Representation Third.

IN Obedience to your Lordships Order of Reference of August 12th, that I should lay before your Lordships a State of the Gold and Silver Coins of this Kingdom in Weight and Fineness, and the Value of Gold in Proportion to Silver, with my Observations and Opinion, and what Method may be best for preventing the Melting down of the Silver Coin; I humbly Represent, That a Pound Weight Troy of Gold, 11 Ounces fine, and 1 Ounce Allay, is cut into 44 Guineas and Half, and a Pound Weight of Silver, 11 Ounces, 2 Penny Weight fine, and 18 Penny Weight Allay, is cut into 62 Shillings; and according to this Rate, a Pound Weight of fine Gold is worth 15 Pounds Weight 6 Ounces, 17 Penny Weight and 5 Grains of fine Silver, reckoning a Guinea at 1l. 1s. 6d. in Silver Money. But Silver in Bullion exportable is usually worth 2d. or 3d. per Ounce more than in Coin. And if at a Medium, such Bullion of Standard Allay be valued at 5s. 4d. Half-penny per Ounce, a Pound Weight of fine Gold will be worth but 14 Pound Weight 11 Ounces, 12 Penny Weight 9 Grains of fine Silver in Bullion. And at this Rate, a Guinea is worth but so much Silver as would make 20s. 8d. When Ships are lading for the East-Indies, the Demand of Silver for Exportation raises the Price to 5s. 6d. or 5s. 8d. per Ounce, or above: but I consider not those extraordinary Cases.

A Spanish Pistole was coined for 32 Reas, or 4 Pieces of Eight Reas, usually called Pieces of Eight, and is of equal Allay, and the 16th Part of the Weight thereof. And a Doppio Moeda of Portugal was coined for 10 Crusadoes of Silver, and is of equal Allay, and the 16th Part of the Weight thereof; Gold is therefore in Spain and Portugal of 16 times more Value than Silver of equal Weight and Allay, according to the Standard of those Kingdoms; at which Rate, a Guinea is worth 22s. 1d. But this high Price keeps their Gold at Home in good Plenty, and carries away the Spanish Silver into all Europe, so that at Home they make their Payments in Gold, and will not pay in Silver without a Premium. Upon the coming in of a Plate-Fleet, the Premium ceases, or is but small; but as their Silver goes away and becomes scarce, the Premium encreases, and is most commonly about 6 per Cent. which being abated, a Guinea becomes worth about 20s. 9d. in Spain and Portugal.

In France a Pound Weight of fine Gold is reckoned worth 15 Pound Weight of fine Silver; in raising or falling their Money, their King’s 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 coined for 4 new Lewises, and is of equal Allay, and the 15th Part of the Weight thereof, except the Errors of their Mints. 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 20s. 8d. Half-penny. I consider not here the Confusion made in the Monies in France, by frequent Edicts to send them to the Mint, and give the King a Tax out of Them; I consider the Value only of Gold and Silver in Proportion to one another.

The Ducats of Holland and Hungary, and the Empire, were lately currant in Holland among the common People in their Markets and ordinary Affairs, at 5 Guilders in Specie, and 5 Stivers, and commonly changed for so much Silver Monies in three Guilder-Pieces, and Guilder Pieces as Guineas are with us for 21s. 6d. Sterling; at which Rate a Guinea is worth 20s. 7d. Half-penny.

According to the Rates of Gold to Silver in Italy, Germany, Poland, Denmark, and Sweden, a Guinea is worth about 20s. and 7d. 6d. 5d. or 4d. for the Proportion varies a little within the several Governments in those Countries. In Sweden, Gold is lowest in Proportion to Silver, and this hath made that Kingdom, which formerly was content with Copper Money, abound of late with Silver, sent thither (I suspect) for Naval Stores.

In the End of King William’s Reign, and the first Year of the late Queen, when Foreign Coins abounded in England, I caused a great many of them to be assayed in the Mint, and found by the Assays, that fine Gold was to fine Silver in Spain, Portugal, France, Holland, Italy, Germany, and the Northern Kingdoms, in the Proportion above mentioned, Errors of the Mints excepted.

In China and Japan, one Pound Weight of fine Gold is worth but 9 or 10 Pounds Weight of fine Silver, and in East-India it may be worth 12. And this low Price of Gold in Proportion to Silver, carries away the Silver from all Europe.

