Chapter II (1)

From the Discovery of America to the end of the First Cycle of the
Influence of the Metals of the New World on European Currencies,
1493-1660

The last decade of the fifteenth century witnessed the discovery of America, and therein the monetary salvation and resurrection of the Old World. The end of the second quarter of the seventeenth century in its turn witnessed the end of the first phase, and the most important, of the New World upon the destinies of Europe. Practically and historically the century and a half intervening between 1493 and 1660 may be treated as a single cycle with a single aspect. It was a time of unexampled increase in the imports of the precious metals, of equally unexampled rise of prices, and at the same time of feverish instability and want of equilibrium in the monetary systems of Europe. Two general statements may be premised.

1. Broadly speaking--of prices, i.e.--no movement of any note is perceptible, or records itself in legislative enactment until about 1520, so gradual and at first unimportant was the flow of metal from America. What did come at first was not silver so much as gold, and represents the puny and blood-stained plunder of ornaments from the natives. If this import tended to turn the balance in any way, it was in the direction of depreciation of gold as compared with silver. But during this first quarter of the sixteenth century, possibly more influence on the maintaining of equilibrium is to be attributed to the largely increased home production of silver. The silver mining in the Saxon Harz, in Bohemia, and the Tyrol, had received a strong impulse towards the close of the fifteenth century, while gold was obtained during the same period in appreciably greater quantities in the archbishopric of Salzburg, and in Hungary, as well as from Africa.

[Sidenote: GENERAL STATEMENT]

2. In this second period of European bimetallic history, the centre of European monetary exchanges passes from Italy to the Netherlands. Antwerp takes the place of Venice and Florence. There is a double and deep significance in the fact. It is not merely that the trade route had changed in such a way as to lay the foundation for that development of European commerce, of which England is the highest expression in our own days; it is that by the change was provided a more effective safeguard against precipitate and overwhelming depreciation. The centre of European exchanges--Antwerp in the sixteenth, as London to-day--has always performed one supremest function--that of regulating the flow of metals from the New World by means of exporting the overplus to the East. The drain of silver to the East, discernible from the very birth of European commerce, has been the salvation of Europe, and in providing for it Antwerp acted as the safety-valve of the sixteenth-century system, as London has done since. The importance of the change of the centre of gravity and exchange from Venice to Antwerp lies therefore in this fact. Under the old system of overland and limited trade, Venice could only provide for such puny exchange and flow as the mediaeval system of Europe demanded. She would have been unable to cope with such a flood of inflowing metal as the sixteenth century witnessed, and Europe would have been overwhelmed. But the foundations of the commerce of the Netherlands were laid wider. Together with Portugal she opened an extensive empire along the coasts of Africa and in the Indian East; and the very time which gave birth to the revolution in the production of the precious metals in America saw provision made for the regulation of its outflow through the commerce and exchanges of Antwerp to India. In the modern system this would be a theoretically perfect world-mechanism, and its working would be normal and healthy, and the safest indicator of commerce. That it was not so to seventeenth-century Europe was simply due to the existence of a disordered, understood bimetallic system, and the crisis to which the working of this mechanism brought her has perhaps not been since equalled at any point of time.

The underlying causes of this crisis have been already described. The currencies of the trading nations of Europe were all unconsciously bimetallic. Throughout, there was in existence one class who grasped the _fact_ without any knowledge of the _theory_, and profited by it--the merchant exchangers. There was constant oscillation--change of ratio, and the least alteration of the condition of one metal made it a lever for operations upon the other. These operations were arbitrage merely. They had no relation to the ebb and flow of commerce as modern arbitrage transactions have. It was a financier's opportunity of _private_ gain, and for _private_ gain the system was worked. The ebb and flow of European currencies, which the sixteenth and seventeenth centuries witnessed, were as unnecessary (i.e. for the purposes of her commerce) as they were disastrous.

It is sufficient to indicate the tendency of this argument, and to leave the illustration of it to the following pages.

To return to the yield of precious metals during the years under discussion. Any estimate must be conjectural, in the absence of the accounts of the Spanish Mints.[9] This understood, it may be thus tabularly represented.

[Sidenote: PRODUCTION OF THE PRECIOUS METALS]

+-----------+-------------+-------------+--------------+--------------+
| | Annual | Annual | Proportion | Proportion |
| Date. | Average | Average | of Gold | of Silver |
| | Production | Production | in Total. | in Total. |
| | of Gold. | of Silver. | | |
+-----------+-------------+-------------+--------------+--------------+
| 1493-1520 | L800,000 | L600,000 | 57% | 43% |
| 1521-45 | 1,000,000 | 1,100,000 | 47% | 53% |
| 1545-60 | 1,200,000 | 3,850,000 | 23.6 | 76.4 |
| 1560-80 | 855,000 | 3,640,000 | 20.8 | 79.2 |
| 1581-1600 | 1,030,000 | 4,945,000 | 17.2 | 82.8 |
| 1601-20 | 1,190,000 | 4,820,000 | 19.8 | 80.2 |
| 1621-40 | 1,157,850 | 3,916,300 | 22.8 | 77.2 |
| 1641-60 | 1,223,400 | 3,516,500 | 25.8 | 74.2 |
+-----------+-------------+-------------+--------------+--------------+

The general tendency of the first years of this period (1493-1520), if discernible at all, seems rather in favour of silver, and to the depreciation of gold. The average ratio was 10.75, speaking very generally, and with every mental reservation as to its applicability at any particular time and place. An equally rough average for the preceding time (see Chapter I.) would give a ratio of 11.28, showing apparently a movement in favour of silver owing to the increased production of gold.

