Chapter VIII: Part II (4)

To find, therefore, the number of grains of fine silver in a marc of the French silver coin, we must state this proportion, 288 : 261 :: 4572 : 4143.38.

[Sidenote: Quantity of fine silver in a marc, as delivered at the mint.]

The marc, therefore, of coined silver, after all deductions for alloy, and for _remede de poids_, contains of fine silver 4143.38 grains _poids de marc_.

[Sidenote: Into what coined.]

This _marc_ is coined into 8 great crowns and 3⁄10 of a crown, value in the coin 49 livres, 16 sols.

If therefore 4143.38 grains of fine silver, be worth 49 livres 16 sols, 4608 grains (or a marc of fine silver) will be worth 55 livres 6 sols 9 deniers.

[Sidenote: Mint price of a marc of fine silver.]

But the mint price of fine silver is 51 livres 3 sols 3 deniers.

The difference, therefore, between the mint price of fine silver, and the price of it in the coin, will shew exactly the expence of coinage; consequently there is withheld for the expence of coinage and duty of seignorage (all which deductions and impositions are called _le trait des monnoyes_) 4 livres 3 sols 6 deniers upon every marc of fine silver. To know how much this makes _per cent._ state it thus,

51.162 : 55.38 :: 100 : 108.2.

[Sidenote: The price of coinage 8⅕ per cent. upon silver.]

So that in France there is 8.2 _per cent._ deducted upon the coinage of silver, as has been said. Let us next examine the regulations as to the gold.

[Sidenote: Remedy of weight upon gold.]

The marc, as above, is the unit of weight for the gold, and contains, as has been said, 4608 grains, of which 15 grains are allowed to the workmen for the _Remede de poids_: remains of standard gold in the marc 4593 grains.

[Sidenote: The fineness of standard gold.]

The fineness is reckoned by carats (not a weight, but a denomination of proportion) for the gold, as the denier is for the silver. Fine gold is said to be, as in England, of 24 carats. The carat is divided into 32 parts, so 32 × 24 = 768, are the parts into which any given mass of gold is supposed to be divided, when we speak of the standard fineness.

[Sidenote: The remedy of alloy upon gold.]

The standard of French gold is the same with that of silver, to wit, 11⁄12, or 22 carats fine. Upon this the workmen are allowed 12⁄32 parts of a carat, for the _Remede d’alloy_; which reduces the standard to 210⁄32 carats fine, to 12⁄32 carats alloy. This expressed according to the division above mentioned, stands thus, 692 parts fine to 76 alloy.

To find, therefore, the number of grains of fine gold in a marc of the coin, we must state the following analogy.

768 : 692 :: 4593 : 4138.48.

[Sidenote: The marc into what coined.]

The marc of gold coin therefore contains, after all deductions, 4138.48 grains of fine gold.

This marc is coined into 30 louis d’ors of 24 livres each, value in all 720 livres.

If therefore 4138.48 grains of fine gold be worth in the coin 720 livres, the marc of fine gold, or 4608 grains, will be worth 801 livres 12 sols.

[Sidenote: Mint price of a marc of fine gold.]

But the mint price of fine gold is 740 livres 9 sols 1 denier.

The difference, therefore, between the mint price of fine gold, and the worth of it in the coin, (viz. 61 livres 3 sols 2 deniers) will shew exactly the price of coinage.

If we ask how much this makes _per cent._ we may state it thus,

740.409 : 801.68 :: 100 : 108.2.

[Sidenote: The price of coinage 8⅕ per cent. upon gold.]

So in France there are 8.2 _per cent._ deducted for coinage of the gold.

By the foregoing calculations it appears, that the King takes above 8 _per cent._ upon the coinage both of gold and silver.

[Sidenote: Which no way stops the mint.]

For many years past there have been no violent methods used to bring bullion to the mint, and yet we see, by the dates upon the French coin, what great quantities have been struck both of gold and silver. This is a most convincing proof, I think, that the imposition of coinage, when properly laid on, is no interruption to the mint; and being a matter of fact well determined, is a confirmation of that principle.

[Sidenote: Of the proportion of the metals.]

Let us next examine the proportion between the value of the metals, both in the coin and at the mint.

For this purpose we must compare the mint prices in one equation, and the value of the gold and silver coin in another.

[Sidenote: How to discover it.]

At the mint, a marc of fine silver is paid 51.162 livres, and a marc of fine gold 740.409 livres; consequently 51.162 : 740.409 :: 1 : 14.47.

A marc of fine silver, in the coin, is worth 55.38 livres; a marc of fine gold, in the coin, is worth 801.68 livres. We may therefore state thus, 55.38 : 801.68 :: 1 : 14.47.

[Sidenote: The proportion is as 1 to 14.47.]

The proportion, therefore, both at the mint and in the coin is the same; and is nearly as the French writers state it, to wit, as 1 is to 149⁄19, but more exactly as 1 to 14.47, which is very nearly as 1 to 14.5.

[Sidenote: Gold contained in a louis d’or, and silver in a crown of 6
livres.]

From these computations we find the exact quantity of fine gold in a louis d’or, and of fine silver in a great crown, or piece of 6 livres.

In the louis d’or there are 137.94 grains fine, and 153.1 standard gold.

In the great crown there are 499.22 fine, and 550.843 standard silver.

[Sidenote: Proportion of a French grain weight to a troy grain.]

