by degrees afterwards, so as to be estimated CHAP. 19. 
 as 10 to 1 ; but after Cassar had conquered Gaul, he 
 brought into Italy immense spoils, of Gold in particular, 
 taken principally from the cities he destroyed, or the 
 temples he plundered ; Suetonius says, " urbes diruit, 
 (e saepius ob praadam quam ob delictum;" this influx of 
 Gold into Home reduced the relative value of Gold 
 to Silver so low as 7-J- to 1. Such an event must have 
 caused a sudden convulsion in the monetary system of 
 the Roman republic ; but these are extraordinary occur- 
 rences, against which it is impossible to provide ; and 
 any variation, occasioned by revolutions or conquests, 
 is seldom of long duration. Thus in France, the Silver, 
 obtained in the manner before described, soon disap- 
 peared, and the Government was obliged to introduce 
 Assignats, or a certain species of paper currency, into 
 circulation, to supply, in their internal traffic, the place 
 of the Silver Coins, which had already left them, by the 
 operation of a declining foreign commerce, or to pay their 
 numerous armies employed in foreign countries ; and 
 these Assignats perished in their turn. In Home, the 
 relative value of Gold to Silver, in which so great a 
 change had been produced by the conquests of Cassar, 
 gradually returned to its former proportion, which, in 
 ancient times, in Greece, as well as in Rome, was 
 generally as 10 to 1. In a business of this kind, 
 all that human policy can eifect is, to provide against 
 ordinary contingencies : it is all that I presume to 
 expect from the system, which I now present for Your 
 royal approbation. 
 
182 
 
 CHAPTEK XX. 
 
 Objections stated and considered. 
 
 IT is easy to foresee some objections, that will be 
 made to this system ; and I think it right not to pass 
 them wholly unnoticed. 
 
 It will be objected, in the first place, that, by the 
 proposed alteration in the Silver Coins, those of Gold 
 will occasionally be drawn out of the kingdom. 
 
 Though I may incur the charge of being tedious, 
 I will venture to preface what I have to say in answer 
 to this objection, by treating shortly of the exportation 
 of Coins generally in payment of commercial balances 
 with foreign countries. 
 
 Whenever the balance of trade with any particular 
 country is against this kingdom, and no bills of ex- 
 change can be obtained to pay this balance through 
 other countries in a circuitous manner ; and no Bullion, 
 or foreign Coins considered as such, can be procured 
 for that purpose ; the Coins of the kingdom must be 
 sent out to pay that particular balance. The laws of 
 the country are a fruitless barrier * in this respect ; and 
 
 * Mr. Necker, who agrees with me on this point, assigns one extra- 
 ordinary reason for it, viz. that, by permitting the exportation of Coins, 
 you create the necessity of making new Coins, and thereby increase the 
 profits, which the King derives from his Seigneurage. Mr. Neckor 
 
OBJECTIONS STATED AND CONSIDERED. 183 
 
 if they could be enforced, they would only tend to injure CHAP. 20. 
 and diminish our foreign commerce : but these Coins 
 will be replaced by foreign Coins or Bullion received 
 from other countries, and convertible into British Coins, 
 as long as the general balance of trade is in our favour ; 
 and, in such case, the stock of national Coins within the 
 kingdom will not, for any length of time, be greatly 
 diminished. 
 
 When the general balance of trade is against this 
 kingdom, Bullion or foreign Coins will be exported in 
 preference to British Coins, at least as long as the law, 
 which prohibits the export of these Coins, shall be in 
 force : for this law increases the risk, and consequently see the Evidence 
 the charge of exporting such Coins, above that of Esq. taken 
 exporting Bullion or foreign Coins. secret com- 
 
 In the case last stated, either Gold or Silver Bullion HOU^ of Lords, 
 will be first exported, according to the demand there may p ' 107 ' 
 be for either of them in the market, to which it is to be 
 sent, and according to the price, which each of these 
 sorts of Bullion, or foreign Coins, considered as such, 
 may bear in that market, compared with the price of it 
 in England : but if there is no reason, on that account, 
 to prefer one sort of Bullion to the other, the Gold 
 Bullion will generally be sent in the first place, because 
 it can be exported at a less charge than Silver Bullion, 
 
 estimates these profits at no more than 25,OOOZ. a year from all the 
 Mints in the French territories. This is certainly a small sum, and 
 does not arise from a very creditable source. Mr. Necker dignifies 
 these profits, as applied to the Coin exported, by calling them a tax 
 on national exports. Vol. iii. 8vo. c. 4. 
 
184 OBJECTIONS STATED 
 
 CH.vr.2o. as it is of less bulk ; and afterwards the Silver Bullion 
 will be sent, if a sufficient quantity of Gold Bullion 
 cannot be procured. 
 
 When there is a want of both Gold and Silver 
 Bullion, or foreign Coins, to pay the balance of trade, 
 the Coins of the kingdom, of one description or other,' 
 will necessarily be exported, notwithstanding any law, 
 which may prohibit their exportation. The Gold Coins 
 will be generally exported in the first place, not only for 
 the reason I have already stated ; but because they can 
 more easily be concealed, and the law, which prohibits 
 the exportation of them, and the penalties inflicted on 
 that account, be more easily evaded. 
 
 For almost a century there have been no British 
 Coins, which could be sent in payment of balances due 
 from this kingdom to foreign countries, except the Gold 
 Coins ; for, from the defective state of our Silver Coins, 
 none existed in the kingdom, which could be employed 
 for that purpose, but at a great loss to the exporter ; 
 and yet the commerce of the country has, through the 
 whole of this period, continued to prosper; and Gold 
 Bullion, as has been proved already, has generally been 
 at a reasonable price. 
 
 I entertain doubts, whether, if British Coins of any 
 description are to be sent out of the kingdom, it is not 
 more advantageous to the public, that the Gold Coins 
 should be exported rather than the Silver Coins. Those 
 Coins will first be exported, that are not deficient in 
 weight, of whatever metal they may be made. For if 
 they are deficient in weight, the exporter must pay the 
 
AND CONSIDERED, 185 
 
 difference between the intrinsic and nominal value of CHAP. 20. 
 such defective Coins. If, to remedy this evil, and to 
 preserve all our Coins in a due state of perfection, the 
 charge of Coinage is to be paid by the public, the charge 
 of coining Gold is much less than the charge of coining 
 a quantity of Silver of equal value : the Silver Coins 
 are also more essentially necessary for carrying on the 
 interior commerce of the kingdom, and particularly the 
 retail trade, than the Gold Coins ; It is of more im- 
 portance, therefore, that these should be retained within 
 the kingdom. The Gold Coins also have a substitute, 
 which the Silver Coins have not, at least in an equal 
 degree ; they may be represented by notes, or paper 
 currency, which will answer the purpose of all great 
 commercial transactions, even if a certain proportion of 
 our Gold Coins should be exported, till the balance 
 of trade turn again in our favour, and the Coins so 
 exported shall thereby be replaced. 
 
 I will now proceed to reply directly to the objection 
 I have last stated. I have shewn already, that, in pay- 
 ment of foreign balances, British Coins of one description 
 or another must be exported, when there is not in the 
 kingdom a sufficient quantity of Bullion, either Gold 
 or Silver, for that purpose : that in such case the Gold 
 Coins will first be exported, in preference to those of 
 Silver, though the Coins of these two metals should, as 
 far as relates to their intrinsic value, be in a perfect 
 state of equality, because it is more profitable, more 
 convenient, and more safe, to export the Gold Coins ; 
 and it is perhaps more for the advantage of the public, 
 
186 OBJECTIONS STATED 
 
 CHAP. 20. that the Gold Coins should be so exported. But if it is 
 meant by this objection, that, even when the balance of 
 trade is generally in our favour, any difference in the 
 intrinsic value of these two sorts of Coins will introduce 
 a mischievous traffic in the Coins made of these two 
 metals ; or, in other words, that the Silver Coins of less 
 intrinsic value will be exchanged for those of Gold of 
 more intrinsic value, merely for the purpose of exporting 
 the latter; I beg it may be observed, that our Silver 
 Coins have been for almost a century in a very defective 
 state ; that the present Silver Coins are, on an average, 
 at least one third less in weight and value, than those 
 that will be made upon the plan I have proposed; and 
 yet the evil, which is the ground of this objection, has 
 never happened. I do not conceive that the absence 
 of this evil is to be imputed to the want of a sufficient 
 quantity of these Silver Coins ; for our present Silver 
 Coins are mere Counters, without any impression on the 
 face or reverse, or any graining on the edges, or indeed 
 any exterior mark, by which they can be distinguished 
 as Coins; so that the counterfeiter could easily have 
 fabricated or imitated Coins of this description, with 
 very little risk, and in any quantity : and his profit 
 must have been very great, if he could have practised 
 the fraud before mentioned; and yet it is certain, that 
 he has never thought it for his interest to engage in this 
 sort of traffic. It is proper further to observe, that 
 Silver Coins have been legal tender, in payment for 
 any sum, equally with the Gold Coins, during the 
 greatest part of the period before mentioned ; for the 
 
AND CONSIDERED. 187 
 
 Act, which declared them not to be legal tender for CHAP. 2 
 any sum exceeding 251. did not pass before 1774: but 
 according to the plan I have proposed, the new Silver 
 Coins will not be legal tender for any sum exceeding 
 the nominal value of the largest piece of Gold Coin 
 in currency : if therefore no traffic of this nature has 
 been carried on when our Silver Coins were so much 
 more deficient than they will be in future, and when 
 they were legal tender to any amount, it is not likely 
 that this sort of fraud will be practised with the new 
 Silver Coins, which will be so much more valuable, 
 indeed nearly equal in intrinsic value to the Gold Coins, 
 and when they will be legal tender only for a much 
 smaller sum, and when, from their external form and 
 beauty, it will be so much more difficult to counterfeit 
 them : it is evident, from the experience we have had, 
 that the profits, which can be derived from this practice, 
 are not equal to the trouble and danger in carrying it 
 on ; so that no person will engage in it : but if it should 
 be thought necessary, for the purpose of preventing this 
 evil, to employ any further guard or restriction, I will 
 submit to Your Majesty, whether it may not be advisable, 
 that the Legislature should vest in Your Majesty, or 
 such others as may be authorized by Your royal licence, 
 (these will probably always be the Directors of the Bank 
 of England,) the sole right of carrying Silver to Your 
 Mint to be coined: Your Majesty will thus have it in 
 Your power to limit and regulate the quantity of Silver 
 Coins, w r hich may at any time be sent into circulation; 
 but I beg to be understood, that I do not mean by this 
 
188 OBJECTIONS STATED 
 
 CHAT. 20. restriction, (if it should be thought proper to adopt it,) 
 that Silver Coins of every description should not be sent 
 in great plenty into circulation : it is highly important, 
 for the convenience of Your people, particularly those of 
 the lower classes, that they should at all times be current 
 in great plenty. 
 
 The second objection, which will probably be urged, 
 is, that the Silver Coins proposed to be made may fall 
 in their value below their nominal rate or value, and 
 that the price of all commodities may rise in propor- 
 tion ; and as these Silver Coins are principally made 
 use of in the retail trade, those of Your Majesty's 
 subjects, who are the least affluent, may suffer by this 
 measure. 
 
 I should feel the deepest regret if there was the least 
 probability, that any measure proposed by me could, in 
 the smallest degree, produce the consequences stated in 
 this objection ; I am also sure I should thereby act con- 
 trary to Your Majesty's benevolent intentions. When 
 Your Majesty signified Your royal commands to me, as 
 well as others of Your servants, to take this subject into 
 consideration, I am certain, that the object, which You 
 then had at heart, was to remove a great inconvenience, 
 to which Your people had long been exposed ; and, for 
 this purpose, to form a plan of introducing into circula- 
 tion new and better Silver Coins, in sufficient plenty, 
 founded en principles of wisdom and justice : and I am 
 confident, that I shall be able to assign reasons, which 
 will convince Your Majesty and the public, that the 
 evils stated in this objection are not likely to result 
 
AND CONSIDERED. 189 
 
 from the system, which I have ventured to recommend CHAP. 20. 
 to Your Majesty. 
 
 Those who urge this objection are led into error, by 
 supposing, that these new Silver Coins will fall in their 
 value, in like manner as the defective Silver Coins fell 
 in their value, before the general Recoinage, in the reign 
 of William III. and that the price of all commodities 
 will rise in proportion : they do not advert to several 
 circumstances, which make the cases wholly dissimilar. 
 
 In the reign of King William III. the Silver Coins 
 were understood to be the principal measure of property : 
 the Gold Coins at that time changed their value, like 
 other commodities, that is, were current for more or less, 
 in reference to the state of the Silver Coins, and the 
 relative price of Gold to Silver at the market : all our 
 exchanges with foreign countries were then regulated by 
 the intrinsic value of our Silver Coins. The reverse is 
 the case at present. The Gold Coins are become the 
 principal measure of property and instrument of com- 
 merce ; and our commercial balances with foreign nations 
 are not only regulated by them, but paid in them, as has 
 been fully proved already : the Gold Coins no longer 
 take their value with reference to the Silver Coins ; but 
 these Silver Coins, as well as every other commodity, 
 now take their value with reference to the Gold Coins, 
 and they pass in currency according to the rate, at which 
 they can be exchanged into the Gold Coins. The Gold 
 Coins have in fact become, for almost a century, the 
 mercantile Money of the kingdom. When the exchange 
 with foreign nations is at any time against this kingdom, 
 
190 OBJECTIONS STATED 
 
 CHAP. 20. anv defect in those Coins, which are the principal measure 
 of property, will then first shew itself by a rise in foreign 
 exchanges to our disadvantage ; and the merchant, to 
 compensate the loss he sustains thereby, will naturally 
 raise in due proportion the price of all his merchandize : 
 this increase of price gradually extends itself to every 
 commodity, and at last reaches even the most common 
 necessaries of life : such is the progress, by which the 
 price of all commodities is raised, in consequence of a 
 defect in our Coins. But this rise is influenced by 
 a defect in that sort of Coin only, which is the prin- 
 cipal measure of property, and in which our balances to 
 foreign countries are regulated and paid. The truth 
 of these principles is fully illustrated by comparing 
 what happened in the reign of King William III. 
 with what has happened of late years. In the reign 
 of King William III. when the Silver Coins were 
 the principal measure of property, and were greatly 
 defective, the price of all commodities rose in pro- 
 portion; but since the Gold Coins are become the 
 principal measure of property, though our Silver Coins 
 are upon an average as defective, as they were before 
 the general Recoinage, in the reign of King William 
 III. the price of commodities, even when purchased 
 with Silver Coins, has not risen on account of the 
 defect of these Silver Coins: the present defective 
 Silver Coins continue to be paid and received at their 
 nominal value, and according to the rate, at which 
 they can be exchanged for our Gold Coins ; some- 
 times, when they are wanted for particular purposes, 
 I 
 
AND CONSIDERED. 191 
 
 they are exchanged even at a premium above their CHAP. 20. 
 nominal value. 
 
 The errors in this respect of all the late writers on 
 Coins have proceeded from a perusal of the works of 
 Mr. Locke, without observing, that the state of the 
 Coins of the kingdom is wholly changed from what it 
 was when he considered this subject : it is probable, that 
 if this great man had lived to the present times, he 
 would have been sensible of the change : he would have 
 applied his principles to the facts as they now exist, and 
 would have drawn his conclusions in conformity to them. 
 
 It is extraordinary, that any one should suppose, that 
 the proposed new Silver Coins will not pass in currency 
 at as high a nominal value as the very defective Silver 
 Coins now in circulation ; for they will exceed them in 
 intrinsic value by at least one third ; and though these 
 new Silver Coins may contain a small proportion of 
 Silver less than w r hat is required by the present Mint 
 indenture, yet the difference in weight will be very 
 inconsiderable, probably not more than is occasioned by 
 wearing in a very small space of time : their intrinsic 
 value, consisting of metal and workmanship, will be 
 equal to their nominal value, estimating the value of 
 the Silver they contain at a fair average. 
 
 If any one can entertain the idea, that these Coins 
 will be sent into circulation in so great numbers, that 
 their value will be depreciated by their plenty, I certainly 
 have no such apprehension. If however there should be 
 the least possibility, that this consequence w T ould follow, 
 the remedy, which I have proposed at the close of my 
 
192 
 
 OBJECTIONS STATED 
 
 CHAP. 20. 
 
 Black Acts, 
 James III. 
 Act 23. 
 
 answer to the first objection, may be immediately applied 
 to prevent this evil. 
 
 Thirdly, the last objection of which I shall take notice, 
 is, that by declaring the Gold Coin to be at present the 
 principal measure of property, an alteration will be made 
 in all bargains, and in the terms of all covenants and 
 contracts, which were concluded previous to the change 
 which has taken place, and when the Silver Coins were 
 understood to be the principal measure of property. 
 
 ,. This objection might have some weight, if the change 
 had happened of late years only ; but it has already been 
 shewn, that it has existed, and that all payments have 
 been regulated in conformity to it, for almost a century. 
 This objection might also have weight, if this change 
 had been brought about by the authority of Government. 
 It has been shewn, that it was brought about, not by the 
 authority of Government, but by the course of events, 
 with the acquiescence, and I may say the general consent 
 of the people. 
 
 Some instances may be produced, from the histories 
 of France and of Scotland, of regulations in the laws of 
 both countries, which directed, that any payments made 
 by virtue of contracts, concluded previous to any debase- 
 ment in their Coins, should be according to the rate, at 
 which the Coins were valued before such debasement; 
 but in all these cases the debasements were made by the 
 authority of Government, and for the profit of Govern- 
 ment : no law or regulation of this sort can be found, 
 as far as I am informed, in the history or records of 
 this kingdom. 
 
AXD CONSIDERED. 193 
 
 After the lapse of almost a century, it is not pro- CHAP. 2 
 bable that there can be any great number of bargains, 
 covenants, or contracts, now subsisting, which were 
 concluded previous to the change that has taken place 
 in the principal measure of property. If any such should 
 now exist, it is certain, that all those, who for so long a 
 period have received any payments by virtue of them, 
 must have consented to take these payments in the Gold 
 Coins of the realm, according to the rate, at which they 
 have been current, and are now current ; and by this 
 acquiescence for so long a term, they may fairly be pre- 
 sumed to have sufficiently expressed their assent to the 
 change that has happened in the manner of making such 
 payments, that is in the measure of their property. 
 
 With respect to the public debt, it is certain, that the 
 last mentioned argument, founded on an acquiescence in 
 the mode of payment for so great a number of years, 
 applies no less to the public than to the private creditor. 
 It is proper further to observe, that much the greatest 
 part of this debt has been contracted since the change in 
 the measure of property has taken place ; and in the 
 year 1740, when the annuities payable on the greatest 
 part of the public debt were reduced from 4 to 3 per 
 cent, a fair option was given to the public creditors, 
 whether they would accept of the proposal made for 
 this reduction, or be paid their capital: at that time, 
 therefore, a new contract must be understood to have 
 been made with these creditors ; and it could then have 
 been made only in the Coins, which were at that time the 
 principal measure of property, that is, the Gold Coins. 
 
 o 
 
194 
 
 CHAPTEK XXL 
 
 Of the Gold Coins previous to the year 1774, and of 
 those now in circulation. 
 
 HAVING now completed all that I meant to offer on 
 the principles of Coinage, and on the new system, which, 
 in my judgment, ought to be adopted ; and having 
 endeavoured to answer the objections, which may be 
 made to it, I will proceed to apply these principles more 
 in detail to the several sorts of Coin, whether made of 
 Gold, Silver, or Copper, and I will shortly treat of each 
 of them. 
 
 The Gold Coins are the first in rank, and by far 
 the most valuable of those which are current in Your 
 Majesty's dominions. It is impossible to estimate, with 
 any degree of accuracy, what may be the present 
 quantity of them in circulation ; we have not sufficient 
 data, on which to found any reasonable calculation. 
 There was indeed a time, when these might, in a certain 
 degree, have been obtained: I allude to the general 
 Becoinage of the Gold Coin, which commenced in the 
 year 1774. 
 
 A short time previous to this Recoinage, the Directors 
 of the Bank had sent Ingots of Gold to the Mint, 
 amounting in weight to 20,337 Ibs. which produced in 
 Coin 950,2457. These Coins however were reserved in 
 
OF THE GOLD COINS PREVIOUS TO 1774, ETC. 195 
 
 the coffers of the Bank, and not delivered to the public CHAP. 21. 
 till the general Recoinage was completed. 
 
 During this Recoinage the said Directors sent to the 
 Mint Ingots of foreign Gold, amounting in weight to 
 62,033 Ibs. which produced in Coin 2,898,4917. 
 
 In the course of the general Recoinage, the old and 
 defective Gold Coins, that were brought to the Mint to 
 be recoined, produced in Ingots 355,233 Ibs. 1 oz. 8 dwts. 
 6 grs. and in new Coins 16,598,266/. 
 