The succeeding quarter of a century, 1521-45, covers the time from the conquest of Mexico to the commencement of the exploitation of the silver mines of Potosi. Looked at from the point of view of prices in Europe,--as evidenced most circumstantially in the _Plakkaats_ of the Netherlands, to which reference will be immediately made,--these years display stability--i.e. a steady maintaining of the advance gradually and already made between the years 1493 and 1520, and chronicled for us in the prices of 1521--rather than any further great and readily perceptible rise. For example in brief. In the Flemish _Plakkaats_ the French crown is quoted at an equivalent of 1 florin 15-1/2 stivers in 1499, and of 1 florin 19 stivers in 1522, when an attempt was made to reduce it to 1 florin 15-1/2 stivers again. From 1522 to 1548 no further advance, but retrogression rather is quoted thus:--

+-------+-----------------------------------+---------+-----------+
| Date. | | Florin. | Stivers. |
|-------+-----------------------------------+---------+-----------|
| 1519 | French Crown quoted at | 1 | 15-1/2 |
| 1522 | " " | 1 | 19 |
| 1526 | " " {(Real) | 1 | 19 |
| | " " {(Attempted) | 1 | 15-1/2 |
| 1539 | " " {(Real) | 1 | 17 |
| | " " {(Attempted) | 1 | 15 |
| 1548 | " " | 1 | 17 |
| 1552 | " " | 1 | 19 |
+-------+-----------------------------------+---------+-----------+

This general conclusion will be found quite invariably illustrated in the tables of Netherland coins (below).

[Sidenote: CHARACTERISTICS OF THE PERIOD, 1493-1548]

With regard to the annual average production of the metal, there is perceptible a slight movement towards the depreciation of silver or in favour of gold. This might naturally be expected to express itself in a somewhat higher ratio. But the differentiation is so slight as hardly thus to indicate itself, and certainly not consistently, so far as the ratio is capable of ascertainment.

In France the ratio in { 1519 was 11.76
{ 1540 " 11.82

In the Netherlands the ratio in { 1520 " 10.68
{ 1540 " 10.62

In England { 1527 " 11.23
{ 1552 " 11.1

In Germany { 1524 " 11.38
{ 1551 " 11.38

Broadly speaking, therefore, there is a certain homogeneity about the first two periods, 1493-1520 and 1520-48, of the new era. These fifty-five years mark a time of general advance on prices achieved by 1520 and maintained unequally up to 1548, but an advance which was steadily and almost fairly level on the two lines of gold and silver, so that the perfectly well-established advance of prices generally is accompanied with no great disturbance of the ratio in itself.

In contrast with this all the succeeding periods have, up to 1660, a distinct character and statistical bearing. An enormous and ever-increasing advance in general prices occurs, but it is no longer, as before, on level lines of the two metals equally. The proportion of the production of the two metals changes, so rich was the yield of the silver mines of Potosi. From being the same with that of gold, the value of silver produced suddenly rises to three times and then to four times that of its rival; and at once the ratio changes, bringing with it all its accompaniment of feverish instability and flux.

[Sidenote: STATEMENT OF THE RATIO, 1500-1660]

The average result in the ratio was as follows:--

1545-60 11.30
1561-80 11.50
1581-1600 11.80
1601-20 12.25
1621-40 14.00
1641-60 14.50
1661 15.0

As far as can be ascertained the detailed statement of the ratio during the whole period, 1500-1660, is as follows:--