Farther, by the most exact calculations I have been able to make, after comparing the accounts which French writers give of the proportion of the English troy grain, with the grain of the Paris pound, and the accounts which English writers give of the proportion of French grains, with those of the troy pound; and after checking these accounts with the most accurate trials, by weighing and taking a mean proportion upon all, I find that a French grain _poids de marc_, is to an English grain troy, as 121.78 is to 100. See the table. What a shame it is, that such proportions can only be guessed at by approximations, in the age in which we live!

To discover, therefore, the number of troy grains of fine gold in a louis d’or, state thus, 121.78 : 100 :: 137.94 : 113.27.

[Sidenote: Proportion between the louis and the guinea.]

Now a guinea contains 118.651 troy grains of fine gold, and yet, in almost every country in Europe, the louis d’or, in time of peace, passes for as much as the guinea, when both are of good weight. This is a matter of fact well known, and is a confirmation of another principle which I have laid down, to wit, that the imposition of coinage gives an advanced value to a nation’s coin, even in foreign countries.

[Sidenote: Of the fineness of French wrought plate.]

The fineness of the French silver wrought into plate, is different from that of the coin. The fineness of the coin we have said to be 10 deniers and 21 grains, or 261 parts fine, to 27 alloy; and the value of a marc of it (when the 36 grains of remedy of weight is deduced) is 49 livres 16 sols, which makes the full marc of 4608 grains to be worth 50 livres 4 sols. The standard of the plate is 110⁄24 deniers, or 274 fine, and 14 alloy. In order, therefore, to find the value of the plate, at the rate of the coin, state thus, 261 : 50.2 :: 274 : 52.7; consequently silver plate in France, at the rate of the coin, is worth 52 livres 14 sols.

When goldsmiths sell their plate, they ought regularly to charge, for the metal, the current price of the market; but as that is constantly varying, the King, for their encouragement, has fixed the value of the marc of it at 52 livres, which is only 14 sols per marc below the value of the coined silver, including the price of coinage. Consequently, were goldsmiths to melt down the coin in order to make plate of it, they would lose 14 sols per marc, besides the expence of reducing the melted coin to the standard of the plate. Goldsmiths, therefore, in France, will never melt down the coin when they can find bullion in the market, at the price of 14 sols per marc below the value of the coin; and we have seen that the price imposed on coinage generally reduces the bullion to near 8 _per cent._ below coin: but supposing them to melt it down, there is no loss to the state, because the coinage is already paid.

[Sidenote: Goldsmiths profit by the imposition on coinage,]

By this regulation, goldsmiths profit by the imposition of coinage; because the mint price of silver being 8 _per cent._ below the value of the coin, and that keeping the price of bullion low, goldsmiths gain upon the sale of their wrought plate, all the difference between the price they pay for bullion when they make their provision of it, and the price they are allowed to sell it at when wrought.

Another consequence of this regulation is, that there is no competition occasioned between the mint and the goldsmiths, to the prejudice of the latter. No body will carry bullion to the mint while there is the least demand for it to make it into plate. This consequence is plain.

[Sidenote: And never find the mint in competition with them for the
metals.]

Bullion can never fall lower than mint price; consequently, the mint may rather be considered as receiving the bullion upon an obligation to pay a certain price for it, than as demanding it in the market. The smallest demand, therefore, from the goldsmith, will raise the price of bullion when it stands at mint price; because he who has it, will never give it to any body who has occasion for it, without some small advantage above what the mint must give him for it; but the mint price being fixed, no competition can come from that quarter, and therefore the advanced price the goldsmith gives must be very small.

[Sidenote: Advantages of the French regulations.]

Upon the whole, the regulations in France appear (so far as I comprehend them) admirably well contrived to serve every purpose. They prevent the melting down and exporting of the coin; they prevent bullion from being coined, when it cannot remain in the kingdom; they give an advanced value to that part of the nation’s coin which must be exported for the payment of the balance of trade; and they recall it home when the balance becomes favourable. They prove an encouragement to the industry of goldsmiths; there is a sufficient check put upon their melting down the specie; and there is no discouragement given to private people from making plate, because the silver in the plate is sold by the goldsmith, a small matter below its intrinsic worth when compared with the coin.

The only thing to be reformed is the remedies allowed by the King upon the weight and fineness; because it tends to perplex calculations, and is not at all necessary. When exactness can be procured, it ought to be procured; and as the workmen regularly profit of all the remedies allowed them, it is a proof that they have no occasion for any indulgence to make up for their want of dexterity.

I shall make no mention of the duty of _controle_ upon wrought plate. This I consider as an excise upon a branch of luxury; consequently, the examination of it belongs to the doctrine of taxation, and is foreign to that of money.

It has been said above, that the imposition of coinage (occasioning the coin of France to circulate, almost at all times, above its intrinsic value as bullion, even in foreign countries) prevented bullion from ever rising in the Paris market to the price of coin. This principle I also find confirmed by facts.

[Sidenote: High price of bullion in the Paris market during the year
1760.]

