A Discourse of Coin and Coinage [2]
Gold and Silver, of which chiefly I mean to treat: It is true
that many particular Countries have antiently, and do as this day
use other things in stead of Money: (as to instance in some of
the modern) in AEthiopia they use certain stones of Salt in stead
of Money; in Guinney, Shells; in New Spain, Cacao, Coco in Peru,
one of which is a fruit, the other an herb: but in all these
Countries you shall find that there is a certain value set upon
Gold and Silver, by which chiefly the value of all other things
is raised, and that these other things do but serve as base Money
doth in sundry Countries of Europe, where it is current in
certain limits, by the Law or Custom of the Place; but yet they
cannot be without Gold and Silver Money, unless they will barr
themselves from all commerce with other Nations: And to that
purpose the Invention of Licurgus was admirable, who desiring to
lock up his Citizens from all commerce with other nations, did
upon great penalties banish all Gold and Silver out of the City;
and as long as that Prohibition was observed, the manners and
Customs of the City were preserved entire from the mixture of
other Nations: but when their ambition and voluptuousness had
entangled them in the Commerce of other Nations, then did Gold
and Silver grow into use in despite of all Laws, by this
universal value given unto Gold and Silver. I shall convince
hereafter an important and a popular Error, by which many are
perswaded, that Princes can give what value they list to Gold and
Silver, by enhansing and letting fall their Coins, when as in
truth Gold and Silver will retain the same proportion towards
other things, which are valued by them, which the general consent
of other Nations doth give unto them, if there be a Trade and
Commerce with other Nations: By which intercourse it comes to
pass, that if the price of Gold and Silver be raised, the price
of all Commodities is raised according to the raising of Gold and
Silver; so as let any particular Prince or State raise the price
of Gold and Silver as they list, yet they will still hold the
same proportion towards other things valued by them, which the
general consent of other Nations neer about them doth give unto
them: and this universal value of Gold and Silver, the mint, even
in money, do call Intrinsical, and the local value they call
Extrinsical, as depending upon impression of the mark and
ordinance of the State. Now Money is said to have an Intrinsical
value so much as there is Gold and Silver in it in fineness and
weight, which is computed in France (and was antiently likewise
the Computation in England) first for Gold, it is divided into 24
parts, which are called Carrats, and so when they say, the Gold
is 23 Carrats fine, then it is understood there is a 2th part
base, which is Allay mingled with Gold; or if they say, it is 22
Carrats fine, then there is a 12th part of Allay: or if they say
22 Carrats and one quarter fine, then there is so much Allay as
there wants to make up 24 parts.
Silver is divided into 12 Deniers and every Denier into 25
grains; as if it be said, that Silver is jj Deniers and 12 grains
fine, then there is 12 grains of allay, which is a 24th part; or
if it be said to be jj Deniers and 6 grains fine, there is then
so much allay as it wants in the fineness to make it 12 deniers:
But with us in England, ever since the time of Edward the third,
the Computation hath been dividing the Gold into 24 carrats, and
every carrat into a 4 grains, and every grain into so many parts
as there is occasion offered to divide it; as for Example, The
antient Standard of the sterling Gold was 23 Carrats, 3 grains,
and one half of fine, and half a grain of Allay, which is the 192
part; and the Silver is divided in England into 12 Ounces; every
Ounce into 20 Pence, every Penny into 24 grains; as for Example,
the old sterling standard is jj Ounces fine, and two Penny
weight, then there remains eighteen Penny weight of Allay and, if
there were jj Ounces two Penny weight, and 6 grains fine, then