Draft of <ref target="/catalogue/record/MINT00322">MINT00322</ref> (Mint 19/2/111-16) Isaac Newton c. 3,593 words Newton Project London 2019 Newton Project, University of Oxford

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 c. 21 September 1717, c. 3,593 words. Response to an order to report on gold and silver coin in Britain [MINT 19/2/111-16] MINT 19/2/96-8, National Archives, Kew, Richmond, Surrey, UK UKSurreyKew, RichmondNational Archives MINT 19/2/96-8 c. 21 September 1717 England English Holograph MintEconomic Theory and Legislation Catalogue information compiled by Rob Iliffe, Peter Spargo & John Young Catalogue exported to teiHeader by Michael Hawkins Transcribed by Kees-Jan Schilt
To the Rt Honble the Lds CommersRight Honorable the Lords Commissioners of his Majts TrearyMajesties Treasury

May it please yo rLorpsLordships

In the end of King Will

In obedience to yor LorpsLordships Order of Reference of Aug. 12. 1717, that I should lay before yor LorpsLordships a state of the Gold & Silver Coins of this kingdom in weight & fineness & the proporti value of gold in proportion to silver with any observations & opinion & what method may be most effectual for preventing & discouraging the meting down of or exporting the silver Coin: I humbly lay beforerepresent yor LorpsLordships that for informing my self about theise matter, I did in the end of the reign of King WmWilliam & the first year of the late Queen when forreign coins were plentifull in England cause many of them to be assayed in the Tower Mint & found thereby & by other observations

That one pound weight of fine gold is worthvalued at sixteen pounds weights of fine silver in Spain & Portugal, fifteen pounds iat 14£wt 6oz 17dwt 5gr in England, at 15£wt in France atabout 14£wt 11oz 512dwt in Holland, ,& at 14£wt 11oz in Italy & Germany, or there abouts. for For the several Mints in Italy & Germany do not perfectly agree with one another. And according to these valuations the fine gold in a Guinea which in England is valued at 21s 6d, is worth in Spain & Portugal 212s 1d, in France 20s 812, in Holland 20. 712, in Italy & Germany 20s 7d& in SDenmark & Sweden it is worth about 20s 4d.

The high price of Gold in Spain & Portugal carries away theirkeeps it at home & carries away their silver into all Europe, so that they make their payments in gold & will not pay in Silver unless for a premium of 5 or 6 per cent. Which being abated a Guinea is wirth 12os 9d in Spain. The high price of Gold in England carries away our Sibrings it to us & carris away our silver into all Europe except Spain & Portugal & enables the Merchant to give two pence5s 4d per ounce for silver in bullion more then it is worth when coinedwchwhich in coin is worth but 5s 2d & encourages those that want silver to melt down the coin rather then buy bullion at 5s 4d per ounce. In China & Japan one pound weight of fine gold is worth but 9 or 10 pounds weight of fine silver, & this low price of gold carries away the silver from all Europe into th & makes silver in bullion worth 5s 6d or 5s 8d per ounce as often as it is wanted for exportation to the Indiesships are lading for the E. Indies: but the excessive price in these cases I do not have consider in this Paper. And because silver in bullion is worth for these reasons constantaly worth more in bullion then when coined, there has no forreign silver come to the mint these many years last past. For To prevent the exportation & melting down of our silver money (except to the Indies) & to bring silver to the Mint I can think of no better means then to make silver worth as much in coyn as it is usually in bullion. And to this there are b I know of but t And to do this I know but two methods. Either silver the value of the silver money must be raised, or that of the gold lowered, so that in England Gold may & silver moneys may in value beare the same proportion to one another in value England which they do in France Holl Italy Holland & Germany. F A pounds weight of Standard silver is now cut into sixty & two shillings. It if were cut into 64s or 6ss 6d an ounce of Silver money would be worth 2d or 2d12 more then it is at present, & so be equal in value to the an ounce of bullion of the same allay except when there is a great demand for silver to go to the east Indies. But there is no need of altering the standard of silver money The same thing may be done by lowering the price of gold in the same proportion. ABy the Indentures of the Mint under the broad seale a Guinea has been coined for twenty Shillings ever since the coinage of the mill & press was set up. And we sti accordingly in the Mint we still call in the Mintit a twenty Shillings