 It was supposed, that at that time there remained 
 in circulation within the kingdom, of old Guineas and 
 Half Guineas of due weight, about 5,000,0007. in 
 nominal value : this last sum is merely conjectural ; 
 but this conjecture, as I well remember, was founded 
 on the judgment of persons the best informed on such 
 subjects. 
 
 The total of the several sums before stated amounts 
 to 25,447,0027. Such therefore is the value of the Gold 
 Coins, which on good information were supposed to 
 have been in circulation immediately after the general 
 Recoinage. 
 
 From that time the Mint has been employed in 
 coining a very great number of Guineas, and other 
 Gold Coins, partly from Ingots of what is called 
 foreign Gold, and partly from Gold Coins become de- 
 ficient in weight, and on that account returned to the 
 Mint. The nominal value of what has so been brought 
 to the Mint to be coined, as I am informed, amounts to 
 36,290,201/. 3s. 3d., that is, 18,720,3887. 14*. 6d. in 
 Ingots of foreign Gold, and 17,569,8127. 8s. 9r7. in Gold 
 
 02 
 
196 OF THE GOLD COINS PREVIOUS TO 1774, 
 
 CHAP. 21. Coins, which became defective in weight during this 
 period. 
 
 Notwithstanding the immense quantity of Gold Coins, 
 which have so been made and issued from the Mint, I 
 cannot venture to estimate the quantity of Gold Coins 
 now in Your Majesty's dominions at more than thirty 
 millions in nominal value, that is, 4,552,9987. more than 
 were in circulation immediately after the general Re- 
 coinage. This is certainly nothing but a conjecture. 
 I can assign but one reason for supposing, that the Gold 
 Coins now in Your Majesty's dominions should exceed 
 the quantity current within the kingdom at the period 
 last mentioned, by so large a sum as 4,552,9987. ; which 
 is, that the general commerce of the country has certainly 
 greatly increased since the year 1777, when the Eccoin- 
 age of the Gold Coin was completed. On the other hand 
 I can assign reasons from which I should infer, that they 
 must now be less in number and value. The number 
 and value of the Bank Notes, which are at present in 
 circulation, compared with those that were in circulation 
 at the first of these periods, is certainly much increased : 
 the number of country Banks that have been established, 
 and the quantity of Paper currency, under various 
 descriptions, which has been issued by them, is increased 
 in a still greater degree. It has already been observed, 
 that these Bank Notes,* and the paper currency of 
 
 * I have been informed, that the Cash paid by the London Bankers, 
 compared with what they pay on an average daily in Bank Notes, does 
 not amount in one instance to more than one in thirty ; in another to 
 one in forty ; in a third to one in one hundred and forty ; and in a 
 
AND OF THOSE NOW IN CIRCULATION. 197 
 
 country Bankers, particularly Notes for very small sums, 
 certainly take the place of the Gold Coins, make the use 
 of them less necessary, and therefore drive them out of 
 circulation. The complaints from the country on this 
 subject are universal. 
 
 In estimating the quantity of Gold Coins now within 
 Your Majesty's dominions, it would be absurd to rely 
 on mere conjecture. I think that I reason on better 
 foundations, when I draw my conclusions from the 
 account that has been given, on good authority, of 
 the quantity of Gold Coins that were in circulation 
 immediately after the general Recoinage ; from the 
 increased commerce of the country since that time ; 
 and also from known facts, namely, that the quantity 
 of Bank Notes, and the quantity of paper currency 
 issued by country Bankers, have since that period 
 greatly increased. There can be no doubt that these 
 two sorts of paper currency have driven a great pro- 
 portion of the Gold Coins out of circulation : the Notes 
 of country Bankers prevent even the circulation of 
 Bank Notes in any quantity, except in the Metropolis, 
 and a small distance from it ; and this observation 
 
 fourth instance the disproportion is still much greater. The difference 
 in the relative quantity of Guineas to Bank Notes in the daily payments 
 of these Bankers, arises from a difference in the nature of the business, 
 which they respectively carry on. In the country every one must have 
 observed, in their respective neighbourhoods, how very small is the 
 proportion of Guineas, or Cash of any kind, to the country Bankers 
 Notes that circulate there. The quantity must vary in different parts, 
 according to the number of country Bankers that have been established, 
 and the value of the Notes -sent by them into circulation. 
 
198 OF THE GOLD COINS PREVIOUS TO 1774, 
 
 CHAP. 21. proves, that there is a constant conflict between the 
 Coins and Notes of every description, and even between 
 the different sorts of these Notes themselves ; so that 
 they tend to exclude and to take the place of each 
 other. The preceding mode of reasoning I prefer to 
 loose estimates and vague speculations, and I leave it 
 to Your Majesty, and such of Your subjects as may 
 peruse this Letter, to determine, whether it is not 
 probable that I have rather over-estimated the quantity 
 of the Gold Coins now within Your European dominions, 
 when I suppose it to amount to 30,000,0007. I have 
 been the more particular in endeavouring to ascertain 
 this point in a reasonable degree, and to shew, that 
 the quantity of Gold Coins now in Your Majesty's 
 dominions is not so great as some have supposed, because 
 it will throw light on a subject of great importance, 
 connected with the Coins of the realm, which must, I 
 am persuaded, soon come under the consideration of the 
 Legislature ; I mean the paper currency of the kingdom. 
 It is natural to ask, what is become of the great 
 number of Gold Coins, which remained in circulation 
 immediately after the general Recoinage, and the still 
 greater number that have been issued from Your 
 Majesty's Mint since that time. I answer, that a 
 considerable part has been returned to the Mint and 
 recoined : these appear, by what I have already stated, 
 to be no less than 17,569,812/. 8s. 9d. Another, and 
 perhaps a still greater portion has been sent out of the 
 kingdom, during the present and the two preceding wan:, 
 particularly the first of these wars, that is, the American, 
 
AND OF THOSE NOW IN CIRCULATION. 199 
 
 for 'the payment of Your Majesty's foreign garrisons, CHAP. 21. 
 and Your Majesty's fleets and armies serving in foreign 
 parts, and the various charges necessarily connected with 
 them. In proof of this it is proper to observe, that our 
 exchanges with foreign countries are generally in our 
 favour in time of peace, but they are less constantly in 
 our favour when we are engaged in war : and though a 
 part of these Coins, so exported, may have returned to 
 Great Britain in the course of trade, a much greater 
 proportion is either still circulating in foreign countries, 
 particularly those belonging to the United States, or has 
 been melted and converted into Ingots, for the supply 
 of foreign Mints, or has formed a part perhaps of those 
 Ingots, which have been sold in the British market, for 
 the supply of the British Mint. 
 
 I am aware, that Mr. Necker, in his Treatise on the 
 Administration of the Finances of France, has estimated 
 the quantity of Specie circulating in that kingdom at 
 the time when he wrote his Treatise, as amounting to 
 2,200,000,000 Livres,* or 91,666,6667. This appears to 
 be an enormous quantity, especially when it is considered, 
 that the Coins circulating in France were principally 
 made of Silver; it is more than three times the value 
 of the Gold Coins now circulating in Your Majesty's 
 European dominions, according to what I have supposed, 
 and yet, in Your Majesty's dominions, internal trade and 
 
 * Wherever the mention of Livres occurs, or where English Money 
 is to be converted into them, the reader will allow 24 to the Pound 
 Sterling-. This estimate is not perfectly correct, but is sufficiently so 
 for the present purpose. 
 
200 OF THE GOLD COINS PKEV1OUS TO 1774, 
 
 CHAT. 21. maritime commerce are much more active and extensive. 
 Mons. de Calonne appears by his writings to have carried 
 his estimate still further. I cannot say that I place 
 any great confidence in the estimates of either of these 
 Gentlemen. They were political combatants then at war 
 with each other, and contending for the favour of their 
 Sovereign, and of his people ; and for this purpose^ it 
 was the business of each of them to over-rate the wealth, 
 and consequently the Coins circulating in the French 
 dominions, particularly during his own administration. 
 Mr. Necker appears to have much under-rated the 
 quantity of French Coins exported annually from that 
 country, as well as the quantity driven out of circulation, 
 and returned to the French Mints in order to be recoined. 
 It is probable, that these last, particularly those made of 
 Silver, must be more numerous in France than in other 
 countries, as large sums were paid in the capital and 
 great commercial towns in bags of Silver Coin, and not 
 by tale ; so that more attention must have been paid to 
 the weight of them. But supposing the quantity of Coins 
 circulating in France to have been, when Mr. Necker 
 published his Treatise, as great as he has estimated 
 them, it is not impossible to account for the different 
 proportion of Coins circulating in Great Britain and 
 France, if we compare the extent of territory, number of 
 subjects, and the commerce in each of them: I need only 
 observe, that before the French Revolution, payments 
 in commercial transactions were almost wholly made in 
 France in Coins, and very little in what we call paper 
 currency: and, on the other h and, that in Your Majesty's 
 
AND OF THOSE NOW IN CIRCULATION. 201 
 
 European dominions sucli payments are principally made CHAP. 21. 
 in paper currency, or in inland bills of exchange, and a 
 very small proportion in Coins. I cannot help observing, 
 that the different state of the two countries in this 
 respect is a decisive proof in how great a degree a paper 
 currency tends to exclude the use of Coins. 
 
202 
 
 CHAPTER XXII. 
 
 Of the art of Assaying, and the deficiency from standard 
 fineness in different Reigns. 
 
 As a part of this Subject, it is proper that I should 
 now proceed to treat shortly of the art of assaying, as 
 practised at Your Majesty's Mint; of the alloy put into 
 the metals of which the Coins are made; and of the 
 weight of the Coins as issued from Your Majesty's Mint ; 
 and of their fashion. 
 
 The art of assaying, as practised at Your Majesty's 
 Mint, is carried to a very high degree of perfection. 
 This art has been improving from the reign of Charles II. 
 to the present time. In the reign of Charles II. the 
 defect in fineness of our Gold Coins is stated to have 
 see the Records been 9s. 10 ^d. per cent. At present the metal of which 
 the FIX. our Gold Coins are made is declared to be perfect 
 
 standard : * this perfection in the fineness of the Gold 
 of which our Coins are made is greatly to be attributed 
 to the skill of that excellent Officer of the public, the 
 late Mr. Alchorne. In several experiments or trials of 
 
 * Previous to the Recoinage of the Gold Coin in 1774, experiments 
 were made of the fineness of the Gold Coin issued in the reigns of our 
 several Princes from Charles II. to the present time, by melting Guineas 
 of each reign into Ingots of 15 Ibs. each ; and from the contrary ends 
 of each Ingot assays were made, by which it appeared, that in former 
 
OF ASSAYING, AND THE DEFICIENCY, ETC. 203 
 
 the Pix made by the Goldsmiths' Company on twenty- CHAP. 22, 
 eight millions of Gold Coin, sent into circulation, there 
 has been recorded no deviation in fineness. By the Mint 
 indentures, if the Gold Coin does not vary more than 
 40 grains in fineness or in weight in the Pound, or in 
 both together, which is called the remedy, such Gold 
 Coin is allowed to pass as standard ; or, in other words, 
 it is to be considered as perfect as the Officers of the 
 Mint are under any legal obligation to coin it. I have 
 already observed, that in the before-mentioned trial of 
 the Pix by the -Goldsmiths' Company, there was no 
 deviation in fineness; and in the same trial there has 
 not been recorded more than an error of 4 grains in 
 weight. The Officers of the Mint therefore might have 
 varied in weight or fineness 36 grains more in each 
 Pound, or as much as 13s. l\d. per cent, without in- 
 curring any blame or penalty on that account, provided 
 such error was not committed by design. It is clear 
 from hence, that the remedy allowed in coining Gold, by 
 our Mint indentures, is too great, and it produces this 
 ill effect, as I am informed, that our Gold Coins are 
 estimated in foreign Mints at less than their intrinsic 
 value : some of these foreign Mints are said not to make 
 
 reigns the Gold Coins were worse than standard in the following 
 proportions. 
 
 Charles II. 26 grs. Troy worse than standard, 9s. 10 T \<2. per cent. 
 
 James II. 30 11s. 4 T \^. per cent. 
 
 William 13 4s. 1 1 T yZ. per cent. 
 
 Anne 7 2s. 7 T 9 T d. per cent. 
 
 George I. 6 2.$-. 3 ^\d. per cent. 
 
 George IT. 3 f Is. 1 T 7 T ^- per cent. 
 
 George III. standard. 
 
204: OF ASSAYING, AND THE DEFICIENCY 
 
 CHAP. 22. any difference between the Gold Coins of former reigns, 
 and those made during the reign of Your Majesty, 
 though these last issue from Your Majesty's Mint in 
 so superior a degree of accuracy, both with respect to 
 weight and fineness. 
 
 The alloy put into these Gold Coins is in its quality 
 as proper as can be devised : from the great quantity of 
 Gold Coins, which have been returned through deficiency 
 in weight to Your Majesty's Mint, since the general Re- 
 coinage, a suspicion had been entertained, that the nature 
 of the alloy put into these Coins rendered them too hard 
 and brittle, and subject to abrasion and speedy diminu- 
 tion, by friction. To ascertain this fact, Mr. Hatchett, 
 an excellent chemist, was employed, under the inspection 
 of that very eminent philosopher, Mr. Henry Cavendish, 
 to make experiments, for the purpose of shewing how far 
 this evil was produced by the nature of the alloy put into 
 our Gold Coins ; and whether it could not be remedied 
 by making an alteration in the alloy. The Gentlemen 
 before mentioned employed a considerable time in making 
 experiments 011 the quality of different metals. They 
 exerted great ability as well as industry to ascertain 
 the point referred to them ; and in a Report,* made by 
 Mr. Hatchett, it appears to be the result of their opinion, 
 that Gold Coins are not so likely to wear by abrasion 
 
 * Sec the substance of this very curious and elaborate Report, in 
 the Transactions of the Royal Society for the year 1803. This Report 
 is so much esteemed in France, that I understand it has been translated, 
 by order of the French Government, into the French language, by the 
 Comptroller of the Mint at Paris, with Notes by Guyton de Morveau. 
 
FROM STANDARD IX DIFFERENT RKIGNS. 20o 
 
 and friction, if they are alloyed with Silver and Copper CHAP. 22. 
 mixed ; but that the difference between them and Coins 
 alloyed with Copper alone, provided the Copper be very 
 pure, is so little, that there is no sufficient reason for 
 altering the present alloy in our Gold Coins, consisting 
 alone of pure Copper. 
 
 With respect to the weight of the Gold Coins, as 
 issued from Your Majesty's Mint, I have shewn how 
 small the error of late has been, and that they are made 
 by the Officers of Your Majesty's Mint as correct and 
 perfect as can be expected. 
 
 The fashion or form of these Coins is certainly 
 subject to some defect, which exposes them too much 
 to be worn or diminished in common use by abrasion 
 or friction. The nature of the milling or graining on 
 the edges is supposed to be too rough, and other parts 
 of the Coin are thought to have too many sharp points. 
 In what manner and to what degree this defect can be 
 removed, can best be determined by the Officers of Your 
 Majesty's Treasury, after having consulted the Officers 
 of Your Mint, and examined the most eminent artists, 
 as well as the Directors of the Bank of England : I shall 
 say therefore nothing further upon it. I shall also say 
 nothing on the beauty of the Coins, which I think 
 should rather be referred to Your Majesty's judgment. 
 
206 
 
 CHAPTER XXIII. 
 
 Of the Silver Coins, and the deficiency of those in 
 circulation at different periods. 
 
 I PROCEED now to treat of the Silver Coins, which 
 are the second in rank, and next in value to those made 
 of Gold. The quantity of legal Silver Coins now in 
 currency is certainly far too small for the purposes of 
 commerce, particularly of the retail trade, and for the 
 convenience of Your people. Their deficiency in weight 
 is at present even greater than before the general Re- 
 coinage of the Silver Coins in the reign of William III. 
 It is impossible to form any estimate or reasonable 
 conjecture of the nominal value of the legal Silver 
 Coins now in circulation ; I mean of such as have been 
 coined in the Mints of this kingdom : it is possible 
 however to ascertain the value which they cannot 
 exceed. The nominal value of the Silver Coins which 
 were coined at the general Recoinage in the reign of 
 William III. and those which have been occasionally 
 coined since that period, amounts to 8,076,0927. Of these 
 the Crown Pieces, amounting in value to 1 3 553,047/., 
 have, as I have already observed, wholly disappeared ; 
 
OF THE SILVER COINS, ETC. 207 : 
 
 their value therefore must be deducted from the total 
 above mentioned.* 
 
 I think I may fairly estimate, that one moiety of the 
 Half Crown Pieces have in like manner disappeared; 
 half of their value, being 1,164,7857., must therefore be 
 deducted, which leaves 1,164,7857., being the value of 
 the remainder. 
 
 What may be the nominal value of the legal Shillings 
 and Sixpences, and Silver Coins of smaller denominations 
 remaining in circulation, it would be idle to attempt to 
 form a conjecture ; their number has certainly very much 
 diminished. I will venture to deduct one third, and the 
 nominal value of those that remain will then be 2,795,6507. 
 
 The total value of all the legal Silver Coins now in 
 circulation cannot, therefore, according to this estimate, 
 exceed 3,960,4357. : it is probably very much less. 
 
 There are certainly many counterfeits in circulation, 
 but fewer I believe than is generally imagined. It is not 
 very difficult to discover them ; and the Officers of the 
 Mint can readily distinguish them from the legal Silver 
 Coins, by the quality of the metal. 
 
 The present deficiency in weight of the legal Silver 
 Coins, according to their several denominations, has been 
 ascertained by the two following experiments ; the one 
 made in December 1787 ; the other, in July 1798, by 
 the Officers of Your Majesty's Mint. 
 
 * For some time after the general Recoinage, in the reign of 
 William III. there were many Crowns and Half Crowns of Charles II. 
 and James II. in circulation ; but these have wholly disappeared, and 
 cannot now be found, except in the cabinets of the curious. 
 
208 
 
 OF THE SILVER COINS, AXD 
 
 QHAP. : 
 
 In 1787 it was found that 
 
 12 T 8 3- Crowns 
 27 Half Crowns 
 78 T V Shillings 
 194^ Sixpences 
 
 were requisite 
 to make up a 
 Pound Troy, 
 instead of 
 
 In 1798 it was found that 
 J Crowns ] were requisite 
 
 27 |-J- Half Crowns I to make up a 
 82 9 o Shillings 'Pound Troy, 
 200 J Sixpences j instead of 
 
 1 2 -j^ Crowns 
 24^- Half Crowns 
 62 Shillings 
 124 Sixpences 
 
 12 i Crowns 
 
 As 
 
 issued 
 from the 
 Mint. 
 
 As 
 
 24 f J Half Crowns issued 
 
 62 Shillings 
 124 Sixpences 
 
 from the 
 Mint. 
 
 And if we compare the deficiency in weight of these 
 several denominations of Silver Coins, according to the 
 last experiment, with what they ought to weigh by the 
 Mint indenture, the deficiency will amount in the 
 
 Crowns to 3i-J per cent. 
 
 Half Crowns 9^fih per cent. 
 
 Shillings 24^f|4 per cent. 
 
 Sixpences 38ffHJ4 P er cent - 
 
 It is singular, that these several Silver Coins, par-' 
 ticularly the Shillings and Sixpences, though in general 
 they retain no remains of any impression, or any rough 
 edges, which would make them subject to friction, appear 
 to have diminished by use in the short interval of eleven 
 years, according to the experiments above mentioned, in 
 the following proportions. 
 
 Crowns ^-- per cent. 
 , Half Crowns 1 ^f f- per cent. 
 Shillings 5^-Jf-g- per cent. 
 Sixpences 3-J-^jj-f- per cent. 
 
THEIR DEFICIENCY AT DIFFERENT PERIODS. 209 
 
 From this last observation it is fair to conclude, that CHAP. 23. 
 these Silver Coins have even continued to diminish in 
 weight since the last experiment made in 1798, and will 
 probably diminish in future : and yet, though so very 
 defective, they are still current at their nominal value, 
 and sometimes even a premium is given for them, as I 
 have already observed. 
 
 What I have said, in treating of the Gold Coins, of 
 the art of assaying, as practised at the Mint ; of the 
 quality of the alloy ; and of the correct weight, at which 
 they are issued from the Mint, applies equally to these 
 Silver Coins, so that I need not here repeat it.* 
 
 Permit me, however, in this place to observe, that the 
 new Silver Coins will surpass all the others in beauty ; 
 and will, in that view, be acceptable to Your Majesty's 
 people. They are not only made of a metal which takes 
 a fair and pleasing impression, but, being of a greater 
 number of denominations than those of any other metal, 
 their various sizes afford a larger scope to the engravers 
 and artists, for the exercise of their respective talents in 
 design and execution. 
 