Foreign gold of 22 carats fine, sold in the Paris market (December 13th, 1760) at 712 livres the marc. In order to find the value of the marc of fine gold, state thus, 22 : 712 :: 24 : 776.7. Now the marc of fine gold in the coin, we have seen to be 801.12 sols. So at this time, when France is engaged in a most expensive war, while she is daily exporting immense quantities of both gold and silver coin, to pay her armies and subsidies, the price of gold bullion in her market is 24 livres 18 sols per marc below the value of her coin. Nothing but the advanced value of her specie in foreign currency, could possibly produce such a phænomenon. But when she was sending stamped ingots of gold to Russia, in the month of September last, the price of the gold bullion of 22 carats then rose to 734 livres per marc, which for the marc of fine gold makes 800 livres 14 sols, which is but 18 sols below the value of the coin. The reason is plain: the coin sent to Germany, or Holland is constantly returning to France, or at least may soon return, which supports the high price of it in these countries; but what was sent to Russia was plain bullion.

Before I conclude this chapter, I must say a word concerning the wearing of the French coin by circulation.

[Sidenote: Present state of the wearing of the French silver coin.]

As paper money has no currency in France, by any public authority, all payments must be made in coin. For this purpose the silver is more commonly used than the gold; from which I am obliged to conclude, that the silver must be somewhat over-rated in the coin, above the proportion of the price of gold in the Paris market; but of this I have no exact information.

The silver coin is put up in sacs of 200 great crowns, value 1200 livres. This sum on coming out of the mint, weighs, according to the following equation, 23 marcs 7 ounces 152 grains. State thus, 8.3 great crowns = 4572 grains standard silver; consequently, 200 = 110168.6 = 23 marcs 7 ounces 152 grains.

These sacs, according to my information, weigh constantly at least 23 marcs 7 ounces, exclusive of the sac; so that the French silver currency has not, at this time, lost above 152 grains upon the sac of 1200 livres, which is about 137⁄1000 per cent. This is a trifle upon a small sum; but as no difference, however small, is a trifle upon a large sum, a limit ought to be set to the farther diminution of the weight of the currency, which might be accomplished easily, by ordering all sacs of 1200 livres to be made up to the weight of 23 marcs 7 ounces effective, for the future. This would be, at present, no injury to the public, there would be a sufficient allowance given for many years circulation of the coin, and the degradation of it in time coming, would be effectually prevented.

------------------------------------------------------------------------

CHAP. VIII.
_Of the Regulations observed in Holland, with regard to Coin and
Bullion._

[Sidenote: Present state of the Dutch currency.]

It comes next in order to examine how this matter stands in the states of the United Provinces, and with this I shall conclude.

We shall here find the question infinitely more involved in combinations, than hitherto we have found it. We shall find the most sagacious people in the world, with regard to trade and money, struggling with all the inconveniencies of an ill regulated coinage, and an old worn out silver currency; carrying on their reckonings by the help of agio; weighing their specie; giving allowance for light weight; buying silver with silver, and gold with gold; as if it were impossible to bring the value of these metals to an equation; and loading commerce with an infinity of brokers, Jews, and cashiers, without the aid of which it is impossible in Holland either to pay or to receive considerable sums in material money.

It is very true that what must appear an inextricable perplexity to a stranger, is really none at all to the Dutch. Trade is there so well reduced to system, and every branch of it so completely furnished with hands to carry it forward, that the whole goes on mechanically, and though at a great additional expence to trade in general, yet at none to the merchant; because he regularly sums up all this extraordinary expence upon his dealings, before he superadds his own profit upon the operation. Were therefore all this unnecessary expence avoided, by a proper regulation of the coin, the consequence would be, to diminish the price of goods to strangers, as well as to the inhabitants, to leave the profits upon trade, relative to the merchants, exactly as before; and to increase, considerably, the trade of the republic, by enabling them to furnish all commodities to other nations cheaper than they can do, as matters stand; but were this plan put in execution, the consequence would also be, to take bread from all those who at present live by the disorder, which ought to be removed.

Of the regulations in the Dutch mint.

[Sidenote: Regulations in the Dutch mint.]

The unit of weight in the Dutch mint, is the marc _Holland’s troes_, or gold weight.

[Sidenote: Their unit of weight is the marc Holland’s troes.]

This weight is about 1½ _per cent._ lighter than 8 ounces English weight, without coming to the most scrupulous exactness.

This marc is divided into 8 ounces; every ounce into 20 engles; every engle into 32 aces or grains. The ounce therefore contains 640, and the marc 5120 aces. By this weight, bullion is bought, and the coin is delivered at the mint, or weighed in circulation, when weighing is necessary.

[Sidenote: The _remede_ of weight on silver.]

The mint delivers the silver coin by the marc weight; but from the full weight, there is deducted as a _remedy_, one engles and one ace, or 33 aces: so the marc of the mint, by which they deliver the silver, contains 5087 aces, in place of 5120.

[Sidenote: The fineness of silver is different in different coins.]

The fineness of the Dutch silver is various, according to the species. I shall here, for the greater distinctness, take notice only of the fineness of the florins; because it is the best and the most standard coin, used in the payments of foreign bills of exchange, leaving the other varieties of their specie to be considered afterwards.

[Sidenote: Florins are 11⁄12 fine with one grain of remedy.]

By florins I mean (besides the florin pieces) those also of 30 stivers, and the 3 florin pieces, the standard of which is all the same, to wit, 11⁄12 fine with one grain of remedy.

[Sidenote: How they reckon their silver standard.]

The mass of silver in the Dutch mint, (when we speak of the fineness) is supposed to be divided into 12 pence, and every penny into 24 grains, as in France.

