Draft of <ref target="/catalogue/record/MINT00336">MINT00336</ref> (Mint 19/2/124-5) Isaac Newton Unknown c. 2,643 words Newton Project London 2019 Newton Project, University of Oxford

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 October 1718, c. 2,643 words. 'Observations upon the state of the Coins of Gold and Silver' [MINT 19/2/124-5] MINT 19/2/122-3, National Archives, Kew, Richmond, Surrey, UK UKSurreyKew, RichmondNational Archives MINT 19/2/122-3 October 1718 England English Holograph Unknown Hand MintEconomic Theory and Legislation Catalogue information compiled by Rob Iliffe, Peter Spargo & John Young Catalogue exported to teiHeader by Michael Hawkins Transcribed by Kees-Jan Schilt

Obs. 1. Before the lowering of the Guineas G an ounce of standard Gold was worth about 3.£ 19.s 11d at the Mint price. bBy the taking 6d from the Guinea there 1s 10d14 taken from yethe ounce, & thereby an ounce of standard Gold became worth only 3£. 18s. 0d34 for coinage. But for exportation it kept its former value of 3£ 19d 11d. And by the fall of the Exchange in Febr following from about 34 3 wthwith Amsterdam to about 33. 11 with Amsterdam, it rose to 4£ 0.s 6 per ounce & continued at that rate till after the middle of March. And afterwards by the rising of the exchange to 34. about 34. 9 or 10 about t Gold fell to 3£ 18s 6d about the middle of April. And in the end of April & beginning of May it by the falling of the exchange from to 34 6 Gold rose to 3£. 19.s 0d & 3£ 19s 6d: And since that time while the exchange has continued at about 34: 8, 9, 0r 10 Gold has fallen by begrees to 3£ 8s 3d & now begins to come to the Mint Only the first words of each line struck through.When the Merchants profit of sneding silver rather then Gold abroad to pay debts, was diminished by the taking six pence from the Guinea, he chose rather to send over Gold for paying a good part of those debts rather then to let them continue till he could get silver to pay them off. But when those debts were so far paid off that the profit wchwhich he could still make of paying off the rest in silver rather then in Gold made him begin to think chuse to let them remain till he could pay them off in silver: then the demand of Gold for exportation began to abate. And this I take to be the main reason why the price of gold has been falling ever since the middle end of Augustcontinued at the rate of 3about 3. 19 6d. But since the end of August has begun to fallenfall more then the course of exchange requires & now begins to come to the Mint. And dthis has happened by means of a good quantity of gold coming from Brasile in the end of August, this gold being more then the Merchant wanted at present to pay his debts abroad. Now this demand of Gold for exportation has carried abroad almost all the Gold imported since Christmas last & so has had the same effect for preserving our silver as the Act of Parliament would have have had for wchwhich the house was moved the last winter for some stopping the coinage of Gold for some time that the Gold imported might go abroad to pay debts.

Obs: 2. The Standard silver is worth 5s 2d per ounce for coinage, but was all last winter (as well before as after the taking six pence from the Guinea) at 5s 7d or 5s 8d or per aboveounce for exportation, & sometimes above. In March last it was at 5s 7d & 5s 7d12 & in April it fell to 5s 5d12 & 5s 5d & has continued at ytthat rate ever since. So that silver the demand of Silver for exportation has all this year been three times greater thethen the demand of Gold for exportation, & sometimes four or five times greater or above. And therefore the Gold would not have gone abroad had it not been for the want of Silver. Obs. 3. If the dem no Gold had gone abroad for answering debts the demand of silver for exportation would have breenbeen greater then it is. And of the demand of Gold for exportation has carried away any of our gold moneys it must the demand of silver for exportation must have ca being three times greater m must have carried away more of our silver moneys & would have carried away still more had not the Gold been lowered. 122