 From the present deficiency of the legal Silver Coins, 
 and from the nominal value of those supposed to remain 
 in circulation, an estimate may be formed of the charge, 
 which would be incurred in making any compensation to 
 the holders of them, for such deficiency, in case they 
 should be called in or cried down. 
 
 It would ill become me to offer to Your Majesty any 
 advice whether, in this case, any compensation should 
 be made, or what should be the amount of the compen- 
 
 p 
 
210 OF THE SILVER COINS, ETC. 
 
 CHAP. 23. sation. Your Majesty will of course decide on this 
 question by the advice of Your Parliament. It will be 
 sufficient if I lay before Your Majesty such precedents 
 as I have collected, in order to enable Your Majesty 
 and the Two Houses of Parliament to exercise a proper 
 judgment on this point. 
 
211 
 
 CHAPTER XXIY. 
 
 An account of several ways of calling in deficient Coins. 
 
 I BELIEVE it will be found, that in foreign countries 
 no compensation was ever made for deficient Coins, that 
 have been driven out of circulation, or have been called 
 in to be recoined. At so late a period as the year 1749, 
 when the Government of Holland recoined all their 
 Ducats, and called them in for that purpose, they paid 
 no more for them than their value by weight. From the 
 history of this kingdom it appears, that when Henry V. see 9th Hen. v. 
 called in the deficient Gold Coins, in the 9th year of see. 3. 
 his reign, he received them by weight ; but, in order to 
 relieve his subjects from the loss they suffered on this 
 occasion, he gave up, for a certain time, the profits 
 arising from Seigneurage. When Queen Elizabeth 
 called in all the base and deficient Silver Coins, in the 
 second year of her reign, she received them by weight, 
 paying for the best of them very little more than they 
 were worth when melted down ; and for such of them 
 as were most debased, the exact value of the standard 
 Silver they contained ; telling her subjects, that in no 
 realm any Prince had done the same, or ought to do. 
 She also gave up the profits arising from Seigneurage. seeScobei, 
 The Parliament of England in 1647 called in the clipped 
 
 p 2 
 
212 AN ACCOUNT OF SEVERAL WAYS 
 
 CHAP. 24. Money, paying for it according to its weight,* at certain 
 rates : they allowed however the old Monies, which were 
 diminished only by wearing and wasting, to continue still 
 in circulation. Charles II. at the Restoration called in 
 all the Money coined during the Usurpation, receiving it 
 by weight : he gave up, I believe, half the profits arising 
 from Seigneurage : these profits were wholly taken away 
 by Act of Parliament five years afterwards, when certain 
 duties, called Coinage duties, were given him to defray 
 the charge of coining. At the general Recoinage of the 
 Silver Coins in the reign of William III. Mr. Locke was 
 of opinion, that the old Silver Coins should have been 
 received according to their intrinsic value by weight : 
 the House of Commons, however, contrary to the opinion 
 of Mr. Locke, consented to pay all the loss arising from 
 the defects of the Silver Coins, and ordered the receivers 
 of the public revenue to take the clipped Money in 
 payment, " though of a coarser alloy than standard, the 
 " same not evidently appearing to be Copper, or base 
 " metal, or washed with Silver only." We are informed, 
 " that this regulation operated as an encouragement to 
 " the further clipping of the Coins, and gave the clippers 
 " all the advantage they could desire, as they were now 
 fs sure of a market for their clipped Money, whatever the 
 " defect of it might be ; so that what had been hoarded, 
 " and hitherto escaped the shears, now underwent the 
 " same fate ; and the historians, who give an account 
 
 * The allowance tlie Parliament made, on this occasion, for the 
 clipped Money, appears to me to be extraordinary ; they allowed only 
 4$. Wd. per oz. Troy in the country ; and 4s. lid. in London. 
 
OF CALLING IN DEFICIENT COINS. 213 
 
 " of this transaction, think it no't improbable, that more CHAP. 24. 
 
 " was clipped under this general license than had been 
 
 " before." I have never been able to obtain an account 
 
 of the charge incurred for compensating the deficiency 
 
 of these Silver Coins. This compensation, as well as the 
 
 charges of the Mint for recoining these deficient Coins, 
 
 was enormous : * the nation was in a state of distress, 
 
 and even confusion, and the people wei;e ready to pay 
 
 any thing out of the public purse, in order to relieve 
 
 themselves from the difficulties to which their private 
 
 concerns were exposed. When the deficient Gold Coins 
 
 were called in, in the year 1774, to be recoined, their 
 
 deficiency was compensated to the holders, according to 
 
 a plan then settled, which will be found in the Books of 
 
 Your Majesty's Treasury. This plan was successfully 
 
 carried into execution without complaint or murmur; 
 
 and as it was better managed than that at the Recoinage 
 
 of the Silver Coins in the reign of King William, the 
 
 charge for compensating such deficiency, and for the 
 
 * As the Receivers of the public revenue and the Officers of the 
 Exchequer received these deficient Coins at their nominal value, in the 
 receipt of the taxes, a great part of the charge incurred on that account 
 shewed itself in deficiency of revenue, and the amount of it therefore 
 has never been ascertained. It appears by the Journals of the House 
 of Commons, that large sums were occasionally voted for the payment 
 of the charge incurred from the deficiency of the Coins, and the charge 
 of Recoinage : but I cannot find any account, which collects together 
 the whole of this charge, or distinguishes between the charges of 
 compensation and recoinage ; and I believe that no such account 
 exists : some assertions, or rather conjectures, will be found in printed 
 books en the extent of these charges ; but no official account, as far as 
 I am informed, was ever rendered of them. 
 
214: AN ACCOUNT OF 8EVEKAL WAYS 
 
 CHAP. 24. Recoinage, was much less, though very great : an 
 account of it will be found in the Journals of the House 
 of Commons, or in the Papers presented to that House. 
 When, in the year 1797, Your Majesty ordered new 
 Copper Coins to be issued, in consequence of an Address 
 of the House of Commons, no compensation was made 
 either for the legal, or, as they are called, Tower Half- 
 pence and Farthings, or for the Counterfeits that circu- 
 lated together with them ; and yet it was reasonable to 
 conclude, that they would be driven out of circulation, 
 and be rendered almost of no value ; and they were in 
 fact so driven out in some parts of the kingdom. I have 
 no doubt, that if that measure had been pursued with 
 celerity and vigour, all the Counterfeits at least would 
 have wholly disappeared: the people, and in particular 
 the poorest classes, who suffered most from this measure, 
 rejected the old Copper Coins, and bore the loss sustained 
 thereby without complaint or murmur. 
 
 It would be improper for me to suggest any plan for 
 crying down or calling in the deficient Silver Coins now 
 in currency, whether their deficiency is to be compensated 
 or not. It will be the duty of the Officers of Your 
 Majesty's Treasury to submit to Your Majesty their 
 advice, on the manner of carrying this part of the 
 business into execution ; and the plan, whatever it may 
 be, should not, for obvious reasons, be disclosed till the 
 moment of execution. I have already shewn on what 
 principles the new Silver Coins should be made, so that 
 they may be current at the same time with the Gold 
 Coins, and that there may be no longer a conflict between 
 
OF CALLING IN DEFICIENT COINS. 215 
 
 the Coins made of the two metals, and a traffic driven CHAP. 24. 
 in the exchange of one for the other ; an evil to which 
 the public was occasionally exposed for more than two 
 centuries. 
 
 I have also stated to what amount the Silver Coin 
 should be made legal tender. 
 
216 
 
 CHAPTER XXV. 
 
 Of Spanish Dollars now in circulation. 
 
 IN the course of the last year, Spanish Dollars to a 
 considerable amount were sent into circulation, with new 
 impressions struck upon the face and reverse of them. 
 They were issued, with the consent of Government, 
 by the Bank of England, who engaged to receive them 
 back at the rate or value at which they were sent into 
 circulation. This measure was adopted in conformity to 
 what had been practised with respect to Copper Tokens, 
 in the beginning of the 17th century. I have already 
 observed, that Queen Elizabeth would not suffer any 
 currency of this description to be issued ; and James I. 
 when he did issue them, would not suffer them to be 
 called Coins, but Tokens : many of these Copper Tokens 
 were sent into circulation in a subsequent period, by 
 individuals, particularly during the confusions that pre- 
 vailed in the course of the civil wars. The Dollars 
 issued in the course of last year are certainly not Coins, 
 though they have the impression of Your Majesty : for 
 they are not current under Your royal authority, and 
 no one is obliged to take them as legal tender in payment 
 of any debt. They are merely Silver Tokens. 
 
 The justification of this measure rests singly on the 
 absolute necessity there was for these Silver Tokens, to 
 
OF SPANISH DOLLARS NOW IN CIRCULATION. 217 
 
 pay the seamen of the Royal Navy, and the artificers 
 in the great docks of the kingdom, from the want of 
 Coins of the lower denominations, which are necessary 
 for that purpose : the blame, therefore, if any such is 
 to be imputed, falls not on those who permitted these 
 Dollars to be issued, but on those who neglected to 
 supply Your Majesty's subjects with a sufficient quantity 
 of legal Silver Coins, to be employed in those payments, 
 for which these Dollars now pass. But not only Your 
 Majesty's sailors and Your own artificers are in want of 
 legal Silver Coins ; the labourers in every part of the 
 country, and the manufacturers in the great and populous 
 towns of this kingdom, and all Your good people in 
 every part of it, particularly the inferior classes, suffer 
 equally from the want of them. On this occasion allow 
 me to submit to Your Majesty a moral consideration, 
 which will, I am persuaded, make a strong impression 
 on You : the lower ranks are occasionally led into 
 excesses from the want of a sufficient quantity of Coins 
 of the smaller denominations ; for when they receive 
 their weekly wages, they are frequently compelled by 
 their employers to attend for payment at ale-houses, and 
 places of that description, where Coins, or a low sort 
 of paper currency sometimes called Silver Notes, are 
 provided for that purpose ; and the poor are thereby too 
 frequently tempted to spend, in the purchase of liquors, 
 a part of what they have gained by their industry, which 
 ought to have been reserved for the sober maintenance of 
 themselves and families. 
 
218 
 
 CHAPTER XXVI. 
 
 Of the Copper Coins, and the relative expence of coining 
 Gold, Silver, and Copper. 
 
 I PROCEED in the last place to treat of the Copper 
 Coins, which are the lowest in rank and least in value. 
 
 It is more difficult to form any judgment of the value 
 of the Copper Coins now in circulation, than of those 
 made of Gold or Silver: in the year 1787, the Officers 
 of Your Majesty's Mint were of opinion, that the lawful 
 Copper Coins issued from the Mint, and remaining then 
 in circulation, were equal in weight to nearly 1500 tons, 
 and in nominal value to 322,000/. Sterling : no Copper 
 Coins have been issued, I believe, since that time, from 
 Your Majesty's Mint. Mr. Boulton coined, by Your 
 Majesty's order, 1815 tons of Copper into Twopenny 
 Pieces, Penny Pieces, Halfpence, and Farthings, amount- 
 ing in nominal value to 282,0757. 5s. 8^d.* The principle 
 adopted in making these Coins was, that the nominal 
 value of each Piece should be equal to the value of the 
 metal which it contained, and the price of the workman- 
 ship employed in making it: these new Coins therefore 
 
 * Twopenny Pieces 6,0192. 15s. Sd. 
 Penny Pieces 183,1 771. 1 8s. Gd. 
 Halfpence 88,'5067. 18*. 4d. 
 
 Farthings 4.3707. 13#. 2d. 
 
OF THE COFrEK COINS, ETC. 219 
 
 were of much more intrinsic value than any Coins of CHAP. as. 
 that metal, which had been hitherto issued. The Lords 
 of the Committee on Coin were under two difficulties: 
 it was impossible, in their opinion, to make any compen- 
 sation for the great number of the different sorts of 
 Copper Coins, legal or counterfeit, then in circulation : 
 the Counterfeits were certainly of very little intrinsic 
 value, and frequently not made of Copper : yet the 
 Committee were apprehensive that the perfection of 
 these new Copper Coins would have the effect of driving 
 instantly the old Copper Coins of every description out 
 of circulation, and would produce a sudden deficiency of 
 Copper Coins, which Mr. Boulton, with all his art and 
 machinery, could not supply with sufficient expedition, 
 and that there might in consequence be a great confusion 
 among the lower ranks of people. To avoid this evil 
 the Lords determined to begin by coining Twopenny 
 and Penny Pieces, as they hoped thereby to contrive to 
 keep the old Halfpence and Farthings still in circulation, 
 till they could provide a sufficient quantity of Copper 
 Coins of the lower denominations, to replace those which 
 were still current: this measure had the effect of not 
 driving the old Halfpence and Farthings wholly out of 
 circulation at the moment they were issued: but Your 
 Majesty's subjects evidently shewed a disposition to get 
 rid of the old Copper Coins of most descriptions as fast 
 as possible, and called aloud, particularly from the 
 Northern parts of the kingdom, for a supply of Half- 
 pence and Farthings made on the principle adopted by 
 the Lords of the Committee. The Committee for Coin 
 
220 OF THE COPPER COINS, AND 
 
 CHAP. 26. proceeded to gratify them, by the advice they offered 
 to Your Majesty ; and You were pleased to order that 
 Halfpence and Farthings on the same principle should 
 be coined as fast as possible : but the inferior Officers of 
 the Mint contrived to raise objections, which suspended 
 the execution of this measure ; and about that time the 
 declining state of my own health prevented me from 
 giving further attention to this business. It is singular, 
 that few of the new Copper Coins ever made their 
 appearance, either in London or its neighbourhood, 
 though to my knowledge great numbers were sent 
 thither: I am told, that the people were desirous of 
 retaining them in preference to the old Copper Coins, 
 and even in preference to the defective Silver Coins ; 
 and that they have them still in their possession : there 
 cannot be a stronger proof of the estimation in which 
 these Copper Coins were held by the people, even in 
 those parts where they were not found in common circu- 
 lation. I have heard also that persons, who from the 
 nature of their trade and occupation were in possession 
 of great quantities of the old Copper Coins, discouraged, 
 from interested motives, the circulation of these new 
 ones ; and when a suspension was put to any further 
 issue, in the manner before stated, they were enabled 
 to effect their purposes. 
 
 The Lords of the Committee were subject to another 
 difficulty. Though they had taken the price of the 
 Copper of which these Coins were made, on what they 
 thought a fair and sufficient average, the price of this 
 metal rose upon them beyond their expectation, so that 
 
THE RELATIVE EXrENCE OF COINING, ETC. 221 
 
 it became even higher than the price at which they CHAP. 20. 
 had estimated it in the Copper Coins. This difficulty, 
 however, would have been easily removed ; the price of 
 the metal in Copper Coins is of less importance than in 
 those made of Silver, and much less than in those made 
 of Gold : it is I believe a certain maxim, that all articles, 
 which come into general use and demand, and for which 
 the demand is occasionally very uncertain, vary in their 
 price more than any others, especially where the quantity 
 produced does not depend singly on the industry or will 
 of man, as is the case of all metals : thus Copper varies 
 in its price more than Silver, and Silver varies in its 
 price more than Gold, as has been shewn already. The 
 value of the Copper put into these Coins is also a 
 consideration of less importance in another view ; the 
 price of the workmanship in making Copper Coins, 
 compared with the value of the metal, is at least ten 
 times more than in making Silver Coins, and forty-three 
 times more than in making Gold Coins. On all these 
 accounts the value of the metal in making these Copper 
 Coins should be estimated on a much larger and more 
 liberal average than in making the Silver Coins, where the 
 average should be taken with as much care and accuracy 
 as possible : the Lords of the Committee erred therefore 
 in this respect, but it was an error easy to be corrected. 
 
 I should not omit to observe, that it was the wish 
 of the Lords of the Committee to have made the new 
 Copper Coins 'serve the purposes of weights, as this 
 circumstance would have been of great convenience to 
 all Your Majesty's subjects concerned in the retail trade. 
 
222 OF THE COPPER COINS, AXD- 
 
 CHAP.26. They so far attained their object, that each Twopenny 
 Piece, made and issued in consequence of their advice, 
 was of the weight of two ounces Avoirdupoise, and each 
 Penny Piece of the weight of one ounce Avoirdupoise. 
 But from the rise in the price of Copper, as before stated, 
 it was found impossible to conform to this principle in the 
 Halfpence and Farthings, which were afterwards issued. 
 
 It is certain, that the quantity of counterfeit Copper 
 Coins greatly exceeds the quantity of legal Copper Coins : 
 the Officers of the Mint were of opinion, in the year 
 1787, that even then they exceeded the legal Copper 
 Coins. Their number has certainly increased ever since ; 
 the quantity of these counterfeit Copper Coins is in truth 
 beyond calculation ; and yet I am told that many prin- 
 cipal manufacturers are obliged to make Coins or Tokens 
 of this description, to enable them to pay their workmen, 
 and for the convenience of the poor employed by them : 
 so great is the demand for good Copper Coins in almost 
 every part of the kingdom. 
 
 Though I was originally of opinion, for the reason 
 already stated, that it was advisable to begin by making 
 Copper Coins of a large denomination, yet I have always 
 thought, and still think, that it is of the greatest service 
 to the indigent classes of Your Majesty's subjects, that 
 Copper Coins of the lowest denominations should be 
 made and issued in great plenty. In all the Eastern 
 parts of the world, particularly in China,* where labour 
 
 * It is extraordinary, that though great quantities of Silver are 
 annually sent from this country and other parts of Europe to China, 
 and other great quantities are annually sent from Acapulco to China 
 
THE RELATIVE EXPENCE OF COINING, ETC. 223 
 
 is paid for at a low rate, and the necessaries of life are CHA f 2G - 
 very cheap, the Coins are made of very low denomina- 
 tions : the price of labour and of provisions is certainly 
 the cause that these Coins are made of so little value ; 
 but I am not certain that the smallness of Coins does 
 not so far operate on the price of the necessaries of life, 
 as in some degree to reduce it: small Coins certainly 
 enable the poor man to purchase and pay for a smaller 
 quantity of any article, when he is not in want of a 
 greater ; they contribute also to his comfort and con- 
 venience, by enabling him to divide his little property 
 into minute portions ; and thereby promote economy 
 where it was most wanted. 
 
 I have now concluded all I had to offer on the 
 principles of Coinage, and on the application of these 
 principles to the Coins of different metals, which circulate 
 in Your Majesty's kingdom. I may have been diffuse, 
 and consequently tedious ; but in treating of a subject 
 so little understood I was desirous to omit no fact or 
 argument, which might enable Your Majesty to judge 
 of the plan proposed by me ; and which might enable 
 others to make corrections in this plan ; or to propose 
 a better, more deserving of Your Majesty's approbation, 
 and more acceptable to Your people. With the same 
 view, I have endeavoured to place the subject in a 
 
 and its neighbourhood, the price of Silver should be so high in that 
 kingdom, and their Coins continue of such small denominations. It 
 is in my judgment a certain proof of what has been asserted by all 
 writers, and particularly by later ones, of the very great population 
 of that kingdom. 
 
224 OF THE COPPER COINS, ETC. 
 
 CHAP. 26. variety of lights; in truth, in all the lights that have 
 occurred to me, and more perhaps than are necessary. 
 I shall be perfectly satisfied, if, in consequence of my 
 labours, Your subjects shall receive the relief of which 
 they have long been so much in want, and which they 
 have sufficiently shewn that they expect to obtain from 
 Your Majesty's love of Your people, and from the 
 attention of Your Government. There is indeed one 
 merit, which recommends the plan I have proposed ; 
 that it may easily be executed, and that it tends less 
 than any other to disturb what is now in existence, and 
 to which Your people have long been accustomed. Men 
 of science and talents must certainly be employed in the 
 conduct of a business of this nature : in the reign of 
 King "William III. Mr. Locke, Mr. Newton, afterwards 
 Sir Isaac Newton, and Dr. Halley, persons of great 
 eminence, were on this account brought into the service 
 of the public. I allow . that it is natural to hesitate, 
 upon the first view of a business, which is in its various 
 parts so complicated, and which concerns the interests of 
 every man: but I am persuaded, that, with the aid of 
 men of adequate talents, it will be found more difficult 
 in prospect than in execution. 
 
CHAPTEK XXYII. 
 
 Considerations on the state of the Mint. 
 
