Report of the Secretary of the Treasury, on the
fubje<it of a Mint.
SIR Isaac Newton, in a representation to the Treasury of
Great-Britain, in the year 1717, after Hating the particular
proportions in the ditfercnt countries of Europe, concludcs thus
— u By the course of trade and exchange between nation and na
tion, in all Europe, fine gold is to fine silver as 14 4-5 or 15 to 1."
But however accurate and decisive this authority maybe deem
ed, in relation to the period, to which it applies, it cannot be
taken, at the diftjnee of more than seventy years, as a rule for de
termining the existing proportion. Alterations have been since
made, in the regulations of their coins by several nations ; which,
as well as the course of trade, have an influence upon the market
values. Neverthelcfs, there is reason to believe, that the state of
the matter, as represented by Sir Isaac Newton, is not very remote
from its a&ual state.
In Holland, the greatest money market of Europe, gold was to
silver in Decembei 1789, as 1 to 14.88 ; and in that of London it
has been for some time pad but Utile different, approaching per
haps, something nearer 1 to 15.
11 has been seen, that the existing proportion, between the two
metals in this country, is about as 1 to 15.
It is fortunate in thii refpeft, that the innovations of the Span
ish mint have imperceptibly introduced a proportion so analo
gous, as this is, to that which prevails among the principal com
mercial nations ; as it greatly facilitates a proper regulation of
the matter.
This proportion of 1 to 15 is recommended by the particular
situation of our trade, as being very nearly that which obtains in
thi market of Gieat-Britain, to which nation our specie is princi
pally exported. A lower rate for either of the metals, in our
market, than in theirs, might not only afford a motive the more in
certain cases to remit in specie rather than in commodities ; but it
might in some others, cause us to pay a greater quantity of it for a
given sum, than we (hould otherwise do. If the effect Qiould ra
ther be to occasion a premium to be given for the metal, which
was under-rated, this would obviate those disadvantages ; but it
"would involve another, a cuftrtmary difference between the market
arid legal proportions, which would amount to a species of dis
order in the national coinage.
Looking forward to the payments of interest hereafter to be
made to Hollond, the fame proportion does not appear ineligible.
Ihe present legal proportion in the coins of Holland, is dated at
Ito 14 9-10. That ot the market varies somewhat at different
times, but (eldom very widely from this point.
There can hardly be a better rule, in any country, for the legal,
than the market proportion ; if this can be supposed to have been
produced by the free and ftcady course of commcrcial principles!
The presumption, in such cafe, is, that each metal finds its true
level, according to its intrinsic utility, in the general system of
money operations.
But it must be admitted, that this argument in favor of continu
ing the existing proportion, is not applicable to the state of the
coins with us. There have been too many artificial and heteroge
neous ingredients, too much want of order in the pecuniary tranf
a&ions ot this country, to authorise the attributing the effedls,
which have appeared, to the regular operations ot commerce. A
proof of this is to be drawn from the alterations, which havehao
pened in the proportion between the metals merely by the succes
sive degradations ot the dollar, in confcquence of the mutability
of a foreign mint. The value of gold to silver appears to have de
clined, wholly from this cause, from 15 6-10 to about 15 to i.
Yet as this last proportion, however produced, coincides so nearly
with what may be deemed the commercial average, it may be
supposed to furnilh as good a rule as can be pursued.
The only question seems to be, whether the value of gold
rot to be a little lowered to bring it to a more exadl level with
the two markets which have been mentioned. But as the ratio
of Ito is so nearly conformable to the (late of thofc markets,
and best agrees with that of our own, it will probably be found
the mod eligible. If the market of Spain continues to give a
higher value to gold (as it has done in time past) than that which
is recommcndcd, there may be fomc advantage in a middle sta
tion.
A further prelimiuary to the adjuflment of the fu ure money
unit, is to determine what shall be the proportion and composition
of alloy in each species of the coins.
