It is therefore manifest that the alteration of the standard and weight of the coinage is at once a crime and a ruinous action for the sovereign power to commit; and hence such disastrous measures have been long abandoned in all well-regulated states. A gold sovereign is intrinsically worth 20 shillings minus the cost of coinage; for were it worth more, all our sovereign pieces would be exported or melted down, to obtain the difference of value, however trifling it might be; and were it worth less, it would be the source of loss similar to what the state occasions when it depreciates the coin.
To comprehend the true value of a coin, we must regard this piece as an article of merchandise, whose value depends, as that of every thing else, on its usefulness, the esteem in which it is held, and the demand for it in the market. Grain increases in value when there are few sellers and many buyers; gold and silver are in the same predicament. The value of these metals is much augmented, indeed, by the universal currency they obtain when struck into money; a value additional to what they possess as objects of the arts. This value of the precious metals changes with time and place, like that of every merchandise; their abundance, since the discovery of America, has greatly lowered their value; that is, with the same weight of metal, we cannot at the present day purchase the same quantity of corn, land, wool, &c. as formerly. In the countries where silver abounds, this metal has less value, or, in other terms, commodities are dearer. Hence the metal tends to resume its equilibrium in flowing into those places where it is rarer; which means, that the consumer prefers purchasing his commodities there rather than in another place, if he can easily transport them to where they are dearer.
It was formerly believed that a country is rich when it has a great deal of gold and silver; but this popular illusion has passed away. Spain has never been poorer than since the discovery of America, because its national industry has been ruined, and the capitals merely passed through its hands to spread over the rest of Europe, from which it was obliged to import every thing that its want of home manufactures made it necessary to procure from abroad. We may add to these, the prodigalities of the court, which, supposing its wealth inexhaustible, tried to corrupt all the ministers of the other powers, in furtherance of the chimera of universal dominion. The richest state is that in which there is most industry, whereby the inhabitants may procure every thing indispensable to the conveniences and comforts of life. Gold as a useful metal, and a medium of exchange, is undoubtedly very precious, and an adequate quantity for these exchanges must be had; but as it is good for very little besides, nay, as an excess is even hurtful, it soon begins to fly of itself towards the places where it is more needed or less common.
With regard to the relative value of gold and silver, several details have already been given in our view of the mineral wealth of the globe. Three centuries ago, an ounce of gold was worth at London or Paris 10 ounces of silver; now it may be exchanged for 15 ounces and a half.
The par of two coins results from the comparison of their weight and standard fineness. Let us take for an example the conversion of English gold sovereigns worth 20 shillings or a pound sterling, in relation to the French louis of 20 francs. The standard of the sovereign gold is 0·917, fine gold being 1000; its weight is 125·256 gr. English, or 7·980855 grammes; by multiplying this weight into its standard, we have a product of 7·318444035; this is, in grammes, the quantity of pure gold contained in the sovereign piece. The piece of 20 francs has a legal standard of 0·9; and multiplying this number by the weight of the louis, 6·45161 grammes, we find that it contains 5·806449 of pure metal. We then make this proportion:—
As 5·806449 : 20 francs ∷ 7·31844 : 25·2079 francs; or the value of the English sovereign is nearly 25·21 francs, in French gold coin. A similar calculation may be made for silver coins. The French rule for finding the par of a foreign gold coin, or its intrinsic value in francs, is to multiply its weight by its standard or titre, and that product by 34⁄9. The par of foreign silver money, or its intrinsic value in francs, is obtained by multiplying its weight in grammes by its standard in thousand parts, and by 2⁄9. The French 5-franc piece has its standard or titre at 0·9, and weighs 25 grammes.
The assaying of gold for coin and trinkets requires very delicate management. The French take half a gramme at most (about 71⁄2 grains) of gold, and fuse it with thrice its weight of silver, as already described under [Assay]. The parting is the next operation. For this purpose the button of gold and silver alloy is first hammered flat on a piece of steel, and then made feebly red hot in burning charcoal or over a lamp flame. After being thus annealed, the metal is passed through the rolling press, till it be converted into a plate about 1⁄70 of an inch thick. After annealing this riband, it is coiled into a spiral form, introduced immediately into a small matrass of a pear shape, an assay matrass, and about 500 grains of nitric acid, sp. grav. 1·185, are poured over it. Heat being now applied to the vessel, the solution of the silver and copper alloys ensues, and after 22 minutes of constant ebullition, the liquid is poured off and replaced by an equal quantity of nitric acid, likewise very pure, but of the density 1·28. This is made to boil for about 10 minutes, and is then poured off, when the matrass is filled up with distilled water to the brim. In conclusion, a small annealing crucible is inverted as a cup over the mouth of the matrass, which is now turned upside down with a steady hand; the slip of metal falls into the crucible through the water; which by sustaining a part of its weight, softens its descent and prevents its tearing. The matrass is then dexterously removed, without letting its water overflow the crucible. The water is gently decanted from the crucible, which is next covered, placed in the middle of burning charcoal, and withdrawn whenever it becomes red hot. After cooling, the metal slip is weighed very exactly, whence the weight of fine gold in the alloy is known. Stronger acid than that prescribed above would be apt to tear the metallic riband to pieces, and it would be difficult to gather the fine particles of gold together again. The metallic plate becomes at last merely a golden sieve, with very little cohesion. When copper is to be separated from gold by cupellation, a higher temperature is requisite than in cupelling silver coin.
The coining apparatus of the Royal Mint of London is justly esteemed a masterpiece of mechanical skill and workmanship. It was erected in 1811, under the direction of the inventor, Mr. Boulton; and has since been kept in almost constant employment.