 BEFORE I conclude what relates to the principles of 
 Coinage, and the fabrication of Coins, it is proper that 
 I should offer some considerations on the state of Your 
 Majesty's Mint, which is as it were the manufactory 
 where Coins are made ; for no new Coinage on a large 
 scale can be undertaken, till some alteration and reform 
 has been made in it. The subsisting regulations for 
 receiving Bullion of any description into Your Majesty's 
 Mint; for transferring it from one department to another ; 
 for preserving it in security while it continues in the 
 custody of the different Officers ; and lastly, for returning 
 it in the shape of Coins to those to whom it belongs, 
 are wise, and require no alteration : these regulations 
 are very ancient, and probably of Norman origin. Some 
 old statutes made in the reigns of Edward III.* and 
 Henry V. refer to these regulations; but they do not 
 appear to have introduced any new ones ; they contain 
 only strict injunctions for carrying into execution such 
 as had long subsisted. 
 
 I have already observed, that the art cf assaying, 
 as practised by Mr. Alchorne, and I believe by his 
 
 * See 25th Edw. III. Stat. 5. ch. 10. and also 9th Henry V. Stat. 3. 
 Ch. 3. sec. f>. 
 
226 CONSIDERATIONS ON 
 
 CHAP. 27. successors, at Your Majesty's Mint, is in a state of 
 perfection ; probably more so than in most of the foreign 
 Mints ; that the nature of the alloy put into the Coins 
 is such, that, all circumstances considered, it ought not 
 to be changed; and that the several denominations of 
 Coins, of whatever metal they are made, are issued 
 from Your Majesty's Mint of due weight ; even more 
 correctly than the present Mint indenture requires. 
 What I have thus said of the security of the precious 
 metals, while they continue under the custody of Your 
 Majesty's Officers; and of the great accuracy observed 
 in converting them into Coins, is certainly no slight 
 commendation : but the Mint is defective in other 
 respects; I mean in the lower departments, that is, in 
 the operative or mechanical parts : it is in want of that 
 new and improved machinery, which has of late years 
 been invented, and from which every branch of British 
 manufactures has profited in so great a degree. Coins 
 were originally struck with a hammer only : in the 
 reigns of Queen Elizabeth and Charles I. Coins were 
 occasionally made by what is now called the Mill and 
 Screw ; but this instrument was never introduced into 
 constant practice at the English Mint, till the year 1662, 
 when letters and grainings were first placed on the edges 
 of the Coins. From that time to the present this mode 
 of making Coins has continued to be practised in Your 
 Majesty's Mint; but the new machinery now employed 
 in the manufactory of every sort of metal, in which the 
 mechanics of this country far surpass those of any other, 
 has not in general been admitted into Your Majesty's 
 
THE STATE OF THE MINT. 227 
 
 Mint. It is an acknowledged principle, that machines, .CHAP. 
 which act with a given force, can work with more truth 
 and accuracy than the arm of man, the force of which 
 necessarily varies occasionally, from several causes : 
 another practice has been invented ; that of striking 
 Coins in a steel collar, so as to make them perfectly 
 round, and all precisely of the same diameter ; an 
 improvement, which certainly contributes at least to the 
 beauty of the Coin : new modes of putting what is 
 called the graining on the edges of Coins have also 
 been invented ; which at the same time that they protect 
 the Coins from being filed, equally with the present 
 mode, do not occasion those rough points or edges, 
 which expose them to wear by abrasion or friction. 
 For these, and many other valuable inventions, the 
 public are indebted to the ingenuity of Mr. Boulton, 
 of Soho, near Birmingham. It is singular, that though 
 the manufacturers of England have greatly profited by 
 these inventions, the Officers of Your Majesty's Mint 
 have never, or at least not sufficiently, availed them- 
 selves of them : the Mints of foreign countries are in 
 
 O 
 
 search of them ; and their governments in more than 
 one instance have employed Mr. Boulton, in erecting 
 Mints on his new principles ; and Parliament has 
 authorized the same. One Government (I need not 
 name it) has, as I have learned from good authority, 
 sent persons at different times, under pretence of treat- 
 ing with Mr. Boulton, in the course of his business, to 
 obtain by artifice the knowledge of his inventions, for 
 the benefit of the countries under its sway. 
 
 Q2 
 
228 CONSIDERATIONS ON 
 
 CHAP. 27. B u t it is not only in the fashion and beauty of the 
 
 Coins, that Your Majesty's Mint would profit by adopt- 
 ing these new inventions ; there are other considerations, 
 which strongly recommend their introduction* into Your 
 Majesty's Mint: the Coins of the realm will thereby be 
 made with much more expedition, and with less charge 
 to the public. By an account which I have seen, 
 Mr. Boulton can coin at least ten times as many pieces, 
 in a given time, as can be coined at the Mint by the 
 method now practised; and though, as I have already 
 observed, the security of the precious metals, while in 
 the custody of the Officers of the Mint, is at present 
 very great, it will certainly be increased when fewer 
 persons are employed in the operation. If a new Silver 
 Coinage should be undertaken, expedition f is certainly 
 of great importance ; and I could wish that the whole 
 might be performed at one Mint in the Tower, rather 
 than at several Mints in different parts of the kingdom, 
 as practised in the reign of King William, and at other 
 preceding periods : it is certainly more easy to find 
 
 * In introducing this new machinery, eminent engineers and artists 
 should be consulted ; so as to be very careful not to lose in accuracy 
 and beauty what may be gained in expedition and cheapness. 
 
 f By an account I have seen, it will be easy to coin 60,000,000 of 
 Shillings, or 3,000,0007. Sterling in a year, with the aid of the improved 
 machinery, or even double, if the nature of the business should require 
 it. According to the estimate I have made, it will not be proper to 
 begin to replace the present defective Silver Coins by new and perfect 
 Silver Coins, unless a quantity, equal in value to 3,000,0002. Sterling, 
 can be at once issued, for the use of Great Britain, and 1, 000,0007. for 
 Ireland. For when Coins, particularly such as are beautiful, are first 
 sent into circulation, the people are very much disposed to hoard them. 
 
THE STATE OF THE MINT. 229 
 
 artists of proper talents and abilities, sufficient in number CHAP. 
 to occupy the respective departments in one Mint, than 
 in many. 
 
 The charges of Your Majesty's Mint ought certainly 
 to be reduced : the accounts I have already stated, 
 though little else than Gold has for many years been 
 coined, sufficiently enforce the propriety of some reduc- 
 tion. This charge may easily be diminished, if the new 
 machinery is employed : in truth, a new Mint, indenture, 
 in which all these charges are specified and ascertained, 
 will be absolutely necessary. I have no doubt, that on 
 this occasion Your Majesty will treat the present Officers 
 of Your Mint with the justice and liberality to which 
 they are entitled. Considerable fortunes have occasion- 
 ally been made by the Masters of Your Majesty's Mint 
 in former times : one great man, who was an honour not 
 only to his country, but to human nature ; for the powers 
 of the human understanding were never exerted by any 
 one with so much energy and perspicuity, or carried to 
 such an amazing extent, on subjects that almost surpass 
 human comprehension this great man being for many 
 years at the head of the Mint, derived an ample fortune 
 from this source, to which he was fully entitled, By 
 representations and reports he frequently apprised the 
 Officers of Your Majesty's Treasury of defects, which 
 he observed in the Coins, and of frauds committed by 
 introducing foreign Coins into circulation at improper 
 valuations. I say nothing either of any of his prede- 
 cessors, or of those who have succeeded him : it is not 
 indeed necessary; for Your Majesty, by a wise regulation 
 
230 CONSIDERATIONS OX THE STATE OF THE MINT. 
 
 CHAP. 2;. established in 1799,, has prevented any future excess in 
 the profits arising from the office of Master of Your 
 Mint, by converting these profits into a fixed salary, 
 not more than an adequate reward for the discharge of 
 the duties of this office, if properly executed. The 
 profits of the inferior Officers of Your Majesty's Mint are 
 a proper subject of consideration for the Commissioners 
 of Your Majesty's Treasury, who, as well as Parliament, 
 have a right to call for such accounts as may afford them 
 sufficient information. I have in my possession some 
 papers and accounts, derived from a good source, which 
 I shall be ready to furnish, if it shall be thought 
 necessary : the very mode of paying these inferior 
 Officers is not, in my judgment, for persons of that 
 description, in all respects proper. They sometimes 
 gain extravagant profits; at other times they have no 
 employment, and do not derive from their business 
 adequate means of subsistence. From the nature of 
 the business they have not constant employment, nor 
 can they command it, as in other occupations. Such 
 a situation tends to introduce habits of occasional 
 idleness, and may ultimately lead to discontent or dis- 
 sipation. The Mint of every country should be a sort 
 of College composed of men of science in the superior 
 departments ; and in the inferior, of eminent artists and 
 artisans in their respective branches of business. 
 
231 
 
 CHAPTEE XXVIII. 
 
 Of the necessity of regulations to prevent the diminution 
 of the weight of Coins, and of the ancient office of 
 King's Exchanger. 
 
 I AM now arrived at the last point, that has imme- 
 diate reference to the Coins of the realm, of which I 
 mean to treat. I have said, in an early part of this 
 Letter, that if Your Majesty should be pleased to 
 approve of the principles of Coinage therein proposed, 
 and shall order Your Coins to be made in conformity 
 thereto, it will be the duty of Your Majesty's Servants 
 to recommend to You such regulations as shall remedy, 
 as far as possible, the fourth and last imperfection, to 
 which Coins are exposed ; that is, the evils resulting 
 from the wear or diminution of Coins made of either of 
 the precious metals, by abrasion or friction, and some- 
 times by other causes. These evils affect the Gold 
 Coins in a greater degree than those made of Silver, 
 because a grain of Gold is above fifteen times the value 
 of a grain of Silver : a smaller defect therefore in these 
 Gold Coins is of more importance than in those made of 
 Silver ; and any fraud in this respect can be practised 
 with more facility and profit. 
 
 In proof of this observation, I will lay before Your 
 Majesty two cases, which I have taken from a Report of 
 
232 THE NECESSITY OF REGULATIONS TO PREVENT 
 
 CHAP. 28. Si r Ig aac Newton in 1717. In the last year of the reign 
 of King William, many Louis d'Ors of France, each of 
 which, compared with our Coins, was then worth but 
 17^. Of 6?., were brought into England, and were current 
 here for 17 s. Gd. Sir Isaac Newton, then Master of the 
 Mint, represented this circumstance to the Lords of the 
 Treasury, and a Proclamation issued, ordering that these 
 Louis d'Ors should be current only at 17s.; and there- 
 upon they were immediately brought to the Mint as 
 Bullion ; and no less a sum than 1,400,,000/, was coined 
 out of the Bullion they produced. In this case the 
 advantage of 5%d. per Louis d'Or brought so great a 
 number of them into the kingdom, and the loss of \d. 
 per Louis d'Or at most drove them out of circulation. 
 At another time, Moidores passed in the Western parts 
 of England for 28s., and the country was full of them : 
 the Officers of the Mint represented to the Lords of the 
 Treasury, that these Moidores were intrinsically worth 
 only 27s. Id. ; and their Lordships ordered that the 
 public receivers should take them only for 27s. 6d. The 
 gentlemen of the country immediately complained, that 
 these Moidores had all disappeared ; so that a profit of 
 $d. per Moidore brought them into the kingdom, and 
 a loss of !</. per Moidore sent them all out again. 
 From these two cases it is evident, that they who traffic 
 in Coins, and who are concerned either in remitting 
 Money, or in melting the Coins, will trade on so very 
 small a profit, that it is very difficult to prevent the evils 
 arising from this sort of traffic entirely ; all that can be 
 done is to diminish the temptation as much as possible. 
 
PIMINUTION OF THE WEIGHT OF COINS, ETC.. 233 
 
 In a former part of this Letter I stated, that in very 
 ancient times Coins passed by weight ; and that when 
 they became deficient, whatever the cause might be, a 
 compensation was made for such defect, in two different 
 ways ; the one called Compensatio ad Pensum,, the other 
 Compensatio ad Scalam : these two modes of making 
 compensations I need not again describe : they continued 
 in practice nearly as long as the Pound in weight and 
 the Pound in tale were the same, and as long as Coins 
 passed according to the weight or value of the Silver 
 which their names implied. It has already been stated, 
 that Edward I. in the 28th year of his reign, first 
 debased our Silver Coins. I suppose, that for some 
 time before this debasement the Silver Coins, which 
 were then current, had become very deficient in weight ; 
 for I find in the Statute De Moneta, it was ordained, stat. de Moneta 
 
 . Magnum, 20th 
 
 (( that he who receives or pays Money, shall receive and Edw. i. stat. 4. 
 
 " pay the same by weight; and that the Viewer or 
 
 " Warden of the Mint shall weigh the same ; and in 
 
 " case it be new Money, and the Pound weighs not 
 
 " twenty Shillings ; and in case of Money that is much 
 
 66 used, if the Pound wants Sixpence, it shall be re- 
 
 " delivered to him who brought the same ; but if it shall 
 
 " want more, it shall be done as of the rest ;" that is, 
 
 recoined. In this Statute a difference is first made 
 
 between old and new Coins, and the old Coins are 
 
 allowed to pass, though diminished by reasonable wear, 
 
 provided this diminution does not exceed Sixpence, or 
 
 the fortieth part of the Pound in tale, which was then 
 
 the same as a Pound in weight: at that time very few 
 
234 THE NECESSITY OF REGULATIONS TO PREVENT 
 
 CHAP. 28. G id Coins had been made at the English Mint, and 
 consequently there were very few in circulation: this 
 Statute, therefore, evidently relates only to the Silver 
 Coins. 
 
 In the 5th year of the reign of Richard II. com- 
 plaint was made by the Officers of the Mint, that Gold 
 as well as Silver Money was clipped and exported ; and 
 these Officers being called before the Parliament, and 
 asked their advice, answered severally, that there was 
 no other remedy, but that all Money should be of one 
 weight, and that such as is not of due weight be 
 bought according to its value, and that Gold should 
 see Roiis of pass only by weight. I do not find that any such order 
 
 Parliament, 5th 
 
 was then given. 
 
 Several years afterwards, in the 9th Henry V. a 
 Statute was passed, which takes no notice of the Silver 
 Coins, but establishes the following rule with respect 
 to the Gold Coins ; " that none of the King's liege 
 (l people shall receive any Money of English Gold in 
 (S payment, but by the King's weight thereupon or- 
 " dained ;" and having observed, that many of the Gold 
 Coins at that time current were not of one weight or 
 good allay, it orders them to be recoined. Before this 
 time the Silver Coins had been frequently debased, and 
 the Pound in tale differed considerably from the Pound 
 in weight. By the omission therefore of any mention 
 of the Silver Coins in this Statute it may be inferred, 
 that the practice of weighing Silver Coins began at that 
 time to be discontinued. 
 
 Xo further regulation was made with respect to the 
 
DIMINUTION OF THE WEIGHT OF COINS, ETC. 235 
 
 weighing of any of the Coins of the realm, till the 19th CHAT. 23. 
 of Henry VII. In a Statute of that year it is ordained, i9thHeu.vii. 
 
 cap. 5. 
 
 " that the Gold Coin, if whole and of weight, should be 
 f( current : but that all manner of Groats, Half Groats, 
 " Pence of 2d., being Silver, as well English Coin as 
 " Coin of other lands, clipped, minished, or otherwise 
 1 ' impaired, except reasonable wearing , shall not go, nor 
 (< be in any wise current for payment within this realm, 
 t( but utterly to be refused and forsaken in payment 
 " from henceforth." In this Statute, the undefined term 
 of reasonable wearing appears to have been first intro- 
 duced into the laws of this kingdom : and this regulation 
 of reasonable wearing extended only to Silver Coins ; 
 and even of these only to the Groats, Half Groats, and 
 Twopenny Pieces, and not to any Silver Coins of a 
 lower denomination: the Silver Pence were to be current 
 without any manner of refusal or contradiction, provided 
 they were Silver, and had the print of the King's Coin, 
 except only certain Pence having the print of a spear or 
 mullet, which were to pass only for a Halfpenny. By 
 the same Statute, " the Mayor, Sheriff, Bailiff, Constable, 
 " or other chief Officer or Governor of any town or place 
 " where payment shall be refused, contrary to the rules 
 " established in this Statute, shall enforce such payment:" 
 so that these Magistrates became the judges of what 
 was reasonable wearing ; and it results from thence, 
 that the true standard weight of these Coins would 
 become as precarious and uncertain as the opinions of 
 these Magistrates. By the Statute before mentioned, 
 to prevent clipping it was ordered, "that every Piece 
 
236 THE NECESSITY OF REGULATIONS TO PREVENT 
 
 CHAP. 28, o f Silver Coin should have a circle about the outer 
 " part thereof, and every Piece of Gold Coin should 
 " have the whole scripture about every Piece of the 
 " said Coin, without lacking any part thereof, to the 
 " intent that his Majesty's subjects may hereafter have 
 <f perfect knowledge by the said circle or scripture when 
 " the Coins were clipped or impaired." It is probable, 
 that such confidence was placed in this new device or 
 manner of coining, that no evil was apprehended from 
 clipping in future. 
 
 On the 12th day of October, in the 29th year of the 
 reign of Queen Elizabeth, a proclamation was issued, 
 which first allowed Gold Coins to be current, though 
 deficient by reasonable wearing ; and there is a table 
 at the end of this proclamation, which states the 
 abatement, as it is there called, in the weight of every 
 Piece of Gold Coin respectively, below which they 
 should not be current, or legal tender ; in this pro- 
 clamation, what is meant by reasonable wear is first 
 defined, but only as it relates to the Gold Coins. In 
 the 10th year of James I. another proclamation, and 
 again in the 16th year of that Prince's reign a further 
 proclamation, and lastly, in the 3d year of Charles I. 
 still another proclamation was issued to the same effect : 
 in all which proclamations there were clauses regulating 
 the abatement or deficiency by wearing, below which 
 any Piece of Gold Coin was no longer to be current, or 
 legal tender. 
 
 In the 14th year of Charles II. that is the year 1662, 
 the use of the mill and screw was finally established in 
 
DIMINUTION OP THE WEIGHT OF COINS, ETC. 237 
 
 the Mint of this kingdom, as has been before stated, and 
 graining, by means of this instrument, was first placed 
 on the edges of all our Coins ; arid there is reason to 
 believe, that such confidence was then placed in this new 
 device, that no evil was thenceforth apprehended from 
 the clip'ping and wearing of our Coins.* 
 
 In the 9th and llth years of William III. a clause 
 was inserted in a Statute then passed, which authorized 
 the cutting any Silver Monies, which shall be diminished 
 otherwise than by reasonable wearing ; f but leaves the 
 point, in disputed cases, to be determined by the chief 
 magistrate of the city or district. It says nothing of the 
 weight of the Gold Coins. 
 
 Your Majesty, by Your royal proclamation of the 
 12th of April, in the 16th year of Your reign, ordered 
 the Gold Coins to be current, though diminished by 
 reasonable wearing ; and this, as well as another procla- 
 mation afterwards issued, defined what the abatement or 
 deficiency for reasonable wearing should be, that is to 
 say, the Guinea might be deficient 1.4382 of a grain, 
 that is, it must not weigh less than 5 dwts. 8 grs. ; the 
 Half Guinea might be deficient .7191 of a grain, that is, 
 
 * Mr. Lowndes, in his Treatise on Coins, asserts, that the practice 
 of clipping- had then never been exercised on the milled Money, and 
 he thought it never could, " because of its thickness and edging 1 , though 
 " no further provision should be made against the same by law." We 
 have learnt since Mr. Lowndes wrote this Treatise, that milled Money, 
 made either of Gold or Silver, can be diminished by some art or other, 
 with great facility and expedition. I have read somewhere, that these 
 arts began to be practised about the end of the reign of King William. 
 
 f This Statute does not define what is to be understood by reason- 
 able wearing. 
 
238 THE NECESSITY OF REGULATIONS TO PREVENT 
 
 CHAP. 28. it must not weigh less than 2 dwts. 16 grs. ; the Quarter 
 Guinea might be deficient .3595 of a grain, that is, it 
 must not weigh less than 1 dwt. 8 grs. And Statute 14. 
 of Your Majesty, ch. 70. sec. 7. enforces Your Majesty's 
 authority in issuing proclamations for regulating the 
 weight of Your Gold Coins, and appoints the Mayors, 
 Bailiffs, or chief Officers of corporate Towns, and 
 Your Majesty's Justices of the Peace in other parts 
 of the kingdom, to be judges in any disputable case, 
 whether Gold Coin of any denomination ought to pass in 
 payment, and directs them and all other persons to cut, 
 break, or deface every Piece of Gold Coin that shall be 
 tendered to them, which is so deficient in weight, that 
 according to Your Majesty's proclamation it should no 
 longer be current. 
 