The firft, by the lefolution of the Bth of August, 1786, before
referred to, is regulated at one twelfth, or in other words, at 1 part
alloy to 11 parts fine, whether gold or silver; which appears to be
a convenient rule ; unless there should be some collateral confe
deration, which may di&ate a departure from ir. Itscorrefpon
dencv, in regard to both metals, is a recommendation of it, be
cause a difference could answer no purpose of pecuniary or com
mercial utility, and uniformity is favorable to order.
This ratio, as it regards gold, coincides with the proportion,
real or profefTed, in the coins of Portugal, England, France and
Spain. In those of the two former it is real, in those of the two
latter there is a deduction for what is callcd remedy of weight and
alloy, which is in the nature of an allowance to the matter of the
mint for errors and imperfettions in the process; rendering the
coin either lighter or baler than it ought to be. The fame thing
is known in the theory of the English mint, where 1-6 of a carat
is allowed. But the difference seems to be, that there, it is merely
an occasional indemnity within a certain limit, for real and una
voidable errors and imperfections; whereas in the pra&ice of the
mints of France and Spain, it appears to amount to a ftatcd and
regular deviation from the nominal standard. Accordingly the
real standards of France and Spain are something worse than 22
carat? or 11 parts in 12 fine.
The principal gold coins in Germany, Holland, Sweden, Den
mark, Poland and Italy, are finer than those of England and Por
tugal in different degrees from 1 carat and 1-4 to 1 carat and 7-8,
which last is within 1-8 of a carat of pure gold.
There are similar diverfuies in the standards of the silver coins
of the different countries of Europe. That of Great-Britain is 222
parts fine to 18 alloy: those of the other European nations vary
from that of Great-Britain as widely as from about 17 of the fame
paits better to 75 worse.
The principal reasons assigned for the use of alloy, are the sav
ing of expence in the refining of the metals (which in their natural
Hate are usually mixed with a portion of the coarser kinds) and
the rendering of them harder as a security againd 100 great wade
by friction and wearing—The firlt real'on, drawn from the origi
nal composition of the metals, is ftrcngthcned at present by the
pra&ice of alloying their coins, which has obtained among so
many nations. The reality of the effect, to which the lad leafon
is applicable, has been denied, and experience has been appealed
to as proving, that the more alloyed coins wear fafter than the
purer. " The true date of this matter may be worthy of future in
vestigation, though fird appearances are in favor of alloy. In the
mean time, the saving of trouble and expence are fufficient induce
ments to following those examples which suppose its expediency.
And the fame considerations lead to taking as our models those na
tions with whom we have most inlcrcourfe, and whose coins are
mod prevalent in our circulation : These are Spain, Portugal,
England and France. The relation which the proposed propor
tion bears to their gold coins, has been explained. In refpeft tc
their silver coins, it will not be very remote from the mean of their
leveral ftjndords.
The component ingredients of the alloy in each metal will also
require to be regulated. In silver, copper is the onlv kind in use.
and it is doubtless the only proper one. In gold, there is a mix
ture of Over and copper ; in the Englifli coins confiding of eqaal
(continued.)
parts, in the coins of some countries varying fiom 1-3 to 2-3
silver.
The reason ot this union of filvcr with copper is this—The sil
ver countrra&s the tendency of the copper to injure the color or
beauty of the coin, by giving it too much redness, or rather a cop
pery hue ; which a small quantity will produce; and the copper
prevents the too great whiteness, which silver alone would confer.
It is apprehended,that there are considerations, which may render
it prucent to establisH by law, that the proportion of silver to cop
per in the gold coins of the United States (hall not be more than
one halt, nor less than one third ; verting a discretion in some pro
per place to regulate the matter within those limits, as experience
in the execution may recommend.
A third point remains to bedil'cu(Ted, as a pre-requifite to the
determination of the money unit, which is, whether the e*pence
of coining (hall be defrayed by the public, or out of the material
itfeif ; or, as it is sometimes stated, whether coinage (hall be free,
or (hall be lubjeft to a duty or impofuion ? This forms, perhaps,
one of the nicest questions in the do&rine of money.
