XX.: Of debasing, or raising the nominal values of, coins in general.

41. We have now gone through the several pretences, that have been urged for debasing the standard of money; and they were chiefly founded upon the disproportion between the rates of gold and silver coins with us, in respect to what they bear at a medium, in the neighbouring countries: But there are some so extravagant, and so lost to all common sense, who not content with debasing the standard coins only, would have us debase both gold and silver at the same time; and they are so precise as to tell us, to a grain, how much per ounce they would debase both the one and the other: But as these grave computists, do not offer us any reasons in support of their notion; mine is, that they be left to themselves to compute on, as they please.

By the proclamations, &c. cited in the preceding chapter, the mischiefs that had been occasioned here by adulterating the coins in some former reigns, appear very manifest. Besides the infinite confusion, distrusts, and panics, created by those measures throughout the realm; they were ineffectual as to the end proposed by them: The people would part neither with their old money, nor their goods, according to the new standard; and having lost their old scale, were forced upon the primitive method of trucking one commodity against another. France affords us a more recent instance, of the bad effects of these measures; these are plainly set forth by an ingenious French author, in a book entitled, Political reflections upon the finances and commerce of France. This piece enters necessarily too much into a detail of those bad effects, to have any part of it inserted here; it fully answers and confutes, by plain and undeniable matters of fact, another French piece, wrote professedly in justification of the adulterations, that had been made at different times in the French coins.

But notwithstanding that both experience and the reason of the thing, are so evidently and strongly on our side, against all tamperings with money; yet, is there but little prospect of quite silencing the contrary doctrine. I was not a little surprised to see it insinuated, in a work containing many excellent observations relative to trade, that the prosperity of France, was greatly owing to the pranks that had been played with coins, by Lewis XIV. I do not know whether I should have taken notice of the above passages, if the same doctrine was not now again revived, and delivered in much plainer terms by Mr. Postlethwayt, in his late work entitled, Britain’s commercial interest explained and improved, vol. II. page 354. I have no doubt of this laborious gentleman’s good intention; but as the doctrine insinuated in the passage referred to, is so directly contrary to all that I have been inculcating, it would be unfair not to lay it before the reader, at full length.

“Labour in France is but 3d. per day of 14 hours, or from five to seven o’clock, in the cheapest countries, and about 7d. half-penny in the dearest: in manufactures, at but half the price as in England. Sailor’s wages a-board the French navy, but from 8s. to 12s. per month; whereas in England, a sailor has 20s. per month a-board king’s ships. Must not this render their commodities exceeding cheap in comparison to ours at foreign markets?

“And here it may be observed, that this cheapness of labour, provisions, and commodities, was, at first brought about by the sole artifice of the enhancement of their money from 27 livres, to 50 livres the mark of eight ounces of silver troy-weight; and this has been done since the beginning of the confederate war in 1702. It is true, this caused great convulsions in the kingdom at first, but in the issue, it has been the instrument by which they have sapped the foundations of our trade; and, if a remedy be not applied, this artifice of the French will worm out British manufactures by gentle degrees in every market in the world: and that no less in time of war than peace, by virtue of neutral powers carrying on their trade for them; which they cannot do to such advantage by British commodities, by reason of their greater dearness.

“By this artifice they have rendered their labour so cheap, that they reap a plentiful harvest in every country, where they pay but the same customs as the English, whilst the English merchant is obliged to wait for the gleanings of the market, after the Frenchman has finished his sales.

“The project of the enhancement of money, has given an undue preference in France to money, above land and commodities: but where lies the disadvantage at present, if the gentleman receives but a hundred pound weight of silver for his lands, where he used to receive two hundred pound, if, at the same time, he can purchase as many commodities with a hundred pound, as before the enhancement he could with two? It is certain it would only affect his foreign consumption. By this scheme the French have restrained the bulk of the people to the consumption of their own manufactures, and commodities, and have prodigiously extended their commerce, by underselling all nations. This has enabled their islands to send home sugars, indico, &c., so cheap, as to rival us in all the European markets, and in the Levant: and all this they do, though their manufactures pay six times as much in taxes on the necessaries of life as they do in England.

“Dutot says, the price of bread, corn, and provisions, is no greater now than in 1683; though in this last year the mark of silver was but 27 livres, and now 50 are coined out of it. This circumstance, as observed, has rendered their commodities so cheap, that they undersell us, and engross all the markets in the world from our merchants. It is likewise this enhancement of their coin, and the consequent cheapness of their commodities, which has enabled our smugglers to carry on such an advantageous trade with them. If but 20l. 5s. were now coined out of their mark of silver of eight ounces troy weight, which was the case in the year, 1660, the French would not be able to sell a gallon of brandy under 5s. sterling, which now they can sell for 2s.; nor a pound of tea under 7s. 6d. sterling, which they now sell for 3 shillings; nor a yard of silk damask under 12s. 6d. which they now sell for 5 shillings; nor a yard of cloth under 15s. which they now sell for 6 shillings, abating only in the manufactures, the difference made in the price of those manufactures, with regard to the raw-materials, which cost both French and English men much the same, though the raw silk comes to them cheaper from the Turkey-traders; and their wool used in their fine woollen stuffs dearer from our smugglers than to us.” A little farther on Mr. P. seems to lament our case, because, “Our constitution and public faith will not admit us to play such tricks with our money as the French have done.”

The whole of this gloomy tedious tale, is so marvelous and visionary; that were it not so gravely and circumstantially told, one could scarce have believed the author to be really in earnest. It would be needless here to enter into particulars; but from the whole, I think; it clearly follows, that if the case was as it is above stated, our condition would be, as Mr. P. seems to dread, a most deplorable one indeed. We should be every hour at the mercy of our enemies, as by the simple artifice only of splitting their coins into halves, they might, as by a magic wand, at once double their force against us; and if that would not be sufficient to crush and utterly destroy us, they need but keep splitting on, till at length their coin be annihilated, and by that simple expedient, obtain that universal dominion, which it is said they have been so long in quest of.

But from their adherence to the same standard of money, for so many years back, it seems that the French have quite another notion of this business; it seems as if they had opened their eyes at last, and seen, from woeful experience, the folly and mischief of debasing the standard of money; and whatever reception this debasing doctrine may meet with at London, it is very probable that at Paris, it would be treated with that contempt and indignation, which it so well deserves. Mr. P. laments nothing so much as the greatness of day-wages in England; but there seems to be no other natural remedy for this evil, than a general poverty; and we have politicians, that, could they but once get at the helm, would soon bring this about; and perhaps the debasing of money would be as effectual for the purpose, as any one scheme that could be thought of. But from the poor, tattered and starved condition in general, of the commonalty of France, it seems very evident that there, the lowness of wages, of soldiers pay, &c., is forced and not natural. Despotic power can do this; can draw to itself what share it pleases of every one’s property, and spread misery and despair throughout the whole extent of its dreary dominion. But may Britons for ever keep out the horrid monster; and maintain unblemished, from age to age, that happy constitution, so justly admired and envied by the nations round them.