Any mass of silver, therefore, of whatever weight, is supposed to be divided into 288 parts; consequently by 11⁄12 fine with one grain of remedy, is meant, that there are 263 of these parts _fine_, and the remaining 25 parts of _alloy_. This is the exact standard of the Dutch florins.

To find therefore the number of grains of fine silver in the marc weight, as it is delivered at the mint, we must state this proportion, 288 : 263 :: 5087 : 4645.4.

[Sidenote: Exact quantity of fine silver in a marc weight of Dutch
florins as they come from the mint.]

The marc therefore of coined silver florins, after all deductions for alloy, and for remedies of weight and of fineness, contains of fine silver 4645.4 aces Hollands troes.

This marc is ordered to be coined into 237⁄331 florins. If therefore 4645.4 aces of fine silver be worth 237⁄331 or (in decimals, for the sake of facilitating calculation) 23.2024 florins, then the full marc or 5120 aces of fine silver will be worth 25.572 florins by this analogy, 4645.4 : 23.2024 :: 5120 : 25.572.

[Sidenote: Mint price of fine silver.]

But the mint price of the marc of fine silver is 25.1 florins. The difference, therefore, between the mint price of fine silver, and the price of it in the coin, will shew exactly the expence of coinage. State thus,

The price of a marc of fine silver in the coin _fl._ 25.572
Price of ditto as paid by the mint 25.1
————
Price of coinage 0.472

To know how much this makes _per cent._ state thus,

25.1 : 25.472 :: 100 : 101.48

[Sidenote: Price of coinage in Holland is about 1½ _per cent._ on
silver.]

So that in Holland there is not quite 1½ _per cent._ taken upon the coinage of silver florins. Let us next examine the regulations as to gold coin.

[Sidenote: Of the Dutch gold coins.]

There are in Holland two species of gold coins of different weights, fineness, and denominations, to wit, the _Ducat_ and the _Rider_; we must therefore examine them separately.

[Sidenote: The ducat has no legal denomination.]

The ducat is what they call a _negotie pfenning_, that is, a coin struck under the authority of the state, in all the mints, and of a determinate weight and fineness; but not a legal money in payments, because it has no _legal_ denomination.

Ducats are delivered by the marc weight as the silver; but there is a remedy of weight deducted of one engle per marc. So the marc of ducats, as delivered by the mint, weighs but 5088 aces.

[Sidenote: The fineness 23 carats 8 grains.]

The fineness of the ducats is (as in the empire) of 23 carats 8 grains; but in Holland they allow one grain of remedy.

[Sidenote: How the fineness is reckoned.]

The standard of the gold is reckoned by carats and grains: 24 carats are called fine gold, and every carat is divided into 12 grains; so let the mass of gold be of what weight soever, it is always supposed to contain 288 parts, that is, 12 × 24: at this rate the fineness of ducats is 283 parts fine gold, and 5 parts alloy.

[Sidenote: Fineness of the ducats of the empire.]

The imperial ducats ought to be 284 parts fine, 3 parts silver, and one part copper, without any remedy; but in Holland the assayers bring the gold to the fineness of 23 carats and 8 grains; then they suppose that what remains is all silver, and they take their remedy by adding one grain of copper. Dutch ducats are therefore something in the fineness, though nothing in the weight below the regulations of the empire.

[Sidenote: Exact quantity of fine gold in a marc weight of Dutch ducats
as they come from the mint.]

To find the number of grains of fine gold in the marc weight, as it is delivered from the mint, we must state this proportion,

288 : 283 :: 5088 : 4999.6.

The marc, therefore, of gold coined into ducats, after all deductions for alloy, and for the remedies of weight and fineness, contains 4999.6 aces of fine gold. This marc is ordered to be coined into 70 ducats.

If, therefore, 4999.6 aces of fine gold, be worth 70 ducats, then the full marc of 5120 aces of fine gold will be worth 71.687 ducats, by this proportion, 4999.6 : 70 :: 5120 : 71.687.

[Sidenote: Mint price of fine gold.]

But the mint price of the marc of fine gold is 71 ducats.

The difference, therefore, between the value of a marc of fine gold in ducats, and the price given by the mint for the same quantity of fine gold bullion, shews the expence of coinage. State thus,

Price of the marc of fine gold in ducats 71.687 ducats
Mint price of the marc ditto 71
——————
Price of coinage 0.687

To know how much this makes _per cent._ state thus,

71 : 71.687 :: 100 : 100.96.

[Sidenote: Price of coinage upon ducats about 1 per cent.]

So that there is not quite 1 _per cent._ taken in Holland upon the coinage of their gold ducats.

[Sidenote: The price of coinage upon both species should be the same.]

But upon the silver florins there is (as we have seen) near 1½ _per cent._ consequently, there is an encouragement of 1½ _per cent._ given for carrying gold to the mint preferably to silver; which, in my humble opinion, is ill judged. I allow that the expence of coining a sum in silver is greater than the expence of coining the same sum in gold; but I think it is better to allow an additional profit to the mint upon the gold, than to disturb the equality of intrinsic value which ought to be contained in the same sum coined in gold and silver. But indeed, according to the present state of the Dutch mint, this small irregularity is not much to be minded, as we shall see presently.

[Sidenote: The Rider]

_Riders_ are a coin but lately used in Holland. Formerly, the Dutch had no legal gold coin, silver was their standard; and ducats as a _negotie pfenning_ (as they call them) found their own value, having no determinate legal denomination, as has been said.