The p raft ice ot different nations is difllmilar in this particular.
In England, coinage is said to be entirely free : the mint price
of the metals in bullion, being the fame with the value of them
in coin. In France there is a duty which has been, if it is not
now, eight per cent. In Holland there is a difference between
the "j 10 * price and the value in the coins, which has been com
puted at .96, or fometbing less than one per cent, upon gold ; at
1.48, or something less than one and a half per cent, upon silver.
The resolution of the Bth of August, 1786, proceeds upon the idea
of a deduction of half per cent, from gold, and of two per cent,
from silver, as an indemnification for the expence of coining.
This is inferrea from a report of the late board of treasury, upon
which that resolution appears to have been founded.
Upon the supposition that the expence of coinage ought to be
defrayed out of the metals, there are two ways in which it may
beeffeaed ; one by a reduction of the quantity of fine gold and
silver in the coins ; the other by establishing a difference between
the value of those metals, in the coins, and the mint price of them
in bullion.
The firft method appears to the Secretary inadmissible. He is
unable to diftinguifli an operation of this fort, from that of raising
thedenomination of the coin ; a measure which has been difapt
proved of by the wisest men of the nations in which it has been
praftifed, and condemned by the reft of the world. To declare
that a less weight of gold or silver (hall pass for the fame sum,
which before represented a greater weight, or to ordain that the
fame weight (hall pass for a greater sum, are things substantially
of one nature. The consequence of either of them, if the change
can be realized, is to degrade the money unit ; obliging creditors
to receive less than their just dues—and' depreciating property of
every kind : for it is manifeft, that every thing would in this cafe
be represented by a lels quantity of gold and silver, than before.
It is fometmies observed on this head, that though any article
of property might in fa£l be represented by a less a&ual quantity
of pure metal, it would nevertheless be represented by fomethin° r
of the fame intrinsic value. Every fabric, it is remarked, is worth
intrinsically, the price of the raw material and the expence of
fabrication; a truth not left applicable to a piece of coin, than to
a yard of cloth.
This position, well founded in itfelf, is here misapplied. It
fuppofcs that the coins now in circulation, are to be considered as
bullion, or in other words, as a raw material. But the fa6t is,
that the adoption of them, as money, has caused them to become
the fabric. It has inverted them with the chara&cr and office of
coins, and has given them a fan&ion and efficacy equivalent to that
of the stamp ol the sovereign. The prices of all our commodities,
at home and abroad, and of all foreign commodities in our
markets, have f«und their level, in conformity to this principle.
The foreign coins may be divejled of the privileges they have hi
therto been permitted to enjoy, and may of course be left to find
their value in the markets as a raw material. But the quantity of
gold and silver in the national coins, corresponding with a given
sum, cannot be made lefsthan heretofore, without disturbing the
balance of intrinsic value; and making every acre of land, a. well
as every bushel of wheat, of less actual worth than in time past.
If the UuitedStates were insulated, and cut off from all intcrcourle
with the reft of mankind, this reasoning would not be equally
conclusive. But it appears decisive, when considered with a view
to the relations, which commerce has created between us and other
countries.
It is however not improbable, that the effect meditated would
be defeated by a rife of prices proportioned to the diminution of
the intrinsic value of the coins. This might be looked for in every
enlightened commercial country ; but perhaps innone with great
er certainty than this ; because, in none are men less liable lo be
ihe dupes of founds—in none has authority so little resource for
lubituuting names to things.
A general revolution in prices, though only nominally, and in
appearance, could not fail to diftraft the ideas of the community,
and would be apt to breed discontents as well among all those
who live on the income of their money, as among the poorer claf
fesof the people, to whom the necessaries of life would fecm to
have become dearer. In the confufion of such a state of things
laeas ofvalue would not improbably adhere to the old coins'
which from that circumftancc, inflead of feeling the efteft of the
lofsof their privileges as money, would perhaps bear a price in
the markets relatively to the new ones, in exafl proportion to
weight. The frequency of the demand for the metals to pay fo
reign balances would contribute to thiseffefcf.