+------+------+------+-------+------+---------+------------+-------+------+
| | | N | | | | | | |
| | | e | | | | | | |
| | E | t | | | Germany |S.W. Germany| | |
| Date.| n | h |France.|Spain.|(Imperial|(Wurtemburg,|Venice.| Date.|
| | g | e | | | System).| Strasburg, | | |
| | l | r | | | | Colmar). | | |
| | a | l | | | | | | |
| | n | a | | | | | | |
| | d | n | | | | | | |
| | . | d | | | | | | |
| | | s | | | | | | |
| | | . | | | | | | |
+------+------+------+-------+------+---------+------------+-------+------+
| 1474 | | | | 9.824| | | | 1474 |
| 1475 | | | |10.985| | | | 1475 |
| 1480 | | | |11.555| | | | 1480 |
| 1483 | | | |11.675| | | | 1483 |
| 1484 | | | | | 11.37 | | | 1484 |
| 1489 | | 10.5 | | | 11.2 | | | 1489 |
| 1497 | | | 11.83 |10.755| | | | 1497 |
| 1506 | | | |10.262| | | | 1506 |
| 1511 | | | | | | | | 1511 |
| 1517 | | | | | 10.31 | | 11.32 | 1517 |
| | | | | | (Erfuert)| | | |
| 1519 | | 10.15| 11.76 | | | | 12.04 | 1519 |
| 1524 | | | | | 11.38 | | | 1524 |
| 1527 | 12.23| | | | | | 10.03 | 1527 |
| 1529 | | | | | | | 11.07 | 1529 |
| 1537 | | | |10.760| | | | 1537 |
| 1539 | | | 11.68 | | | | | 1539 |
| 1540 | | 10.62| 11.82 | | | | | 1540 |
| 1542 | | | | | | 11.27 | | 1542 |
| 1548 | | 11.0 | | | | | | 1548 |
| 1549 | | | 11.86 | | | | | 1549 |
| 1550 | | | 12.07 | | | | | 1550 |
| 1551 | | | 11.47 | | 10.83 | | | 1551 |
| 1552 | 11.1 | | | |(Imperial| | | 1552 |
| | | | | | Edict) | | | 1552 |
| 1553 | 11.05| | | | | | | 1553 |
| 1554 | | 10.70| | | | | | 1554 |
| 1559 | 11.79| | | | 11.44 | 11.55 | | 1559 |
| 1560 | | | 11.77 | |(Imperial| | | 1560 |
| | | | | | Edict) | | | |
| 1561 | | | | | | | 10.81 | 1561 |
| 1562 | | | | | | 11.01 | 11.53 | 1562 |
| 1566 | | | |12.294| 11.55 | | | 1566 |
| 1572 | | 12.42| | | | | | 1572 |
| 1573 | | | 11.76 | | | | 12.33 | 1573 |
| 1575 | | | 11.68 | | | 11.11 | | 1575 |
| 1576 | | 12.67| | | | | | 1576 |
| 1578 | | | | | | | 10.61 | 1578 |
| 1579 | | 10.62| | | | | | 1579 |
| 1582 | | | | | | 11.40 | | 1582 |
| 1583 | | | | | | 10.93 | | 1583 |
| 1585 | | | | | 11.63 | | | 1585 |
| 1586 | | 10.66| | | | | | 1586 |
| 1587 | | | | | | 12.03 | | 1587 |
| 1589 | | 11.21| | | | | | 1589 |
| 1590 | | | | | | 11.86 | | 1590 |
| 1590 | | | | | | 11.32 | | 1590 |
| 1591 | | | | | | 10.95 | | 1591 |
| 1593 | | | | | | 11.18 | | 1593 |
| 1594 | | | | | | 11.70 | 12.34 | 1594 |
| 1596 | | 10.90| | | 11.50 | | | 1596 |
| 1597 | | | | | | 11.78 | | 1597 |
| 1597 | | | | | | 12.16 | | 1597 |
| 1598 | | 11.29| | | | | | 1598 |
| 1599 | | | | | | 11.05 | | 1599 |
| 1601 | 10.90| | | | | 11.86 | | 1601 |
| 1602 | | | 11.88 | | | 12.22 | | 1602 |
| 1603 | | 11.64| | | | 12.24 | | 1603 |
| 1605 | 12.15| | | | | 12.01 | | 1605 |
| 1605 | | | | | | 12.49 | | 1605 |
| 1606 | | 11.92| | | | | | 1606 |
| 1607 | | | | | | 12.61 | | 1607 |
| 1608 | | | | | | 12.16 | 11.04 | 1608 |
| 1608 | | | | | | 12.46 | | 1608 |
| 1610 | | 12.54| | | 12.2 | | | 1610 |
| 1611 | 13.32| | | | | 12.08 | | 1611 |
| 1612 | | | |13.52 | | 12.30 | | 1612 |
| 1613 | | | | | | 12.35 | | 1613 |
| 1613 | | | | | | 12.29 | | 1613 |
| 1615 | | 12.03| 13.90 | | | 12.31 | | 1615 |
| 1617 | | | | | | 12.58 | | 1617 |
| 1618 | | | | | | 12.11 | | 1618 |
| 1619 | | 12.10| | | | | | 1619 |
| 1620 | 13.34| | | | | | | 1620 |
| 1621 | | 12.5 | | | | | | 1621 |
| 1622 | | 12.65| | | | | | 1622 |
| 1623 | | | | | 11.64 | 11.74 | | 1623 |
| 1624 | | | | | | 13.42 | | 1624 |
| 1624 | | | | | | 12.58 | | 1624 |
| 1626 | | 12.65| | | | | | 1626 |
| 1630 | | | | | | | 10.31 | 1630 |
| 1631 | | | | | | 13.42 | | 1631 |
| 1633 | | 12.65| | | | | | 1633 |
| 1634 | | | | | | 15.10 | | 1634 |
| 1635 | | | | | | 14.80 | | 1635 |
| 1636 | | | 15.36 | | | | | 1636 |
| 1637 | | | | | | 15.10 | | 1637 |
| 1638 | | 13.39| | | | | 14.38 | 1638 |
| 1640 | | | 14.49 | | | | | 1640 |
| 1643 | | | 13.5 | | | | 15.37 | 1643 |
| 1645 | | 14.13| | | | | | 1645 |
| 1648 | | | | | | | | 1648 |
| 1651 | | | | | | | | 1651 |
| 1652 | | 14.13| | | | | | 1652 |
| 1653 | | 14.13| | | | | | 1653 |
| 1656 | | | 14.71 | | | | | 1656 |
| 1660 | | | | | | | | 1660 |
| 1663 | | 14.43| | | | | | 1663 |
| 1665 | | | |16.47 | | | 14.39 | 1665 |
| 1667 | | | | | 12.88 | | | 1667 |
| 1669 | 14.48| | | | 15.13 | | | 1669 |
| 1679 | | | 14.91 | | | | | 1679 |
| 1690 | | | | | 15.13 | | | 1690 |
+------+------+------+-------+------+---------+------------+-------+------+

To treat of these countries in detail.

[Sidenote: THE NETHERLANDS IN SIXTEENTH CENTURY]

Netherlands.

During the period under consideration, the seventeenth century especially, the monetary history of the Netherlands supplies the key to that of the surrounding nations. The history of her monetary exchanges has yet to be written, and of her Mint ordinances very little is accessible, as compared, e.g., with France. But this is more than compensated by the numerous "plakkaats" or proclamations of the tariff of coins, which are to us practical indicators of the rates of exchange. The Netherlands, as has been already said, were the centre of European commerce in the sixteenth and seventeenth centuries, as the Italian States had been in the fourteenth and fifteenth; and every change in the precious metals or in the coins showed itself in the Antwerp Bourse as surely and swiftly as to-day in London. As prompt to take knowledge of these changes as Florence had been two centuries earlier, the authorities tabulated the various coinages which were current in the Low Countries,--and practically that meant the coinage of commercial Europe,--tariffed them against their own by proclamation, and instantly accommodated themselves to each new change or variation of value by a new proclamation and a new tariff. These proclamations, therefore, give us the measure and course of the monetary movements of the time in fullest and most welcome details.

