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
Foreign bills drawn on Rotterdam in banco (i. e. bank species) are often
received _there_, in any of the above species, without regard to the ⅔
which ought to be groff gelt; but when the holder of the bill desires
the acceptor (which the latter cannot refuse) to write it off to his
credit in the current bank of Rotterdam, and that he has there no stock,
then, if he brings in specie to the bank, it must be as above specified.
[Sidenote: Ditto for current bills.]
Current bills, not specified by the word _banco_, are generally paid
according to the following proportion:
3⁄10 in schillings of 6 stivers.
1⁄10 in dubleties of 2 stivers.
6⁄10 in good silver.
[Sidenote: Ditto for merchandize.]
Merchandize are paid with all kinds of Dutch silver, ⅒ only in
dubleties, and ⅓ gold, less or more, or sometimes none, according to
agreement.
[Sidenote: The denominations of the several silver currencies not
proportioned to their intrinsic value.]
From this exposition of the matter, it is very evident, that all these
currencies must be of different intrinsic values, in proportion to their
denomination; otherwise, why all this trouble about regulating the
proportion to be received in payments? [Sidenote: Cause of this.] This
proceeds from two causes: first, from the wearing of the pieces; the
second, from the disproportion of the fineness in pieces of the same
weight and denomination.
[Sidenote: Regulations concerning the weighing of silver species in
banks current.]
As to the first, to wit, the wearing of the coin, I shall observe, that
the three denominations of the good silver, to wit, the 3 guilder
pieces, the 30 stiver pieces, and the 20 stiver pieces, are put up
promiscuously in the same bags; being of the same fineness, and
consequently of the same value, in proportion to their weight. These
bags contain 600 florins each, and the legal and full weight, with which
they are weighed at the bank current of Rotterdam, is 25 marcs 5 ounces
and 10 engles. Now the exact weight of a florin, according to the
regulation, is, as we have said, 200.21 aces fine; then the 600 florins
ought to weigh 120126 aces fine, which at the standard of 263 parts fine
to 25 alloy, is 131545 aces standard: by this analogy, 263 : 120126 ::
288 : 131545; which is equal to 25 marcs 5 ounces 10 engles and 13 aces.
So the weight at the bank is but 13 aces lighter than in strictness it
ought to be; which is so small a difference, that it could hardly turn a
scale with such a weight suspended in it: for which reason, I suppose,
it is left out, for the sake of the even reckoning of 25 marcs 5½
ounces.
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