Draft of MINT00322 (Mint 19/2/111-16)

<107r>

To the R^t Hon^ble the Lords Comm\es/issioners of his Ma^ts Treasury.

May it please yo^er Lord^ps

In obedience to yo^er Lord^ps Order of Reference of Aug. 12, 1717, that I should lay before your Lord^ps a state of the Gold & Silver Coyns of this kingdom in weight & finess & the value of gold in proportion to silver with my observations & opinion, & what method may be most effectual for preventing the melting down or exporting the silve coin: I humbly represent to yo^er Lord^ps that a pound weight Troy of Gold eleven ounces fine \& one ounce allay/ is cut into 44$\frac{1}{2}$ Guineas, & a pound weight of Silver, eleven ounces two penny weight fine \& 18 penny weight allay/ is cut into 62 shillings & according to this rate a pound weight of fine gold is worth fifteen pounds weight six ounces seventeen penny weight & weight & five grains of fine silver, recconning a Guinea at 1^£ 1^s 6^d in silver money.^✝ < insertion from p 108 > ✝But silver in Bullion is usually worth 2^d or 3^d per ounce more then in coyn And if at a medium such bullion of standard allay be valued at 5^s 4^d$\frac{1}{2}$ allay p^r ounce, a pound weight of fine gold will be worth but 14^£wt 11^oz 12^dwt 9^gr of fine silver in bullion. And at this rate a Guinea is worth but so much silver as would make 20^s. 8^d. When ships are lading for the East-Indies the demand of silver for exportation raises the price to 5^s 6^d or 5^s 8^d p^r ounce or above but I consider not those extraordinary cases. < text from f 107r resumes >

A Spanish Pistole was coyned for 32 Reaus or four pieces of eight Reaus usually called Pieces of eight & is of equal allay & the sixteenth part of the weight thereof. And a Doppia Moeda of Portugal was coined for ten Crusados of silver, & is of equal allay, & the sixteenth part of the weight thereof. Gold is therefore in Spain & Portugal of sixteen times more value the silver of Equal weight & allay according to their standard. At which rate a Guinea is worth 22.^s 1^d. But this high price keeps their gold at home & carries away their silver into all Europe, so that at home they make their payments at home & wil in gold, & will not pay in silver without a ☉ premium < insertion from p 108 > ☉ a premium. Upon the coming in of a Plate Fleet the Premium ceases or is but small, but as their silver goes away & becomes scarce the premium increases & is most commonly about six per cent. Which being abated a Guinea becomes worth about 20^s 9^d in Spain & Portugal. < text from f 107r resumes > of\w^ch for the about most part is about/ six per cent, which being abated a Guinea becomes worth 20^s 9^d in Spain & Portugal. {sic}

In France a pound weight of fine gold is recconed worth fifteen pounds weight of fine silver. In raising & falling their money the{illeg} Kings Edicts have sometimes varied a little from this proportion in excess or defect: but the variations have been so little that I do not here consider them. By the Edict of May 1709 a new Pistole was coyned for four new Lewises & is of equal allay & the fifteenth part of the weight thereof, except the errors of their Mints. And at this rate a Guinea is worth 20^s 8^d$\frac{1}{2}$ And by the same Edict fine Gold is valued at 15 times its weight of fine silver. And at this rate a Guinea is worth 20^s 8^d$\frac{1}{2}$. ⊡ < insertion from the top of f 108r > ⊡ I consider not here the confusion made in the Moneys in France by frequent Edicts to send them to the Mint & give the king a Tax out of them. I consider only the value of hold & silver in proportion to one another. < text from f 107r resumes >

|‡| < insertion from the top of p 108 > ‡ The Ducats of Holland Hungary & the Empire, were lately current in Holland among the common people in their Markets & ordinary affairs at five Guilders in specie & five Styvers & commonly changed for so much silver money in three Guilder pieces & Guilder pieces as Guineas are changed with us for 21^s 6^d. sterling. At which rate a Guinea is worth 20^s 7$\frac{1}{2}$^d. {St} < text from f 107r resumes > The Ducats of Holland Hungary & the Empire were lately current in Holland at five Guilders & give Stuyvers. At which rate a Guinea is worth 20^s 7^d$\frac{1}{2}$ {sic}

According to the rates of Gold to Silver in Italy, Germany, Poland, Denmark & Sweden a Guinea is worth about 20^s & 7^d, 6^d, 5^d or 4^d. For the proportion varies a little in the several governments within those countries. \‡/ < insertion from the middle of f 108r > ‡ In Swedeland Gold is lowest in proportion to silver & this has made that kingdom w^ch formerly was content with Copper money about of late of with silver sent thither (I suspect) for naval stores. < text from f 107r resumes >

In the end of King William's reign & the first year of the \late/ Queen's when forreign coyns abounded in England, I caused a great many of these|m| coyns to be assayed in the Mint & found by tho|e|se assays that fine gold was to fine silver in Spain, Portugal, France, Holland, Italy, Germany & the northern kingdoms in the proportions above mentioned, the errors of the Mints excepted.

In China & Japan one pound weight of fine gold is worth but nine or {ten} pounds weight of fine silver.\& in East Indie|a|s it is worse about twelve./ And this low price of Gold \in proportion to silver/ carries the silver {away} from all Europe, & \when ships are lading for the East Indies/ raises the price of Silver in bullion to 2^d 3^d or 4^d per {ounce whe} n ships are lading for the east Indies, above the ordinary price when\as often as/ {ships are la}ding for the east Indies.

