An Inquiry into the Principles of Political Oeconomy (Vol. 2 of 2): Being an essay on the science of domestic policy in free nations. In which are particularly considered population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxesSteuart, James, Sir
General
An Inquiry into the Principles of Political Oeconomy (Vol. 2 of 2): Being an essay on the science of domestic policy in free nations. In which are particularly considered population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxes
Steuart, James, Sir
Economics
1_mo_, The less surface any piece has in proportion to its mass, the
less it is worn in circulation; and as all coin is made cylindrical,
that whose form approaches nearest to the cylinder, whose height is
equal to its diameter, must have the least. Coin therefore ought to be
made thick, and for this reason louis d’ors are of a better form than
guineas, and guineas of a far better form than ducats. Were it easy to
give the surface a spheroidal form on both sides, rendring the coin
thicker in the middle than at the edges, the surface would be thereby a
little more diminished.
[Sidenote: The advantage of heavy pieces for the greater part of the
coin; yet small denominations are useful, in some cases, for
preventing the rise of prices.]
2_do_, The great credit of paper in England, is a vast advantage in many
respects. It renders coin less necessary. While that credit subsists,
large payments will always be made in paper; and this renders the
coinage of gold in large heavy pieces less necessary. The coin,
therefore, in England, ought to be calculated for the easy changing of
bank notes, not with a view to the making great payments in it. For this
purpose, two and three pound pieces might be full as convenient as
single guineas, and half guineas might be proscribed. Small
denominations of gold coin lead to expence, and tend to raise the prices
of such commodities as people of fashion pay immediately out of their
own pockets. As for the silver, the same principles are to be observed.
Crown pieces are very convenient in payments, and have a great advantage
over shillings and sixpences in point of surface. The practice in France
of coining the greatest part of their silver in such pieces abundantly
shews how few of the lesser denominations (that is shillings, &c.) are
necessary for carrying on circulation.
[Sidenote: Mixt metal better than copper for small denominations, as
appears from the practice in Germany.]
3_tio_, The copper coin of England is exceedingly bulky, in order to
give it an intrinsic value. This makes many people ashamed to carry it;
consequently increases expence, and raises the price of many things for
the reason already given.
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