 There were certainly in very ancient times great 
 difficulties in the exchange of Gold and Silver Coins, 
 arising, as I believe, not from any uncertainty in the 
 relative values of Gold and Silver, but from the small 
 number of Gold Coins then in circulation, and the 
 imperfect knowledge which the people had of them : 
 to remedy this evil, some of Your royal Predecessors 
 expressly established an office, and the person who held 
 it was called the King's Exchanger.* This Officer 
 appears not only to have exchanged the Coins of one 
 metal made at the royal Mint for those made of another; 
 but as the exportation of all the Coins of the realm was 
 
 * See Rymer's Foedera, torn. v. p. 416. De cursu Monetse auri 
 proclamando. torn. iv. p. 500. i; Quod marinarii et piscatores &c.'' 
 and torn. 18. p. 896. 3d Charles I. and Stat. 9 Edw. III. ch. 7. 
 
DIMINUTION OP THE WEIGHT OF COINS, ETC. 239 
 
 prohibited, he furnished persons going out of the king- CHAP. 28. 
 dom with foreign Coins, in exchange for English Coins ; 
 and he furnished merchants strangers coming into the 
 kingdom with the English Coins, in exchange for foreign 
 Coins : this Officer had his deputies in many of the 
 out-ports and principal cities of the kingdom; a con- 
 siderable profit was made by this practice, of which the 
 King is said to have had his share. When Gold Coins 
 were exchanged for Silver Coins, a Silver Penny of that 
 time was taken for the exchange of each Gold Noble, 
 being the largest Gold Coin then in currency, and in 
 like proportion for smaller Gold Coins : and when Silver 
 Coins were exchanged for Gold Coins,, a Silver Penny of 
 that time was given for each Noble received in exchange 
 for them, and in like proportion for smaller Coins ; and 
 the exchanger is said to have gained thereby l per 
 cent. When this Officer exchanged foreign Coins for 4 
 English, or English for foreign, the exchange was 
 regulated by a table, hung up in each of his offices. 
 The last person that was appointed to the office of 
 King's Exchanger, was the Earl of Holland, in the 3d 
 year of Charles I. as mentioned before. The appoint- 
 ment of a person of so high rank, who was at the same 
 time a favourite of his royal Master, is a decisive proof, 
 that the office was of considerable profit, as well as of 
 importance. I have thought it right to state the nature 
 of this office, as it existed in ancient times, that Your 
 Majesty might be fully informed of the practice which 
 formerly prevailed in this respect, but certainly not as an 
 example to be followed at present. 
 
240 THE NECESSITY OF REGULATIONS fO PRETEXT 
 
 CHAP. 28. I h a ve thus laid before Your Majesty all I have 
 
 been able to collect in the Statutes and Records of Your 
 kingdom, of the various regulations which have been 
 made from time to time, according to which the Coins of 
 the realm were to continue in currency, and be legal 
 tender. It is certain that Coins have always been 
 diminished either by wearing or fraudulent practices 1 
 there have at all times been laws in this kingdom for 
 punishing those who have been guilty of frauds com- 
 mitted in impairing or diminishing the Coins of the 
 realm : indeed, laws of this description have been made 
 in all ages, and all countries; for the crimes against 
 which they are directed have ever been considered as of 
 a very heinous nature : these laws contribute in some 
 degree to diminish the evil to which Coins are exposed; 
 but they are far from being sufficiently efficacious to 
 prevent it. From what I have stated, it appears I think 
 clearly, that nothing can prevent this evil, whether 
 arising from wearing or fraud, but the practice of 
 weighing Coins ; so that when they have lost a certain 
 proportion of their weight, from whatever cause it may 
 arise, they may no longer be legal tender : the rule 
 established with respect to the Gold Coins, in Your 
 royal proclamation of the 12th day of April, 1776, was 
 adopted after much consideration : I thought it, at the 
 time when it was made, the best that could be devised, 
 and I continue still to be of the same opinion : I know 
 of no objection to it, but that it brings a great charge on 
 the public in recoining these deficient Coins, when they 
 are returned to Your Majesty's Mint : the amount of 
 
DIMINUTION OF TttE WEIGHT OF COINS, ETC, 241 
 
 this charge for the last 27 years, that is, from the time CHAP. 28. 
 when the general Recoinage of the Gold Coin was 
 completed, will be seen in the accounts stated in a 
 preceding part of this Letter : this charge has certainly 
 been much greater than was expected. It may indeed 
 be said, that the people will always be negligent in 
 weighing Coins: to this objection it appears to me a 
 sufficient answer, that if they are negligent, it is their 
 own fault, and they ought to suffer for it : it is certain, 
 that in the year 1774, and for many years afterwards, 
 the practice of weighing Coins prevailed universally, and 
 without any complaint ; but of late years, I am afraid, 
 it has been very much discontinued : I understand, 
 however, that the Officers of the Bank of England 
 continue to discharge their duty, by weighing all the 
 Gold Coins that are brought to them; but that private 
 Bankers, and even those resident in London, are very 
 negligent in this respect : they are highly to blame ; for 
 they disobey Your Majesty's orders, enforced by an Act 
 of Parliament.* I fear also, that Government may in 
 
 * In the year 1774, when the public were alarmed at the great 
 deficiency of the Gold Coin, the following regulations were established ; 
 " that all Guineas coined in the last two years, that is, from the 1st 
 " of January, 1772, shall not want more than a grain and half in 
 " weight : that all Guineas coined in the twelve preceding years, that 
 " is, from the 12th of October, 1760, shall not want more than three 
 " grains ; and that all Guineas coined in the 98 preceding years, that 
 " is, from the year 1662, shall not want more than six grains." These 
 regulations, though much more complicated and difficult in execution 
 than that which is at present in force under the proclamation of the 
 12th day of April, 1776, were, at the time they were made, much 
 approved, and generally acted upon. 
 
 B 
 
242 THE NECESSITY OF REGULATIONS TO PREVENT 
 
 CHAP. 23. some measure have contributed to this neglect, by 
 omitting to republish Your Majesty's proclamation, 
 requiring the weighing of Coins, which should be done 
 from time to time, in order to call the attention of Your 
 Majesty's subjects to the regulations therein established : 
 the receivers of the public revenue should receive the 
 strongest injunctions never to neglect what is thus required 
 of them in the discharge of their duty. I remember, 
 that when this subject was under consideration, at the 
 time of the general Recoinage of the Gold Coin, another 
 method of weighing Coins was proposed, which I will 
 state merely for consideration. With a view of keeping 
 the new Gold Coins for a greater number of years in 
 currency, and of preventing their being returned too 
 frequently to the Mint, it was proposed, that the 
 deficient Gold Coins should continue in currency, and 
 be legal tender, on condition that Twopence should 
 be allowed for every grain so deficient; for Twopence 
 is nearly the value of a grain of Gold. By this 
 rule the Guineas might be weighed in numbers, and 
 even in bags, as is now practised in some foreign 
 countries with the Silver Coins, of which their currency 
 principally consists ; and, as I am informed, with Gold 
 Ducats in Holland : and it was suggested, that a table 
 should be constructed to shew what the weight ought 
 to be of any number of Gold Coins, from one to a 
 thousand, which might be carried in every man's pocket- 
 book. This method is certainly conformable to the 
 ancient practice of weighing Silver Coins, called Com- 
 pensatio ad Pensum, as described in a former part of 
 
DIMINUTION OF THE WEIGHT OF COINS, ETC. 243 
 
 this Letter; and it would certainly have the effect of CHAP. 28. 
 preventing, in a great degree, the exportation of heavy 
 Gold Coins, or the diminution of them by any art 
 whatsoever ; for no profit could then be derived from 
 these practices : it was thought necessary, however, by 
 those who approved this system of weighing, that there 
 should be a minimum in the weight of single Pieces, 
 below which they should not be allowed to be current, 
 but be defaced, and returned to the Mint. This method 
 would certainly save some part of the charge, which is 
 incurred by-recoining the deficient Gold Coins. 
 
 With respect to the new Silver Coins proposed to be 
 issued for the use of Your Majesty's subjects, it is not 
 necessary that so strict a rule should be observed as is 
 required with respect to the Gold Coins ; for the value of 
 Silver is at the least fifteen times less than that of Gold : 
 it would also be very difficult to enforce the practice of 
 weighing the Silver Coins, in the same degree as that of 
 weighing the Gold Coins ; for the Silver Coins are 
 chiefly employed in the retail trade, and by the inferior 
 and least informed classes of Your Majesty's subjects: 
 and yet even in these new Silver Coins there must be 
 a minimum, below which they should not be allowed to 
 be current ; for they will otherwise* in a short time be 
 reduced to the very defective state of our present Silver 
 currency. I am of opinion, that the larger Silver Coins 
 may be allowed to be current, though each of them should 
 be deficient in weight one pennyweight; and the smaller 
 Silver Coins might be continued in currency, though 
 each of them should be deficient half a pennyweight, or 
 
 K2 
 
244 THE NECESSITY OF REGULATIONS, ETC. 
 
 CHAP. 28. 12 grains. This deficiency in weight of the Silver Coins 
 will be nearly equal in value to the deficiency allowed in 
 the Gold Coins by Your Majesty's Proclamation of the 
 12th day of April, 1776. 
 
 I have now finished all I have to offer on the remedies 
 to be applied to the fourth and last imperfection to which 
 Coins are exposed; that is, the wearing or diminution of 
 Coins made of either of the precious metals by abrasion 
 or friction, and sometimes by other causes. 
 
CHAPTEK XXIX. 
 
 Of Paper currency, so far as Coins are affected by it. 
 
 I SHOULD stop here, but there is a subject of so 
 great importance, and so nearly connected with the Coins 
 of Your Majesty's realm, that I should not discharge my 
 duty, if I left it wholly unnoticed ; I mean what is now 
 called Paper currency ; which is carried to so great an 
 extent, that it is become highly inconvenient to Your 
 Majesty's subjects, and may prove in its consequences, 
 if no remedy is applied, dangerous to the credit of the 
 kingdom. It is certain, that the smaller Notes of the 
 Bank of England, and those issued by country Bankers, 
 have supplanted the Gold Coins, usurped their functions, 
 and driven a great part of them out of circulation: in 
 some parts of Great Britain, and especially in the 
 southern parts of Ireland, small Notes have been issued 
 to supply the place of Silver Coins, of which there is 
 certainly a great deficiency. 
 
 I will first observe, that if this practice is suffered 
 to continue, as at present, without any limitation, there 
 can be neither use nor advantage in converting Bullion 
 of either of the precious metals into Coins, except so far 
 as it may serve for the convenience of Your Majesty's 
 subjects in their most private concerns ; that is, no 
 greater quantity than many of the writers, who have 
 
246 OF PAPER CURRENCY, 
 
 CHAP. 29. of late speculated on this subject, will allow to continue 
 in currency : the Bullion, of which these Coins are 
 made, had better be exported in its natural state, like 
 any other unmanufactured commodity, for the use of 
 which the trade of the country has no occasion. The 
 Coins of Your Majesty, when carried into foreign 
 countries, will only be valued as Bullion ; and the 
 precious metals, whether exported in Coins or in 
 Bullion, will equally serve the purpose of a commercial 
 capital ; and it is useless and absurd to impose upon 
 the public the expence of making Coins, merely for 
 the purpose of sending them out of the kingdom. 
 
 It has been a common artifice, practised by those 
 who have written on Paper currency, to confound Paper 
 credit with Paper currency, and even the higher sorts of 
 Paper currency with the inferior sorts, such as imme- 
 diately interfere with the use of the Coins of the realm. 
 Paper credit is not only highly convenient and beneficial, 
 but is even absolutely necessary, in carrying on the 
 trade of a great commercial kingdom. Paper currency 
 is a very undefined term, as used by speculative writers.* 
 To find arguments in its support ; at least to the extent 
 to which it is at present carried, they have been obliged 
 to connect it with Paper credit ; so that the principles, 
 on which the use of Paper credit is truly founded, may 
 be brought in support of a great emission of Paper 
 
 * Paper currency, strictly speaking, consists only of Bills, or Notes 
 payable or convertible into Cash on demand by the person who issued 
 the same, at the will of the holder. See Eeport of the Secret Com- 
 mittee of the House of Lords in 1797. p. 240. 
 
SO FAR AS COINS AKE AFFECTED BY IT. 247 
 
 currency: I do not mean to say, that even the higher CHAP. 29. 
 orders of Paper currency may not be very convenient, in 
 carrying on many branches of the trade of a country so 
 wealthy as Great Britain : the sort of Paper currency to 
 which I principally object, is that which interferes with 
 the use of the Coins of the realm, more especially in the 
 payment of labourers and artificers, of the sailor and 
 soldier, and in the smaller branches of the retail trade of 
 the kingdom. 
 
 Many words are not necessary to point out the evils 
 to which Your Majesty's subjects are exposed, by the 
 practice which now prevails, of issuing the lower sort 
 of Paper currency by country Bankers ; the complaints 
 on this head are universal. The Notes of these country 
 Bankers have credit only within a certain extent or 
 district : if a traveller passes from one district to another, 
 he must provide himself with the Notes of other 
 Bankers, which have credit within the district on which 
 he is entering ; and an inconvenience to which travellers 
 have hitherto been subject, in passing from one small 
 independent state on the continent to another, is ex- 
 perienced by those who travel through Your Majesty's 
 dominions, in passing from one district to another; so 
 that the circulating medium of the different parts of 
 Your Majesty's dominions is various ; an evil which 
 I believe never existed before in one great united 
 kingdom. 
 
 But I have not hitherto described the principal evils 
 resulting from this Paper currency. It was natural to 
 suppose, that the precious metals, being no longer 
 
248 OF PAPER CURRENCY, 
 
 CHAP. 29. wanted in the same degree, for the purpose of being 
 converted into Coins, the price of them would fall in 
 the British market : on the contrary, for a considerable 
 time, Bullion, both of Gold and Silver, has not been 
 generally sold, but at a price above the rate at which 
 each of them is valued at Your Majesty's Mint. It 
 would not be proper for me at present to assign the 
 probable cause of this apparent contradiction : In such 
 a state of things, whatever may be the cause, no 
 Bullion, either of Gold or Silver, will be brought to 
 Your Majesty's Mint to be coined ; for it cannot be 
 coined without a loss to the person who brings it; and 
 if it were converted into Coins, the moment they were 
 issned they would be thrown into the melting pot, 
 and reconverted into Bullion, because it would be of 
 more value in the shape of Bullion than in that of 
 Coins. Till some remedy is applied to this evil, no 
 new system of Coinage can be adopted, with any 
 reasonable hope of success. 
 
 When the situation of the Bank of England was 
 under the consideration of the two Houses of Parlia- 
 ment, in the year 1797, it was my opinion, and that of 
 many others, that the extent to which Paper currency 
 had then been carried, was the first and principal, 
 though not the sole cause of the many difficulties, to 
 which that corporate Body was then, and had of late 
 years, from time to time, been exposed, in supplying the 
 Cash occasionally necessary for the commerce of the 
 kingdom ; for the Bank of England being at the head 
 of all circulation, and the great repository of unemployed 
 
SO FAR AS COINS ARE AFFECTED BiT IT. 249 
 
 Cash, it necessarily happens, that whenever a sudden 
 increased supply of Coins becomes indispensable, in 
 consequence of private failures or general discredit, by 
 which Notes of the before-mentioned description are 
 driven out of circulation, the Bank of England can 
 alone furnish the Coins which are required to make 
 up this deficiency ; and this corporate Body is thereby 
 rendered responsible, not only for the value of its own 
 Notes which it may issue, but, in a certain degree, for 
 such as may be issued by every private Banker in the 
 kingdom, let the substance, credit, or discretion of such 
 a Banker be what it may : and if the price of both the 
 precious metals in Bullion should then be above that at 
 which they are rated at the Mint, the Bank of England 
 have it not in their power to supply this deficiency, but 
 at a great loss to its proprietors ; and even if they 
 were to submit to this loss, and issue new Coins in 
 consequence, it would only be, as has been already 
 observed, in order that they might be thrown into the 
 melting pot and converted into Bullion ; so that till 
 some remedy is applied to this evil, the Bank of 
 England cannot, I think, return to the first principles 
 of its institution, under which it has so long and so 
 greatly flourished, and reassume, without any restriction, 
 its payments in Cash. 
 
 The state of the Paper currency of this country, in 
 its manner and extent taken together, is, I believe, 
 without example in the history of mankind. The trade 
 or profession of banking has been exercised in all 
 countries and in all ages : it existed in the republics 
 
250 OF PAPER CURRENCY, 
 
 CHAP. 29. of Greece,* and in ancient Rome : there were in all 
 these states men who received Money as a deposit, 
 repaid it upon the drafts of those who had entrusted 
 them with it, and derived their profits from having 
 this Money in their custody ; but it does not appear 
 that they ever issued Notes, such as are now called 
 Paper currency. 
 
 In the middle ages the traffic in Money was exer- 
 cised solely by the Jews ; for Christian men, as they 
 were then called, from a mistaken principle of religion, 
 would not engage in it : but the Jews, who interpreted 
 the law of Moses in a different sense from the Christians, 
 thought that they might lawfully carry it on with 
 strangers ; and to them every man was a stranger, who 
 was not a Jew. The wealth of these Jews, and the 
 extortions and cruelties to which they were exposed on 
 this account, contrary to the principles of humanity and 
 justice, are well known to every one. 
 
 When commerce was first revived in the republics of 
 Italy, Banking companies and private Bankers appeared 
 in numbers, and carried on the trade in money, and 
 particularly in bills of exchange, to a very great 
 extent. The origin and history of the Banks of 
 Venice f and Genoa J need not be here inserted: the 
 
 * For what relates to the Grecian republics see the Voyage du 
 Jeune Anacharsis, ch. 55. and the Grecian authors referred to therein. 
 For what relates to the Roman republic see the words Prsescribere and 
 Prsescriptio, in Gesners Thesaurus, and the passages of Cicero and 
 other authors referred to by him. 
 
 f Called Banco del Giro. 
 
 J Called Banco de Sa Giorgio. 
 
SO FAR AS COINS ARE AFFECTED BY IT. 251 
 
 wealth* of these Banks was very great; and many of CHAP. 20. 
 the principal families in Italy derive their origin and 
 their ample fortunes from persons who once exercised 
 the trade of banking. I cannot however discover from 
 history, that either the Jews before mentioned, or the 
 banking companies established in Italy, or any of the 
 private Bankers, ever issued what is now called Paper 
 currency : it is certain at least that they did not issue it 
 in so great a degree as to drive the Coins out of the 
 country ; for it is asserted by historians of undoubted 
 credit,f that Italy at that time had drawn to itself 
 almost the whole of the Gold of Europe. 
 
 After the example of what had been thus practised 
 in Italy, Banking companies were gradually established 
 in many of the principal cities of Europe, particularly 
 at Hamburgh, Nuremberg, and Amsterdam : many of 
 these corporate Banks issued Paper currency for the 
 payment of foreign, and sometimes inland, bills of 
 exchange : but this privilege was always exercised 
 under certain regulations and restrictions, sanctioned 
 by the governments of these places, for the security 
 of the individuals who trusted them, and for the 
 preservation of public credit. It is singular, that it 
 was found necessary to require, that the Notes of these 
 
 * The wealth of the Bank of St. George at Genoa in process of 
 time became BO great, that Machiavel says, there was reason to appre- 
 hend that it would become possessed of all the territories of that little 
 Btate. See Historia Fiorentina, lib. 8. 
 
 f See Histoire de la Ligue de Cambray, liv. 5. Bodin, Reponse a, 
 Maletroit. p. 49. and Histoire de Louis XI. p. 708. 
 
252 
 
 OF PAFEK CUKKENCY, 
 
 CHAP. 29. 
 
 5th Geo. III. 
 ch. 49. 
 
 15th Geo. in. 
 ch. 51. 
 
 Banks should be accepted and employed exclusively 
 in certain payments : but the privilege thus given never 
 included any payments for which a single piece of 
 Coin, or, as I believe, any small number of them, was 
 sufficient, so as to interfere with the retail trade of the 
 country. The reasons for establishing this Paper 
 currency have been fully explained in a former part 
 of this Letter ; and I have never heard that private 
 Bankers issued Paper currency in any European 
 country, to the extent in which it is now practised in 
 the British dominions : if it has prevailed any where to 
 excess, it has been in the united provinces of America. 
 
 The practice of issuing Paper currency within Your 
 Majesty's dominions first began in Scotland : * it was 
 natural that this device should originate in a country 
 where there was a great want of Coins and capital : the 
 evils it produced were felt so early as the year 1765, 
 when a wise law was passed by the Legislature, to 
 restrain and regulate it within that part of the united 
 kingdom. This law did not extend to England, for the 
 evil at that time had not been felt here : Your Majesty's 
 English subjects however soon followed the example of 
 their Northern brethren; and in the year 1775 the 
 mischiefs arising from the issue of small Paper Notes 
 were so severely felt, that a law was passed for regu- 
 lating and restraining it : but it was afterwards found 
 
 * See some account of Mr. Law, and of the famous Project pre- 
 sented by him to the Parliament of Scotland before the Union, and 
 afterwards to the Regent of France, in Smith's Wealth of Nations, 
 vol. i. p. 478. and the Histoire du Systeme. 
 