piece. It now goes for 18d more then th legalthis value. If it was lowered to 20s 8d (or in a rounder number to 20s 6d) the mischief would be cured except so far as it arises from the extraordinary demand of silver for the east Indies when ships are lading to go thither. Those that import Gold represent that their profit is but small & if by lowering the price of Gild & their profit be taken way, we shall havethere will be whither Gold nor silver imported. But must the nation pay 38 or 40 shillings too much for every pound weight of Gold imported? & is there no remedy? Must all our silver be exported to enrich the merchant? & is there no remedy? In the last year of king William the Dollars of Scotland were worth about 4s 6d12 were put away in the north of England for 5s & all this price begā to 96 to flow in upon itus. I gave notice thereof the to the Commissioners of the TrearyTreasury & they ordered the receivers of Taxes to forbear taking of them at that price & thereby put a stop to the mischief. At the same time the Lewidors of France wchwhich were worth but 17s &34 34d passed in England at 217s 6d I gave notice thereof to the CommersCommissioners of Treasury & his late MajtyMajesty put out a proclamation that they Should go but at 17s & thereupon they came to the Mint & a Million & about 400 thousand pounds were coyned out of them And of the advantage 514 in a Lewidor did at that time bring into the Mint England so great a quantity of French moeny, the advantage of 912 or above in a Guinea must have wasmay have been sufficient to bring in the great quantyquantity of the gold which has been coined in these last 18 or 20 years without any forreign silver. Some years ago the Portugal Moiders were received in the west of England at 28s a piece. Upon notice from the Mint that they were worth about 27s 7d, the Lds CommersLords Commissioners of the TrearyTreasury ordered their Receivers of Taxes to take them at no more then 27s 6d. Afterward the many Gentlemen of Devonshirethe West & those parts sent up to yethe Treasury a Patition that the Receivers might take them again at 28s & promised to get returns for the Receivesds at that rate, alledging that twhen they went at 28s, the country was full of gold which they wanted very much. But the CommersCommissioners of the TrearyTreasury considering that the nation at 28s the nation would lose 5d a piece by them did not think fit to grantrejected their petition. And if an advantage of 5d o to the Merchant of 5d a piecein 28s did npower that money in upon us, much more willhath an advantage to him of 912d or 10d in guiena been able to pound in gold upon us & carry out slver & by consequence carryd out our Silver. [An0d the proper remedy must be to bring down the price of gold in relation to silver so much that it may be as much the merchants interest to import silver as to import gold & to export gold as to export silver, & as much the goldsmiths interest to bye buy by forreign silver as to melt down the money unless at such times as ships are lading Whether Gold Shall be lowered at once or by steps, by an Order to the Receivers of Taxes or by Proclamation, or first by an Order to the Receivers & then by a Proclamation for the East Indies All which &c For the proportion of Gold to Silver in bullion is settled by the Merchant according to the markets of Europe & the bringing down the price of the one will bring down the price of the other in proportion untill silver in bullion be other of the same value with silver coyned, except when ships are lading to the east Indies the demand of silver bullion for the East Indies raises the price. It seems to me that the proportion of gold to silver & the pricesvalue of each should be the same in money as in bullion, & f by consequence that Guineas Gold should be lowered till it beare the same proportion to silver in coin that it doth now to silver in bullion when ships are not lading or the or till silver in bullion be of equal value with silver in coin.I mean when ships are not lading for the Indies. &And that this may be effected by bringing down gGuineas to 20s 8d, or if a rounder number, be required to 20s 6d, whether at once or by steps, by Proclamation or by Order to the Receivers of Customes, Excise & other Taxes. If only six pence should be taken off from the Guinea at present: it would 22s All wchwhich is most humbly submitted) & to yethe nation in every pound weight of Gold imported, & retard the going decreasing of oer silver money. I speak this without relation to yethe East India Trade. For the exportation of siversilver to those parts is not to be remidied by the means here proposed.] - & willmay do it till the cause be removed.