Obs. 1. The coinage of Gold has of late years been greater or less accordingly as the course of Exchange has been higher or lower In the years 16714 & 1715 when the coinage was greatest th course of Exchange wthwith Amsterdam was at aboutfrom 36 to 37 Skillings. In the year 1716 3 the coinage abated2 & 1 the course of exchange was betweenfrom 365 to& 36. In the year 1717 the course of Exchange was betweenfrom 34 to 35.2 & 34 & the coinage abated to one half of what it had been two or three years before. And in this present year the coinageExchange has been between 34.10 & 33.10, & this low course of Exchange joyned with the lowering the value of Gold for coinage by the taking 6d from the Guinea & has carried out almost all the gol gold imported, And thereby hads hadalmost had the same effect for paying out debts abroad in gold & preserving our silver, wchwhich the Ac Bill proposed the last Sessions of ParliamtParliament for stopping the coinage of Gold, would have had, if it had then passed into an Act the last Sessions of Parliament [ [For the Gold has been exported for paying of such debts abroad, as would have been continued till they could have been paid with more advantage in Silver had not the coinage of gold been discouraged by taking six pence from the Guinea ].2 In November last & again in Febr. last the coinage Ex course of Exchange was at theat the lowest, & ever since February. being then at 33. 10: [&And ever since Febr. by yethe g exportation of gold to pay debts it has been mending & is now got up to 35 & sat the same time the demand of Gold for exportation has been abating & is now become so small that Gold begins to come to the Mint again.] And while the course of Exchange was as low in Febr.November last before the six pence was taken from the Guinea as it was afterwards in Febr. last: the lowness of yethe cource of Exchange last winter is to be attributed not to yethe taking six pence from the Guinea but to the debts wchwhich we had abroad before the six pence was taken off [& the mending of the course of Exchange ever since Ferb. can be(wchwhich is an advantage to the nation) must be attributed to the payment of a competent part of those debts by the gold which has been sent abroad] Whence these debts arose requires more skill & in Trade then I can pretend to But considering that a good part of the Gold imported in the years 17123 1714 1715 was in French money & Ducats I suspect that after the war with France was at an end, no great quantities of gold were sent hother from time to timefrom abroad to buy stocks till the interest of the stocks was lowered & since that time somediscouragement some forreigners have been drawing their money back. Obs. 3. In Febr. last when the Exchange was lowest Gold fell standard Gold was valued at 4.£ 0s. 6d per ounce & standard silver at 5s 7d per ounce Obs. 3. Standard Gold at the Mint before the sixpence was taken from the Guinea was worth at the Mint about 3£ 19s 11d per ounce & by the lowness of the Exchange some Gold be imported began then to go aborad be & therefore was then valued at something more then 3£ 19s 11d. In February last when the Exchange was at the lowest, the price of Gold for exportation rose to 4£. 0s. 6d per ounce standard. And ever now the Exchange is risen to 35. Gold is fallen to the mint price which by the taking 6d from the Guinea is reduced to 3£. 18.s 034 per ounce standard. And therefore sin the years 1713, 1714, 1715, & 1716 & part of the year 1617 in whenich the course of Exchange was above 35, & above five million waswere coined in gold, the Publick allowed six pence in the guinea more then was sufficient to have brought 123 brought that gold to the Mint, & thereby lost about an hundred & twenty thousand pounds. And for the future the taking six pence from the Guinea will save 4 that six pence in all the to the public in all the gold that shall be coined. 45. The demand for exportation hath ever since the taking six pence from the Guinea, raised the price of silver about three times more then the price of Gold: & & sometimes four or five times more or above. And therfefore the temptation to exporemrt Gold moneys has all this year been three times less then the temptation to export silver moneys, & if this temptation has not carried awaysensibly diminished our silver moneys species has much less carried away our gold moneys in specie. & all or almost all the gold which has been exported this year has been in forreign Bullion & s the nation therefor has lost little or nothing by the exportation because itthe Bullion being forreign went out at the same price that it came in. 56 And since the demand of silver for exportation has all this year been three times greatedr then that of gold, th no gold would have been exported had it not been for the want of silver bullion; & the exportation thereof for the p has prevented the exportation of the same value of siversilver for paying of debts abroad as fast as it could be produced. 67 And this exportation has been a further advantage to the nation by araising the course of Exchange from 33. 10 to 35. For when the Exchange is low the nation loses by it so much as it is under the par. And had the debts wchwhich abroad wchwhich have been paid in Gold continued till they could have been paid in silver, they would have cause the Exchange to continue low. 34.34. In February last the course of Exchange was lowest being with Amsterdam was at 33. 