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

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To the Right Honorable the Lords Commissioners of his Majesties Treasury

May it please yo ^rLordships

In obedience to yo^r Lordships Order of Reference of Aug. 12. 1717, that I should lay before yo^r Lordships a state of the Gold & Silver Coins of this kingdom in weight & fineness & the value of gold in proportion to silver with any observations & opinion & what method may be most effectual for preventing & discouraging the meting down or exporting the silver Coin: I humbly represent yo^r Lordships that for informing my self about this matter, I did in the end of the reign of King William & the first year of the late Queen when forreign coins were plentifull in England cause many of them to be assayed in the Mint & found thereby & by other observations

That one pound weight of fine gold is valued at sixteen pounds weights of fine silver in Spain & Portugal, at 14^£wt 6^oz 17^dwt 5^gr in England, at 15^£wt in France at 14^£wt 11^oz 5$\frac{1}{2}$^dwt in Holland, & at 14^£wt 11^oz in Italy & Germany, or there abouts. For the several Mints in Italy & Germany do not perfectly agree with one another. And according to these valuations the fine gold in a Guinea which in England is valued at 21^s 6^d, is worth in Spain & Portugal 22^s 1^d, in France 20^s 8$\frac{1}{2}$, in Holland 20. 7$\frac{1}{2}$, in Italy & Germany 20^s 7^d& in Denmark & Sweden it is worth about 20^s 4^d.

The high price of Gold in Spain & Portugal keeps it at home & carries away their silver into all Europe, so that they make their payments in gold & will not pay in Silver unless for a premium of 6 per cent. Which being abated a Guinea is wirth 2o^s 9^d in Spain.

The high price of Gold in England brings it to us & carris away our silver into all Europe except Spain & Portugal & enables the Merchant to give 5^s 4^d per ounce for silver in bullion which in coin is worth but 5^s 2^d & encourages those that want silver to melt down the coin rather then buy bullion at 5^s 4^d per ounce.

In China & Japan one pound weight of fine gold is worth but 9 or 10 pounds weight of fine silver, & this low price of gold carries away the silver from all Europe & makes silver in bullion worth 5^s 6^d or 5^s 8^d per ounce as often as ships are lading for the E. Indies: but the excessive price in these cases I do not consider in this Paper.

And because silver in bullion is for these reasons constantaly worth more in bullion then when coined, there has no forreign silver come to the mint these many years last past.

To prevent the exportation & melting down of our silver money (except to the Indies) & to bring silver to the Mint I can think of no better means then to make silver worth as much in coyn as it is usually in bullion. And to do this I know but two methods. Either the value of the silver money must be raised, or that of the gold lowered, so that in England Gold & silver moneys may in value beare the same proportion to one another in England which they do in France Italy Holland & Germany. A pound weight of Standard silver is now cut into sixty & two shillings. It if were cut into 64^s or 6s^s 6^d an ounce of Silver money would be worth 2^d or 2^d$\frac{1}{2}$ more then it is at present, & so be equal in value to an ounce of bullion of the same allay except when there is a great demand for silver to go to the east Indies. But there is no need of altering the standard of silver money The same thing may be done by lowering the price of gold in the same proportion. By the Indentures of the Mint under the broad seale a Guinea has been coined for twenty Shillings ever since the coinage of the mill & press was set up. And accordingly in the Mint we still call it a twenty Shillings piece. It now goes for 18^d more then this value. If it was lowered to 20^s 8^d (or in a rounder number to 20^s 6^d) the mischief would be cured except so far as it arises from the extraordinary demand of silver for the east Indies when ships are lading to go thither.

Those that import Gold represent that their profit is but small & if by lowering the price of Gild their profit be taken way, there will be whither 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? & is there no remedy?

In the last year of king William the Dollars of Scotland worth about 4^s 6^d$\frac{1}{2}$ were put away in the north of England for 5^s & all this price begā <96v> to flow in upon us. I gave notice thereof to the Commissioners of the Treasury & they ordered the receivers of Taxes to forbear taking them at that price & thereby put a stop to the mischief.

At the same time the Lewidors of France which were worth but 17^s $\frac{3}{4}$^d passed in England at 17^s 6^d I gave notice thereof to the Commissioners of Treasury & his late Majesty put out a proclamation that they Should go but at 17^s & thereupon they came to the Mint & a Million & about 400 thousand pounds were coyned out of them And of the advantage 5$\frac{1}{4}$ in a Lewidor did at that time bring into England so great a quantity of French moeny, the advantage of 9$\frac{1}{2}$ or above in a Guinea may have been sufficient to bring in the great quantity of gold which has been coined in these last 18 years without any forreign silver.

Some years ago the Portugal Moiders were received in the west of England at 28^s a piece. Upon notice from the Mint that they were worth 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. Afterward {many} Gentlemen the West sent up to the Treasury a Patition that the Receivers might take them again at 28^s & promised to get returns for the Receiveds at that rate, alledging that when they went at 28^s, the country was full of gold which they wanted very much. But the Commissioners of the Treasury considering that at 28^s the nation would lose 5^d a piece by them rejected their petition. And if an advantage to the Merchant of 5^d in 28^s did npower that money in upon us, much more hath an advantage to him of 9$\frac{1}{2}$^d or 10^d in guiena been able to pound in gold upon us & carry out our Silver.

