The variation of the metals has produced three different standards of Elizabeth.
Now supposing that in the year 1601, three different payments of a pound sterling had been made, and locked up in a chest till this day, let us inquire what would be the value of each at present, were they to be melted down, and sold as bullion in the English market. The first payment I shall suppose to have been made in silver, to the value of 1718.7 grains fine silver, which make of standard silver 1858.06 grains; this sold at the rate of 65 pence an ounce, the present supposed value of silver, at the rate |One worth £1 0 11⅜ present currency.| of the gold, when full weight, makes £1 0 11⅜. The second payment I shall suppose to have been made in gold,|Another worth £1 7 10⅞| to the value of 157.6 grains fine gold, which makes of standard gold 171.9 grains, this at the mint price of gold, that is, £3 17 10½ the ounce, makes of present sterling, £1 7 10⅞.
And a third worth £1 4 5⅛.
The third payment I suppose to have been made, one half in gold, one half in silver, which makes 859.36 grains fine silver, and 78.8 grains of fine gold, which, at the above conversions,
| makes for the silver | £0 10 511⁄16 | |
| And for the gold | £0 13 117⁄16 | |
| Together | £1 4 5⅛ |
The last is the true standard of Elizabeth for the pound sterling, and worth at present 2002 grains fine silver, and 138 ditto gold.
Here we have three different pounds sterling, produced purely by the variation in the proportion of the metals, although in 1601, they must have been absolutely the same. Which of the three, therefore, is the standard of Elizabeth? Is it not evident, that it can be no other than according to the value of that pound which was paid, half in gold, and half in silver? And is it not also plain, that this is the exact arithmetical mean proportional between the gold and the silver? Let the silver and the gold pounds be added together, they make £2 8 10¼; the half of which is the value of that pound which was paid half in gold, and half in silver, to wit, £1 4 5⅛ of the present gold currency, reckoning standard silver at 65 pence per ounce, and gold at the mint price. To realize this value exactly in gold and silver, while the proportion remains as 1 to 14.5, it would be proper to put into the pound sterling 2001.9 grains troy fine silver, and 138.04 grains of fine gold. These quantities of the metals would answer exactly to the value of £1 4 10¼, the mean proportional above mentioned.
Here then is the standard of Elizabeth: if it has any excellence in it above all others, it might be preferred.
But may vary at every moment.
It must however be observed, that it will remain the standard only whilst the proportion of 1 to 14.5, upon which it has been established, shall remain unvaried between the metals; and it will vary from where it might be at present settled, in the same manner as it has varied at all times from the year 1601, to wit, according to the vicissitudes which shall happen in the proportion of the metals. But at every period of time, and in all different varieties of proportion between gold and silver, no problem is more easily resolved than that of the mean proportional between the gold and silver, the moment one knows the proportion of the metals at the time; as shall be demonstrated in a following chapter.