10, & by the payment of our debts abroad in gould, the demand for exportation has abated ever since Feb last & the exchange to 35. has risen gradually to 35 & Gold has fallen down to the Mint price & now to come to the Mint again. And hence I gather that when ever go the Exchange with Amsterdam is above 35 it will bring Gold to the Mint, & therefore in the years 1713, 1714, 1715, 1716, & part of 1717 when Goldthe Exchange was ab abov above 3514 & sometimes for the most part at 36 or 37 the public paid more for gold then would have brought it the Mint by above 6d inper the Guineas & sometimes by above thereby has lost [above 120000£ in the coinage of above five millions in those years above 6d in thepr Guinea or above in all the gold the coined in those years which was more then five millions of Guineas. And with by the taking sixpence from the Guinea will save that loss in all the Gold wchwhich shall be coined for yethe future. 43.43. The course of Exchange was as low in November last before the 6d was taken from the Guinea, as it was afterwards in Febr. last & both times was at the lowest being with Amsterdam at 33. 10 & therefore did not arise t that loweness did not arise from t the lowness of the ExchangExchange last winter arose not from the course of exchangetaking six pence from the Guinea but from the debts wchwhich we had abroad before the six pence was taken from it the Guine Which debt if they had bee paid the coinages of Gold had not been discouraged by taking sixpence had not been taken 6 from the Guinea, might have remained till they could have been paid off with more advatage in f silver. 8 And Now to restore the six pence to yethe guinea would be to lose these advantages & to give more for all the Gold wchwhich Shall be coined hereafter by aboveastabove six pence in the Guinea then it is worth in forreign Markets & to revive the corrupt trade of exporting our silver to buy gold abroad, & importing gold to buy silver at home. 1. Standard Gold before six pence was taken from the Guinea was worth 3£. 19s. 11d per ounce at the Mint & by taking 6d from the Guinea became worth 3£. 18. 034 per ounce. And standard silver is there worth 5.s 2d per ounce. But the demand for exportation hath raised both species above the price at the Mint, & thereby has carried out all the forreign silver for many years & began to carry out some of the forreign Gold the last November, & therefore began to raise the price for exportation above the Mint price before the sixpence was taken from the Guinea but never raised the price of forreign gold to more then 4£. 0. 67d. And therefore the taking 6d from the Guinea has made little or no alteration in the price of forreign Gold for exportation, & the price of forreign silver this year for exportation has been much the same this yearsyear as it used to be in former years. 2. The price of forreign gold for exportatiosn answers to yethe course of exchange. When the Exchange is lowest the price of forreign Gold is highest & on the contrary. And thence the coinage of Gold has of late years been greater or less accordingly as the price of gold course of Exchange has been higher or lower. In the years 1714 & 17135 when the exhangeexchange was highest, it being with Amsterdam from 36 to 37 GuiSkillings, & then the coinage was greatest. In the year 1716 the coinage Exchange was only from 35 to 36 & the coinage abated accordingly. In the year 1717 the Exchange was only from 34 to 35.2 & the coinage abated to one half of what it had been two or three years before. And in this present year the bEchange has been only from 33. 10 to 34. 10. And this low course of Exchange joyne together with the taking 6d per Guinea from the Mint price of Gold has carried out almost all the gold imported. And thereby has had the same good effect for paying our debts abroad in Gold & preserving our silver, which the BIll proposed the last Sessions of Parliamant would have had for stopping the coinage of Gold would have had if it had then passed into an Act. Whence these arose is difficult to understand without more skill in trade then I can pretend to. bBut considering that a good part of the Gold imported in the years 1713, 1714, & 1715 & 1716 was in French money & Ducats, I suspect that after the war with France was at an end great quantities of Gold were sent hither to pay for stocks till the interest of the stocks was lowered by Act of ParliamtParliament; & since that discouragement, some forreigners have been drawing their money back. The way for England to thrive is to keep her moneys to the value put upon Gold & silver abroad & to take care that her exports exeedexceed her imports. &And therefore in all the gold coined in those years, the wchwhich was above five millions, the nation would have saved 6d pr Guinea had the 6d been taken off before