'On the Quantity of Coyn in the Nation' Isaac Newton c. 1,981 words The Newton Project Oxford 2017 Newton Project, University of Oxford

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 1701, c. 1,981 words.

Memorandum constituting part 2 of Newton's 'Observations on Mr P's Reply'. Further detail in support of Newton's analysis of changes in the circulation, with calculations of the amount of counterfeit coin withdrawn during the great recoinage.

 MINT 19/2/618-20, National Archives, Kew, Richmond, Surrey, UK UKSurreyKew, RichmondNational Archives MINT 19/2/618-20 1701 England English Clerical Hand Holograph MintEconomic Theory and Legislation Catalogue information compiled by Rob Iliffe, Peter Spargo & John Young Catalogue exported to teiHeader by Michael Hawkins Transcribed by Will Scott Minor amendments made by Will Scott
618

2 On the Quantity of Coyn in the NationCoyn in the Nation

OOut of yethe 16 Millions of Silver money recconed by Mr P. to to have been in the Nation about yethe year 1676 II made severall abatements, as 1st of a Million or a million & a halfe of counterfeit money. Mr P. thinks this abatement too much by far and that the CounterfietCounterfeit Money scarce Exceeded 100000li II reccon it this the five millions melted down in the Exchequer proved about 7dwt worse then standard. This worsness arose from false silver money of base allay and if in the pieces of base allay taken one wthwith another one half of the metal was fine silver the base money must have been about the 15 part of the five Millions, that is about yethe third part of a Million. There was another sort of narrow Counterfeit money made of clippings and broad money wthwithout allay and this being of standard silver, past as Currently as if it had been Coyned in yethe Kings Mint & for that reason abounded most in the Coyn. II reccon it therefore at above 12 a million. The Brass money being most discernable was least in quantity. IfIf it be recconed 112 ꝑper Cent of yethe whole, it will amount to 75000li so that all the CounterfietCounterfeit money in these five Millions amounted to about 900000li And if all the CounterfietCounterfeit money in the other five Millions recoyned was but one third part as much, the whole will amount to above 1200000li.