And this may be done either [by diminishing [Either the weight of the siversilver moneys or] the value of the Guineas without altering & bringing it nearer to the]by bringing the value of the Guineas the value of the Guineas nearer to the Standard. For by By the legal standard aA Guinea is coyned or 20s, but goes for 21d 6d, & by the proportion of gold to silver in bullion it ought to only for ab go not for more then 20 9d nor for less then 20s 6d. About 10d may be therefore taken off from the Guinea & if at present only 6d were taken from it at present, this would save 97 I humbly represent to your LordpsLordships that a pound weight Troy of ☉ eleven ounces fine is cut into 4412 Guineas, & a pound weight of silver eleven ounces two penny weight fine is cut into 62 shillings, & according to this rate a pound weight of fine gold is worth 15 pound weight six ounces seventeen penny Wt & five-grains of fine silver, recconinga guinea at 1£ 1s 6d sterling. A Spanish Pistole was coyned for 32 Reaus or four pieces of Eight & Reaus usually called pieces of Eight & is of equall allay & the sixteenth part of the weight thereof. A Doppio Meaeda of Portugal was coyned for 4 ten Crusados of silver & is the 16t of equal allay & the sixteenth part of the weight thereof, In France Gold is theref T They Gold is therefore in Spain & Portugal of 16 times more value then silver of equal weight & allay. At wchwhich rate a Guinea is worth 22s 1dBut this high price keeps their gold at home & carries away their silver into all Europe so that they make their payments in gold & will not pay in silver unless for a premium of six per cent. Which being abated a Guinea becomes worth 20s 9d in Spain & portugal In France the SIlver in four new Lewisses is In France by the Edict of May 1709 a new Pistole is coyned for four new Lewisses & is of equal allay & the fifteenth part of the weight thereof and generally fine ☉ has in France been valued at fifteen times its weight of fine silver. At wchwhich rate a Guinea is worth 20.812 In Holland aA Ducat of Holland & the Empire was lately valuedcurrent in Holland at 5 Guilders & 5 styvers. At wchwhich rate a Guinea is worth 20d 712d According to the rates of Godld to silver in Italy Germany, & Poland Denmark & Sweden a Guinea a may beis worth 20s & 3712, 47d, 6d, 5d or 4d/ For the proportion varies a little in the several governments within those countries. In the end of kings Williams reigns & the first year of the late Queens when forreign coyns abounded in England I caused a great many pieces to be assayed in the Mint & found by those assays that fine gold was to fine silver in Spain, Portugal, France Holland Italy Germany & the northern kingdoms in the proportions above mentioned. The high price of ☉ in Spain & portugal In France, fine Gold is to fine silver a pound weight of fine Gold is valuedrecconed worth fifteen pounds weight of fine silver. In raising & falling their money they have sometimes in the kings edicts varied a little from this proportion in excess or defect: but the variations hasve been so little that I do not here consider it. By the Edict of May 1709 a new Pistole was coyned for four new Lewisses & is of equal allay & the fifteenth part of the weight thereof, except the errors of their Mints. And at this rate a Guinea is worth 20.s 812d. The Hhigh price of Gold in England brings it in to us, & raises the price of silver in bullion & thereby carries away our silver into all Europe except perhaps Spain & Portugal & by the demand for exportation raises the price of thereof to 2d or 3d an ounce in bullion above what it is worth in money. For the proportion of Gold to silver in bullion is setled by the Merchants according to the Markets of Europe. ElndAdd thereby hinders its coming to the Mint & encourages those that want silver in bullion to melt down the coin rather then buy bullion at so high a price. For the For the proportion of Gold to silver in bullion is seltled by the Merchants according to the Markets of Europe. And where the proportion is not the same in the money as in the Bullion, the Merchant & Goldsmith will make their advantages will make their of the difference. And the proper remedy is to mend the proportion in the money, & make it the same as in the bullion. And this may be done either by [raising the price of the silver or by the money suppose about 212d in the ounce or better by lowering the price of the gold about 10d in the Guinea. The first isrequires an alteration of the standard] by altering the standard of the silver money & cutting an ounce of bullion into about 5s 4d12 or by brin better by bringing the Gold moneys nearer to the legal standard by 10 d about 10d in a Guinea For by the st legal