[Sidenote: has a legal denomination, and is a lawful tender in payments
to ⅓ of the sum,]

But of late the States have coined this new species of gold, to which they have given a fixed denomination, and the authority of a legal coin, to be received in all payments, so far as one third of the sum to be paid; the other two thirds must be paid in silver: but of this more afterwards, our present business being to examine the weight, denomination, and fineness of this species.

[Sidenote: is coined always by the state and for the state; so there can
be no mint price.]

_Riders_ are coined by the State alone, no private persons carrying bullion to the mint for that purpose; the coinage, therefore, not being open to the public, it is in vain to seek for a mint price. They are delivered at the mint by tale, not by weight; so we must inquire into the statute weight, fineness, and denominations of this species, in order to discover the quantity of fine gold which is contained in the florin of this currency: this we shall compare with the florin in the ducat, and so strike an equation between the florin in this standard coin, and in the other, which finds its own price, according to the fluctuation of the metal it is made of.

[Sidenote: Regulations as to the fineness, denomination, and weight of
riders.]

A marc of fine gold struck into riders circulates for 374 florins. This is the regulation as to the weight.

The standard is exactly 11⁄12 fine, or 22 carats, without any remedy.

The denomination is 14 florins for every rider, the half rider in proportion. To discover therefore the quantity of fine gold in a rider, we must first divide 374 by 14, which will give the number of riders in the marc fine, viz. 26.714 riders; then we must say, if 26.714 riders contain a marc of fine gold, or 5120 aces, how much will one rider contain? The answer is 5120⁄26.714 = 191.65.

[Sidenote: Quantity of fine gold in a florin of riders.]

Divide this by 14, and you have the number of aces of fine gold contained in a florin of this currency, 191.65⁄14 = 13.69.

Here then is the exact weight of the fine gold contained in one florin of the currency in riders.

[Sidenote: To put the ducat upon a par with riders it should circulate
for 5 florins 4⅛ stivers.]

Let us now examine how much a ducat ought to pass for, in order to be upon a par with the currency of the riders.

We have seen that a marc of fine gold is coined into 71.687 ducats. That number of ducats, therefore, to be upon a par with the riders, should be worth 374 florins. Divide, therefore, this last number by the first, you have 374⁄71.687 = 5.217 florins, which is a little more than 5 florins 4⅛ stivers.

[Sidenote: Utility of not fixing the denomination of ducats.]

Were the States, therefore, to give a fixed denomination to ducats, they ought to be put at that value; but the trade of Holland requires that this coin should be allowed to fluctuate, according to circumstances. The great demand at present (1761) for _gold_ to send to the armies preferably to silver, on account of the ease of transportation, has raised the value of that metal, perhaps ¼ _per cent._ above what it would otherwise be. If then ¼ _per cent._ be added, it will bring the ducat to the present current value, to wit, 5.4⅜ florins. If, therefore, in order to bring the currency of ducats upon a par with the riders, they were fixed at 5.4⅛ florins, it is very plain, that no more would be sent away in payment at that rate, because of the present advanced value of gold; consequently, none would be coined; the mints would be stopped, and the armies would be paid in guineas and Portugal gold; the melting and recoining of which keeps all the mints in Holland in constant occupation.

This, besides employing and giving bread to a number of hands, multiplies the Dutch currency, at a time when they have so great occasion for it.

Let us next examine the proportion of the metals in the coin.

[Sidenote: How to find the proportion of the metals in the coin of
Holland, and a wonderful phænomenon in the value of ducats.]

Here we must adhere closely to the regulations of the mint above mentioned, and only determine what the proportion of the metals would be, were the coin of Holland, both gold and silver, of standard weight, and were it the practice to pay for the metals at the mint, indifferently in either species. But neither of these suppositions are to be admitted: First, because the silver coin is not of its due weight; and in the second place, because the mint never buys gold bullion but with gold coin, nor silver bullion but with silver coin. This is the infallible consequence of a coinage ill regulated in what relates to the proportion of the metals, which ought respectively to be put into the same sum, in the two different species.

It would be endless to examine the proportion of the metals, with respect to every species of their coin. It would also be incorrect to examine it as to the ducats; because that species has no fixed legal denomination; and the proportion of the metals is to be discovered by the denomination of the coins only.

Ducats pass current among the people for 5 florins 5 stivers; but with merchants, who buy them as merchandize, their value is continually varying. At present (September 1761) the new coined ducats brought in bags from the mint, which never have circulated, are bought for 5 florins 4⅝ stivers; those which have circulated (were it for a day) fall, from that very circumstance, to 5 florins 4⅜ stivers; which is a diminution of near ¼ _per cent._ of their value. This phænomenon shall afterwards be accounted for.

[Sidenote: Were all the coin of full weight, the proportion would be as
1 to 14.62.]

This being the case, we have no method left to judge of the proportion of the metals in the coin of Holland, but by the proportion of fine gold and fine silver found in the same sum, paid in florins of full weight, and in new riders; the one and the other coined according to the regulations of the mint above mentioned.

It has been shewn that a marc of fine gold in riders, circulates for _f._ 374, and that a marc of fine silver in florins, circulates for _f._ 25.572; divide the first by the last, you have the proportion as 1 to 14.62: But we shall afterward discover a circumstance, not taken notice of in this place, which will reduce the proportion lower.

