Draft of MINT00322 (Mint 19/2/111-16)

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To the Right Honorable the Lords Commesissioners of his Majesties Treasury.

May it please yoer Lordships

In obedience to yoer Lordships Order of Reference of Aug. 12, 1717, that I should lay before your Lordships a state of the Gold & Silver Coyns of this kingdom in weight & finess & the value of gold in proportion to silver with my observations & opinion, & what method may be most effectual for preventing the melting down or exporting the silve coin: I humbly represent to yoer Lordships that a pound weight Troy of Gold eleven ounces fine & one ounce allay is cut into 44$\frac{\mathrm{1}}{\mathrm{2}}$ Guineas, & a pound weight of Silver, eleven ounces two penny weight fine & 18 penny weight allay is cut into 62 shillings & according to this rate a pound weight of fine gold is worth fifteen pounds weight six ounces seventeen penny weight & weight & five grains of fine silver, recconning a Guinea at 1£ 1s 6d in silver money.✝ < insertion from > ✝But silver in Bullion is usually worth 2d or 3d per ounce more then in coyn And if at a medium such bullion of standard allay be valued at 5s 4d$\frac{\mathrm{1}}{\mathrm{2}}$ pr ounce, a pound weight of fine gold will be worth but 14£wt 11oz 12dwt 9gr 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 pr ounce or above but I consider not those extraordinary cases.

A Spanish Pistole was coyned for 32 Reaus or four pieces of eight Reaus usually called Pieces of eight & is of equal allay & the sixteenth part of the weight thereof. And a Doppia Moeda of Portugal was coined for ten Crusados of silver, & is of equal allay, & the sixteenth part of the weight thereof. Gold is therefore in Spain & Portugal of sixteen times more value the silver of Equal weight & allay according to their standard. At which rate a Guinea is worth 22.s 1d. But this high price keeps their gold at home & carries away their silver into all Europe, so that at home they make their payments in gold, & will not pay in silver without a ☉ premium < insertion from > ☉ a premium. Upon the coming in of a Plate Fleet the Premium ceases or is but small, but as their silver goes away & becomes scarce the premium increases & is most commonly about six per cent. Which being abated a Guinea becomes worth about 20s 9d in Spain & Portugal.

In France a pound weight of fine gold is recconed worth fifteen pounds weight of fine silver. In raising & falling their money the Kings 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 coyned for four new Lewises & is of equal allay & the fifteenth 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$\frac{\mathrm{1}}{\mathrm{2}}$. ⊡ < insertion from > ⊡ I consider not here the confusion made in the Moneys in France by frequent Edicts to send them to the Mint & give the king a Tax out of them. I consider only the value of hold & silver in proportion to one another.

‡ < insertion from > ‡ The Ducats of Holland Hungary & the Empire, were lately current in Holland among the common people in their Markets & ordinary affairs at five Guilders in specie & five Styvers & commonly changed for so much silver money in three Guilder pieces & Guilder pieces as Guineas are changed with us for 21s 6d. sterling. At which rate a Guinea is worth 20s 7$\frac{\mathrm{1}}{\mathrm{2}}$d.

According to the rates of Gold to Silver in Italy, Germany, Poland, Denmark & Sweden a Guinea is worth about 20s & 7d, 6d, 5d or 4d. For the proportion varies a little in the several governments within those countries. ‡ < insertion from > ‡ In Swedeland Gold is lowest in proportion to silver & this has made that kingdom which formerly was content with Copper money about of late of with silver sent thither (I suspect) for naval stores.

In the end of King William's reign & the first year of the late Queen's when forreign coyns abounded in England, I caused a great many of them to be assayed in the Mint & found by the assays that fine gold was to fine silver in Spain, Portugal, France, Holland, Italy, Germany & the northern kingdoms in the proportions above mentioned, the errors of the Mints excepted.

In China & Japan one pound weight of fine gold is worth but nine or ten pounds weight of fine silver.& in East India it is worse about twelve. And this low price of Gold in proportion to silver carries the silver away from all Europe, & when ships are lading for the East Indies raises the price of Silver in bullion to 2d 3d or 4d per ounce above the ordinary price as often as ships are lading for the east Indies.

[Editorial Note 1]

< insertion from >  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 coyn, & hath thereby created a tempation to export or melt down the silver coyn rather then give 2d or 3d more for forreign silver. And the demand for exportation arises from the higher value of silver in other places then in England in proportion to Gold, that is, from the higher value of Gold in England then in other places in proportion to silver, & therefore may be diminished by lowering the value of Gold in proportion to silver. If Gold could be brought down so low in England or silver in East India as to beare the same proportion to one another in both places, there would be not greater demand for silver then for gold to be exported to India And if gold were brought down to have the same proportion to the silver money in England which it hath to it in the rest of Europe, there would be no temptation to export silver rather then Gold to any other part of Europe. And to compas this last there seems nothing more requisite then to take off about 10d or 12d from the price of the Guinea. But if only 6d were taken off at present, it would diminish the temptation to export or melt down the silver coyn, & the effect would shew hereafter better then can appear at present, what further reduction would be most convenient for the publick. Memorial about the high value of Gold

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Those that import gold represent that their profit is but small & if by lowering the price that profit be taken away there will be neither gold nor silver imported. But must the nation pay 38 or 40 shillings too much for every pound weight of gold imported. Must all our silver be exported to enrich the Merchant? And is there no remedy?

In the last year of king William the Dollars of Scotland worth about four shillings & six pence half penny, were put away in the north of England for 5s, & at this price began to flow in upon us. I gave notice thereof to the Lords Commissioners of the Treasury And they ordered the Receivers of Taxes to forbeare taking them at that value & thereby put a stop to the mischief.

At the same time the Lewidor's of France which were worth but seventeen shillings & three farthings a piece, passed in England at 17s 6d. I gave notice thereof to the Commissioners of the Treasury, & his late Majesty put out a Proclamation that they should go but at 17s, & thereupon they came to the Mint, & a Million & four hundred thousand pounds was coyned out of them. And if the advantage of five pence farthing in a Lewidor sufficed at that time to bring into England so great a quantity of French money, & the advantage of three farthings in a Lewidor to bring it to the Mint: the advantage of 9$\frac{\mathrm{1}}{\mathrm{2}}$d or above may have been sufficient to bring in the great quantity of gold which has been coined in these last 16 years without any forreign silver.

Some years ago, the Portugal Moyders 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 then 27s 6d. Afterwards many Gentlemen in the west sent up to the Treasury a Petition that the Receivers might take them again at 28s & 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 their petition. And if an advantage to the Merchant of 5d in 28s did power that money in upon us: much more hath an advantage to the Merchant of 9$\frac{\mathrm{1}}{\mathrm{2}}$d or 10d in a Guinea been able to bring to the Mint great quantities of gold without any forreign silver, & may be able to do it toll the cause be removed.

◬ < insertion from > ◬ 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, & will in a little time refuse to make payments in silver without a premium, & 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 moneys.

It may be said that there are great quantities of silver in plate, & if the Plate were coyned there would be no want of silver money. But I reccon that silver is safer from exportation in the form of Plate then in the form of money because of the great value of the silver & fashion together. And therefore I am not for coyning the Plate till the tempation to export the silver money (which is a profit of 2d or 3d in the ounce) be taken away. For as often as men are necessitated to send away money for answering debts abroad they will be tempted to send away silver rather then gold because of the profit which is almost four per cent. And for the same reason forreigners will send hither their gold rather then their silver.

All which All which is most humbly submitted to yoer Lordships great Wisdome.

Mint Office.                                         Isaac Newton 21 Sept. 1717.