Appendix.: Report from the Select Committee on the High Price of Gold Bullion.

Ordered, by the House of Commons, to be printed, 8 June, 1810.

The Select Committee appointed to enquire into the cause of the High Price of Gold Bullion, and to take into consideration the state of the Circulating Medium, and of the Exchanges between Great Britain and Foreign Parts;—and to report the same, with their Observations thereupon, from time to time, to the House;—Have, pursuant to the Orders of the House, examined the matters to them referred; and have agreed to the following Report:

Your Committee proceeded, in the first instance, to ascertain what the price of gold bullion had been, as well as the rates of the foreign exchanges, for some time past; particularly during the last year.

Your Committee have found that the price of gold bullion, which, by the regulations of his Majesty's Mint, is 3l. 17s. 10½d. per ounce of standard fineness, was, during the years 1806, 1807, and 1808, as high as 4l. in the market. Towards the end of 1808 it began to advance very rapidly, and continued very high during the whole year 1809; the market price of standard gold in bars fluctuating from 4l. 9s. to 4i. 12s. per oz. The market price at 4l. Ios. is about 15½ per cent, above the Mint price.

Your Committee have found, that during the three first months of the present year, the price of standard gold in bars remained nearly at the same price as during last year; viz., from 4l. IOS, to 4l. 12s. per oz. In the course of the months of March and April, the price of standard gold is quoted but once in Wetten-hall's tables; viz., on the 6th of April last, at 4l. 6s. which is rather more than 10 per cent, above the Mint price. The last quotations of the price of gold, which have been given in those tables, are upon the 18th and 22d of May, when Portugal gold in coin is quoted at 4l. IIS. per oz. : Portugal gold coin is about the same fineness as our standard. It is stated in the same tables, that in the month of March last, the price of new doubloons rose from 4l. 7s. to 4l. 9s. per oz. Spanish gold is from 4½ to 4¾ grains better than standard, making about 4s. per oz. difference in value.

It appears by the evidence, that the price of foreign gold coin is generally higher than that of bar gold, on account of the former finding a more ready vent in foreign markets. The difference between Spanish and Portugal gold in coin and gold in bars, has of late been about 2s. per ounce. Your Committee have also to state, that there is said to be at present a difference of between 3s. and 4s. per ounce between the price of bar gold which may be sworn off for exportation as being foreign gold, and the price of such bar gold as the dealer will not venture to swear off: while the former was about 4l. IOS. in the market, the latter is said to have been about 4l. 6s. On account of these extrinsic differences, occasioned either by the expense of coinage, or by the obstructions of law, the price of standard gold in bars, such as may be exported, is that which it is most material to keep generally in view through the present inquiry.

It appeared to your Committee, that it might be of use, in judging of the cause of this high price of gold bullion, to be informed also of the prices of silver during the same period. The price of standard silver in his Majesty's Mint is 5s. 2d. per ounce; at this standard price, the value of a Spanish dollar is 4s. 4d. or, which comes to the same thing, Spanish dollars are, at that standard price, worth 4s. 11½d. per ounce. It is stated in Wettenhall's tables that throughout the year 1809, the price of new dollars fluctuated from 5s. 5d. to 5s. 7d. per ounce, or from 10 to 13 per cent, above the Mint price of standard silver. In the course of the last month, new dollars have been quoted as high as 5s. 8d. per ounce, or more than 15 per cent, above the Mint price.

Your Committee have likewise found, that towards the end of the year 1808, the Exchanges with the continent became very unfavourable to this country, and continued still more unfavourable through the whole of 1809, and the three first months of the present year.

Hamburgh, Amsterdam, and Paris, are the principal places with which the Exchanges are established at present. During the last six months of 1809, and the first three months of the present year, the Exchanges on Hamburgh and Amsterdam were depressed as low as from 16 to 20 per cent, below par; and that on Paris still lower. The exchanges with Portugal have corresponded with the others; but they are complicated by some circumstances which shall be explained separately.

Your Committee find, that in the course of the month of March last, that is, from the 2d of March to the 3d of April, the exchanges with the three places above mentioned received a gradual improvement. The exchange with Hamburgh rose gradually from 29. 4. to 31.; that with Amsterdam from 31. 8. to 33.5.; that with Paris from 19. 16. to 21. 11. Since the 3d April last to the present time, they have remained nearly stationary at those rates, the exchange with Hamburgh, as stated in the tables printed for the use of the merchants, appearing as much against this country as 9l. percent, below par; that with Amsterdam appearing to be more than 7l. per cent, below par; and that with Paris more than 14l. per cent, below par.

So extraordinary a rise in the market price of gold in this country, coupled with so remarkable a depression of our exchanges with the continent, very early, in the judgment of your Committee, pointed to something in the state of our own domestic currency as the cause of both appearances. But before they adopted that conclusion, which seemed agreeable to all former reasonings and experience, they thought it proper to enquire more particularly into the circumstances connected with each of those two facts; and to hear, from persons of commercial practice and detail, what explanations they had to offer of so unusual a state of things.

With this view, your Committee called before them several merchants of extensive dealings and intelligence, and desired to have their opinions, with respect to the cause of the high price of gold and the low rates of exchange.