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
Now let us suppose, that the specie we are speaking of is, upon an
average, only 2 ounces _per_ sac below the standard. If it be no more,
this circumstance does great honour to the money-jobbers. Such a
deficiency, however, amounts to within a mere trifle of 1 _per cent._ Is
not this an object of great importance, upon all the silver specie of
Holland; especially as the remedy given by the current bank, is a tacit
permission given to every body who has address, to rob so much from all
the weighty coin?
[Sidenote: From which it follows, that the actual proportion of the
metals in their coin is as 1 to 14.479.]
Now let us, by the way, correct the former calculation we made upon the
proportion of the metals in the Dutch coin. We said above, that a marc
of fine gold in riders circulated for _f._ 374, and that the same weight
of silver circulated for _f._ 25.572, which gave for the proportion 1 to
14.62; but here we find that the marc of silver has lost by fraud and
wear 1 _per cent._
Now the marc of silver being 5120 aces, if they have lost 1 _per cent._
there will remain 5068.8 aces. If these 5068.8 aces, therefore,
circulate for _f._ 25.571, the full marc must be worth in the coin _f._
25.83.
In order then to find the exact proportion of the metals in the Dutch
currency, we must divide 374 by 25.83, instead of dividing by 25.572, as
we did when we supposed the silver of full weight. Now 374⁄25.83 is =
14.479. So the proportion is as 1 to 14.479, the same, within a trifle,
of that received in France; which is as 1 to 14.47. But if we attend to
every circumstance, we shall find the proportion still lower than the
last calculation makes it; for in that, we have searched for it with
respect to the best silver specie in Holland; whereas we ought, in
strictness, to calculate the gold, against a mixture of ⅓ of less
valuable specie, with ⅔ of the good: but when computations cannot be
brought to perfect exactness, it is better not to attempt a calculation.
[Sidenote: Another abuse in the silver coin of Holland.]
Before I leave the consideration of the inequality in the weight of the
Dutch currency, I must take notice of another circumstance of
considerable importance.
No payments made in silver, below _f._ 600, are subject to be weighed;
any more than what circulates without being put up in bags. What
restraint, therefore, is there laid upon money-jobbers, with respect to
this part of the currency? When these gentlemen have occasion for money
bagged up, they take care that such specie shall be of the proper weight
to pass at the current bank, and as for all that is light, they either
employ it in payments below _f._ 600, or throw it into the common
circulation. This circumstance presents us then with two sorts of silver
currency in Holland; that which is bagged up, and weighty; and that
which is not, and light.
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