Some Considerations of the Lowering of Interest [49]
a difference of value between that which is weighty, and light Money; and will not Sell their Commodities, but for Mony that is Weight; and will make their Bargains accordingly. Let the Country Gentleman, when it comes to that pass, consider, what the decay of his Estate will be, when receiving his Rent in the Tale of Clip'd Shillings, according to his Bargain, he cannot get them to pass at Market for more than their Weight. And he that Sells him Salt or Silk, will bargain for 5 s. such a quantity, if he pays him in fair weighty Coin, but in Clip'd Money he will not take under 5 s. 3 d. Here you see you have your Money without this new trick of Coinage, raised 5 per Cent. But whether to any advantage of the Kingdom, I leave every one to judge. Hitherto we have only considered the raising of Silver Coin, and that has been only by Coining it with less Silver in it, under the same Denomination. There is another way yet of raising Money, which has something more of reality, though as little good as the former in it. This too, now that we are upon the Chapter of Raising of Money, it may not be unseasonable to open a little. The raising I mean is, when either of the two richer Metals, (which Money is usually made of) is by Law raised above its natural value, in respect of the other. Gold and Silver, have, in almost all Ages, and parts of the World (where Money was used) generally been thought the fittest Materials to make it of. But there being a great disproportion in the Plenty of these Metals in the World, one has always been valued much higher than the other; so that one Ounce of Gold has exchanged for several Ounces of Silver: As at present, our Guinea passing for 21 s. 6 d. in Silver, Gold is now about Fifteen and an half times more worth than Silver; there being about Fifteen and an half times more Silver in 21 s. 6 d. than there is Gold in a Guinea. This being now the Market Rate of Gold to Silver; if by an established Law the Rate of Guinea's should be set higher, (as to 22 s. 6 d.) they would be raised indeed, but to the loss of the Kingdom. For by this Law Gold being rais'd 5 per Cent. above its natural true value, Foreigners would find it worth while to send their Gold hither, and so fetch away our Silver at 5 per Cent. profit, and so much loss to us. For when so much Gold as would purchase but 100 Ounces of Silver any where else, will in England purchase the Merchant 105 Ounces, what shall hinder him from bringing his Gold to so good a Market; And either Selling it at the Mint, where it will yield so much, or having it Coin'd into Guinea's: And then (going to Market with his Guinea's) he may buy our Commodities at the advantage of 5 per Cent. in the very sort of his Money; or change them into Silver, and carry that away with him? On the other side, if by a Law you would raise your Silver Money and make 4 Crowns or 20 s. in Silver, equal to a Guinea, at which rate I suppose it was first Coin'd; so that by your Law a Guinea should pass but for 20 s. the same inconveniency would follow. For then strangers would bring in Silver, and carry away your Gold, which was to be had here at a lower rate than any where else. If you say, that this inconvenience is not to be fear'd; for that as soon as People found, that Gold began to grow scarce, or that it was more worth than the Law set upon it, they would not then part with it at the Statute-rate; as we see, the broad pieces that were Coined in K. James I. time for 20 s. no body will now part with under 23 s. or more, according to the Market value. This I grant is true; and it does plainly confess the foolishness of making a Law, which cannot produce the effect, it is made for: As indeed it will not, when you would raise the price of Silver in respect of Gold, above its natural Market value: For then, as we see in our Gold, the price of it will raise it self. But on the other side, if you should by a Law set the value of Gold above its Par, then People would be bound to receive it at that high rate, and so part with their Silver at an under value. But supposing