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
It would be endless to examine the proportion of the metals, with
respect to every species of their coin. It would also be incorrect to
examine it as to the ducats; because that species has no fixed legal
denomination; and the proportion of the metals is to be discovered by
the denomination of the coins only.
Ducats pass current among the people for 5 florins 5 stivers; but with
merchants, who buy them as merchandize, their value is continually
varying. At present (September 1761) the new coined ducats brought in
bags from the mint, which never have circulated, are bought for 5
florins 4⅝ stivers; those which have circulated (were it for a day)
fall, from that very circumstance, to 5 florins 4⅜ stivers; which is a
diminution of near ¼ _per cent._ of their value. This phænomenon shall
afterwards be accounted for.
[Sidenote: Were all the coin of full weight, the proportion would be as
1 to 14.62.]
This being the case, we have no method left to judge of the proportion
of the metals in the coin of Holland, but by the proportion of fine gold
and fine silver found in the same sum, paid in florins of full weight,
and in new riders; the one and the other coined according to the
regulations of the mint above mentioned.
It has been shewn that a marc of fine gold in riders, circulates for
_f._ 374, and that a marc of fine silver in florins, circulates for _f._
25.572; divide the first by the last, you have the proportion as 1 to
14.62: But we shall afterward discover a circumstance, not taken notice
of in this place, which will reduce the proportion lower.
[Sidenote: Quantity of fine silver in a florin piece.]
From the above calculations, we may easily discover the exact quantity
of fine silver and fine gold contained in a Dutch florin, whether
realized in silver florin pieces, in gold riders, or in ducats. As this
will be of use when we come to examine the par of exchange, it will not
be amiss to set before the reader, the exact state of that particular
before we proceed. We have said that whoever receives _f._ 25.572 in
silver florins of full weight, receives a marc of fine silver, which
contains 5120 aces. Divide the last sum by the first, you have 200.21
aces of fine silver for the florin.
[Sidenote: Quantity of fine gold in a florin of riders.]
Whoever receives _f._ 374 in gold riders, receives a marc of fine gold,
which contains 5120 aces. Divide the last sum by the first, you have
13.69 aces of fine gold for the florin.
[Sidenote: Investigation of this proportion as to the ducat;]
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