It has been already shown that this action of the government of the Netherlands has a twofold aspect. From one side it expresses and regulates the natural flow and ebb of commerce, just as exchange rates and bullion remittances do to-day. And in this sense it was perfectly normal, healthy, and sound, more especially in so far as it provided for the gradual drawing away overplus metal to the East. But the Governments of Europe were yet under the spell of the delusion as to a balance of trade payable in gold--that delusion which was, later, dignified in history by the name of the mercantile theory. Nor had they yet lost the traces of that mediaeval craft and lawlessness which rose from, and prompted to, the mere desire of robbing or pilfering their neighbour's store of precious metal as the first act of self-defence. Further than this the monetary system of Europe--unconsciously bimetallic and with an appalling variety of ratio prevalent at the same moment in different places--lay open, helpless and defenceless, and inviting to the bullionist, financier, or arbitragist. In so far as this element of national greed and dishonesty, or private and unprincipled gain, entered into the legislative enactments of the Netherlands, it condemns them as mercenary, and the monetary straits or tightness, not to say crisis and panic which ensued, as unnecessary and therefore in the highest degree lamentable.

[Sidenote: SIXTEENTH-CENTURY ARBITRAGE]

In a blind way the age saw what was going on behind the financier's screen, however little it understood the theory of it. In many a sixteenth-century document, preserved among the State papers in the Record Office at London, abuse is piled on the Netherlands for their practices in enticing away the coin of the realm. One of the correspondents of the Privy Council in the days of Elizabeth, 1575, writes thus from the Netherlands: "The Low Country merchants return great stores of money hither by exchanges, and by the proceeds, as the exchange may serve for their purposes, they send away her majesty's coin and bullion into the Low Countries in great quantities, and the rather by reason of the Hollanders trading with the East, by which means the realm will be secretly robbed, if it be not prevented." Twenty years later the whole subject was again gone into, for the fiftieth time, for the advice of the English Privy Council, and it was shown how "foreign exchangers contrived, by arranging a rise or fall in particular monies, to undervalue English monies, and draw them out of the kingdom. Prevention has been vainly attempted by Acts of Parliament, by sending over Sir Thomas Gresham to the Low Countries to complain, and by establishing the office of exchanger, which was discontinued as injurious to the State. A bank was proposed, but the Queen had not to spare the L100,000 needed to start it. It is now proposed to settle the exchange at 10 or 12 per cent., to be fixed yearly, according to the state of affairs, 20 per cent. or more being sometimes paid now."

The _naivete_ and helplessness of the suggestions contained in these concluding words need not blind us to the real and pressing gravity of the monetary situation to which they relate, and which periodically beset each and every European Government throughout the centuries under consideration.

Such, therefore, is the aspect of these monetary ordinances or plakkaats of the Netherlands in the sixteenth and seventeenth centuries.

To speak of them in detail.

The first of the Low Country proclamations, containing an _evaluatie_, or tariff, is dated 2nd January 1516, and it marks the commencement of the influence of the American discoveries. (See table below.) By the succeeding proclamation of 4th February 1520, golden reals were substituted for the golden florin. Its provisions remained nominally in force for twenty years or so, but almost immediately the movement towards higher prices made itself felt, and it was in consequence of this, and after fruitless negotiations with the merchants of Antwerp, that Charles V. issued a series of four closely consecutive proclamations (1521, March 1522, 19th June 1524, 25th November 1525). The first three concern gold, the last only bears witness to the rise of silver by attempting to check it and call it down. Similarly, in his ordinance of 10th December 1526, he enacted that the price ruling on the 4th February 1520 should be again used, and should be reached at two drops or intervals, so as to create the less disturbance between debtor and creditor. The ordinance proved fruitless, and was twice renewed, in 1531 and 1539. In spite of them all, the rise in prices against which the authorities tried to fight, continued and had to be recognised. By the ordinance of 11th July 1548 a higher limit of values was permitted. Then, for a dozen years or so, attempts were made, by the proclamations of 23rd March 1552 and 24th October 1559, to make those prices of 1548 the basis, and to compel a return to it in the future, while recognising temporarily the higher prices ruling at the moment. And so the process repeats itself continually--a further rise of prices, complaints of the disorder in the currency and exchanges, and a new _evaluatie_ issued, regulating the exchanges at the higher rate for the moment, and providing for the reduction of prices to previous limits, from and after such and such a date.

[Sidenote: THE NETHERLAND PLAKKAATS]

In the accompanying table wherever two figures are coupled together thus,

2 4}
1 19}

the higher figure represents the price ruling at the date of the ordinance, the lower figure is the price to which return was to be made from and after some date fixed thereby. A simple glance at the tables will show how futile and foredoomed was every such attempt to rule and compel the exchanges. For the explanation of these tables it will be sufficient to give the dates of the Netherlands ordinances, premising that up to 1586 the series was applicable to the whole Netherlands, but that from that date there is a separate series for the Seven United Provinces, and for the Spanish Netherlands.

Netherlands Plakkaats.

27th July 1572.

7th February 1573.

22nd June 1574 (countenances the rise of prices over those of 1572
only until the end of the year).

3rd December 1575.

19th April 1576 (for Holland and Zealand, and to continue for only six
months, when, by the ordinance of 25th October of the same year,
a considerably lower limit was prescribed).

1579. In this year no less than four plakkaats were issued, with the
object of enforcing a reduction of prices, but in vain, and the
last of the four, issued on the 19th December, was obliged to
recognise some portion of the rise of prices which it was
attempted to counteract.

9th October 1581. In less than a year the effect of the strenuous
attempt in 1579 had been completely swept away, and a further
advance had to be recognised.

From 1586 the series of proclamations divides into two, as has been
said, owing to the revolt and establishment of the United
Netherlands.

The one set, relating to the Spanish Netherlands, includes
proclamations of

30th April 1590, again recognising provisionally a further advance,
and renewed on

15th December 1593,

21st October 1594,

16th November 1599,

23rd June 1602 (with some slight alterations),

30th December 1605, attempting to restrain a farther advance,

30th June 1607,

13th May 1609,

30th September 1610,

22nd March 1611, again recognising the inevitable advance.

