Report on exchange rates in American colonies Isaac Newton c. 1,876 words Newton Project London 2019 Newton Project, University of Oxford

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 c. 9 December 1703., c. 1,876 words. Treasury

Variant draft dated 9 December 1703 calendared in CTB, 19 (1704-March 1705): 224.

In reply to the Council of Trade's reference of 2 December 1703, the Mint agree that there should be a uniform rate for foreign coins throughout America to prevent plantations undermining each other's trade. Recommend universal adoption of the Massachusetts standard. A table of intrinsic values of Spanish, Mexican and Peruvian coins by English standards is annexed.

 MINT 19/2/188-9, National Archives, Kew, Richmond, Surrey, UK UKSurreyKew, RichmondNational Archives MINT 19/2/188-9 c. 9 December 1703. England English Holograph MintEconomic Theory and Legislation Catalogue information compiled by Rob Iliffe, Peter Spargo & John Young Catalogue exported to teiHeader by Michael Hawkins Transcribed by Kees-Jan Schilt
Considerations about yethe state rates of the coyns Cross Dollars Wt . Old Sevil pieces of 8.wo 1dwt.Wt17. 12value54.d New Sevil p. of 8wo 112Wt14.43∟11 Ecuwo 117. 1254 Old Rix Dollerswo 1018. 6954∟4 Crusado of Portugg>lwo 211. 434∟31 Ducaton of Flandersbe. 41220. 2266∟15 Cross Doller wo 1218. 152∟91 Peruillar piece of 8be 217. 16 Mexico p. of 8wo. 117. 162. Peru piece of 8wo. 151217. 12
Sevil, Mexico, & Peru & Pillar pieces of eight old Plate, & French Ecus, or Silver Lewises weighing 1712dw - 4.s 6d. - 6dsNB Pillar pieces are 1d better, Peruse 12d worse. Pieces of eight new Plate new plate weighing 14dw-3s. 7d. 4. 935 Sevil & Mexico pieces of eight old plate weighing 17dwt 12gr4.s 6d Mexico ditto4 6 Pillar pieces of eight weighing 17dwt 146gr4s 714 MexicoPeru pieces of eight of due allay weighing 17dwt 142gr. 4. 5 4. 512 The halfs & quarter pieces of eight in proportion & the pieces The The french Lewis weighing 17. 124. And we further lay before your LordpLordship that the Pillar pieces of 8 ared better then the Sevil & Mexico by about 1d 1d oror 1d ob per piece, but considering that in yethe Colony of Massachusets Bay by vertue of an Act passed there they & confirmed by the Royal authortyauthority, wchwhich cannot be altered but by an Act to be passed byin the same manner, the Pillar pieces passare current at the same rate with the Sevil & Mexico pieces, the same And we further lay before yoer LordpsLordships that pieces of eight of Sevil & Mexico of just weight & allay are worth 4s 6d per piece intrinsic value & that Pillar pieces of eight are finer silver & on that account better by by three farthings per piece then more valu worth then the others of the same weight by ab three farthing in the piece: but considering that by vertue of an Act passed in Massachusets Baythat the differencdifference is but small & that all forreign coyns are already rated for the Colony of yethe Massachusets Bay by vertue of an Act there passed & confirmed by the Royal authority, wchwhich cannot be altered but by a newl Act to be all forreign coynes are rated for thpassed byin the same manner as their LopsLordships mention, the Pillar pieces areof eight are there current at the same rate with the Sevil & Mexico pieces of eight: we are humbly of opinion that if her MajtyMajesty shall think fit to issue out her Royal Proclamation in the mannerto the purpose proposed by their LdpsLordships for Tradethe coyn & be rated it0may be done for all her MajtysMajestys Plantations in Am. after the same manner proposed by theirm without as in this Act without making a difference between the Pillar pieces & the other pieces of eight. But con Which And we are humbly of opinion being allowed we are humbly of opinion 188 We do not think it the rate of forreign coyns any further then their LordpsLordships have done, but if the value of moreleast the just intrinsic value of coyns coyns of themof any coyns of just weight & allay should be desiredwanted, we have subjoynedset them down in the following Table. of l Sevil Piaeces of eight ild plateWt17dwt 12gvalue4s. 6 Sevil pieces of eight new plateWt14.3. 714 Mexico pieces of eight17. 124. 6 Pillar pieces of eight17. 1 124. 8634 Peru pieces of 8 old plate17. 124. 512 Cross Dollers18.4. 434 Ducatons of Flanders20. 215. 6 Ecus of France or Silver Lewises17. 124. 6 Crusados of Portugal11. 42. 10 R DollersThree Guilder pieces of HollandThree Guilder Piece of Holland20. 75. 214 The halfs, & quarters & other pieces parts in proportion of their weight according to their denominations. And InAnd light pieces an abatement in proportion of to their ward of weight Three Guilder piece of Holland or piece of 10 Schellings or 60 Styvers20. 75. 214 Considering that yethe Coyn most of her MajtsMajesties Plantations in Am. have already raised their coyns & that Pieces of 8 are raised from 4. 6 to 6 in New England by a law ratified by yethe Royal authority I hu humbly conceive it adviseable to limit the raising it further by such a her Majtys issuing such a Proclamation as the Lds CommersLords Commissioners for Trade propose. Were the And considering that the difficulties of reducing them coyns to yethe Same rate as in England [ by reason that they are already raised in most of yethe Plantations almost all theo Dominions her MajtsMajesties PlantationsDominions & that in New England these are raised by an law established by royal authority in the colony of Massachusets Bay cannot be lowered by Act without a new repealing an Act established by the Royal authority : we humbly conceive the rate proposed & limited by their LordpsLordships to be a convenient limit for putting a stop to the raising of forreign coyns at pleasure beyond it, namely that pieces of eight or [Sevil Mexico & Pillar Pieces of 8 doshould not pass for more then six shillings] forreign such