standard a Guinea is coined for 20s, & now but goes now for 24d 6d 21.s 6d, & by the proportion of Gold to silver in bullion ought to go only for 20s 8d or thereaboutsonly for about 20s 8d: or certainly not for more then 20s 9d nor for less then 20s 6d. & Yet if only 6d should be taken off from the Guinea at present: it would save the nation 224s 5d in every pound weight of silverfine and Gold imported, & diminish the gs temptation to melt down or export the silver money & sometimes bring a litteleperhaps it mayight bring some forreign silver to the Mint. But this is to tell us that the trade for gold is not worth the having upon a par. That the nation must still pay lose 38 or 40 s foreither mlose it or still pay for every pound weight of gold imported more th38 or 40 more then it is worth more that our silver must still be exported to enrich the Merchant. And thatis there is no remedy. 38. 4. 5. 15-14 570. 60. 75 573. 6. 3 6563. 8. 3 4894.l 16.s 4. 32. 16. 7.X15117 48492. 08. 9. 8. 1. 8 493. 0. 5 514: 1. 10old 34. 5. 9X15-1135 544. 6. 3. I consider not there 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 proportional value of ☉ & ☾ in proportion to one another. The Ducats of Holland Hungary & the Empire were lately current in Holland among the common people at five Guilders & five Stivers in Markets & & in their Markets & ordinary affairs &at five Guilders in specie & five Guilder pieces & give styvers, & commonly changed for so much silver money in three Guilder pieces & Guilder pieces, as Guineas are changed with us atfor 21s. 6d Sterling Steling pur silver moneys And at this rate a Guinea. - In Sweden their Gold is lowest in proportion to silver moneys & this has fuelled made Sweden of late abound with Silver which formerly wasmade that Kingdom which formerly was content with copper moneys abound of late with Silver, sent thither for (I suspect) for naval stores. wchwhich formerly Forreign silver is rated in its price by the demand for exportation It is the demand for exportation wchwhich raises hath raised the price of Bullio of exportable bullion abovesilver about 2d or 3d in the ounce above that f of the silver moneysin coyn. And this demand aris from the lowhigher value of the Silver in England aboradin other places then in England in proportion to gold, [or which is the same thing, from the higher value of gold in England then in Egland abroad,] & is [a standing tempation to melt down down or export the mone silver coyn as well rather then be at the charge of buying forreign bullion for the melting pot or exportation, & not to be remedied with out bringing down the Price of the Guinea d in proportion to silver money to what it ought to be in proportion to the silver money 2in proportion to the silver coyns by the course of Trade & eExchange in + proportion to the silver coyned. That is from 21s 6d to 20s 8d or 20s 6d perhaps to 20s 6. For the proportion between of Gold to silver in value is setled by the course of Ex Trade & Exchange between nation & nation & cannot be altered by what we do amongst our selves alone in England alone. And therefore the lowering of Gold in proportion to our silver money will lower also lower forreign bullionsilver in proportion to the oursame silver moneycoyn money. Or to speak more truly, it will raise the pricevalue of our our coin bullion to that of forreign silver bullion [ For [ Gold is now become our standard money & the silver money is become a commo.] the lowering of Gold in proportion to our silver money is the raising same thing with the raising of our silver money in proportion to Gold. And Gold is now become st our standard money as in Spain & silver rises & falls in its value as a commodity. - & hath thereby created a temptation sometimes to export or melt down the silver coyn sometimes rather then be at the charge of 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. in England If Gold could be brought down so low in England or silver in En East India as to beare the same proportion to one another in both places, there would be no greater demand for silver then for gold to be exported thither to India. And if gold would were brought down in England to have the same proportion to yethe silver money in England wchwhich it hath to silver in the rest of Europe wchwhich it hath in Spain except Spain & Portugal there would be no temptation to export silver rather then ☉ to any other part of Europe. rather then Gold And to compass 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 b diminish the temptation to export or melt down the silver coin, & by the effect it would shew what hereafter better then can appear at present, what further reduction would be most convenient for the public.