The last named remained in force until 21st May 1618, with the
exception of not being applicable in Volkenburg, Dalen, and
Limburg, where the abnormal height to which monies had risen
necessitated a special ordinance (4th March 1616), lowering the
price to the limit of 22nd March 1611, by five separate
three-monthly steps or intervals.

[Sidenote: THE PLAKKAATS OF THE UNITED PROVINCES]

The second and separate series of monetary ordinances issuing from their High Mightinesses, the States-General of the United Provinces, is remarkably parallel to the above. It begins with the ordinance of 2nd September 1594: "In view of the rising price of gold and silver," it says, a "lessening of that price to the limit of 1586 is ordered at three intervals, 15th September 1594, 10th November, 10th January 1595."

Like the contemporary enactment of the Spanish Netherlands, it proved ineffectual, and a further rise had to be recognised in the ordinance of 2nd March 1596, and again of 2nd April 1603. The preambles of these ordinances, which are preserved in the huge collections of Can and Scheltus, generally recite their purpose of providing against the disorders in the coinage, caused by the daily rise in price, by the greed and licence of the times, and by the inrush of the silver coins of other states. Such is specially the tenor of that of 21st March 1606, one of the most famous of these ordinances. Two years later an attempt was made to reduce prices to the limit of 1606. It proved ineffectual, and by the proclamations of 1st July 1610, 26th September 1615, and 13th February 1619, further advances were recorded. By the last-named, renewed on 5th June 1621, an attempt was made to re-establish the prices of 1610.

So much for the ordinances themselves. It is only necessary to add, for their general elucidation, that they generally contain and prescribe in detail the value of each separate coin circulating in the Low Countries at the particular time, coupled with an engraving of the coin, as an assistance to the people in recognising them. Indeed, some of the ordinances, that of 1606 for instance, contain engravings of upwards of 1000 different pieces--a significant witness to the international welter of coins in the Netherlands exchange. Dissected in detail, with regard to only a few of these coins, the tabular result is as follows:--

THE NETHERLAND PLAKKAATS
+---------------------------------++----------------------------------+
| German Gold Guldens. || Spanish Ducats. |
|(75 to a Mark of Gold, 18 Carats || (70 to a Mark of Gold, 23 Carats |
| 4 Grs. Fine.) || 7-1/2 Grs. Fine.) |
+-----------+---------------------++-----------+----------------------+
| | Declared Value || | Declared Value |
| | in Netherlands || | in Netherlands |
| Date. | Currency as by the || Date. | Currency as by the |
| | Plakkaats. || | Plakkaats. |
| +----------+----------++ +----------+-----------+
| | Florins. | Stivers. || | Florins. | Stivers. |
+-----------+----------+----------++-----------+----------+-----------+
| 1499 | 1 | 8 || 1499 | 1 | 19 |
| 1522 | 1 | 10 || 1522 | 2 | 3 |
| 1526 | 1 | 12 || 1526 | 2 | 4 |
| | 1 | 8 || | 1 | 19 |
| 1539 | 1 | 9 || 1539 | 2 | 1 |
| | 1 | 8 || | 1 | 19 |
| 1548 | 1 | 10 || 1548 | 2 | 1 |
| 1552 | 1 | 11 || 1552 | 2 | 2 |
| 1559 | 1 | 12 || 1559 | 2 | 5 |
| 1572 | 1 | 15 || 1572 | 2 | 7 |
| 1573 | 1 | 19 || 1573 | 2 | 15 |
| 1574 | 1 | 16 || 1574 | 2 | 13 |
| 1575 | 2 | 0 || 1575 | 3 | 0 |
| 1576 | 2 | 0 || 1576 | 3 | 3 |
| | 1 | 17 || | 2 | 12 |
| 1577 | 2 | 0 || 1577 | 3 | 3 |
| 1579 | 2 | 3 || 1579 | 3 | 4 |
| | 2 | 4 || | 3 | 0 |
| | 2 | 2 || | 2 | 18 |
| | 2 | 3 || | 3 | 0 |
| 1581 | 2 | 8 || 1581 | 3 | 6 |
| 1590 | 2 | 9 || 1590 | 3 | 10 |
| 1605 | 2 | 10 || 1599 | 3 | 15 |
| 1607 | 2 | 12 || 1609 | 3 | 19 |
| 1609 | 2 | 15 || 1618 | 4 | 1 |
| 1611 | 2 | 16-1/2 || |
| 1618 | 2 | 17-1/2 || United Netherlands. |
| || 1586 | 3 | 8 |
| United Netherlands. || 1594 | 3 | 12 |
| 1586 | 2 | 8 || | 3 | 10 |
| 1594 | 2 | 12 || | 3 | 8 |
| | 2 | 10 || 1596 | 3 | 9 |
| | 2 | 8 || 1603 | 3 | 16 |
| 1596 | 2 | 10 || | 3 | 15-1/2 |
| 1603 | 2 | 14 || | 3 | 15 |
| 1606 | 2 | 15 || 1606 | 3 | 16 |
| 1608 | 2 | 17 || 1608 | 4 | 0 |
| | 2 | 16 || | 3 | 18 |
| | 2 | 15 || | 3 | 16 |
| | | || 1610 | 4 | 0 |
| 1610 & | 2 | 18 || 1615 | 4 | 1 |
| onwards | | || 1619 | 4 | 2 |
| | | || 1621 | 4 | 4 |
+-----------+----------+----------++-----------+----------+-----------+