Among the evils, attendant on such an operation, are these
creditors both ot the public and of individuals would lose a part
ot their property—public and private credit would reccivea wound
--the cffeftive revenues of the government would be dimiiufhed
There is scarcely any point, in the economy of national affairs of
greater moment, than the uniform preservation of the intrinsic
value ot the money unit. On this the security and ftcady value
or property eflentially depend.
The second method, therefore, of defraying the expence of the
coinage out of the metals, is greatly to be prefercd to Ihe other.
This is to let the fame sum of money continue to represent in the
new coins exactly the fame quantity of gold and silver, as it doe
in those now current—to allow at the mint such a price only for
thcfemetals as will admit ot profit just fufficient to fatisfy the ex
pence ot coinage—to abolilh the legal currency of foreign coins,
both in public and private payments—and of courfc to leave the
superior -utility of the national coins, for domestic purposes to
operate the difference of market value, which is neceflary to'in
duce the bringing of bullion to the mint. In this cafe, all pro
perty and labour willftill be reprefcnted by the fame quantity of
gold and silver, as formerly ; and the only change which will
be wrought, willconfifl in annexing the office of 'money exclu
hvely to the national coins ; confequer.tly, withdrawing it from
thole of foreign countries, and fuffering them to become, as they
ought to be, mete articles of merchandize.
The arguments in favor of a regulation of this kind are—First
hat the want of it is a cause of extra expence : there being then'
no motive of individual interest to distinguish between the national
coins and bullion, they are, ,t is alleged, indiscriminately melted
down, for domestic manufaaures, and exported for the purposes
of foreign trade; and it is added that when the coins become light
by wear,ng the fame quantity of fine gold or f.lver bears a higher
price , n bullion than the coins; in wh.cH state of things the
mehmg down of the coins to be fold as bullion is attended with
proht; and from both-caufcs the expence of the mint, or in other
words, the expence nf maintaining the specie capital of thenaliou,
is materially augmented. '
Secondly—That the existence of such a regulation promotes a
favorable course of exchange, and benefits trade, not only by: that
756
circumfiance, but by obliging foreigners, in certain cases, to pay
dearer for domestic commodities, and to fell their own cheaper. '
As far as relates to the tendency of a tree coinagc to produce an
encreafeof expence, in the different ways that have been stated.
the argument mud be allowed to have foundation, both in reason
and experience. It describes what has been exemplified in
Great-Britain.
The effc£l of giving an artificial value to bullion, is not at firft
fight obvious ; but it adually happened at the period immediately
preceding the late reformation, in the gold coin of the country
just named. A pound troy in gold bullion of ftandaid finenefs,
was then from 19s. 6d. to 255. fterl. dearer than an equal weight
of guineas, as delivered at the mint. The phenomenon is thus
accounted for—the old guineas were more than two per cent,
lighter than theirJlandari weight. This weight therefore, in bul
lion, was truly worth two pet cent, more than those guineas. It
confcquently had in rcfpe£l to them, a correfpondcnt rife in the
market.
And as guineas were then current by tale, the new one-, as they
issued from the mint, were confounded in circulation with the old
ones ; and by the association, were deprecated below the intrinsic
value, in comparison with bullion. It became of coui fe a profita
ble traffic to fell bullion for coin, to feleft the light pieces, and re
ilTuc them in currency, and to melt down the heavy ones, and fell
them again as bullion. This pra&ice, besides other inconvenien
cics, coil the government large funis, in the renewal ot the coins.
[To be continued.']
New Line of Stages.
THE Subscriber has eftabliftied a line of STAGES from Hart
ford to Boston, by way of Norwich and Providence, which
will run thro twice a week during the Winter Season, and three
times a week during the Summer Season.