SO FAR AS COINS ARE AFFECTED BY IT. 253 
 
 that this law did not remedy the evil, and a second 
 
 law. still more restrictive, was passed in 1777. These nthGeo.in. 
 
 ch. 30. 
 
 measures were recommended to the Legislature by many 
 of the most eminent of Your Majesty's subjects and 
 servants, to whose consultations I, though unworthy, 
 was at that time admitted : I remember too, that the 
 restrictions then imposed on this practice were con- 
 sidered by many as not sufficient. It was necessary 
 however for a temporary purpose to enact a short 
 suspension of these laws, in consequence of the diffi- 
 culties, to which public credit was exposed, in the year 
 1797. At the same time, the Bank of England was 
 discharged by the Legislature from the obligation of 
 paying in Cash : but, contrary to expectation, these 
 suspensions have been continued to the present day ; 
 and from that period the Bank of England have issued 
 Notes for smaller sums, and to a greater extent, than 
 they ever did before : and the number of private 
 Bankers spread over every part of the country during 
 that interval, has been more than doubled.* 
 
 It is true that there have been a few memorable 
 instances, I believe but three, in which, under the 
 authority of Government, Paper currency has been 
 issued to an extravagant extent, in a neighbouring 
 country. The first was while France was governed by 
 
 * It is stated in the summary of the Report of the Secret Committee 
 of the House of Lords in 1797, that the number of country Bankers, 
 which had in 1792 amounted to 280, had in 1797 been reduced to 230. 
 It appears by the list of country Bankers now published, that they 
 amount to 517. 
 
254 OF PAPER CURRENCY, 
 
 CHAP. 29. a Regency, in the beginning of the last century ; the 
 two others are of a later date : and each of these 
 experiments has proved, in its results, dishonourable to 
 the Government, and disastrous to the people. During 
 the emission of this Paper currency, the Coins of 
 that country were in a very great degree driven out 
 of circulation ; but they re-appeared in considerable 
 quantities, as soon as this Paper currency was dis- 
 credited and annihilated. It ought always to be kept 
 in remembrance, that this Paper currency was issued 
 to so great an excess, either by corporate bodies, under 
 the authority and protection of Government, or directly 
 by the Government itself, and not on the sole credit and 
 responsibility of unauthorized individuals. 
 
 It is certain, that the principles, on which speculative 
 writers would justify the emission of Paper currency in 
 Your Majesty's dominions, would leave it almost without 
 limitation. The ablest writer on this subject, Dr. Adam 
 Smith, appears however sensible, that there must be 
 Vol. i. p. 448. some limitation. That adopted by him is, " that the 
 " whole Paper currency of every kind, which can easily 
 " circulate in any country, never can exceed the value 
 " of the Gold and Silver, of which it supplies the place ; 
 " or which (the commerce being supposed the same) 
 " would circulate there, if there was no Paper Money." 
 From this passage it may be inferred, that even in this 
 writer's opinion Paper currency may be issued to so 
 great an extent, as to take the place of all the Gold 
 and Silver Coins necessary for carrying on the commerce 
 of the kingdom, though it cannot easily be carried to a 
 
SO FAR AS COIN'S ARE AFFECTED BY IT. 255 
 
 greater. But later writers pay no attention to the CHAP. 2$ 
 moderation, with which this master of political economy 
 has supported his system : and as they are not satisfied 
 with the opinion thus given, we may presume they 
 mean, that Paper currency may be made to represent, 
 according to the system of the well known Mr. Law, 
 even immoveable property ; that is, a portion at least of 
 the lands and buildings of the kingdom, and as such 
 sent into circulation. It seems to have been discovered 
 of late years in this country, that, by a new sort of 
 alchemy, Coins of Gold and Silver, and almost every 
 other sort of property, may be converted into Paper ; 
 and that the precious metals had better be exported, to 
 serve as capital, to foreign countries, where no such 
 discovery has yet been made. But this new sort of 
 fictitious capital, thus introduced within the kingdom, 
 has contributed more than any other circumstance to 
 what is called over-trading ; that is, rash and incon- 
 siderate speculations, and what is almost a necessary 
 consequence, unworthy artifices to support the credit 
 of adventurers already ruined, as well as other evils, 
 which tend to corrupt the morals of the trading part of 
 the community, and to shake the credit on which not 
 only Paper currency, but the internal commerce of the 
 kingdom is founded. In every commercial system, 
 capital is certainly a necessary ingredient : but the 
 prosperity of the British commerce depends not singly 
 on capital ; it depends still more on the good faith, 
 honour, and punctuality of British merchants, for which 
 they are so justly celebrated. 
 
256 OF PAPER CURRENCY, ETC. 
 
 CHAP. 29. Impressed as I am with the idea, that no system of 
 
 Coinage can be adopted with the prospect of permanent 
 advantage, till some regulations have been made for 
 remedying the evils resulting from the present state of 
 Paper currency, I have thought it right thus to lay 
 before Your Majesty some account of the excess to 
 which it has of late been carried within Your kingdoms. 
 I am unwilling to enter into further discussion on a 
 question so important, and so much agitated, because 
 it is not a fit subject for a Letter to Your Majesty : nor 
 will I treat of the remedies, which ought to be applied, 
 because these cannot be administered by the authority 
 of Your Majesty, as in the case of Coins ; but they 
 require the authority of the Two Houses of Parliament, 
 in conjunction with that of Your Majesty. Certain I 
 am, that in a kingdom like Great Britain, the most 
 commercial, and for its extent the richest perhaps that 
 ever existed in the world, every branch of circulating 
 medium, of whatever it may consist, should be founded 
 on solid, wise, and honest principles ; and Coins in 
 particular, which are the only true measure of property 
 and instrument of commerce, and by which every other 
 circulating medium must be regulated, should be made 
 and kept as perfect as the nature of the subject will 
 admit. 
 
257 
 
 CHAPTER XXX. 
 
 Conclusion. 
 
 I HAVE now completed all I proposed to write on 
 the Coins of the realm, and I have treated shortly of 
 Paper currency, so far as the Coins are affected by it. 
 It is not improbable, that a treatise on a subject so 
 abstruse and intricate, and consequently so difficult to 
 be understood, may be thrown aside by many, and 
 perhaps treated with levity : I remember that such was 
 the case when the Recoinage of the Gold Coin was 
 undertaken, in the year 1774. It is possible, that even 
 those, who are not without a desire of information, may 
 object, that I have consumed too much labour on points 
 that are not worthy of it In tenui labor. To these 
 my answer is, that they are little aware of how much 
 importance to the commerce of the country is a good 
 monetary system, founded on principles of wisdom and 
 justice ; and how much Coins, particularly those of a 
 lower denomination, contribute to the convenience of 
 the inferior orders of society. I am not ashamed, 
 therefore, in my present state of retirement, to have 
 employed my leisure hours on this subject; a subject 
 which occupied the attention and talents of men of no 
 less character than Sir William Petty and Mr. Locke. 
 
 8 
 
258 CONCLUSION. 
 
 CHAP. so. To Your Majesty, if any apology is necessary, I may 
 
 venture to offer other pleas in my justification. When I 
 was in Your Majesty's service in the year 1774, I first 
 turned my thoughts to this subject, in discharge of my 
 public duty. It was in obedience to Your Majesty's 
 commands that I resumed the consideration of it, after a 
 long interval, when You appointed me in 1797 one of 
 the members of the Committee of Privy Council for 
 Coin : and though a short time afterwards, by the 
 pressure of disease, all thoughts of this nature were 
 blotted from my recollection, I have experienced at 
 length, by the favour of Providence, a partial recovery ; 
 and awakened as it were from the sleep of death, I have 
 been induced a third time to take up the consideration of 
 this subject, by the representations that were made to 
 me by Your Majesty's late ministers, of the distressed 
 state of the southern parts of Ireland, where almost all 
 Coins have disappeared, where a most degraded system 
 of Paper currency has taken place even of the Silver 
 Coins, and where this Paper currency, from the quantity 
 that has been issued, has fallen in its value, and conse- 
 quently into a state of discredit, very embarrassing to 
 the poorer ranks of Your Majesty's subjects in those 
 parts. 
 
 The subject of which I have treated is of such a 
 nature, that it certainly has no charms to attract the 
 attention of any man ; it is therefore from a sense of 
 duty alone, that I have been induced to complete, 
 under all my infirmities, what I had before projected. 
 Conscious of my own inability at all times to fathom 
 
CONCLUSION. 259 
 
 a science, on which men of the most eminent talents CHAP. so. 
 have disagreed, I offer with the greatest deference what 
 I have thus written, to Your Majesty's consideration. 
 Certain I am, that it will be treated by Your Majesty 
 with every proper degree of candour, and accepted with 
 Your accustomed condescension. 
 
 There is one circumstance, which more than any 
 other will serve as an apology for my presumption in 
 addressing this Letter to Your Majesty. In revolving 
 the history of the Coins of the realm, I find, that 
 the greatest of Your royal Predecessors, those most 
 renowned for their wisdom in the internal government 
 of their dominions, as well as for their martial exploits, 
 have been most distinguished for the care of their Coins, 
 and for making and keeping them perfect. There have 
 been since the Conquest three great reformations of the 
 Coins of the realm ; that is to say, in the reigns of 
 King Edward I.,* of Queen Elizabeth, and of King 
 William III. Historians speak with the highest honour 
 of Edward I. for calling in the clipped and counterfeit 
 Money ; for settling the standard, and for the laws 
 which he made to prevent the impairing and counter- 
 feiting of the Coins in future : and these measures are 
 always recited among the many memorable acts of 
 spirited legislation and public justice, for which the 
 reign of that Prince is so deservedly celebrated, by the 
 ablest writers on English jurisprudence. He rendered 
 these services to his country, while he was engaged in 
 
 * Henry V. called in and recoined the Gold Coin ; but in his time 
 Gold could make but a small part of the currency of the kingdom. 
 
 s2 
 
260 COXCLtJSlOK. 
 
 CHAP. so. the conquest of Wales, and in his attempt to subdue the 
 kingdom of Scotland. 
 
 Queen Elizabeth perfected the plan of the reforma- 
 tion of the Coins of the realm, which her brother had 
 begun to execute in the last year of his reign. She 
 completed this reform with wisdom and spirit, in the 
 midst of great internal convulsions, arising from un- 
 happy differences in religious opinions, which were 
 fomented by the intrigues and influence of the Papal 
 authority, then powerful in this kingdom. She com- 
 pleted it in defiance of the repeated attacks of a 
 Sovereign, the most powerful at that time in Europe, 
 Philip II. King of Spain, who was supposed to aim at 
 . universal monarchy. 
 
 In the reign of King William III. that great 
 restorer of the true principles of pure religion and 
 rational liberty, the reformation of the Silver Coins 
 was undertaken, while that Prince was engaged in a 
 foreign war, for the defence of the independence and 
 liberties of Europe. This war required -a constant 
 exportation of our treasure: all the exchanges were on 
 that account against this country ; and they were 
 rendered still more unfavourable by the very impaired 
 state of our Silver Coins : public credit was at a very 
 low ebb ; great taxes were to be raised at the very 
 moment when the medium, in which the people were 
 required to pay them, was in an uncommon degree 
 depreciated ; and what was still more discouraging, the 
 only remedy, which could be applied to these evils, 
 required that a considerable part of the Coins, which 
 
CONCLUSION. 261 
 
 yet remained, should at once be taken out of circulation. CHAP. so. 
 The work however was successfully accomplished ; and 
 though some errors were committed, and an enormous 
 expence incurred, the writers of all parties now concur 
 in paying to this undertaking the just tribute of 
 applause. 
 
 In a situation similar in many respects to those of 
 Queen Elizabeth and King William, a reformation of 
 Your Majesty's Coins is now become necessary. Your 
 Majesty is engaged like them in a war for the defence 
 of the liberties and independence of mankind : You have 
 to contend with a neighbouring State, always the rival, 
 and too frequently the enemy, of Great Britain ; whose 
 territories are now very much extended, though it may 
 be doubted whether its real power is augmented in 
 proportion : the navy of France, which in the reign of 
 King William was nearly equal to that of this kingdom, 
 is now greatly diminished ; and the fleets of Great 
 Britain, even though sometimes by accident of inferior 
 force, are now victorious in every clime, and on every 
 ocean where those of the enemy venture to contend with 
 them. The power of the enemy is however augmented 
 by the influence, which he exercises over almost every 
 government whose territories are unfortunately so 
 situated as to be accessible to his arms. Queen 
 Elizabeth and King William had allies, who came 
 forward to their effectual assistance. At present most 
 of the continental Sovereigns seem appalled at the 
 great power, which has unexpectedly arisen against 
 them ; and, in a state of disunion among themselves, 
 
262 CONCLUSION. 
 
 CHAP. so. appear to crouch to the influence and authority of the 
 Person who wields this power, and assumes the right of 
 prescribing laws of war and peace to all who have any 
 intercourse with him. Your Majesty contends alone, 
 not only in defence of Your own dominions, but in 
 support of the independence of civilized nations in every 
 part of the world. Fortunately for Your Majesty, the 
 commerce of this kingdom is now much more flourishing 
 than in any preceding period : the state of Your 
 revenues is prosperous; and great as the burthen may 
 be to which Your subjects are exposed, they cheerfully 
 bear it. At a period when a reformation of the Coins 
 must be undertaken, it is also a most favourable 
 circumstance, that those of one of the precious metals, 
 which have for many years principally supported the 
 circulation of the kingdom, are in a reasonable state of 
 perfection. On the other hand, when King William 
 undertook the reformation of the Silver Coins, the 
 ministers of that Prince had this advantage, that they 
 acted upon known and long established principles of 
 Coinage ; but Your Majesty is under the necessity of 
 adopting new ones, contrary to those which have 
 hitherto prevailed; and a new difficulty has occurred, 
 arising from the quantity and variety of Paper currency, 
 which has of late years been sent into circulation in 
 every part of the united kingdom : this fictitious sort 
 of money has been carried to such an excess, as to 
 usurp in a great degree all the functions of the real 
 Coins: and unless proper remedies are applied, so as 
 to remove both these obstructions, it is not possible 
 
263 
 
 that any system of Coinage can be carried into exe- CHAP.EO. 
 cution with success, and with a prospect of permanent 
 duration. 
 
 In taking leave of Your Majesty, as I must now 
 do, it would be the highest gratification to my private 
 feelings, were I to express what long experience has 
 taught me of Your Royal virtues : I could dwell with 
 pleasure both on the principles of public government, 
 which have always actuated Your Majesty's mind, and 
 on those private excellencies, by which You are no less 
 distinguished than by Your exalted situation. You 
 have afforded a striking example of steady attachment 
 to the cause of religion and virtue, and of abhorrence 
 of vice and immorality: but by no quality have You 
 been more distinguished, than by an uniform and 
 affectionate solicitude for the happiness of Your people ; 
 nor are Your people, Excellent Prince, insensible of 
 the blessings, which they have derived from these 
 virtues : their affection for the Person of their 
 Sovereign, their attachment to his Government, and 
 their anxiety for his welfare, have manifested them- 
 selves in a signal manner, on the most trying occasions : 
 to such a King, a Treatise, which professes to confer 
 a benefit on His subjects, and particularly the inferior 
 classes of them, cannot fail to be acceptable : I augur 
 therefore with confidence, that Your Majesty will not 
 disapprove of my conduct in addressing this Letter to 
 You. 
 
264 CONCLUSION. 
 
 CHAP. so. It is with the most fervent wishes for the continuance 
 
 of Your Majesty's life, and for the augmentation of 
 Your prosperity and glory, and with the sincerest 
 sentiments of attachment and gratitude, that I presume 
 to subscribe myself, 
 
 SIRE, 
 
 Your Majesty's 
 
 faithful and dutiful 
 Subject and Servant 
 
 LIVEEPOOL. 
 
 May 7th, 1805. 
 
APPENDIX, 
 
 CONTAIN INQ 
 
 AN ACCOUNT 
 
 RELATIVE VALUES OF GOLD TO SILVER AMONG THE ANCIENT 
 PERSIANS, GRECIANS, AND ROMANS. 
 
APPENDIX. 
 
 IT is intended in this Dissertation to take a view of 
 the relative value of Gold to Silver in ancient times ; 
 a subject highly interesting, but at some periods embar- 
 rassed with much doubt and obscurity. 
 
 Persons accustomed to methodical enquiry in general, 
 and not previously acquainted with the subject of that 
 now proposed, might perhaps, without hesitation, form 
 a plan for conducting their researches, and entertain 
 sanguine hopes of being able to accomplish it as much 
 to their satisfaction, as the nature of ancient history 
 will permit : nor could the adoption of such ideas, 
 under such circumstances, be termed extravagant. For 
 the laws of nations afford clear and unquestionable 
 proofs of the political and moral duties, which they 
 observe ; and in whatever instances the laws of ancient 
 nations have been tolerably preserved, we might expect 
 to meet with clear information concerning the mediums, 
 through which their mercantile transactions were carried 
 on. To these resources, therefore, such persons would 
 resolve to turn their attention, and would expect from 
 them particulars free from doubt, and considerably con- 
 nected : but, upon carrying their design into execution, 
 
268 
 
 disappointment would soon succeed. An. enquirer into 
 the relative value of Gold to Silver,- in ancient times, 
 finds reason to lament his inability to obtain infor- 
 mation at every stage of his pursuit. Few passages 
 relating to it have come down to us ; and perhaps in 
 some countries few regulations concerning it were ever 
 made and recorded as laws. In very early stages of 
 society, agreements, adjusted by local and temporary 
 circumstances, were perpetuated without doubt for some 
 time by oral information only ; and those agreements, 
 even when intercourse had increased, and arts and 
 civilization had advanced, it might be thought in some 
 instances unnecessary to record, upon the supposition 
 that what must occur daily could neither be mistaken, 
 nor slip from the remembrance of the community. It 
 is also highly probable, that in ancient times, as well 
 as in modern, it might appear to some who governed 
 highly advantageous to have nothing precisely fixed 
 concerning the precious metals, considered as the 
 common measure of property. Uncertainty gave them 
 an opportunity of making alterations in their relative 
 values to one another, suitable to their own private 
 interests; and if such alterations were carried into 
 execution, it is not to be supposed that they would 
 transmit a written account of them to posterity. 
 
 Nor is a scantiness of materials the only circumstance, 
 \vhich we have to lament in an enquiry into the relative 
 value of Gold to Silver in ancient times. The few 
 passages, which can be collected, are defective, as no 
 statement is given in them of the alloy put into the 
 
APPENDIX. 269 
 
 Coins of either metal.* That a neglect of such a state- 
 ment may materially affect the proportion, will appear 
 evident from what immediately follows. According to 
 the regulations at present in force at the British Mint, 
 a Pound weight of standard Gold is coined into 44 J 
 Guineas ; a Pound weight of standard Silver is coined 
 into 62 Shillings ; and a Guinea is current for 21 
 Shillings. These particulars enable us to calculate the 
 relative value of Gold to Silver, if we neglect the alloy 
 in the Coins; for 44^ Guineas are equivalent in value 
 to 1869 Sixpences, and 62 Shillings being equal to 
 124 Sixpences, the value of Gold is to that of Silver 
 as 1869 to 124, or as 15 T 4 to 1. This would accurately 
 express the relative values of the two metals, if the 
 quantity of alloy in a Pound weight of standard in 
 each bore the same proportion to the whole ; which is 
 not the case. In a Pound weight of standard Gold, 
 at the British Mint, one twelfth is alloy ; in a Pound 
 weight of standard Silver it is -$ ; and the relative 
 value of pure Gold to pure Silver, according to these 
 regulations, and the established currency between Coins 
 of the two metals, is as l5^f<PQ to 1. 
 
 * It is impossible to trace the Coinage of Money to its origin, with 
 any degree of certainty. Different authors attribute its commence- 
 ment to different nations. Herodotus, (lib. i. 94.) who, on account of 
 his high antiquity in profane history, is entitled to a superior degree of 
 respect, attributes it to the Lydians. 
 
 For the impressions on the Coins of different nations, see Hostus de 
 Re Nummaria, lib. i. cap. 8. 
 
 It is a general and well founded opinion, that there was very little 
 alloy in the ancient Coins. Several have supposed, (see Arbuthnot. 
 chap, vi.) that there was only a fiftieth part of alloy in the Gold Coins. 
 
270 APPENDIX. 
 
 The deficiencies of ancient authors in not mentioning 
 the quantity of alloy put into their Gold and Silver 
 Coins, are not, however, of such magnitude, as to arrest 
 inquiry into the relative values of the precious metals : 
 deductions may be made from them, notwithstanding 
 the omissions ; and the results, it is probable, will be 
 either accurate proportions of their values of pure Gold 
 to pure Silver, or very near approximations. Full, 
 connected, and certain information we cannot attain. 
 We must therefore be content with what we can glean 
 and connect, as by so doing we can arrive at such 
 knowledge as will afford some satisfaction to rational 
 curiosity, and such as may be productive of some 
 utility. 
 
