the metal which was the standard, and that
which was not the standard, was something
more than a nominal distinction.
In process of time, and as people became
gradually more familiar with the use of the
different metals in coin, and consequently better
acquainted with the proportion between
their respective values, it has, in most countries,
I believe, been found convenient to ascertain
this proportion, and to declare by a
public law, that a guinea, for example, of such
a weight and fineness, should exchange for
one-and-twenty shillings, or be a legal tender
for a debt of that amount. In this state of
things, and during the continuance of any one
regulated proportion of this kind, the distinction
between the metal, which is the standard,
and that which is not the standard, becomes
little more than a nominal distinction.
In consequence of any change, however, in
this regulated proportion, this distinction becomes,
or at least seems to become, something
more than nominal again. If the regulated
value of a guinea, for example, was either reduced
to twenty, or raised to two-and-twenty
shillings, all accounts being kept, and almost
all obligations for debt being expressed, in
silver money, the greater part of payments
could in either case be made with the same
quantity of silver money as before; but would
require very different quantities of gold money;
a greater in the one case, and a smaller
in the other. Silver would appear to be more
invariable in its value than gold. Silver would
appear to measure the value of gold, and gold
would not appear to measure the value of silver.
The value of gold would seem to depend
upon the quantity of silver which it
would exchange for, and the value of silver
would not seem to depend upon the quantity
of gold which it would exchange for. This
difference, however, would be altogether owing
to the custom of keeping accounts, and of
expressing the amount of all great and small
sums rather in silver than in gold money.
One of Mr Drummond's notes for five-and-twenty
or fifty guineas would, after an alteration
of this kind, be still payable with five-and-twenty
or fifty guineas, in the same manner
as before. It would, after such an alteration,
be payable with the same quantity of gold
as before, but with very different quantities of
silver. In the payment of such a note, gold
would appear to be more invariable in its value
than silver. Gold would appear to measure
the value of silver, and silver would not
appear to measure the value of gold. If the
custom of keeping accounts, and of expressing
promissory-notes and other obligations for money,
in this manner should ever become general,
gold, and not silver, would be considered
as the metal which was peculiarly the standard
or measure of value.
In reality, during the continuance of any
one regulated proportion between the respective
values of the different metals in coin, the
value of the most precious metal regulates the
value of the whole coin. Twelve copper pence
contain half a pound avoirdupois of copper,
of not the best quality, which, before it is
coined, is seldom worth sevenpence in silver.
But as, by the regulation, twelve such pence
are ordered to exchange for a shilling, they
are in the market considered as worth a shilling,
and a shilling can at any time be had for
them. Even before the late reformation of
the gold coin of Great Britain, the gold, that
part of it at least which circulated in London
and its neighbourhood, was in general less degraded
below its standard weight than the
greater part of the silver. One-and-twenty
worn and defaced shillings, however, were
considered as equivalent to a guinea, which,
perhaps, indeed, was worn and defaced too,
but seldom so much so. The late regulations
have brought the gold coin as near, perhaps,
to its standard weight as it is possible to bring
the current coin of any nation; and the order
to receive no gold at the public offices but by
weight, is likely to preserve it so, as long as
that order is enforced. The silver coin still
continues in the same worn and degraded state
as before the reformation of the gold coin. In
the market, however, one-and-twenty shillings
of this degraded silver coin are still considered
as worth a guinea of this excellent gold
coin.
The reformation of the gold coin has evidently
raised the value of the silver coin which
can be exchanged for it.
In the English mint, a pound weight of
gold is coined into forty-four guineas and a
half, which at one-and-twenty shillings the
guinea, is equal to forty-six pounds fourteen
shillings and sixpence. An ounce of such
gold coin, therefore, is worth L.3 : 17 : 10½
in silver. In England, no duty or seignorage
is paid upon the coinage, and he who carries
a pound weight or an ounce weight of standard
gold bullion to the mint, gets back a
pound weight or an ounce weight of gold in
coin, without any deduction. Three pounds
seventeen shillings and tenpence halfpenny an
ounce, therefore, is said to be the mint price
of gold in England, or the quantity of gold
coin which the mint gives in return for standard
gold bullion.
Before the reformation of the gold coin,
the price of standard gold bullion in the market
had, for many years, been upwards of
L.3 : 18s. sometimes L.3 : 19s. and very frequently
L.4 an ounce; that sum, it is probable,
in the worn and degraded gold coin, seldom
containing more than an ounce of standard
gold. Since the reformation of the gold
coin, the market price of standard gold bullion
seldom exceeds L.3 : 17 : 7 an ounce. Before
the reformation of the gold coin, the market
price was always more or less above the