[Sidenote: Quantity of fine silver in a florin piece.]

From the above calculations, we may easily discover the exact quantity of fine silver and fine gold contained in a Dutch florin, whether realized in silver florin pieces, in gold riders, or in ducats. As this will be of use when we come to examine the par of exchange, it will not be amiss to set before the reader, the exact state of that particular before we proceed. We have said that whoever receives _f._ 25.572 in silver florins of full weight, receives a marc of fine silver, which contains 5120 aces. Divide the last sum by the first, you have 200.21 aces of fine silver for the florin.

[Sidenote: Quantity of fine gold in a florin of riders.]

Whoever receives _f._ 374 in gold riders, receives a marc of fine gold, which contains 5120 aces. Divide the last sum by the first, you have 13.69 aces of fine gold for the florin.

[Sidenote: Investigation of this proportion as to the ducat;]

We have seen that ducats fluctuate in their value, having no legal denomination, which obliged us to state the current value of a marc of them at 71.687 ducats, not being able to express that value in florins; because of the unsettled denomination of that species. Let us now specify that value in florins, upon three suppositions. The first, that the ducat is worth what it passes for among the people, to wit, 5_f._ 5_st._ The second, at the value of new ducats from the mint, to wit, 5_f._ 4⅜_st._ The last, at the merchant price of good ducats, which have circulated, to wit, 5_f._ 4⅜_st._

In the first case (the ducat at 5_f._ 5_st._) 71.687 ducats are worth 376.35 florins, this being the value of a marc of fine gold in ducats, and the marc containing 5120 aces; divide the last by the first, you have 13.604 aces of fine gold for the florin.

In the second case (the ducat at 5_f._ 4⅝_st._) 71.687 ducats are worth 375.04 florins; by which number divide 5120 as before, you have 13.651 aces of fine gold for the florin.

In the last case (the ducat at 5_f._ 4⅜_st._) 71.687 ducats are worth 374.11; by which number dividing 5120, you have 13.685 aces of fine gold for the florin, which comes within a trifle of the florin in riders.

[Sidenote: by which it appears that the late war has raised the value of
gold, and set the market price of the metals in Holland at 1
to 14.785.]

But now (in June 1762) I learn, that the course of new ducats from the mint in the Holland-market, is got up to 5_f._ 5½_st._ In this case, 71.687 ducats are worth 378.1 florins; by which number dividing 5120, as before, you have 13.541 aces of fine gold for the florin.

If we seek here the proportion between the gold and silver, we must state thus. If a florin in ducats contain 13.541 aces of fine gold, and a florin in silver coin contain as above 200.21 aces of fine silver, then 13.541 : 200.21 :: 1 : 14.785. So the effect of this war has already been to raise the value of gold 1.12 _per cent._ above what it was esteemed to be, when the riders were coined.

The proportion as to riders is, as before, 1 to 14.62.

[Sidenote: Which is a rise upon the value of gold of 1.12 per cent.]

The present proportion as to ducats is 1 to 14.785.

14.62 : 100 :: 14.785 : 101.12.

I must farther observe upon this subject, that although we have seen that the ducats which have circulated for ever so short a while, when bought at 5_f._ 4⅜_st._ produce for the florin 13.685, (which is more than is produced by the new coined ducats fresh from the mint) we are not from this to conclude, that the former are intrinsically a cheaper currency than the latter. I have been at all the pains imaginable to weigh these ducats against others fresh from the mint; and also to compare their weight with what it ought to be by the regulation; and I have constantly found near ¼ _per cent._ difference between them. This is entirely owing to the nature of the coin. The ducat has a large surface in proportion to its weight; it carries a very sharp impression, full of small points; the cord about the edges is exceedingly rough; so that the least rubbing, breaking off those small points, diminishes the weight of the piece near ¼ _per cent._ which is clear loss, not only to the proprietor, but to the state, and to all the world. Besides, those who are obliged to go to the mint for new ducats, are supposed to bear the greatest weight of the coinage of a piece which, having no legal denomination, is left afterwards to seek its own value, according to that of the metals at the time.

[Sidenote: The intention of this minute detail is in order to calculate
the real par of the coins of Europe.]

As I have entred into this minute detail of the weight of fine silver and fine gold contained in the Dutch florins, with a view to facilitate the calculation of the par of the metals contained in the coins of Holland, and those of other nations; I must next mention the proportion between the aces in which we have expressed the weight of the Dutch specie, and the grains in use in some of the principal nations with which they trade: These I take to be England, France, and Germany.

[Sidenote: Proportion between the mint weights of Holland, England,
France, and Germany.]

The reduction of weights to mathematical exactness, is beyond the art of man; and to this every one, who ever tried it, must subscribe. I have been at all the pains I am capable of, to bring those weights to an equation; and here follows the result of my examination into that matter.

By all the trials and calculations I have made, I find that 5192.8 aces Holland-troes; 3840 grains English troy weight; 4676.35 grains Paris poid de marc; and 4649.03 grains Colonia (which is the gold weight of the empire) are exactly equal.

I reckon by the lowest denomination of these several weights, to wit, their grains; to avoid the endless perplexity of reducing to a proportion, their pounds, marcs, and ounces, which bear no regular proportion to their grains.