Go"d Carriages, Horses, and careful Drivers are provided.—
Paflengers pay three Pence per Mile, and are allowed 14 pound
Baggage each. Extra Baggage pays at the rate of three Pcncc
per Mile for every 150 wt. As the Mail is to go in these Stages
for the year 1791, fixed hoi»rs for ftartingfrom the refpeflive Stage
Houses is absolutely neceflary—from which there can be nodevia-
lion.
The Stage for the Eastward leaves
Hartford Mondays and Thursdays,
Norwich Tuesdays and Fridays,
Providence Wednesdays and Saturdays,
For the Weft ward, leaves Boston Mondays and Thursdays,
Providence Tuesdays and Fridays,
Norwich Wednesdays and Saturdays.
JESSE BRO W N. 69 —iw3m
INFORMATION WANTED.
|C - THE Subscriber requefls, if any gentleman
can give him information of a purchase of Lands ?nade
by a Mr. Daniel Richardet, in the year 1781 and
1782, in fame part of the United States, he will be so
kind as to inform his Brother, by dire Cling a line t»
him, at the Printer's office. S. RICHARDET.
January, 1791
THE Copartnership of HEWES and ANTHONY having ex
pired the 31ft ultimo, they request those, who have any de
mands, to exhibit their accounts and receive their money; and
those who are indebted, are defircd to make fpecdy payment, to
either of the Subscribers, at their Compting-Houfe, No. 5, Chef
nut-Street-Wharf. J O S I A H H E W E S,
JOSEPH ANTHONY.
Philadelphia, Jan. 15, 1791.
N. B. They have yet ori hand, and for SALE, at their STORE
abovementioned,
HYSON, Souchong, and Bohea TEAS,
Three cases Caflia,
Pimento in bags,
Muscovado Sugar,
A tew Cases old Batavia Arrack,
One cask of Durham Mustard,
New England Rum in hogfheadsand barrels,
A quantity of prime Boston Beef,
Spermaceti, right whale and tanners' Oil,
Best p:ckled Mackrel,
6by B—7 by 9—B by 10—9 by 11— and 10 by 12 Window
Glass,
A quantity of excellent carrot Tobacco,
And an elegant CHANDELIER.
Manuel Noah,
BROKER,
No. 91, Race-Strect, between Second and Third-Streets,
BUYS and SELLS
Continental & State Certificates,
Pennsylvania and Jersey Paper Money,
Ani all kinds of SECURITIES of the United States, or of any
particular Stace.
Philadelphia, Feb. 1790.
TO BE SOLD,
The seat of the late governor
L 1 V 1 N G S T 0 N,
situate about a mile from Elizabeth-Town, on the public road to
Morris Town. Ihe farm contains between 90 and 100 acres of
land, 15 or 20 acres of which are wood land ; there is also apper
taining to the said farm about 19 acres of fait meadow. Particular
attention having been paid to the cultivation of fruit ; there is on
t e tarm a very large colle&ion of various kinds of the choicefl
ruitfrees, See. in full bearing; the house is large, convenient,
well built and in very good repair.
Enquire of the Printer, for further particulars.
New-York, Jan. 1791
IMPERIAL, HYSON, SOUCHONG, and BORE A
TEAS;
REFINED SUGARS, COFFEE, and SPICES, &c.
Of the firfl Quality—by Retail,
No. 17,
Third-Street,between Chefnut and Market-Streets.
N. B. A few Ti ckkts in the New-York Lottery,
which is to be drawn the firfl of April next, forfait.
TREASURY DEPARTMENT,!
T January 25, 1791. J
HE Public. Creditors are reminded that, in order to the pro
per dispositions for paying the Interefl in the several States,
it is necefiary that the amount lo be paid in eaeh fiiould be pre
viously known at the Treasury. And as the expiration of the firft
quarter is not far distant, it is wished that those who have not yet
c.one it, may be expeditious in making and lignifying their elec
tion, pursuant to the a£l making provision for the debt of the
United States.
Norwich.
Dec. 14.
Martinico Coffee,
(iaw6w.)
80 3m