Part 10

Yet the Frugalest way, I presume, would be, to leave the Management of this Article wholly to the Lords of the Treasury, who, by publick notice, may vary pro re natâ, the Præmium for bringing in Plate, and perhaps may think it expedient nevertheless to begin high, and to abate the Præmium according to the quantity brought in; and after one or two Abatements, People may perhaps bring it in the faster, fearing a greater Fall: Whereas if the Lords of the Treasury should begin low, and afterwards be forced to raise the Præmium higher, Peoples Hopes of their still advancing of it more, would restrain ’em from making so much haste as the necessities of State require.

We suppose then this Silver to be Coining every Day as fast as possible, and that the 250000 l. saved by the Government out of the first Million, shall begin to pay for the Plate, as it comes in.

Then three ounces of Silver at 6 s. 8 d. an ounce, Coins 20 s. of the new Standard, allowing 2, 3, or 4 d. per ounce for Coinage; seeing the setting up so many several Mints more than ordinary must be very chargeable.

And here must be noted, That let Silver Rise or Fall as much as it will, it Alters very little the process of the Theorem, for it need have no other effects than making the Money bigger or less, unless the 3^d Corolary following be admitted.

At this Rate then when 3500000 Ounces of this Plate is Coin’d into MONEY it will produce after the aforesaid rate 1166666 l. 13 s. 4 d. to which add the 250000 l. paid before hand for it, and now there is paid in all for the 4000000 of Ounces of Plate 1416666 l. what it Cost; and the King hath 500000 Ounces of Plate by Him, which at 7 s. 1 d. an Ounce stands the Government in 177088 l. 6 s. 8 d.

But because it cost the King dear for his present Necessities, the Lords of the Treasury cannot allow more for it than it will produce when Coin’d.

And if the necessities of State require that this Silver should be sent and Coin’d in Flanders, that it may go farther there than it can here for the immediate use of the Souldiers, then the Commissioners of the Accounts will probably account for it, according to its Value beyond Sea; and then the Government shall still be a greater Loser by it; so the Lords of the Treasury cannot allow for it more perhaps than 150000 l. what ever it be more or less, the case will stand thus at the least.

There is now of New Money Coin’d, 2416666 l. 13 s. 4 d. and this last 150000 l. being advanced to the King for his present Necessities abroad, either to Coin in Flanders, or to send over in Bills, will go towards the payment of the Million of Clipt money. But if it be probable as Mr. Lounds seems to intimate, That People may Voluntarily bring in a great deal of Plate at 6s. 6d. an Ounce; then it is much more probable, that they will be quicker in bringing it in at 6 s. 7 d. an ounce; and if so, the Government Saves out of my Proposals 6 d. an Ounce, which in 4000000 Ounces comes to 100000 l. And then there will be 250000 l. paid in recompence of the Clipt Money, and there is but 750000 l. Remaining.

Or put the case Shorter and Plainer, the Government wants 1000000 l. worth of Silver, and is willing to give 25 per Cent. more for it than the common price.

If that vast Allowance be made for fear of a sudden and fatal stop to all manner of Trade for want of Money, yet the 250000 l. Saved out of the Clipt Money, will make good the Bargain.

And then Four parts in Five will Coin a Million of Money, and still there will be another 250000 l. worth left towards the paying of the Clipt Million, and but 750000 l. remains Unpaid.

And upon this Easier supposition we will proceed; because it is likewise cheaper to the Nation than the Buying of full 4000000 ounces of Silver.

Then if the Parliament Orders ’em to be paid 250000 l. more, which is all that the Nation is Burdened in the Bargain: The Proprietors of the Clipt Money are Reimbursed 75 l. per Cent. of what they Brought to the Mint, which is more by 25 l. per Cent. than the intrinsick value of it was; and the other 25 l. per Cent. is coming towards ’em apace. For now the present Necessity and the Dangers of it are obviated, the price of Silver begins to Fall and Settle, as the prospect of a Plenty draws nearer; tho’ we can never suppose it will fall lower than in other Countries, or much lower at all, during the War between France and Spain. And be it at what price it will, the Merchant will from all Parts bring his Silver to the Tower, because the Market is here Quick and he is sure of Ready-Money for what he Sells; the King can afford now to Coin, which he could not do of late Years; And therefore a Third and Fourth Million will be soon bought and Coined, and the government out of every Million bought will save a Fourth part.