So then, by the Course of Trade and Exchange, between Nation and Nation in all Europe, fine Gold is to fine Silver as 14⅘, or 15 to one; and a Guinea at the same Rate is worth between 20s. 5d. and 20s. 8d. Half-penny, except in extraordinary Cases, as when a Plate-Fleet is just arriv’d in Spain, or Ships are lading here for the East-Indies, which Cases I do not here consider. And it appears by Experience as well as by Reason, that Silver flows from those Places where its Value is lowest in Proportion to Gold, as from Spain to all Europe, and from all Europe to the East-Indies, China and Japan; and that Gold is most plentiful in those Places, in which its Value is highest in Proportion to Silver, as in Spain and England.

It is the Demand for Exportation which hath raised the Price of exportable Silver about 2d. or 3d. in the Ounce above that of Silver in Coin, and hath thereby created a Temptation to export or Melt down the Silver Coin, rather than give 2d. or 3d. more for Foreign Silver; and the Demand for Exportation arises from the higher Price of Silver in other Places than in England, in Proportion to Gold, that is, from the higher Price of Gold in England than in other Places, in Proportion to Silver, and therefore may be diminish’d by lowering the Value of Gold in Proportion to Silver. If Gold in England, or Silver in East-India, could be brought down so low as to bear the same Proportion to one another in both Places, there wou’d be here no greater Demand for Silver than for Gold to be exported to India; And if Gold were lowered only so as 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 than Gold to any other Part of Europe. And to compass this last, there seems nothing more requisite, than to take off about 10d. or 12d. from the Guinea, so that Gold may bear the same Proportion to the Silver Money in England, which it ought to do by the Course of Trade and Exchange in Europe; but if only 6d. were taken off at present, it would diminish the Temptation to export or melt down the Silver Coin, and by the Effects, would shew hereafter better than can appear at present, what further Reduction would be most convenient for the Publick.

In the last Year of King William, the Dollars of Scotland, worth about 4s. 6d. Half-penny were put away in the North of England for 5s. and at this Price began to flow in upon us: I gave Notice thereof to the Lords Commissioners of the Treasury, and they Ordered the Collectors of Taxes to forbear taking them, and thereby put a Stop to the Mischief.

At the same time the Lewidors of France, which were worth but 17s. and 3 Farthings a Piece, passed in England for 17s. 6d. I gave Notice thereof to the Lords Commissioners of the Treasury, and his late Majesty put out a Proclamation, that they should go but at 17s. and thereupon they came to the Mint, and 1400000l. were coined out of them; and if the Advantage of 5d. 1 Farthing a Lewidor sufficed at that Time to bring into England so great a Quantity of French Money, and the Advantage of 3 Farthings in a Lewidor to bring it to the Mint, the Advantage of 9d. Half-penny in a Guinea, or above, may have been sufficient to bring the great Quantity of Gold which hath been coined in these last 15 Years without any Foreign Silver.

Some years ago the Portugal Moydores were received in the West of England at 28s. a Piece; upon Notice from the Mint, that they were worth only about 27s. 7d. the Lords Commissioners of the Treasury ordered their Receivers of Taxes to take them at no more than 27s. 6d. Afterwards many Gentlemen in the West sent up to the Treasury a Petition, that the Receivers might take them again at 28s. and promised to get Returns for this Money at that Rate, alledging, that when they went at 28s. their Country was full of Gold, which they wanted very much. But the Commissioners of the Treasury considering that at 28s. the Nation would lose 5d. a Piece, rejected the Petition. And if an Advantage to the Merchant of 5d. in 28s. did pour that Money in upon us, much more hath an Advantage to the Merchant of 9d. Half-penny in a Guinea or above, been able to bring into the Mint great Quantities of Gold without any Foreign Silver, and may be able to do still, ’till the Cause be removed.

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, and will in a little Time, refuse to make Payments in Silver without a Premium, as they do in Spain; and this Premium will be an Abatement in the 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 Money?

It may be said, That there are great Quantities of Silver in Plate, and if the Plate were coined, there would be no Want of Silver Money: But I reckon that Silver is safer from Exportation in the Form of Plate than in the Form of Money, because of the greater Value of the Silver and Fashion together; and therefore I am not for coining the Plate till the Temptation to export the Silver Money (which is a Profit of 2d. or 3d. an Ounce) be diminished: For as often as Men are necessitated to send away Money for answering Debts Abroad, there will be a Temptation to send away Silver rather than Gold, because of the Profit, which is almost 4 per Cent. And for the same Reason Foreigners will choose to send hither their Gold rather than their Silver.