coyns do not pass at a higher rate there that already appointed in the Colony of Massachusets Bay by an Act establi established by yethe The Pillar Pieces are finer then the Sevil & Mexico & on that acctaccount better more worth by about three farthings in yethe piece, beside some advantage in the weight, but but considering that the difference is but small Royal authority so established by by that Actin any of those her MajtsMajesties dominions then they do at present in the said ColonyNew England by vertue of yethe Said Act And considering the difficulties of reducing them to the same rate as in England by reason that they are already raised in almost all those her Dominions & that in the colony of Massachusets bay cannot be loweredthey are raised by an Act established by the royal authority wchwhich cannot be repealed by by the a like Act: we humbly conceive that thateir LopsLordships have fit by proposed a limit their LordpsLordships have fitly proposed the rate at wchwhich by yethe SdSaid Act they pass b in that Colony, by yethe said Act. as a limit above wchwhich sthey shall not be pass in any other Colony.
May it pl.please yoer LopLordship According to yoer LopsLordships - - - - Dominions in America. And for yethe rate proposed by their LopsLordships, namely that Sevil Mexico & Pillar pieces of 8 do not pass for more then six shillings a piece we rely upon their LopsLordships judgment it depending on yethe laws & customes of yethe Plantations & circumstances of Trade. The intrinsic value of those coyns in proportion to English specie money is set down in yethe followingannexed Table but considering that the rate at wchwhich they are now taken in England is uncertainat higher rates at yethe discretion of the Merchant, that they are already already raised in almost all her MajtsMajesties Dominions in America & cannot be lowered without danger of disgust & that the in yethe Colony of Massachusets Bay they are raised by an Act confired by Royall authoriry wchwhich cannot be repealed by by another Act to be passed after the same manner we are humbly of opinion that the most pactible & safest & convenient way of bringing them to the same rate in all those Dominions is to put a limit above wchwhich they shall not be ratedpass & we conceive that the rate at wchwhich theyby the said Act V Act above mentioned they now now pass in yethe said Bay by is a fitfit limit to be appointed by her Majesties Proclam [fit [to be appointed by her Majesties Proclamation. May it please yoer LordpLordship According to yoer LordpsLordships order of Reference signified to us by Mr Lowndes his of Dec 2d we have considered the matter conteined in the Representation from the Lds CommersLords Commissioners for yethe Council of Trade for setling the rates of Forreign coyns in the MajtsMajesties Plantations in America & humbly agree wthwith their LordpsLordships that the in their opinion that the taking a liberty of altering the rates of the coynes at pleasureat yethe discretion of those governments doesmust incourage an indirect practises of drawing the money from one Plantation to another to the undermining of each others trade & that the proper way to remedy this mischief is to reduce all forreign coynes to one & the same rate in all her Majesties Plantations Dominions in America. We have therefore suppbjoined a Table to the just value of suchthe principla forreign coyns that upon acced in in proportion to current coyns in money current in English specie money, that upo whereby it may be known upon that upon statingEgland in English money, that by her Majesties appointing by appointing the rate at wchwhich any one species shall pass it may be known at what rate any all the other species are to pass. But appointing that rate it self in asser the assign the rate to state that rate at wchwhich the mo to be appointed depends upon such considerations circumstances of Trade & laws & customes of yethe Plantations of wchwhich the Lords CommsCommissioners of Trade wchwhich have no certain knowledge wchwhich do not lye before us.of wchwhich we are not informed But the rate to be appointed depends upon laws & customes of the Plantations wchwhich we are not acquainted All wchwhich wthwith All wchwhich &c The value of forreign coyns according to their weight Sevil, Mexico And since Their L And w The LordpsLordships pro Pieces of 8 are worth of For this end their LordpsLordships propos The rate proposed by their LordpsLordships is that pieces of eight do not goe in any part ofpass in there for more then six shillings, wchwhich is 1s 6d above their intrinsic valuejust value in England, & for this limitation their LopsLordships give this reason, that in wchwhich we must su we must rely upon their LopsLordships judgmtjudgment not having it depending on yethe laws & customes of the Plantations & circumstances of Trade. The Pillar Pieces of 8 are of finer silver then yethe rest & on that acctaccount more valuable then yethe rest those of Sevil & Mexico of the same weight by three farthing in the piece by about three farthings in yethe piece besides some advantage in their weight. But considering other pieces of 8 that the difference is but small & that it is neglected in the Act passed in the Province of Collony of yethe Massachusets Bay wchwhich wchwhich their LopsLordships mention & conformed by Royall authority wchwhich appoints the rate of forreign coyns for that Prov Provincewchwhich appoints yethe rate of forreign coyns for that Province we are humbly of opinion that it may be neglected in vtrating the coyn for yethe rest of yethe Plantations so that all the Plantations in America may be upon the same & that & weColonies, as in their LordpsLordships Representation that Act being made yethe rule for rating the coyn for all her MatsMajesties Plantations in America, because already ratified by yethe Royal authority.