[Sidenote: Par of a pound sterling, in weighty silver, with Dutch
florins in riders is 11 florins 12 stivers.]

To give some examples of this method of calculating the exact par of the metals contained in the coin of those nations, reduced to the weights of Holland, I shall state the following computations.

A pound sterling in silver, by the statute of the 43d of Elizabeth, is 1718.7 grains troy fine; to know how many aces Holland-troes that makes, state thus, 3840 : 5192.8 :: 1718.7 : 2324.1.

Divide 2324.1 by 200.21, (the number of aces contained in a silver florin) you have for the par of the pound sterling, _f._ 11.609.

[Sidenote: Par of the pound sterling in gold with ditto, is 11 florins 3
stivers and ⅕.]

A pound sterling in guineas, by the statute fixing guineas at 21 shillings, contains 113 grains troy fine; to know how many aces Holland-troes that makes, state thus,

3840 : 5192.8 :: 113 : 152.8.

Divide 152.8 by 13.69, (the number of aces contained in a gold florin in riders) you have for the par of the pound sterling in guineas, _f._ 11.161.

[Sidenote: Par of a French louis d’or with the same florin, is 11
florins 3 stivers and ¾.]

A French louis d’or contains 137.94 grains poid de marc fine gold; to know how many aces Hollands that makes, state thus,

4676.35 : 5192.8 :: 137.94 : 153.17.

Divide 153.17 by 13.69, (the number of aces contained in a gold florin in riders) you have for the par of the louis d’or, _f._ 11.188.

[Sidenote: Par of 24 livres French in silver with the same florin, is 11
florins 1½ stiver.]

24 livres French, contain 1996.88 grains poids de marc of fine silver; to know how many aces Hollands that makes, state thus,

4676.35 : 5192.8 :: 1996.88 : 2217.4.

Divide 2217.4 by 200.21, (the number of aces in a silver florin) and you have for the par of 24 livres French silver, _f._ 11.076.

[Sidenote: Great balance of trade against France, in September 1761.]

The French silver here is less valuable in Holland than the gold: this is no proof that the proportion between the metals in the respective coins of these two nations is different (we shall soon find it to be very exactly the same); but this preference in favour of the French gold, is owing to the temporary demand for gold on account of the war; for which reason no French silver coin appears at present in Holland. I write in September 1761.

I must also observe, that at this time the course of louis d’ors is 11_f._ 4_st._ which is little or nothing above the real par of the metal they contain; which in peaceable times is not the case. This proves how strongly the balance of trade is against France with respect to Holland, as it has reduced her specie to the price of bullion: it is not so in Germany.

[Sidenote: Low value of the pound sterling in Holland, in 1761.]

The low value which a pound sterling has borne for these several years in exchange, and the great fall of its worth in Holland of late, when it has been at 10_f._ 10_st._ is no argument against the high conversion I have given it, to wit, above 11_f._ 12_st._ Were there nothing but silver coin in England, and were it all of standard weight, exchange would frequently run even above that value in peaceable times; because the silver coin in Holland is light, and I have reckoned it as if it were of full weight.

It will be observed, that the par upon the gold does not quite amount to 11_f._ 4_st._ the reason of which is the great disproportion in the British coin, between the intrinsic value of a pound sterling in silver, and in gold, when both are of standard weight; the latter being near 5 _per cent._ worse than the former, when the proportion of the metals is supposed to be at 14½. But at present there are no sterling pounds in silver money; there is no silver in England in any proportion to the circulation of trade; and therefore the only currency by which a pound can be valued, is the guinea.

[Sidenote: Owing to the lightness of the gold coin in England at that
time,]

It has been said, and I think sufficiently proved, that the price of the metals in the market, shew very exactly the weight of the currency in nations where coinage is free, when there is no severe prohibition (_put in execution_) against the exportation of the coin. This I take to be the case in England. Now gold there has risen of late to 4_l._ 0_s._ 8_d._ per ounce; from which I conclude, that the guineas with which it is bought, or with which bank notes are paid, are at present so light, that 4_l._ 0_s._ 8_d._ of them do not weigh above an ounce, (the good guineas are exported) whereas an ounce of new guineas is worth no more than 3_l._ 17_s._ 10½_d._

Gold, therefore, which now sells for 4_l._ 0_s._ 8_d._ would certainly be worth no more than 3_l._ 17_s._ 10½_d._ were English gold coin of its proper weight: and the price of it will come down to that value, in proportion as circumstances shall call back the heavy guineas.

To facilitate the verification of this point, I shall first observe, that the difference between 4_l._ 0_s._ 8_d._ and 3_l._ 17_s._ 10½_d._ is 4.57 _per cent._ The English gold currency, therefore, at the time standard bullion was worth 4_l._ 0_s._ 8_d._ must have been worn 4.57 _per cent._ Guineas, when of full weight, weigh 129.43 grains of troy weight; if such guineas are worn 4.57 _per cent._ they ought to weigh no more than 123.23 grains troy. Now let any man try the experiment, and put an old guinea, taken by chance (not picked out) into a scale, and see whether it has not been worn down to 123.23 grains; and let him also examine whether the _greatest part_ of the guineas, at the time when gold bullion has got to so high a price, are not of King George I. and his predecessors: these I call old.

