* In a Newspaper, which frequently gives good details in political economy, I find, under the Hamburg head, that the present market price of Gold and Silver is, in England, 15.5 for 1: in Russia, 15: in Holland, 14.75: in Savoy, 14.96: in Fiance, 14.42: in Spain, 14.3: in Germany, 14.155: the average of which is 14.615 or 14 1/2. I would still incline to give a little more than the market price for gold, because of its superior convenience in transportation.
He also informs me, that the several coins in circulation among us, have already been assayed with accuracy, and the result published in a work on that subject. The assay of Sir Isaac Newton had superseded, in my mind, the necessity of this operation as to the older coins, which were the subject of his examination. This later work, with equal reason, may be considered as saving the same trouble as to the latter coins.
So far, then, I accede to the opinions of the Financier. On the other hand, he seems to concur with me, in thinking his smallest fractional division too minute for a Unit, and, therefore, proposes to transfer that denomination to his largest silver coin, containing 1000 of the units first proposed, and worth about 4s. 2d. lawful, or 25/36 of a dollar. The only question then remaining between us is, whether the Dollar, or this coin, be best for the Unit. We both agree that the ease of adoption with the people, is the thing to be aimed at.
1. As to the Dollar, events have overtaken and superseded the question. It is no longer a doubt whether the people can adopt it with ease; they have adopted it, and will have to be turned out of that, into another track of calculation, if another Unit be assumed. They have now two Units, which they use with equal facility, viz. the Pound of their respective state, and the Dollar. The first of these is peculiar to each state; the second, happily, common to all. In each state, the people have an easy rule for converting the pound of their state into dollars, or dollars into pounds; and this is enough for them, without knowing how this may be done in every state of the Union. Such of them as live near enough the borders of their state to have dealings with their neighbors, learn also the rule of their neighbors: Thus, in Virginia and the Eastern States, where the dollar is 6s. or 3/10 of a pound, to turn pounds into dollars, they multiply by 10, and divide by 3. To turn dollars into pounds, they multiply by 3, and divide by 10. Those in Virginia who live near to Carolina, where the dollar is 8s. or 4/10 of a pound, learn the operation of that state, which is a multiplication by 4, and division by 10, et e converso. Those who live near Maryland, where the dollar is 7s. 6d. or 3/8 of a pound, multiply by 3, and divide by 8, et e converso. All these operations are easy, and have been found by experience, not too much for the arithmetic of the people, when they have occasion to convert their old Unit into dollars, or the reverse.
2. As to the Unit of the Financier; in the States where the dollar is 3/10 of a pound, this Unit will be 5/24. Its conversion into the pound then, will be by a multiplication by 5, and a division by 24. In the States where the dollar is 3/8 of a pound, this Unit will be 25/96 of a pound, and the operation must be to multiply by 25, and divide by 96, et e converso. Where the dollar is 4/10 of a pound, this Unit will be 5/18. The simplicity of the fraction, and of course the facility of conversion and reconversion, is therefore against this Unit, and in favor of the dollar, in every instance. The only advantage it has over the dollar, is, that it will in every case express our farthing without a remainder; whereas, though the dollar and its decimals will do this in many cases, it will not in all. But, even in these, by extending your notation one figure farther, to wit, to thousands, you approximate a perfect accuracy within less than the two thousandth part of a dollar; an atom in money which every one would neglect. Against this single inconvenience, the other advantages of the dollar are more than sufficient to preponderate. This Unit will present to the people a new coin, and whether they endeavor to estimate its value by comparing it with a Pound, or with a Dollar, the Units they now possess, they will find the fraction very compound, and of course less accommodated to their comprehension and habits than the dollar. Indeed the probability is, that they could never be led to compute in it generally.
The Financier supposes that the 1/100 of a dollar is not sufficiently small, where the poor are purchasers or vendors. If it is not, make a smaller coin. But I suspect that it is small enough. Let us examine facts, in countries where we are acquainted with them. In Virginia, where our towns are few, small, and of course their demand for necessaries very limited, we have never yet been able to introduce a copper coin at all. The smallest coin which any body will receive there, is the half-bit, or 1/20 of a dollar. In those states where the towns are larger and more populous, a more habitual barter for small wants, has called for a copper coin of 1/90 or 1/96 or 1/108 of a dollar. In England, where the towns are many and pouplous, and where ages of experience have matured the conveniences of intercourse, they have found that some wants may be supplied for a farthing, or 1/208 of a dollar, and they have accommodated a coin to this want. This business is evidently progressive. In Virginia we are far behind. In some other states, they are farther advanced, to wit, to the appreciation of 1/90, 1/96 or 1/108 of a dollar. To this most advanced state, then, I accommodated my smartest coin in the decimal arrangement, as a money of payment, corresponding with the money of account. I have no doubt the time will come when a smaller coin will be called for. When that comes, let it be made. It will probably be the half of the copper I propose, that is to say 5/1000 or.005 of a dollar, this being very nearly the farthing of England. But it will be time enough to make it, when the people shall be ready to receive it.
My proposition then, is, that our notation of money shall be decimal, descending ad libitum of the person noting; that the Unit of this notation shall be a Dollar; that coins shall be accommodated to it from ten dollars to the hundredth of a dollar; and that, to set this on foot, the resolutions be adopted which were proposed in the notes, only substituting an inquiry into the fineness of the coins in lieu of an assay of them.
[NOTE G.]
I have sometimes asked myself, whether my country is the better for my having lived at all. I do not know that it is. I have been the instrument of doing the following things; but they would have been done by others; some of them, perhaps, a little better.