A Select Collection of Scarce and Valuable Tracts on Money
V.: The various pretences for debasing the standard of money, stated.
19th Century John Ramsay McCulloch (ed.) EnglishI imagine I have, in the preceding, detected the causes of the several adulterations that have been made in our coins; but the real motives for this baneful measure, were cloaked under various pretences; and all that I have ever heard or read in its support, I shall under this head lay down before the reader, and afterwards endeavour to answer all these assertions or pretences, severally.
I have often heard it asserted, and that by men who thought themselves very wise and knowing in these matters, that our standard of money was too good, and should be debased. This ridiculous assertion hath been answered already; and nothing like an argument can be urged in its support, but what will fall under some one of the following heads.
Increasing the coinage, and also increasing the quantity of tale money, by giving the old names to smaller pieces of silver; are both urged as arguments for debasing the standard of money.
The keeping our coin from being melted or exported; also the examples of former times and of foreign states; are all brought as arguments for the same purpose.
The lightness of our coins from long wear, &c., is urged as an argument for altering the course of the mint, so as to make the new coins no better than the old in common currency.
It is said that debasing the coin, provided it be done gradually, a little at a time, would not be perceived, and therefore no injury to any body.
Some confine the standard to the fineness only of the metal; and if that be but preserved, you may clip or diminish the coins as you please.
These are all common-place thread-bare arguments, ready upon all occasions; and founded only upon this supposition, that as good money may be coined at the stamp-office, as at the mint: But our modern projectors have found out new arguments, and, as they think, very formidable ones.
Some say that gold is our standard as much as silver; and therefore that no argument can be used as to the one, but will hold equally with respect to the other.
Others go yet farther; and say that gold only is our standard; that you may debase silver coins as you please, and treat them as mere tokens, without giving any one a right to complain. This is making short work of it indeed, and with one stroke demolishing our poor old standard: And in support of this it is said, that gold is the standard of merchants; and therefore is, or ought to be, the national standard.
There is an obvious necessity of bringing the rates of gold and silver coins, to a juster proportion to each other, than they bear at present; and as something should be speedily done, it is said in favour of gold.
That, as we have greater plenty of gold coins, and of far greater value than we have of silver; should we lower the price of gold, we should undervalue our own treasure; therefore say they curtail the silver standard.
Some more modest than the rest, are for debasing some of our coins only, as shillings and six-pences: And leaving the crowns and half-crowns upon their present footing; they think that would be sufficient to secure them, from the odium of having debased the standard.
Lastly, As we are a nation indebted to foreigners; should we lower the price of gold, we should pay our foreign creditors more than we borrowed from them; therefore, we should debase the silver, &c.
This is very artfully put, and hath really in it more of argument, than all the preceding put together. But the whole weight of that argument, lies upon a fraud couched under it; a fraud that could not well be avowed, and yet would be glaring and obvious to all the world.
Before I enter upon the merits of these several pretences, for debasing the standard of our money; I shall endeavour to remove an obstacle out of the way, which, I believe, hath proved a stumbling block to many well meaning people.