Some Considerations of the Lowering of Interest [51]
Fifteen to one be now the exact Par beween Gold and Silver. What Law can make it lasting; and establish it so, that next Year, or wenty Years hence, this shall be the just value of Gold to Silver, and that one Ounce of Gold shall be just worth fifteen Ounces of Silver, neither more nor less? 'Tis possible, the East-India Trade sweeping away great Sums of Gold, may make it scarcer in Europe. Perhaps the Guinea Trade, and Mines of Peru, affording it in greater abundance, may make it more plentiful; and so its value in respect of Silver, come on the one side to be as sixteen, or on the other as fourteen to one. And can any Law you shall make alter this proportion here, when it is so every where else round about you? If your Law set it at fifteen, when it is at the free Market Rate, in the Neighbouring Countries, as sixteen to one; Will they not send hither their Silver to fetch away your Gold at One sixteen loss to you? Or if you will keep its Rate to Silver, as fifteen to one, when in Holland, France, and Spain, its Market value is but fourteen; Will they not send hither their Gold, and fetch away your Silver at One fifteen loss to you? This is unavoidable, if you will make Money of both Gold and Silver at the same time, and set Rates upon them by Law in respect of one another. What then? (Will you be ready to say) would you have Gold kept out of England? Or being here, would you have it useless to Trade; and must there be no Money made of it? I answer, Quite the contrary, 'Tis fit the kingdom should make use of the Treasure it has. 'Tis necessary your Gold should be Coin'd, and have the king's Stamp upon it to secure Men, in receiving it, that there is so much Gold in each piece. But 'tis not necessary that it should have a fixed value set on it by publick Authority: 'Tis not convenient that it should in its varying proportion have a settled price. Let Gold as other Commodities, find its own Rate. And when, by the king's Image and Inscription, it carries with it a publick Assurance of its weight and fineness; the Gold Money so Coin'd will never fail to pass, at the known Market Rate, as readily, as any other Species of your Money. Twenty Guineas, though designed at first for 20 l. go now as current for 21 l. 10 s. as any other Money, and sometimes for more, as the Rate varies. The value or price of any thing, being only the respective estimate it bears to some other, which it comes in Competition with, can only be known by the quantity of the one, which will exchange for a certain quantity of the other. There being no two things in Nature, whose proportion, and use does not vary, 'tis impossible to set a standing regular price between them. The growing plenty or scarcity of either in the Market; (whereby I mean the ordinary places, where they are to be had in Traffick) or the real Use, or changing fashion of the place bringing either of them more into demand than formerly, presency varies the respective value of any two Things. You will as fruiCesly endeavour to keep two different Things steadily at the same price one with another, as to keep two Things in an AEquilibrium, where their varying weights, depend on different Causes. Put a piece of Spunge in one Scale, and an exact counterpoise of Silver in the other, you will be mightily mistaken if you imagine, that because they are to day equal, they shall always remain so. The weight of the Spunge varying with every change of moisture. in the Air, the Silver in the opposite Scale will sometimes Rise and sometimes Fall. This is just the State of Silver and Gold in regard of their mutual value. Their proportion, or use, may, nay constancy does vary, and with it their price. For being estimated one in Reference to the other, they are as it were put in opposite Scales, and as the one rises the other falls, and so on the contrary. Farthings made of a baser Metal, may on this account too deserve your Consideration. For whatsoever Coin you make current, above the Intrinsick value, will always be dammage to the Publick, whoever get by it. But of this I shall not at present