 Several passages in Scripture, and also in Josephus, 
 afford certain proof, that Gold and Silver were highly 
 esteemed among the Jews, and that they were employed 
 as the medium of traffic. Abraham weighed to Ephron 
 the Silver, which he had named in the audience of the 
 sons of Heth, four hundred shekels of Silver, current 
 Money with the merchant.* Joseph was sold by his 
 brethren for twenty pieces of Silver ; f and the chiefs 
 of the nation, in order to rebuild their temple, gave 
 after their ability unto the treasure of the work, three 
 score and one thousand drams of Gold, and five 
 thousand pound of Silver. J We meet with no precise 
 statement, however, with respect to the rate at which 
 the Jews valued Gold, when compared to Silver; nor 
 
 * Genesis xxiii. 16. f Genesis xxxvii. 2.8. 
 
 Ezra ii. 69. 
 
APPENDIX. 271 
 
 is there good reason to suppose that they had any coined 
 Money before the times of the Maccabees.* A belief 
 that Silver was most generally their current Money is 
 supported by a great number of passages ; a circum- 
 stance, which must have tended to keep up the value 
 of this metal : but there is no reason to doubt, that it 
 was frequently depressed, when compared to Gold, by 
 national prosperity. We learn from Josephus, that, in 
 the time of Solomon, Silver was as plentiful as stones ; f 
 and in Scripture it is said to have been in such abun- 
 dance, that it was held in no estimation. J 
 
 From Herodotus, the father of profane history, we 
 obtain much curious information concerning the riches 
 of eastern princes, and one satisfactory statement con- 
 cerning the relative value of Gold to Silver. A minute 
 detail of the former, however, is foreign to the present 
 design. His account of the presents of Gyges, Croesus, 
 and other Monarchs, to the temples they revered, and 
 whose oracles they consulted, convinces us at once 
 of their piety and wealth: but his statement of the 
 revenues of Darius, the son of Hystaspes, is more 
 assisting to the present enquiry, as he there proceeds 
 upon the supposition, that the value of Gold was to 
 that of Silver as 13 to l. It clearly appears from 
 the same account, that both metals were used as Money, 
 when the demands upon Government rendered a 
 Coinage necessary ; || and there is every reason to 
 
 * See Clarke on Coins, p. 244, f Antiq. lib. viii. cap. 2. 
 
 $ 1 Kings x. 21. Herod, lib. iii. 95. 
 
 II Herod, lib. iii. 96. 
 
272 APPENDIX. 
 
 believe, that the Historian's opinion of their relative 
 value was founded upon their currency in exchange 
 under Darius. 
 
 These relative values of the precious metals are the 
 most ancient of which we have certain information ; and 
 it is highly probable, that in the time of Herodotus * 
 they were also established in Greece. We are unable 
 to say how long the proportion of 13 to 1 had been 
 observed previous to the period of which we are now 
 speaking; but we have reason to suppose, that the 
 value of Gold did not long continue to be so high in 
 Greece ; for Plato, who flourished about fifty years 
 after Herodotus, asserts in his Hipparchus, that the 
 value of Gold was to that of Silver as 12 to l.f 
 
 Xenophon was contemporary with Plato, and in his 
 account of the expedition of the younger Cyrus, against 
 his brother Artaxerxes, he also furnishes us with par- 
 ticulars for ascertaining the relative value of the two 
 precious metals. The crown of Persia was the object 
 which Cyrus wished to obtain ; and having for this 
 purpose conducted an army through Asia Minor, he 
 advanced to the banks of the Euphrates, and passed 
 that river, to attack Artaxerxes. His hopes and his 
 doubts concerning the event increased as the time of 
 the battle appeared to draw near; and, according to 
 
 * Herodotus read his history in the council at Athens, in the year 
 445 before Christ. 
 
 f Platonis Opera, torn. ii. p. 231. edit. H. Steph. 1578. Some of the 
 best critics think that the Hipparchus is not the production of Plato : 
 but as they agree in believing it to be of his age, the above statement 
 is not affected by the doubt as to the real author. 
 
APPENDIX. 273 
 
 the superstition of the times, he had recourse to a 
 soothsayer to quiet his apprehensions. Being told 
 that the king would not fight within ten days, and 
 being under a persuasion, that, if he did not fight 
 within that time, he would not fight at all, Cyrus 
 promised the soothsayer ten talents, if his prophecy 
 proved true. On the eleventh day, after the prediction 
 had been made,* Cyrus paid the soothsayer three 
 thousand Daricks,f Persian Gold Coins ; and by so 
 doing, according to Xenophon, he fulfilled his promise. 
 In this transaction, therefore, the fair and usual rela- 
 tive value of Gold to Silver was probably adhered to. 
 
 But it does not afford certain and indisputable data 
 for estimating the relative value of Gold to Silver, and 
 therefore, as is usual in doubtful cases, different pro- 
 portions have been deduced from it. The opinion most 
 commonly received, for a considerable length of time, 
 was, that the Darick weighed two drachms. According 
 
 * K.ty> 'Ara&aff. p. 70. edit. Hutchinson. Cantab. 1777. 
 
 f A Darick was equal to the Attick Aureus. See Suidas on the 
 word, p. 510. vol. 1. Cambridge edition of 1705. Writers differ in 
 their opinion concerning the origin of this Coin ; but preponderating 
 reasons incline us to believe, that it was first struck by Darius 
 Hystaspes. Authors agree in praising the fineness of the Gold in the 
 Daricks ; and Herodotus says, (lib. iv. 166.) that Darius, wishing his 
 memory to be famous for what Kings had not done before, struck 
 Coins from Gold, rendered as pure as it possibly could be made. 
 
 We are informed by Plutarch, (torn. iii. p. 385. London edition of 
 1723.) that the impression upon those Persian Coins was an archer ; 
 and from this circumstance, Agesilaus said, that he had been driven 
 out of Asia by the King, by means of a thousand archers. For so 
 many Daricks being sent to Athens and Thebes, and divided among the 
 popular orators, they were induced to make war upon Sparta. 
 
 T 
 
274 APPENDIX. 
 
 to this supposition, as Silanus the soothsayer received a 
 talent of Gold, there being 6000 drachms in a talent, 
 and as Cyrus had promised to pay him ten talents of 
 Silver, the value of Gold was estimated to be to that of 
 Silver as 10 to 1. 
 
 There are good reasons, however, for doubting the 
 accuracy of this proportion. Plato, as above mentioned, 
 states the proportion of 12 to 1 as a fact, free from 
 doubt, and generally known. The place, it is true, 
 where Cyrus rewarded Silanus, was in the neighbour- 
 hood of Babylon ; and this distance from Greece might 
 account for some difference in the relative values of the 
 two metals, in the two different countries. But so 
 considerable a deviation from the proportion in Greece 
 must have struck the observation of Xenophon ; and 
 having attracted his attention, we may suppose it would 
 have been recorded with his usual accuracy. 
 
 We are informed by Herodotus,* that Darius the 
 son of Hystaspes enjoined, that his subjects, who 
 discharged the tribute imposed upon them in Silver, 
 should pay by the weight of the Babylonian talent; 
 and that such as discharged it in Gold, should pay by 
 the Euboic talent. The Historian also adds, that the 
 Babylonian talent was equal to seventy Euboic minas. 
 If this regulation continued to be observed, and to be 
 implied in agreements under Artaxerxes, it follows, 
 that Cyrus promised the soothsayer 700 minae of Silver, 
 and paid him 60 minre of Gold as an equivalent; and 
 
 * Herod, lib. iii. SO. 
 
APPENDIX. 275 
 
 upon this supposition the value of Gold was to that of 
 Silver as 11 f to 1. 
 
 It is highly probable, that this was the true pro- 
 portional value of Gold to Silver at that time in Persia.* 
 An interval of about one hundred and twenty years had 
 elapsed from the commencement of the reign of Darius ; 
 and we may readily believe, that his regulations, 
 concerning the discharge of tribute in the two metals, 
 were still continued, and, consistent with strict justice, 
 that they had been extended to payments of every 
 description. The diminution in the value of Gold, from 
 that which it had in the time of Darius Hystaspes, may 
 be attributed to the extensive armaments of Xerxes, 
 connected with other circumstances, of which, at this 
 distant period of time, we are unable to give a clear 
 and satisfactory account. 
 
 That Gold was at a lower value in Persia than it 
 was in Greece, at the time of which we have been 
 speaking, ought not to raise our astonishment. Many 
 circumstances might be adduced to prove, that this 
 precious metal had been, and still was, in much greater 
 
 * In the Philosophical Transactions for the year 1771, there is "An 
 " Inquiry into the value of the ancient Greek and Eoman Money : by 
 " Matthew Raper, Esq." In this Inquiry Mr. Raper considers the 
 promise of Cyrus to Silanus, and the reward made in consequence 
 of it ; and, by supposing- the Babylonian talent to weigh 72 Euboic 
 minas, he concludes, that the value of Gold was to that of Silver as 
 12 to 1. By proceeding- thus, Mr. Raper procures a coincidence with 
 the relative value stated by Plato : but this coincidence is obtained by 
 means of a conjecture contrary to the express statement of Herodotus, 
 as mentioned above. 
 
 T 2 
 
276 APPENDIX. 
 
 plenty in Asia than in Europe : and this consideration 
 alone is sufficient to enforce a conviction, that the 
 proportion of 12 to 1 might exist in Greece, and that of 
 11 f to 1 in Persia, at the same time.* 
 
 In times previous to that of which we have been 
 speaking, the precious metals were scarce in Greece. 
 Philip, King of Macedon,f is said to have been so poor 
 in Gold, in the former part of his reign, that he had only 
 a small cup of it, which he placed every night under 
 his pillow : but it was not long before this enterprising 
 Monarch rendered it abundant in his own kingdom, 
 and contributed to make it comparatively plentiful in 
 Greece. Being informed, that in ancient times Gold 
 Mines had been worked in his own dominions, J he 
 caused those near Mount Pangasus to be opened. The 
 success of this measure exceeded his expectations, as he 
 drew from these Mines annually more than a thousand 
 talents. 
 
 About the same time the Phocians robbed Delphi of 
 
 * The relative values of Gold to. Silver, at the principal European 
 Mints, differ at this time considerably from one another. 
 
 t ^TTCLVLOQ yap OVTWQ i]v TO TraXcuoj' Trapa TO~IQ "EXX^o-t^ 6 p,kv 
 OQ KJ TTCIVV' 6 fie. apyvpoQ 6\iyoQ i]v o kv TOIQ /jteraXXoig. Ato 
 TTTOv rov T& ^uyaX fta.fft\iit)Q 'AXe^aj'dps Trartpa 
 6 2a/*toe, fyiaXiov ^pvo-uv rctfTi}/iE'OP, ae< rSr' 
 
 VTTO r 7T|OOK-e0aXa/. Athenaei Deipnosoph. lib. vi. p. 231. 
 edit. Lugduni 1G12. 
 
 J Senecce Natural. Quaest. lib. vi. cap. 15. Strab. lib. vii. p. 331. 
 Diodor. Sic. torn. ii. p. 88. With the metal obtained from these 
 Mines Philip struck his Gold Coins, called Philippics ; collected 
 together strong forces of mercenaries, and allured many Greeks by 
 his presents to betray their country. Diodor. Sic. ibid. 
 
APPENDIX. 277 
 
 the golden offerings, which had been made from time to 
 time to Apollo ; * and by this plunder they obtained 
 Gold to the amount of more than ten thousand talents. f 
 These circumstances contributed to render Gold so 
 plentiful in Greece, that according to Menander, J who 
 was born about the year 341 before the Christian sera, 
 its value was estimated to be to that of Silver as 10 to 1. 
 It has been supposed, that Alexander completed his 
 conquests in Asia before Gold was at this low value in 
 Greece, and that the diminution in value happened in 
 consequence of the wealth procured from the Persian 
 treasures by that successful warrior : but a careful 
 examination of the above-mentioned circumstances may 
 well incline us to doubt the truth of this conjecture. 
 The Mines began to be productive to Philip || in the 
 358th, and Alexander set out on his expedition to Asia 
 in the 334th, year before the Christian aera ; and as 
 during this interval of twenty-four years the annual 
 income from them was 1000 talents, or 225,000/. 
 Sterling, 1" the whole sum derived from them in this 
 period was 5,400,000/. Delphi was plundered, in the 
 
 * Athensei Deipnosoph. p. 231. 
 
 f Diodor. Sic. torn. ii. p. 12G. The Historian adds, Cftci e r&v 
 ffwyypcKptwv fyaaiv SK eXarrw yeveo'S'cu ret ffvXrjSevTa T&V kv TOIQ 
 
 J See Julius Pollux, lib. ix. cap. 6. . 76. 
 
 See the Philosophical Transactions for 1771, p. 518. 
 
 || The dates are according to Wesselingius's edition of Diodorus. 
 
 *[f In reducing the sums mentioned by Diodorus to English Money, 
 I have followed the learned Abbe Bartheleiny. See Tab. xi. of his 
 Anacharsis. 
 
278 APPENDIX. 
 
 year 357 before Christ, of Gold to the amount of 
 10,000 talents, or 2,250,0007. Consequently, to the 
 Gold in Greece at the accession of Philip to the throne 
 of Macedon, an addition had been made to the amount 
 of 7,650,0007. Sterling, previous to the expedition of 
 Alexander into Asia. This accumulation must have 
 had a powerful tendency to depress the value of this 
 precious metal ; and as we read of no intermediate 
 proportion between those stated by Plato and Menander, 
 we may conclude, that Gold was to Silver as 10 to 1 in 
 Greece, before any accession was made to its wealth by 
 the conquests of Alexander.* His acquisitions from 
 the Persian treasures were great ;f but his liberality 
 was proportionally extensive. The sum in the treasury 
 at his death amounted to 50,000 talents, | equivalent to 
 11,250,0007. Sterling; but we are not informed how 
 much of this was in Gold. This precious metal, 
 without doubt, was rendered more plentiful in Greece 
 by what flowed into it from Alexander's seizures in 
 
 * Positive testimony, as to the time when the proportion of 10 to 1 
 began, cannot be obtained from Menander, as it is uncertain when he 
 wrote the passage in which it is stated, and to what period it alluded. 
 He was born, as mentioned above, about the year 341, and died about 
 the year 293, before Christ : he therefore survived Alexander 32 years. 
 But it is to be remembered, that the passage now under consideration 
 was put into the mouth of a character in one of his plays : and it is 
 highly probable, that the time affixed to the action of this piece was 
 some years previous to that at which it was written. 
 
 f Several passages in Quintus Curtius might be produced in proof 
 of Alexander's great acquisitions of wealth in Asia, and also of his 
 great liberality. 
 
 ^ Justin, lib. xiii. cap. 1. 
 
APPENDIX. 279 
 
 Asia;* but the opinion of those seems to have been 
 well founded,, who limited the amount of the influx to 
 about ten thousand talents, f equivalent to 2,250,000/. 
 Sterling. 
 
 There is reason to suppose, that the value of Gold 
 continued to be to that of Silver as 10 to 1 in Greece, 
 during the space of 170 years after the death of 
 Alexander: but, in order to shew that this conjecture 
 is well founded, we must turn our attention to the 
 relative values of the precious metals at the Roman 
 Mint. 
 
 More than 176 years elapsed from the building of 
 Rome, according to Pliny, before the inhabitants of that 
 city used coined Money. Servius Tullius, their sixth 
 King, introduced it ; J and, consistent with the frugality 
 and limited mercantile transactions of the people, it was 
 of Brass. This continued to be the only current Money 
 till the 485th year of Rome, or the 269th year before 
 Christ, when Silver Coins were first struck in that city. 
 For some time previous to this last mentioned period, 
 several circumstances had been gradually contributing 
 to render such an extension of the Coinage necessary. 
 The soldiers no longer depended upon their own indi- 
 vidual industry in peace for their subsistence in war; 
 
 * Athen. lib. vi. p. 231. f See Note t- P- 277 - 
 
 J Plinii Natur. Histor. lib. xxxiii. 13. At the same time Pliny 
 
 informs us, upon the authority of Timasus, an ancient historian, that, 
 
 previous to the first Coinage of Money, the Eomans used unstamped 
 
 bars of Brass, or Copper, as a medium of exchange. 
 
 Plinii ibid. Argentum signatum est anno urbis 485, Q. Fabio 
 
 consule, quinque annis ante primum bellum Puiiicurn 
 
280 APPENDIX. 
 
 during almost a century and a half they had received 
 regular pay from the state, and in return they had made 
 several very important additions to its territories. They 
 had obliged Pyrrhus to quit Italy, and had reduced 
 the Tarentines to submission: and by these and other 
 successes they had much extended the Roman dominion. 
 The consequence of this was an adequate increase of 
 their military establishments, and a correspondent exten- 
 sion of Coinage for their support. 
 
 The mark impressed upon the first Silver Coins at 
 Rome was a chariot and a pair of horses, or a chariot 
 and four horses ; and according to these impressions 
 they were called Bigati or Quadrigati : but Denarii is 
 the general expression by which they were denominated. 
 
 Sixty -two years after the first Coinage of Silver at 
 Rome,* Gold Coins called Aurei were first struck at 
 that place. One scruple of Gold was then equivalent 
 to twenty sesterces ; which made for a pound, (according 
 to Pliny,) in the proportion of the sesterces of the time, 
 900 sesterces. This statement of Pliny's has given 
 much trouble to writers on ancient Coins, and has 
 caused much variation in their calculations of the rela- 
 tive value of Gold to Silver at that time. 
 
 The first difficulty which occurs, on entering upon 
 such a calculation, is, to determine the number of 
 denarii then in the pound ; as different writers have 
 
 * Aureus nummus post annum LXII. percussus est, quam argenteus, 
 ita ut scrupulum valeret sestertiis vicenis : quod effecit in libras, 
 ratione sestertiorum, qui tune erant, sestertios DCCCC. Plinii Natur. 
 Ilibtor. lib. xxxiii. 18. 
 
APPENDIX. 281 
 
 entertained different opinions concerning this circum- 
 stance. A persuasion that there were seven denarii in 
 the ounce, at the time now under consideration, is 
 supported by the strongest testimonies, and has there- 
 fore the highest claim to our belief. The assertions of 
 Celsus * and Scribonius Largus f are clear and express 
 to this purpose ; and Pliny himself, when speaking of 
 the debasements of Money, by lessening the weight, 
 says, that the just number of denarii in the pound was 
 84. J This being allowed, the value of a pound of Silver 
 was 336 sesterces, there being four sesterces in every 
 denarius ; and there being 288 scruples in a pound, 
 and one scruple of Gold being valued at 20 sesterces, 
 the value of a pound of Gold was 5760 sesterces. The 
 value of coined Gold was therefore to that of Silver as 
 5760 to 336, or as 17 f to 1. 
 
 The passage in Pliny, however, upon which this 
 calculation is founded, guards us against concluding 
 that this was the relative value of Gold to Silver in 
 Bullion. According to the latter part of the sentence, 
 and the best interpretations of it, the republic gained 
 900 sesterces in a pound of Gold, at the rate at which 
 this first Coinage passed. Consequently the value of 
 a pound of Gold in Bullion was 4860 sesterces ; and 
 
 * Sed et antea sciri volo, in uncia pondus denariorum septem esse. 
 Lib. v. cap. 17. 
 
 f jJEque enim in libra denarii octoginta quatuor apud nos, quot 
 drachmae apud Groecos incurrunt. P. 6. edit. Patavii, 1G55. 
 
 J Plinii Natur. Histor. lib. xxxiii. 46. 
 
 See Harduin's edition of Pliny, torn. ii. p. 612. and Clarke on 
 Coins, p. 385. 
 
282 APPENDIX, 
 
 therefore Gold was to Silver as 4860 to 336, or as 14 | 
 to 1.* 
 
 Several reasons may be advanced for the high rate 
 
 * Other conclusions have been made concerning the relative values 
 of the precious metals at Borne, when Gold was first coined there ; but 
 they are founded upon an imaginary correction of the passage in 
 Pliny, already mentioned, from a persuasion, that as it now stands it is 
 erroneous. See Clarke on Coins, p. 387. 
 
 Mr. Eaper, in the Philosophical Transactions for 1771, proposed the 
 following as the sense of the passage (in Note *. in p. 280) now under 
 consideration. 
 
 " The Gold Money was coined sixty- two years after the Silver, and 
 " the scruple passed for twenty sesterces, which, as the sesterce was 
 " reckoned at that time, (2^ asses,) made the pound of Gold worth nine 
 <; hundred Silver denarii (of 16 asses each)." p. 490. 
 