Besides these there are other circumstances to be attended to. Men who job in coin, pick up all the worst guineas they can when they go to market; or if they buy with paper, we may decide, that the bank at that time pays in guineas not above the weight of 123.23 grains troy; for if the bank paid with guineas of a greater weight, he who had occasion to carry his paper to market to buy gold bullion, would certainly rather go to the bank, and afterwards melt down their guineas. Were the bank of England never to pay but in gold of full weight, and were the exportation of guineas free, it is impossible that gold should ever rise above the mint price, which is 3_l._ 17_s._ 10½_d._

As a farther confirmation of the justness of the high valuation I have put upon a silver pound sterling of standard weight, I shall observe, that a new guinea passes in Holland (at the time when the exchange is at 10_f._ 10_st._) for 11_f._ 11_st._ and every body knows, that such a guinea in England is not above the intrinsic value of a silver pound sterling of full weight. If then I can get 11_f._ 11_st._ for a new guinea, I ought to get as much for a new silver pound sterling, since the intrinsic value of both is the same, when the proportion of gold to silver is as 1 to 14½. Now this guinea must be worth more than 11_f._ 11_st._ because the Jews, who carry them to the mint, give that price for them (I have disposed of them to Jews at that value[4]); and as the coinage of ducats costs, as we have seen, near 1 _per cent._ the guinea is intrinsically worth 2 stivers more, that is 11_f._ 13_st._ but as gold at present bears an advanced price upon account of the war, and that the proportion between gold and silver is in Holland above 1 to 14½, these are the reasons why the guinea, in Holland, is at present something above the intrinsic value of a silver pound sterling, which we have stated at _f._ 11.609, a trifle above 11_f._ 12_st._

Footnote 4:

This was writ in Holland.

[Sidenote: and not to the wrong balance of their trade, as is alledged.]

Let me here observe, by the bye, that all the pounds remitted from Holland to England, for filling the subscription for 12 millions of last year, cost the remitters but about 10_f._ 10_st._ for the pound sterling. If this low course of exchange be owing (as some pretend) to a wrong balance of trade against England, and not (as I pretend) to the lightness of the gold currency; then we must allow, that the expence of the German war (which is what alone carries off coin out of the kingdom) must have exceeded all the profits of the English commerce, which I apprehend to be at present immense; and also all the money lent by foreigners towards the loan of 12 millions. I leave to others more knowing than myself, to determine if such a supposition be admissible. If it be rejected, let any man reflect how absurd it would be to raise, at this time, the standard of the pound sterling to the old value; and to repay at 11_f._ 12_st._ such sums as have been borrowed at the value of 10_f._ 10_st._ or in other words, to make a present to the Dutch creditors of above 11 _per cent._ upon account of a loan for a year or two.

[Sidenote: Defects of the silver currency of Holland.]

Having now given as good an account as I can of the Dutch coin, according to the regulations of the state, I shall next point out the defects of their silver currency, and shew the consequences which result from them. As for the gold, it is at present perfectly well regulated. The riders are all exact in their weight, fineness, and denomination; the ducats are all now recoined of legal weight and fineness; and the denomination not being fixed, they serve, in a trading nation, as a merchandize, of which the weight and fineness are well ascertained. The only defect, therefore, I can discover in the Dutch gold currency, is the form of the pieces. They have too much surface in proportion to their weight, and the impression is too sharp; both which contribute greatly to the wearing of the coin.

[Sidenote: Account of this currency.]

The silver currency of Holland is of two sorts. The bank species, and the current species. Here it must be observed, that by bank _species_ is not meant Amsterdam _banco_, or bank money, but certain coins which are called _bank species_. These are,

Pieces of 3 guilders.
————— 30 stivers.
————— 20 stivers.

These are called _groff gelt_, as being the good specie, of which hitherto we have only spoken. Sums to be paid in bank species, must be composed of ⅔ of this currency, and of ⅓ of what follows, viz.

Riders of 14 florins.
Dutch half crowns of 28 stivers.
Ses t’halves of 5½ stivers.

I have put in the riders, though a gold coin, in order to give a compleat enumeration of all the kinds of these bank species.

[Sidenote: Regulations for the payment of foreign bills in coin.]

Foreign bills drawn on Rotterdam in banco (i. e. bank species) are often received _there_, in any of the above species, without regard to the ⅔ which ought to be groff gelt; but when the holder of the bill desires the acceptor (which the latter cannot refuse) to write it off to his credit in the current bank of Rotterdam, and that he has there no stock, then, if he brings in specie to the bank, it must be as above specified.

[Sidenote: Ditto for current bills.]

Current bills, not specified by the word _banco_, are generally paid according to the following proportion:

3⁄10 in schillings of 6 stivers.
1⁄10 in dubleties of 2 stivers.
6⁄10 in good silver.

[Sidenote: Ditto for merchandize.]

Merchandize are paid with all kinds of Dutch silver, ⅒ only in dubleties, and ⅓ gold, less or more, or sometimes none, according to agreement.

[Sidenote: The denominations of the several silver currencies not
proportioned to their intrinsic value.]

From this exposition of the matter, it is very evident, that all these currencies must be of different intrinsic values, in proportion to their denomination; otherwise, why all this trouble about regulating the proportion to be received in payments? [Sidenote: Cause of this.] This proceeds from two causes: first, from the wearing of the pieces; the second, from the disproportion of the fineness in pieces of the same weight and denomination.

[Sidenote: Regulations concerning the weighing of silver species in
banks current.]