+---------------------------------++----------------------------------+
| Spanish Pistoles. || French Crowns. |
|(36 to a Mark of Gold, 21 Carats || (Old, i.e. not "of the Sun," 72 |
| 10 Grs. Fine.) || to a Mark of Gold, 22 Carats |
| || 4-1/2 Grs. Fine) |
+-----------+---------------------++-----------+----------------------+
| | Declared Value || | Declared Value |
| | in Netherlands || | in Netherlands |
| Date. | Currency as by the || Date. | Currency as by the |
| | Plakkaats. || | Plakkaats. |
| +----------+----------+| +----------+-----------+
| | Florins. | Stivers. || | Florins. | Stivers. |
+-----------+----------+----------++-----------+----------+-----------+
| 1548 | 3 | 12 || 1499 | 1 | 15-1/2 |
| 1552 | 3 | 18 || 1522 | 1 | 19 |
| 1559 | 4 | 0 || 1526 | 1 | 19 |
| 1572 | 4 | 4 || | 1 | 15-1/2 |
| 1573 | 4 | 16 || 1539 | 1 | 17 |
| 1574 | 4 | 10 || | 1 | 15 |
| 1575 | 5 | 0 || 1548 | 1 | 17 |
| 1576 | 5 | 4 || 1552 | 1 | 19 |
| | 4 | 13 || 1559 | 2 | 0 |
| 1577 | 5 | 4 || 1572 | 2 | 2 |
| 1579 | 5 | 10 || 1573 | 2 | 9 |
| | 5 | 10 || 1574 | 2 | 6 |
| | 5 | 5 || 1575 | 2 | 12 |
| | 5 | 8 || 1576 | 2 | 13 |
| 1581 | 5 | 18 || 1577 | 2 | 12 |
| 1590 | 6 | 4 || 1579 | 2 | 15 |
| 1605 | 6 | 9 || | 2 | 15 |
| 1607 | 6 | 12 || | 2 | 12-1/2 |
| 1609 | 7 | 0 || | 2 | 14 |
| 1611 | 7 | 2 || 1581 | 3 | 0 |
| 1618 | 7 | 5 || 1590 | 3 | 3 |
| || 1605 | 3 | 6 |
| || 1607 | 3 | 8 |
| || 1609 | 3 | 12 |
| || 1611 | 3 | 12-1/2 |
| United Netherlands. || 1618 | 3 | 14 |
| 1586 | 6 | 0 || United Netherlands. |
| 1594 | 6 | 6 || 1586 | 3 | 0 |
| | 6 | 3 || 1594 | 3 | 3 |
| | 6 | 0 || | 3 | 1 |
| 1596 | 6 | 6 || | 3 | 0 |
| 1603 | 6 | 15 || 1603 | 3 | 8 |
| 1606 | 6 | 17 || 1606 | 3 | 10 |
| 1608 | 7 | 1 || 1608 | 3 | 14 |
| | 6 | 19 || | 3 | 12 |
| | 6 | 17 || | 3 | 10 |
| 1610 | 7 | 4 || 1610 | 3 | 14 |
| 1615 | 7 | 6 || 1615 | 3 | 15 |
| 1619 | 7 | 12 || 1619 | 3 | 16 |
| | 7 | 6 || | 3 | 15 |
| 1621 | 7 | 12 || 1621 | 3 | 18 |
+-----------+----------+----------++-----------+----------+-----------+

+---------------------------------++--------------------------------+
| English Rose Nobles. || English Sovereigns. |
| (32 to a Mark of Gold, 23 || (40 to a Mark of Gold.) |
| Carats 8-1/2 Grs. Fine.) || |
+-----------+---------------------++----------+---------------------+
| | Declared Value || | Declared Value |
| | in Netherlands || | in Netherlands |
| Date. |Currency as by the || Date. | Currency as by the |
| | Plakkaats. || | Plakkaats. |
| +----------+----------++ +----------+----------+
| | Florins. | Stivers. || | Florins. | Stivers. |
+-----------+----------+----------++----------+----------+----------+
| 1499 | 4 | 5 || | | |
| 1520 | 4 | 5-1/2 || 1548 | 3 | 0 |
| 1522 | 4 | 10-1/2 || | | |
| 1526 | 4 | 17-1/2 || 1552 | 3 | 0 |
| | 4 | 5-1/2 || | | |
| 1539 | 4 | 10 || 1554 | 3 | 0 |
| | 4 | 5-1/2 || | | |
| 1548 | 4 | 10 || 1575 | 4 | 4 |
| 1552 | 4 | 16 || | | |
| 1559 | 5 | 0 || 1576 | 4 | 6 |
| 1572 | 5 | 3 || | | |
| 1573 | 6 | 10 || 1579 | 4 | 8 |
| 1574 | 6 | 6 || |
| 1575 | 7 | 5 || |
| 1576 | 7 | 10 || |
| 1577 | 7 | 0 || |
| 1579 | 8 | 0 || |
| | 7 | 10 || |
| | 6 | 8 || |
| | 6 | 14 || United Netherlands. |
| 1581 | 7 | 4 || |
| 1590 | 7 | 9 || |
| 1607 | 8 | 2 || 1586 | 5 | 1 |
| 1609 | 8 | 10 || | | |
| 1611 | 8 | 13 || 1594 | 5 | 5 |
| 1618 | 8 | 16 || | | |
| || | 5 | 3 |
| United Netherlands. || | | |
| 1586 | 7 | 12 || | 5 | 1 |
| 1594 | 8 | 0 || | | |
| | 7 | 16 || 1596 | 5 | 2 |
| | 7 | 12 || | | |
| 1596 | 7 | 13 || 1603 | 5 | 9 |
| 1603 | 8 | 8 || | | |
| | 8 | 7 || 1606 | 5 | 12 |
| | 8 | 6 || | | |
| 1606 | 8 | 9 || 1608 | 5 | 16 |
| 1608 | 8 | 16 || | | |
| | 8 | 12 || | 5 | 14 |
| | 8 | 9 || | | |
| 1610 | 8 | 16 || | 5 | 12 |
| 1619 | 9 | 0 || | | |
| | 8 | 16 || 1610 | 5 | 18 |
| 1621 | 9 | 0 || | | |
+-----------+----------+----------++----------+----------+----------+