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And this may be done by bringing the value of the Guineas nearer to the Standard. A Guinea is coyned or 20^s, but goes for 21^d 6^d, & by the proportion of gold to silver in bullion it ought to go not for more then 20 9^d nor for less then 20^s 6^d. About 10^d may be therefore taken from the Guinea & if at present only 6^d were taken from it , this would save

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I humbly represent to your Lordships that a pound weight Troy of ☉ eleven ounces fine is cut into 44$\frac{1}{2}$ Guineas, & a pound weight of silver eleven ounces two penny weight fine is cut into 62 shillings, & according to this rate a pound weight of fine gold is worth 15 pound weight six ounces seventeen penny W^t & five-grains of fine silver, recconinga guinea at 1^£ 1^s 6^d sterling.

A Spanish Pistole was coyned for 32 Reaus or four pieces of Eight & Reaus usually called pieces of Eight & is of equall allay & the sixteenth part of the weight thereof.

A Doppio Maeda of Portugal was coyned for ten Crusados of silver & is of equal allay & the sixteenth part of the weight thereof,

Gold is therefore in Spain & Portugal of 16 times more value then silver of equal weight & allay. At which rate a Guinea is worth 22^s 1^dBut this high price keeps their gold at home & carries away their silver into all Europe so that they make their payments in gold & will not pay in silver unless for a premium of six per cent. Which being abated a Guinea becomes worth 20^s 9^d in Spain & portugal

In France by the Edict of May 1709 a new Pistole is coyned for four new Lewisses & is of equal allay & the fifteenth part of the weight thereof and generally fine ☉ has in France been valued at fifteen times its weight of fine silver. At which rate a Guinea is worth 20.8$\frac{1}{2}$

A Ducat of Holland & the Empire was lately current in Holland at 5 Guilders & 5 styvers. At which rate a Guinea is worth 20^d 7$\frac{1}{2}$^d

According to the rates of Gold to silver in Italy Germany, Poland Denmark & Sweden a Guinea is worth 20^s & 7$\frac{1}{2}$, 7^d, 6^d, 5^d or 4^d/ For the proportion varies a little in the several governments within those countries.

In the end of king Williams reigns & the first year of the late Queens when forreign coyns abounded in England I caused a great many pieces to be assayed in the Mint & found by those assays that fine gold was to fine silver in Spain, Portugal, France Holland Italy Germany & the northern kingdoms in the proportions above mentioned.

The high price of ☉ in Spain & portugal

In France, a pound weight of fine Gold is recconed worth fifteen pounds weight of fine silver. In raising & falling their money they have sometimes in the kings edicts varied a little from this proportion in excess or defect: but the variations have been so little that I do not here consider it. By the Edict of May 1709 a new Pistole was coyned for four new Lewisses & 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$\frac{1}{2}$^d.

The high price of Gold in England brings it in to us, & carries away our silver into all Europe except perhaps Spain & Portugal & by the demand for exportation raises the price thereof to 2^d or 3^d an ounce in bullion above what it is worth in money. Add thereby hinders its coming to the Mint & encourages those that want silver in bullion to melt down the coin rather then buy bullion at so high a price. For the proportion of Gold to silver in bullion is setled 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 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 either by by altering the standard of the silver money & cutting an ounce of bullion into about 5^s 4^d$\frac{1}{2}$ or better by bringing the Gold moneys nearer to the legal standard For by the legal standard a Guinea is coined for 20^s, but goes now for 21.^s 6^d, & by the proportion of Gold to silver in bullion ought to go only for about 20^s 8^d: or certainly not for more then 20^s 9^d nor for less then 20^s 6^d. Yet if only 6^d should be taken off from the Guinea at present: it would save the nation 24^s in every pound weight of fine Gold imported, & diminish the temptation to melt down or export the silver money & sometimes perhaps it might bring some forreign silver to the Mint.

But this is to tell us that the trade for gold is not worth the having upon a par. That the nation must either mlose it or still pay for every pound weight of gold imported 38 or 40 more then it is worth that our silver must still be exported to enrich the Merchant. And is there no remedy.

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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 ☉ & ☾ in proportion to one another.

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 & give 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 And at this rate a Guinea.

- In Sweden Gold is lowest in proportion to silver & this has made that Kingdom which formerly was content with copper moneys abound of late with Silver, sent thither (I suspect) for naval stores.

It is the demand for exportation which hath raised the price of of exportable silver about 2^d or 3^d in the ounce above that of silver in coyn. And this demand aris from the higher value of Silver in other places then in England in proportion to gold, & is not to be remedied with out bringing down the Price of the Guinea to what it ought to be in proportion to the silver coyns by the course of Trade & Exchange . That is from 21^s 6^d to 20^s 8^d or perhaps to 20^s 6. For the proportion of Gold to silver in value is setled by the course of Trade & Exchange between nation & nation & cannot be altered by what we do amongst our selves in England alone. And therefore the lowering of Gold in proportion to our silver money will also lower forreign silver in proportion to the same silver money. Or to speak more truly, it will raise the value of our coin to that of forreign silver For the lowering of Gold in proportion to our silver money is the same thing with the raising of our silver money in proportion to Gold. And Gold is now become our standard money as in Spain & silver rises & falls in its value as a commodity.

- & hath thereby created a temptation 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 gold in England then in other places 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 no 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 silver in the rest of Europe there would be no temptation to export silver rather then ☉ to any other part of Europe. And to compass this last, there seems nothing more requisite then to take off about 10d or 12d 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 coin, & by the effect would shew hereafter better then can appear at present, what further reduction would be most convenient for the public.

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