 " If the scruple was valued at 20 sesterces," says Mr. Raper, "the 
 " pound, instead of being worth 900, must have been worth 5760, such 
 " sesterces : but if for sestcrtios DCCCC, we read denarios DCCCC, the 
 " account will be clear and intelligible. The words ratianc sestertlorum, 
 " qul tune erant, imply, that the sesterce of that age was different from 
 " the sesterce of Pliny's time : but the quarter of the Silver denarius, 
 " or Nummus Sestertius, of 4 asses, was the same at both times ; 
 " and we know of no other sesterce but the ancient one of 2 asses. 
 ' Twenty such sesterces make 50 asses, for the value of the scruple of 
 ' Gold ; which, multiplied by 288, (the number of scruples in the 
 " Roman pound) give 14.400 asses for the value of the pound of 
 " Gold. And reckoning 16 asses to the Silver denarius, (which it 
 " passed for at the time of this Coinage,) 14,400 asses make just 900 
 " such denarii ; which is Pliny's number." p. 518. 
 
 " If the pound weight of Gold was worth 900 denarii, 84 of which 
 " were coined out of the pound of Silver, the value of Gold to Silver 
 " must have been in the proportion of 900 to 84, or as 10 f to 1." p. 520. 
 
 This proposed correction is very ingenious ; but the writer of this 
 Appendix thinks that it is open to two strong objections. Mr. Raper 
 has not supported it by the reading 111 any one MS. ; and, from the 
 general disposition and condition of the Romans, it may well be 
 supposed, that Gold had a much higher value among them at that time 
 than in Greece. 
 
APPENDIX. 283 
 
 at which the first Gold Coins passed at Rome. The 
 metal was far from being plentiful in the city, and the 
 Romans had exacted the tributes from the conquered 
 nations in Silver, not in Gold.* The interval between 
 the first Coinage of Silver and that of Gold had also 
 been filled up with events highly important to the 
 Romans : it comprehended the whole of the first Punic 
 war ; Sicily had been reduced to submission ; the 
 Romans had become powerful at sea, and the second 
 Punic war had been almost brought to a successful 
 conclusion. 
 
 Hannibal, it is true, had repeatedly defeated their 
 armies with great slaughter : but these defeats, instead 
 of repressing, roused the bravery and patriotism of 
 the Romans to the highest degree of enthusiasm. 
 Whatever might be their situation, they shewed a dis- 
 position to face every danger, and undergo every 
 possible hardship, for the good and glory of their 
 country; and therefore it is probable they received the 
 Gold Coins at a high rate of exchange, not only for 
 their novelty, but from a conviction, that by so doing 
 they were advancing the objects, which they had most at 
 heart. 
 
 The above-mentioned proportion in the relative value 
 of Gold to Silver did not continue long at Rome. 
 Soon after her first Coinage of Gold her arms became 
 
 * Equidem miror populum Romanum victis gentibus in tribute 
 semper argentum imperitasse, non aurum : sicut Carthagini cum 
 Hannibale victse argenti pondo annua hi quinquaginta annos, nihil 
 auri. Plinii Natur. Histor. lib. xxxiii. 15. 
 
284 APPENDIX. 
 
 victorious in every quarter of the old world ; her con- 
 quests were rapid and extensive ; she quickly became 
 acquainted with the riches and customs of eastern 
 nations; and with profound policy she adopted such 
 as were suitable to her own views of acquisition. 
 Accordingly we find in the conditions on which the 
 Romans made peace with the ^Etolians, about 189 years 
 before the Christian aera, that they coincided with the 
 Greeks in estimating the value of Gold to be to that of 
 Silver as 10 to 1.* From this circumstance there is 
 reason to believe, that during all the convulsions and 
 vicissitudes, which Greece experienced from the time of 
 Alexander the Great to the period last mentioned, the 
 relative values of the precious metals continued the same 
 in that country. 
 
 An extraordinary influx of either of the precious 
 metals into any place or district, and a subsequent and 
 extensive exchange of it for the other, must always 
 lessen its value. We have a remarkable proof of this 
 upon Caesar's return to Rome, with the plunder which 
 he had collected in Gaul. He had amassed Gold in 
 that country, according to Suetonius, to such an 
 amount, that it was sold for three thousand sesterces, 
 or seven hundred and fifty denarii, a pound, throughout 
 Italy and the provinces, f 
 
 * Pro argento si aurum dare mallent, darent convenit ; dura pro 
 argenteis decem aureus unus valeret. Livii lib. xxxviii. 11. 
 
 f Suetonius, speaking of Csesar, says, In Gallia fana templaque 
 Deum donis referta expilavit : urbes diruit, ssepius ob praedam quam 
 ob delictum : unde factum ut auro abundaret, ternisque millibus 
 
APPENDIX. 285 
 
 * 
 
 But writers on the subject differ in their computa- 
 tions of the relative value of the precious metals from 
 this statement; some supposing, that the pound men- 
 tioned by Suetonius was the pound in weight, others, 
 that it was the pound in tale. Upon the hypothesis 
 that the pound in weight was meant, the value of Gold 
 was to that of Silver as 750 to 84, or as 8j-| to 1,* 
 there being 84 denarii in the pound weight. There is 
 more reason however to believe, that the pound in tale, 
 or one hundred denarii to the pound, was that which 
 Suetonius meant, as it was by this that the Romans 
 computed the value of exchange in their currency. 
 Admitting, therefore, that there was no departure at 
 this time from their usual practice, the value of Gold 
 was to that of Silver as 750 to 100, or as 7J to l.f 
 
 This depressed value of Gold can only be considered 
 as a transient convulsion in the relative estimations of 
 the precious metals in Rome and its dependencies. The 
 cause was inadequate to the production of any durable 
 effect ; and it is highly probable, that the Gold of Gaul, 
 when it had passed into the currency of the empire, was 
 insufficient to support an advancement in the value of 
 Silver through such an extensive circulation. 
 
 The tendency of Cassar's conquests in Gaul to 
 
 nummum in libras promercale per Italiam prorinciasque divideret. 
 Suetonius de Jul. Caesar, cap. LIV. edit. Pitin. 
 
 * Arbuthnot adopts this proportion, as does also Mr. Raper, in the 
 Philosophical Transactions for 1771. 
 
 f Hostus adopts this proportion ; as does also Clarke in his Book on 
 Coins. 
 
286 APPENDIX. 
 
 depreciate the value of Gold in Rome, and its pro- 
 vinces, perhaps might induce some to believe, that 
 Alexander's victories in Asia must have had a similar 
 effect in Greece ; and to a degree beyond that admitted 
 in this Dissertation. But it is to be remarked, that 
 Caesar's principal object in Gaul was plunder, and that 
 he and his army returned to Borne with the spoils of 
 the conquered country. On the contrary, Alexander's 
 principal object was foreign conquest, not plunder ; he 
 never returned home : and his armies remained in the 
 countries, which he had subjected to his power. 
 
 We cannot say with confidence how long the last 
 mentioned proportion between the two precious metals 
 continued; but we find, that in the time of Claudius, 
 about a century after Cesar's return from Gaul, the 
 value of Gold was considerably advanced: for under 
 this Emperor's reign it was thought proper, according 
 to Tacitus* and the younger Pliny,f to limit the fee of 
 an advocate to ten thousand sesterces ; and this legal fee 
 is stated in the Digest f at one hundred aurei. Now as 
 10,000 sesterces were equal to 2,500 denarii, it follows, 
 
 * Tacitus, speaking of the Emperor Claudius, and this regulation, 
 says, capiendis pecuniis posuit modum, usque ad dena sestertia, quern 
 egressi repetundarum tenerentur. Annalium lib. xi. cap. 7. 
 
 f Suberat edicto senatusconsultum hoc : Omnes, quicquid negotii 
 haberent, jurare, priusquam agerent, jubebantur, nihil se ob advoca- 
 tionem cuiquam dedisse, promisisse, cavisse. His enim verbis. ac mille 
 praeterea, et venire advocationes et emi vetabantur. Peractis tamen 
 negotiis. permittebantur pecuniam duntaxat decem millium dare. 
 C. Plinii Epist. lib. v. ep. 25. 
 
 J Licita autem quantitas intelligitur pro singulis causis usque ad 
 centum aureos. Lib. 1. tit. 13. . 12. 
 
APPENDIX. 287 
 
 that the value of Gold was to that of Silver as 2,500 to 
 200, or as 12 J to 1. 
 
 We can trace the duration of these relative values of 
 the precious metals at Rome, with more certainty than 
 any which we have before recorded. There is no reason 
 to doubt of their continuance through Nero's reign, as 
 we have positive proof of their existence in the time of 
 Galba. For Tacitus informs us, that when Otho enter- 
 tained the Emperor Galba at supper, he gave to each 
 man of the cohort, which mounted guard that night, 
 a hundred sesterces;* and Suetonius, speaking of the 
 same 'thing, says, that he gave each man an aureus. f 
 Hence it is evident, that in Galba's reign, twenty-five 
 denarii were equivalent to one aureus; and admitting, 
 as usual, that the aureus was double the denarius in 
 weight, the value of Gold was to that of Silver as 12 J 
 to 1. 
 
 It appears, that these relative values of the precious 
 metals continued during the interval between Galba and 
 Alexander Severus, a period of more than a century 
 and a half; for Dion Cassius, the Historian, flourished 
 Under the reign of this last mentioned Emperor ; and 
 he says expressly, that an aureus was equal in value to 
 
 * Per speciem convivii, quotiens Galba apud Othonem epularetur, 
 cohort! excubias agenti, viritim centenos nummos divideret. Tacit. 
 Histor. lib. i. c. 24. 
 
 f Suetonius also, speaking of Otho's proceedings to obtain the 
 supreme authority, says, Nullo igitur officii aut ambitionis in quem- 
 quam gen ere omisso, quoties coena principem acciperet, aureos 
 excubanti cohorti viritim dividebat. Suetonius de Othone. c. 4. 
 
288 APPENDIX. 
 
 25 denarii : * a statement which gives the relative value 
 of Gold to Silver as 12 J to 1, as before. 
 
 Although we seek in vain to ascertain the further 
 duration of this proportion, it is highly probable, that 
 it continued some time after the reign of Alexander 
 Sever us, as the state of the empire justifies such a 
 supposition. At what period it ceased we are unable 
 to say; but under the reign of Constantine the Great 
 we find, that the value of Gold was much diminished. 
 In his time also we find that new names had been affixed 
 both to the Gold and Silver Coins : the Aureus was 
 now known by the -name of Solidus, and the Denarius, 
 by that of Milliarensis. According to one of the laws of 
 this Emperor, six solidi, of four scruples each, weighed 
 an ounce ; f and, according to one of the Glosses upon 
 the Basilica, a solidus was equal to fourteen milli- 
 arenses.J Hence four scruples, or one sixth of an 
 ounce of Gold, was equivalent to ~ ounces of Silver, 
 
 * Histor. Rom. p. 784. edit. Hamb. 1752. From the passage in Dion 
 Cassius, here referred to, there is reason to believe, that the value of 
 Gold was to that of Silver as 12| to 1, in the time of Augustus. For 
 the Historian having mentioned the presents received by that 
 Emperor, after his palace had been burned down, says, I call that 
 Coin an Aureus, which, according to the custom of the Romans, is 
 equivalent to 25 denarii. 
 
 f Siquis solidos appendere voluerit auri cocti, sex solidos quater- 
 norum scripulorum nostris vultibus figuratos adpendat pro singulis 
 unciis. Cod. Theod. lib. xii. tit. 7. . 1. 
 
 The old reading is scptem solidos &c. but there is reason to believe 
 sex to be the true. See Thesaur. Variar. Lectionum D. Guidi Panciroli, 
 p. 91. 
 
 J Thesaurus Juris Romani, &c. cum Prasfatione Everardi Ottonis ; 
 p. 1764. Lugduni Batav. 1725. 
 
APPENDIX, 289 
 
 there being now 8 denarii in the ounce. It therefore 
 follows, that one ounce of Gold was equivalent to -^, or 
 10^ ounces of Silver, and consequently, that the value of 
 Gold was to that of Silver as 10 to 1. 
 
 The history of the times does not enable us to trace 
 the continuance of these relative values, and to mark 
 the precise period, at which they ceased. From the 
 political alterations, which succeeded the reign of 
 Constantine, we may reasonably conjecture, that they 
 were not of long duration ; especially as we find, that 
 under Arcadius and Honorius, about sixty years after 
 Constantine, the value of Gold was much increased. 
 According to the Theodosian code, the number of 
 solidi in the pound was 72,* as in the reign of Con- 
 stantine ; and by a law made by the two Emperors 
 mentioned above, five solidi were equivalent to a pound 
 of Silver.f Hence the solidus was four scruples, and 
 therefore 20 scruples of Gold were equivalent to 288 
 scruples of Silver. Consequently the value of Gold 
 was to that of Silver as 288 to 20, or as 14 f to 1. 
 
 The variations in the estimation of Gold to Silver, 
 here recorded, may be attributed to causes, which must 
 ever have a similar influence in society. A failure of 
 
 * Illud cautionis adjicimus ut quotiescumque certa summa 
 Bolidorum pro tituli quantitate debetur, et auri massa transmittitur, 
 in septuaginta duos solidos libra feratur accepta. Cod. Theod. lib. xii. 
 tit. 6. . 13. 
 
 f Jubemus, ut pro argenti summa quam quis thesauris fuerat 
 illaturus, inferendi auri accipiat facultatem : ita ut pro singulis libris 
 argenti quinos solidos inferat. Cod. Justin, lib. x. tit. 76. 
 
 U 
 
290 APPENDIX. 
 
 the Mines, or whatever tends to promote the circulation 
 of the Coins of either metal more than the other, will 
 enhance its value, and therefore the price of Gold, 
 when compared with other metals, will be raised, in 
 consequence of a scanty supply from the earth, extreme 
 luxury, or extensive trade. Wherever the second of 
 these prevails, Gold will be most esteemed by the rich 
 for its real or imaginary utility. Ornaments of it will 
 gratify their pride, and Coins of it will most con- 
 veniently purchase for them costly indulgences. In 
 large commercial concerns this precious metal will also 
 be most desired, as by means of its intervention extensive 
 exchanges may be earned on with the greatest facility. 
 A dread of public insecurity and political convulsions 
 will also have the same tendency, as the timid, and 
 indeed the prudent, will be induced thereby to conceal 
 their Coin, which can be hid most conveniently, from a 
 fond hope, that, when the commotions are over, their 
 property will procure them, in happier days, the comforts 
 and enjoyments of life. 
 
 As Silver Coins are most convenient for the payment 
 of troops, war must have a tendency to raise the price 
 of this metal. A turn of commerce, unfavourable to 
 a country, will also affect the relative values of the 
 precious metals, and will raise the price of that, which 
 is preferred by those with whom the inhabitants trade. 
 
 These principles account for the foregoing variations. 
 The unsuccessful exertions of Darius Hystaspes against 
 Greece, and the vast armaments of his son Xerxes, 
 
APPENDIX. 291 
 
 directed with similar fortune against the same country, 
 must have had a considerable influence upon the relative 
 values of the precious metals. During the preparations 
 of these, splendour and luxury must in some degree 
 have given way to the hope of conquest, and the 
 prospect of revenge ; and, with such a disposition, a 
 preference of Silver must have been adopted, as by 
 means of Coins of this metal the power was to be 
 preserved, by which the objects in view were most 
 likely to be obtained. Silver was not only most con- 
 venient, but even necessary, for paying the bulk of the 
 forces; and in order to procure a sufficiency of this 
 metal for carrying on the wars, Gold was exchanged, 
 without doubt, at a lower value than formerly. The 
 same circumstances must have had a similar tendency 
 in Greece ; and this tendency must have been rendered 
 still more strong by the victories, which the Grecians 
 obtained over the Asiatic invaders. That the value of 
 Gold, therefore, when compared to Silver, should have 
 been as 13 to 1 in the time of Herodotus, and that it 
 should have been reduced to be as 12 to 1 in the time 
 of Plato, is fully accounted for by the influence of these 
 events. 
 
 The causes of the next reduction of the value of 
 Gold in Greece have been already stated. Previous 
 to the end of the fourth century, before Christ, the 
 golden offerings, which the Asiatic Monarchs had made 
 to the temple of Delphi, had only contributed to the 
 splendour of that place ; but having been seized by the 
 
292 APPENDIX. 
 
 Phocians, there is every reason to believe, that they 
 were converted into Coin, and circulated through 
 Greece. The Mines which Philip of Macedon opened, 
 about the same time that Delphi was plundered, 
 supplied him with this precious metal to a large 
 amount ; and what he derived from these fruitful 
 sources he appears to have distributed among the 
 Grecian states, with a degree of liberality, correspond- 
 ing to the extent of his ambition. The additions to 
 the current Money of Greece, from these events, must 
 have born a considerable proportion to the whole 
 circulating medium of the country ; and their tendency 
 to lessen the value of Gold must have been aided 
 by the frugality and contempt of wealth, which then 
 pervaded almost all the states of Greece. That 
 this precious metal therefore in Greece should be as 
 10 to 1, when compared with Silver, in the time of 
 Menander, may justly be attributed to these circum- 
 stances ; and as the subsequent successes 'of Alexander 
 the Great, in Persia, must have brought into circulation 
 much Gold, which had been formerly hoarded up in the 
 treasuries, or kept for splendour, there is reason to 
 conclude, that it had the same relative value to Silver 
 in this last mentioned country, after his conquests. 
 
 When Gold Coins were first struck at Rome, the 
 virtue and patriotism of the people were in their full 
 vigour. Individual ease and emolument were absorbed 
 in the view of general welfare and public honour : the 
 high value, therefore, at which the Gold Coins were 
 
APPENDIX. 293 
 
 received, is rather to be understood as implying a 
 donation to the state, than to be considered as a fair 
 estimation of the relative values of the precious metals. 
 
 Frequent and extensive successes in war rendered 
 the continuation of such donations unnecessary, and 
 induced the Romans in a short time to conform to the 
 practice, which they found prevailing in Greece, of 
 estimating the value of Gold to be to that of Silver as 
 10 to 1. 
 
 The next succeeding depreciation of Gold was when 
 Cassar returned to Rome, after his conquests and 
 acquisitions in Gaul. To what has been already said 
 on this reduced value of Gold, it may not be improper 
 to add, that perhaps the sudden and extensive exchange 
 of this precious metal was owing to a conviction in 
 Ca3sar's mind, that Silver, and Coins of lower value, 
 were more necessary for carrying his ambitious designs 
 into execution. 
 
 Of the advanced value of Gold in the time of 
 Augustus, and its long continuance afterwards, the 
 only apparent cause was general profligacy. Licen- 
 tiousness of manners, prodigality and rapaciousness, 
 were the general features of the Roman character from 
 the time of this last mentioned Emperor till the reign 
 of Constantine the Great. In this interval a few dis- 
 played eminent virtues and abilities ; but they were 
 unable to produce a lasting reform among the bulk of 
 the people. This interval was also marked by fre- 
 quent and violent political convulsions ; and all these 
 
291 APPENDIX. 
 
 circumstances must have maintained a dread of public 
 insecurity in the minds of those, who observed present 
 occurrences, and provided for future. There is every 
 reason to believe, that these were the general causes, 
 which rendered the value of Gold to be to that of Silver 
 as 12 ^ to 1, during a period of about three hundred 
 years. 
 
 The victories of Constantine the Great, and a general 
 confidence in the wisdom and vigour of his adminis- 
 tration, removed for a while these public evils ; and, 
 together with the reliance on Government, Gold in such 
 plenty returned into circulation, that its relative value to 
 Silver became as 10^ to 1. 
 
 The empire, however, did not long enjoy this pros- 
 perity. Divided power and consequent rivalry, civil 
 war and internal distrust, imbecility in Government, 
 and invasions by powerful enemies, revived a dread of 
 public insecurity, and enhanced the value of Gold, when 
 compared to Silver, to be as 14 to 1. 
 
 As there is reason to believe, that the first of the 
 relative values, already mentioned, existed under the 
 reign of Darius Hystaspes, and as the last were 
 settled under the Emperors Arcadius and Honorius, the 
 existence of the whole amounted to more than nine 
 hundred years. Some of them, it is highly probable, 
 prevailed throughout the whole extent of the Mace- 
 donian and Roman empires, and consequently regulated 
 the commercial intercourse of a larger portion of the 
 globe than any relative values, more ancient, of the 
 
APPENDIX. 295 
 
 precious metals, or any which succeeded them. From a 
 review of the whole there is also reason to conclude, 
 that the extreme relative values of Gold, when com- 
 pared with Silver, neither enhanced by a dread of 
 public insecurity and general luxury, or depressed by 
 sudden and unusual preparations for Avar, were as 12 
 to 1, and as 10 to 1. 
 
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