+-------------------------------------++-----------------------------------+
| || Burgundian Gulden (or |
| Philippus Rijder. || Gulden Andries). |
|(67-1/2 and subsequently 70 to a Mark|| (72 to a Mark of Gold, 19 Carats |
| of Gold, 23 Carats 8-1/2 Grs. Fine.)|| Fine, from 1456 to 1567; later, 75|
| || to a Mark, 18 Carats 6 Grs. Fine.)|
+----------+--------------------------++-----------+-----------------------+
| | Declared Value || | Declared Value |
| | in Netherlands || | in Netherlands |
| Date. | Currency as by the || Date. | Currency as by the |
| | Plakkaats. || | Plakkaats. |
| +-------------+------------++ +----------+------------+
| | Florins. | Stivers. || | Florins. | Stivers. |
+----------+-------------+------------++-----------+----------+------------+
| 1499 | 1 | 19 || 1499 | 1 | 9 |
| 1522 | 2 | 3 || 1522 | 1 | 12 |
| 1526 | 2 | 4 || 1526 | 1 | 13 |
| | 1 | 19 || | 1 | 9 |
| 1539 | 2 | 1 || 1539 | 1 | 10 |
| | 1 | 19 || | 1 | 9 |
| 1548 | 2 | 1 || 1548 | 1 | 11 |
| 1552 | 2 | 2 || 1552 | 1 | 12 |
| 1559 | 2 | 5 || 1559 | 1 | 13 |
| 1572 | 2 | 7 || 1572 | 1 | 15-1/2 |
| 1573 | 2 | 15 || 1573 | 1 | 19 |
| 1575 | 2 | 18 || 1574 | 1 | 16 |
| 1576 | 3 | 3 || 1575 | 2 | 0 |
| 1577 | 3 | 0 || 1576 | 2 | 0 |
| 1579 | 3 | 3 || | 1 | 18-1/2 |
| | 3 | 0 || 1577 | 2 | 2 |
| | 2 | 18-1/2 || 1579 | 2 | 3 |
| | 3 | 0 || | 1 | 5 |
| 1581 | 3 | 6 || | 2 | 3-1/2 |
| 1590 | 3 | 8-1/2 || | 2 | 4 |
| 1610 | 3 | 18 || 1581 | 2 | 9 |
| 1611 | 3 | 19 || 1590 | 2 | 11 |
| || 1607 | 2 | 14 |
| || 1609 | 2 | 17 |
| || 1611 | 2 | 18 |
| United Netherlands. || |
| || United Netherlands. |
| 1586 | 3 | 8 || 1586 | 2 | 9 |
| 1594 | 3 | 10 || 1594 | 2 | 13 |
| | 3 | 9 || | 2 | 11 |
| | 3 | 8 || | 2 | 9 |
| 1596 | 3 | 9 || 1596 | 2 | 11 |
| 1603 | 3 | 14 || 1603 | 2 | 15 |
| 1606 | 3 | 15 || 1606 | 2 | 16 |
| 1608 | 3 | 17 || 1608 | 2 | 18 |
| | 3 | 16 || | 2 | 17 |
| | 3 | 15 || | 2 | 16 |
| 1610 | 4 | 0 || 1610 | 2 | 19 |
+----------+-------------+------------++-----------+----------+------------+

+--------------------------------++---------------------------------+
| German Thaler || Netherland Rijksdaalder |
| (Silver). || (Silver). |
+----------+---------------------++----------+----------------------+
| | Declared Value || | Declared Value |
| | in Netherlands || | in Netherlands |
| Date. | Currency as by the || Date. | Currency as by the |
| | Plakkaats. || | Plakkaats. |
| +----------+----------++ +----------+-----------+
| | Florins. | Stivers. || | Florins. | Stivers. |
+----------+----------+----------++----------+----------+-----------+
| 1539 | 1 | 6 || 1583 | 2 | 2 |
| | 1 | 7 || | | |
| 1548 | 1 | 8 || 1586 | 2 | 5 |
| 1552 | 1 | 9 || | | |
| 1559 | 1 | 10 || 1594 | 2 | 6 |
| 1571 | 1 | 11 || | | |
| 1572 | 1 | 12 || | 2 | 5 |
| 1573 | 1 | 16 || | | |
| | 1 | 14 || 1603 | 2 | 7 |
| 1577 | 1 | 18 || | | |
| 1579 | 2 | 1 || 1608 | 2 | 8 |
| 1581 | 2 | 5 || | | |
| 1611 | 2 | 11 || | 2 | 7 |
| || |
| United Netherlands. || |
| 1586 | 2 | 5 || United Netherlands. |
| 1594 | 2 | 6 || |
| | 2 | 5 || |
| 1603 | 2 | 7 || 1610 | 2 | 8 |
| 1608 | 2 | 8 || | | |
| | 2 | 7 || 1619 | 2 | 10 |
| 1610 | 2 | 8 || | | |
| 1619 | 2 | 10 || 1621 | 2 | 12 |
| 1621 | 2 | 12 || | | |
+----------+----------+----------++----------+----------+-----------+

France.

In France the result of the American influx of metals did not make itself felt until the time of Francis I. During his reign the value of the mark of gold increased 33 livres 4 sols. 2 dens., and that of silver 1 livre 10 sols.