2dly II abated 500000li for the wearing of the money & 3dly 3 or 400000li for the clipping thereof and the abatements were proportionable to what I had observed in some parcells of broad hammered money wchwhich had been long hoarded in the Country most of it unclipt and the rest not so much clipt but that above thirty years ago it might be very possible in payments the clipping scarce appearing to the Eyes without weighing the peicespieces. The abatements in my Computation for the wearing culling washing and filing of the Milled Money scarce amount to 1 ꝑper Cent & so are not worth mentioning. 4thly out of the milled money wchwhich in 1676 he reccons at 3 Millions II abated above a Million. For Guineas began to be Coyned at 4412 to yethe pound weight in Apr 1 1663 and from ytthat time to the end of December 16676 there was coyned in Silver by the Mint Accompts 1779277li. 19s. 6d whereof about 220000li was out of cross & Harp money out of ytthat three Millions II should have abated therefore above 1200000li. 618 5thly out of the 3 Millions recconed to be Melted down out of the hammered Money after the years 1676 II make another great abatement.† For the hammered Shillings had one with another lost about 5 grains apeiceapiece by wearing as II found by weighing some parcells of unclipt shillings. These were therefore grown too light to be so fit for the Cullers trade as the milled money Generally was and the sixpences were more worne in proportion to their weight & the smaller money still more. All the money of Q. ElizQueen Elizabeth and almost all that of K. IJamesKing IJames I and half ytthat of K.King Cha. I was in Shillings + sixpences & smaller money & so not fit for culling to ytthat melting pot.. The half Crowns were scarce a third part of al the hammered Money and therefore in the year 1676 scarce Exceeded 4 Millions oOf these 4 Millions part were hoarded in the Country and since the year 1676 came not to the Cullers hands, since 1676,, part were clipt Either before 1676 or afterwards and if a third part of the rest were culled for clipping and melting it would scarce amount to a fall short of a Million, and ytthat third part being lightned above 2 ꝑper Cent by wearing and in some measure culled before 1676 would not afordafford not much above half a million so fit for melting as asas the Milled money was. And it in my former paper I recconed it at a million & part were culled for melting before the year 1676 & the rest w the rest had bestore one with another lost 76 or 8 grains a piece by wearing so that scrace one in ten was so weight as the milled half crowns. But if we should allow one in five to have been so weighty yet do not see how they wcould scarce amount to half a million. The I do not see therefore but that yethe abatements wchwhich I made out of Mr Ps recconing of 16 millions were reasonable, so that instead of recconingsupposing that about yethe year 1676 we had 16 millions of silver mionies I had rather reccon that we had not then above 1012 or 11 millions., And yethe year 1689 when we reBut wereas I reecon that in yethe& that in the year 1689 when we were richest we had but about 1234 millions. Mr P objects that of of those monies not in tale but in weight & fineness. In my recconing how much silver money we have remaining in yethe nation at present I I presumesaid that we have about a million of old milled money or not much less. Mr P. thinks that we have not half theat quantity of old milled money, wchwhich I reccon presume we have.so much? His reasons are the great consumption there was of that coyn after 76 & yethe small appearance of it in yethe time of yethe recoynage or since. This is a general way of arguing without coming to a recconing & so is of less force then yethe recconing wchwhich I grounded upon went upon For I gathered that we have a million or not much less, I gathered from by yethe proportion of yethe old milled money to yethe new in a parcell or otwo. For I found the old about an eight or eig ninth part of the whole. And within this a since the writing of my former paper I examined the proportion again & & in a parcel of 25℔ of silver monies brought to me from yethe Bank of England & I found in it 3℔. 1s. 6d of old milled money. If there has been receoined 6900000li & the old milled money mixd therewith be now about 18th an eight part of yethe whole then that old milled money at theirits first mixing with yethe new must have been about 985000li. Mr P. says that if we have so much old milled money it ought to be added to yethe computation of yethe 16 millions. I answedr that in yethe computation of yethe 16 millions Mr P. recconed 3 millions of old milled money wchwhich was too much by above a million, & therefore ought not now to be encreased ‡ encreased So then I see no reason to alter my recconing of 714 millions of silver moneys (milled & hammered) still in the nation unless it shall appear by some argument way of recconing not yet discovered that above 1500000li has been not has been wasted melted down or exported since yethe recoynage. What he is said by Mr P. to diminish my account of all the half Guineas in the nation has been considered above. In my former paper I made an allowanceabatement of 18th part of yethe whole for yethe weighty guineas brought back to yethe Mint & if that allowancebatement should be doubled it would not sp much muchvery much diminish my recconing above a million 860000li a million especially if the Guineas coyned the last 14 months & the forreign gold monies wchwhich of late haveby the overballance of trade do very have plentifully flowed into England & still continued to do so, be added to it. If If This abatementmerchants I takeAnd after the recoin culling & recoyning of yethe weighty Guineas has been allowed for I it ought to be objected no more unless it cane be proved that yethe allowance is too little. If in the dead months of exportation Merchants have sometimes coyned their Bullion, 'twas surely not with intention to export the newsame in money contrary to law but with the money to buy new bullion when the time came for exportation approached. If any gold hath been &c bought with yethe clippings of &c 620 So then I see no reason to alter my recconing of 714 millions of silver monies (milled & hammered) still in the nation. unless it shall appear by some way of recconing not yet discovered that the moneies melted down or exported since the recoynage amount to above 1500000li.. For I do not yet see any reason to believe that yethe monies melted down or exported since the recoynage amount to above 1500000li. What is said by Mr P. to diminish my accompt of the Guineas has been considered above where I shewed that there has been not only a large coynage but also a large increase of orour stock. In my former paper I made an abatement of an eighth part of the whole for the weighty Guineas culled out & brought back to the Mint & if that abatement should be doubled it would not very much diminish my recconing, especially if the Guineas coyned the last 14 months & the forreign gold monies which of late by the overbalance of trade have plentifully flowed into England & still continue to do so, be added to it. And after culling & recoyning of the weighty Guineas has thus been allowed for it ought to be objected no more unless it can be proved that the allowance is too little. p. 5 IfIf in the dead months of exportation Merchants have sometimes coyned ther Bullion 'twas surely not with intention to export the same in money contrary to law but with the money to buy new bullion when the time for exportation should approach & therefore such s coynage made addition to orour stock. p. 5,, 6.. IfIf any gold hath been bought with the clippings of silver monies melted down into Ingots & exported: the gold is an addition to orour stock of gold & the silver exported is allowed for in my former paper in the 512 millions wast of the silver monies. p. 5, 6. And the like is to be said of gold brought in by Forreigners to get by loans upon publick funds &c For since the year 1694 we have paid orour forreign debts in any things but gold. And those debts wchwhich now remain unpaid are not to be considered in recconing yethe quantity of gold monies now in the nation but must be accounted for in yethe course of Exchange & ballance of trade wchwhich at prresent is on our side. All wchwhich being considered I do not see but that yethe recconings set down in my former paper come near the truth, vizt that in yethe year 1689 when we were richest we had about 1234 millions in silver monies (not in tale but standard value) & about 514 millions in Pistoles Guineas & Pistoles, in all about 18 millions besides broad gold. And in the year 1700 we have abo at prresent we have about 714 millions in silver monies milled & hammered & about 812 millions in Guineas & Pistoles besides broad Gold. In all we have about 1534 wchwhich is about 214 millions less then in yethe year 1689. In making this estimate I do not pretend to be exact. Where I could metet with exact recconings I followed them & in the the rest I used the best of my judgment.