^{[Editorial Note 1]}

< insertion from the middle of p 108 >  It is the demand for exportation which hath raised the price of exportable silver about 2^d or 3^d in the ounce above that of silver in coyn, & hath thereby created a tempation to export or melt down the silver coyn rather then give 2^d or 3^d more for forreign silver. And the demand for exportation arises from the higher value of silver in other places then in England in proportion to Gold, that is, from the higher value of silver\Gold in England then/ in other places then in England in proportion to silver, & therefore may be diminished by lowering the value of Gold in proportion to silver. If Gold could be brought down so low in England or silver in East India as to beare the same proportion to one another in both places, there would be not greater demand for silver then for gold to be exported to India And if gold were brought down to have the same proportion to the silver money in England which it hath to \it in/ the rest of Europe, there would be no temptation to export silver rather then Gold to any other part of Europe. And to compas this last there seems nothing more requisite then to take off about 10^d or 12^d from the price of the Guinea. But if only 6^d were taken off at present, it would diminish the temptation to export or melt down the silver coyn, & the effect would shew hereafter better then can appear at present, what further reduction would be most convenient for the publick. |Memorial about the high value of Gold| < text from f 107r resumes >

{illeg}h price of Gold in England \tends to/ brings it in to us & \to/ carries away {illeg}to all Europe except perhaps Spain & Portugal; & by the {illeg}er for exportation, it raises the \ordinary/ price thereof to two pence {illeg} an ounce in bullion above what it is worth in money, {illeg}s its coming to the Mint, & \may/ encourages those that <107v> want silver in bullion to melt down the coyn rather then buy bullion at so high a price. For the proportion of gold to silver is|n| bullion is {illeg}|s|etled by the Merchants according to the Markets of Europe. And where the proportion is not the same in the money as in the bullion, the Merchant & Goldsmith will \be apt to/ make their advantages of the difference. And the proper remedy is to mend the proportion in the money & make it the same as in the bullion. And this may be done by bringing the value of the Guineas nearer to the standard. A Guinea is coyned for 20^s, but goes for 21^s 6^d, & by the proportion of gold to silver in bullion, it ought to go not for more then 20^s 9^d nor for less then 20^s 6^d. About 10^d may be therefore taken from the present value of the Guinea. And if only 6^d were at present taken from it this would save to the nation about 24^s in every pound weight of fine gold imported & diminish the temptation to melt down or export the silver money, & sometimes perhaps bring some forreign silver to the Mint.

Those that import gold represent that their profit is but small & if by lowering the price that profit be taken away there will be neither gold nor silver imported. But must the nation pay 38 or 40 shillings too much for every pound weight of gold imported. Must all our silver be exported to enrich the Merchant? And is there no remedy?

In the last year of king William the Dollars of Scotland worth about 4|f|our shillings & six pence half penny, were put away in the north of England for 5^s, & at this price began to flow in upon us. I gave notice thereof to the L^ds Commissioners of the Treasury And they ordered the Receivers of Taxes to forbeare taking them at that value & thereby put a stop to the mischief.

At the same time the Lewidor's of France w^ch were worth but seventeen shillings & three farthings a piece, passed in England at 17^s 6^d. I gave notice thereof to the Commissioners of the Treasury, & his late Ma^ty put out a Proclamation that they should go but at 17^s, & thereupon they came to the Mint, & a Million & four hundred thousand pounds was coyned out of them. And if the advantage of five pence farthing in a Lewidor sufficed at that time to bring into England so great a quantity of French money, & the advantage of three farthings in a Lewidor to bring it to the Mint: the advantage of 9$\frac{1}{2}$^d or above may have been sufficient to bring in the great quantity of gold w^ch has been coined in these last 16 years without any forreign silver.

Some years ago, the Portugal Mo{illeg}|y|ders were received in the we{st} of England at 28^s a piece. Upon notice from the Mint that they were worth only about 27^s & 7^d, the Lords Commissioners of the Treasury ordered their Receivers of Taxes to take them at no more then 27^s 6^d. Afterwards many Gentlemen in the west sent up to the Treasury a Petition that the Receivers might take them again at 28^s & promised to get Returns for this money at that rate, alledging that when they went at 28^s their country was full of gold w^ch they wanted very much. But the Commissioners of the Treasury considering that at 28^s the nation would lose 5^d a piece, rejected their petition. And if an advantage to the Mercha{nt} of 5^d in 28^s did power that money in upon us: much more hath an advantage to the Merchant of 9$\frac{1}{2}$^d or 10^d in a Guinea been able to pour in Gold upon \us/ & carry out our|bring to the Mint great quantities of gold without any forreign| silver, & may be able to do it toll the cause be removed.

\◬/ < insertion from the bottom of p 108 > ◬ If things be let alone till silver money be a little scarcer, the Gold will fall of it self. For people are already backward to give silver for gold, & will in a little time refuse to make payments in silver without a premium, & this premium will be an abatement in the price\value/ of the gold. And so the Question is whether Gold shall be lowered by the Government or let alone till it falls of it self by the want of silver moneys.

It may be said that there are great quantities of silver in plate, & if the Plate were coyned there would be no want of silver money. But I reccon that silver is safer from exportation in the form of Plate then in the form of money because of the great value of the silver & fashion together. And therefore I am not for coyning the Plate till the tempation to export the silver money (which is a profit of 2^d or 3^d in the ounce) be taken away. For as often as men are necessitated to send away money for answering debts abroad they will be tempted to send away silver rather then gold because of the profit w^ch is almost four per cent. And for the same reason forreigners will \send/ hither their gold rather then their silver.

All which < text from f 107v resumes > All w^ch is most humbly submitted to yo^er Lord^ps great Wisdome.

Mint Office.                                         Isaac N{ewton} {illeg}|21| Sept. 1717.