The main reduction took place at two periods, 1519 and 1540, and with a consequent change in the ratio slightly in favour of silver. The earliest find in America was gold, and at first this metal shows a tendency to depreciate. Concurrently silver, as the overvalued metal, commenced to disappear from circulation. It was to prevent this export that in 1519 the _ecu au soleil_ was advanced to 40 sols., and again in 1532 to 45 sols.--an advance of 12-1/2 per cent. The silver _testoon_ was advanced at the same time from 10 sols. to 10 sols. 6 dens., an advance of 5 per cent. Even so equilibrium was not produced, and disorders in the currency continued, along with the prevalence of lower-rated coins. The town of Marseilles complained of it in a petition to the King (8th May 1539), and the important edict of Blois, 1540, which left the _ecus au soleil_ untouched at 45 sols., while advancing the _testoon_ to 10 sols. 8 dens., was professedly and purposely issued "to more equalise the silver with the value of the gold, and consequently to make the value of our monies, both red and white, corresponding." Two years later the States-General when they met complained of the lack of currency, and demanded the opening of the Mint at Aix. The request was granted, but without visible result.

The same process of advance, unequally maintained, continued under Henry II. and Charles IX. (see accompanying tables).

TABLE OF THE MOVEMENT OF GOLD AND SILVER IN FRANCE, 1500-1660.

+----------+--------------------------+-----------------------------+
| |Price of the Mark of Gold.|Price of the Mark of Silver. |
| Date. +---------+-------+--------+---------+---------+---------+
| | Livres. | Sols. | Dens. | Livres. | Sols. | Dens. |
+----------+---------+-------+--------+---------+---------+---------+
| 1488 | 130 | 3 | 4 | 11 | 0 | 0 |
| 1519 | 147 | 0 | 0 | 12 | 10 | 0 |
| 1540 | 165 | 7 | 6 | 14 | 0 | 0 |
| 1549 | 172 | 0 | 0 | 15 | 0 | 0 |
| 1561 | 185 | 0 | 0 | 15 | 15 | 0 |
| 1573 | 200 | 0 | 0 | 17 | 0 | 0 |
| 1575 | 222 | 0 | 0 | 19 | 0 | 0 |
| 1602 | 240 | 10 | 0 | 20 | 5 | 4 |
| 1615 | 278 | 6 | 6 | ... | ... | ... |
| 1636 | 320 | 0 | 0 | 23 | 10 | 0 |
| 8th May | | | | | | |
| 1636 | 384 | 0 | 0 | 25 | 0 | 0 |
|22nd Sept.| | | | | | |
| 1641 | ... | ... | ... | 26 | 10 | 0 |
| 1662 | 423 | 10 | 11 | ... | ... | ... |
+----------+---------+-------+--------+---------+---------+---------+

[Sidenote: FRANCE: THE MINT INQUIRY OF 1575]

In the case of the latter monarch it is expressly stated that the change, which was effected in 1573, when the ratio was established at 11.77, had been preceded by a period during which "the people" had of themselves augmented the value of the _ecu d'or_ to 54 sols. At this limit the Government was obliged to fix it, but by the year 1577 it had risen successively to 58, 60, and 65 sols. The evil, as it was thought to be, of the advance of the monies was attributed to the caprice and unscrupulousness of "the people," and the King called several councils of experts to discuss the matter. Still the process continued unabated, and on the 19th December 1575, Henry III. assembled the States-General. The _cour des monnaies_--the officials of the Mint--at once approached him with a petition. Their representation is of peculiar significance:--

"In spite of the bad police prevailing, we draw in times of peace twice as much silver from abroad as the foreigners draw from us. If the reform we advocate were adopted we should double this net gain.... Between us and the Netherlands and Germany, where we generally trade, there is this difference, that 6 _ecus_, at the price at which they are exposed here, only come to 5 in the said places, which has induced a sudden and enormous dearness in the merchandise which we export from there, and besides has caused us a great disorder--to wit, that the merchants have transported all our _douzains_ and other billon money, to save themselves from the loss they would have had to incur in settling in _ecus_ or in any foreign species of gold or silver on which, at the price they are current at by the caprice of the people, there would be a loss in settlement of 15, 20, and 25 per cent.... The cause of the enhancement of prices proceeds from the malice of several who turn into bullion the best of your coins in order to fill the kingdom with others of less goodness, enriching themselves thus with the blood and misery of the people....

[Sidenote: FRANCE: THE REFORM OF 1577]

"The remedy is to lower the rate of the monies.... The _ecus_ ought to come down to 50 sols., but for the present we would consent to it being put at 60, awaiting a further reduction. The currency of all foreign coins ought to be prohibited as the chief cause of these evils. For although by all your ordinances they have been valued according to the price of the _ecu_, yet the people have always increased them more than they have your own monies, so that the _ecu_ at this moment, to be in accordance, ought to pass for 78 sols. This arises from the craft of the foreigner, and the only exceptions of importance are the _reals_ and _pistoles_ of Spain, which are of known goodness and profit to the melter. They have never brought us harm, but, on the other hand, they are being melted down all over France, and at the present rate the foreigner gets a profit of about 7 livres on the mark of them, so that we advise prohibition of their circulation. Finally, we advise to do away with the old reckoning by livres and sols, and substitute for it the reckoning by ecus."

The States-General, adopting in part the weakest suggestion of this remarkable paper, fixed the ecus at 65 sols. The Mint officials at once represented that this only increased the evil. Henry accordingly assembled at Pontoise a conference of experts, and as the outcome of their deliberations decided on the adoption of the chief recommendation of the Mint officials' representation. By his proclamation of 13th November 1577, the reckoning by livres was abolished and that of gold _ecus_ substituted, values of under 1 ecu or 60 sols. to be settled in divisional coinage, and circulation of all foreign coins prohibited, with the exception of Spanish and Portuguese gold ducats. It was forbidden to constrain payment of any sum above 100 sols. in billon money, and in sums below that amount to present more than the third of the total sum in such billon money.

[Sidenote: FRANCE: FAILURE OF THE REFORM OF 1577]