For the New-Coin’d Money must bear a proportion to the price of Silver, as four to five, and 800000 l. worth of Silver is to be in 1000000 l. of New Coin no more nor less, and out of the four Million-worth of Silver, besides the Million of Plate the King will have Saved a fifth Million; by which gain’d Millions, the Clipt Money will be entirely Satisfied for at no more than 250000 l. present Cost to the Government, q. e. d.

For the case will stand thus: There will be 5000000 l. of New Coin, viz. out of the Clipt Money 1250000 l. out of the Plate 1250000 l. (or if the last 250000 l. be not Coin’d, but Exported, then there will be out of the Plate but 1000000 l.) and out of the last Two Million worth of SILVER Coin’d 2500000 l. So that there will be in the Nation at least Four Millions, Seven Hundred, and Fifty Thousand Pounds New Money.

The King, after all this, buys 750000 Ounces of Bullion, and coins it, without Profit, into 250000 l. This makes up 5000000 l. compleat, and then the Royal Mints is to be at a stand (as at present) until the Parliament shall have resolved what more is to be done; our present Necessities are supply’d, and this, which we shall have, will not be diminished.

These Five Millions now want a fifth part of the Intrinsick Value of the Coin; and unless a Real Value be given it to make amends for the want of the Intrinsick, and to Equal the Extrinsick, I have, after all, I confess, done nothing, according to my Fourth Axiom.

I humbly therefore Propose, That a Land-Tax may make it good, if it do not exceed Two-pence in the Pound.

But after what manner it is to be made good, is the great Question.

If they, into whose Hands the newcoin’d Silver shall first come, should be allowed for the Intrinsick Want of it, then, in the paying it out again they must transmit the Allowance the State gives; or else the First Receivers would be Savers, and the rest Losers: But if the State must immediately give the Full Allowance, then it might as well have Coin’d to the full Intrinsick Value. But the Intrinsick Value is lessen’d, and the Real given, because the Government is better qualified at present to pay Interest than Principal.

Therefore an Interest is to be paid equivalent to the Extrinsick Value, and fully satisfactory for the Want of Intrinsick; that so the Subject may be no Loser, and the Government put to no Difficulties.

Beside, that Money would return to its Intrinsick Value, if a Shilling were always to be tack’d to a Crown or Four-Shilling Piece; which is One of the chief things we are to avoid.

Let this Interest be 5 per Cent. and let it be look’d upon as a sufficient Interest, as it better will appear to be, when I come to answer the Objections, which may be made to this Method.

The Interest of a Million of Pounds Sterling, which is wanting to make up the Real Value of the New Coin at 5 per Cent. amounts to Fifty thousand Pounds per Annum.

But, to Ease the Nation of half this Charge, let it be duly and carefully considered,

That if the present Possessor of an entire 100 l. be entitled to this Interest, and not of a less Sum, every less Sum will have such a Value Real, as the Possessor of an entire 100 l. can make of it, and will allow for it.

And there will be no occasion for the Government to pay Interest for lesser Sums, because the valuation of lesser Sums will always bear that proportion which Merchants, Goldsmiths, and Bankers will receive ’em at, from the least Sum to the greatest.

If I pay in, for instance, to a Goldsmith Fifty pounds to day, and Fifty pounds to morrow, he will no more scruple to give me a Note for One hundred pounds, than if I had paid it in at once: And, if I pay my Brewer Five pounds a week, as he brings in my Drink, for twenty weeks together, he will look upon it as good Pay as if I paid him at the twenty weeks end One hundred pounds together; and if Five pounds will pass from me as the fifth part of an Hundred, why not, by the same Rule of Proportion 20 Shillings for the hundredth part? That which hath the Value of Five pound Lumbard-street, hath the same in Pater-Noster-Row, and the same likewise at Brentford, or elsewhere: And there can be no Instance or Reason given, why Money of the like weight; Intrinsick and Extrinsick Value, should not be as passable in little Sums as in great, since there is an easie Resort, and at hand always; in which, without any distinction, they daily determine.