the export of gold or silver, and against buying or selling the metals at higher rates than were given at the Mint, a practice to which the proclamation attributed the scarcity of money. This edict proved of no avail, for, in spite of it, the gold coins were exported in such quantities that they were current more abundantly in foreign parts than in England. As the result of deliberation of the Privy Council, assisted by the Commissioners of Trade and officers of the Mint, who all attributed the export to the higher price of gold abroad, it was determined to raise the price of the gold coins to or near the value which they had on the Continent at the moment. Accordingly, by proclamation of the 26th August 1661, the value of the gold unite was raised from 22s. to 23s. 6d., and other gold coins in proportion, the silver currency being left unaltered.
In referring to the Act for the free trade in gold and silver (supra, p. [162]), mention has already been made of the motive of the legislator, namely, to increase the importation of the metals to the Mint. Exactly similar was the intention, as expressed in the preamble of the succeeding Act of 1666 (8 Charles II. c. 5), which abolished the right of seigniorage, thereby establishing free and gratuitous coinage in England—the principle of minting still in force in this country.[17]
ENGLAND: CHARLES II
The testimony of both Act and declaration as to the scarcity of money is confirmed by actual record. In the following year, 1667, there was a great scarcity of money, and dollars and pieces of eight were bought up by the goldsmiths and bankers for 4s. 3d. each, and instead of being brought to the Mint were at once exported to France for 4s. 10d. and to Ireland and Scotland for 5s.
According to the new indenture for the coinage of 1670, a slight reduction in the standard of the gold took place, the pound of crown gold (22 carats fine) being to be minted at a tale of £44, 10s. The scarcity of money still continued, however, and the separate experience of Ireland only corroborated that of England. The general statement of the case as to the fate of the coined money since the Act of 18 Car II., which instituted free coinage, is thus put by Sir Dudley North, in his Discourses upon Trade: "I call to witness the vast sums that have been coined in England since the free coinage was set up. What is become of it all? Nobody believes it to be in the nation, and it cannot well be all transported, the penalties for so doing being so great. The case is plain—the melting-pot devours it all; and I know no intelligent man who doubts but the new money goes this way. Silver and gold, like other commodities, have their ebbings and flowings; upon the arrival of quantities from Spain, the Mint commonly gives the best price, i.e. coined silver for uncoined silver, weight for weight. Wherefore it is carried
into the Tower and coined. Not long after there will come a demand for bullion to be exported again. If there is none, but all happens to be in coin, what then? Melt it down again; there's no loss in it, for the coining costs the coiners nothing. Thus the nation hath been abused and made to pay for the twisting of straw for asses to eat."
By the time of the accession of William III. the scarcity of silver had become so great as to cause a petition from divers working goldsmiths in and about the City of London to the House of Commons (9th April 1690). It stated "that upon search at the Customs they found that since last October entries had been made of 286,102 oz. of silver in bullion, and 89,949 dollars and pieces of eight for exportation by divers private persons, and they doubted not but it would appear that not only the East India Company, but also divers Jews and merchants, had of late bought up great quantities of silver to carry out of the kingdom, and had given 1 1⁄2d. per oz. above the value, which had encouraged the melting down of much plate and milled monies; whereby for six months past, not only the petitioners in their trade, but the Mint itself had been stopped from coining."
ENGLAND: THE EXPORT IN 1690
The petition was referred to a committee of the Lower House, which reported on the 8th May that great quantities of silver had been exported, of which seven-eighths had been shipped off by the Jews, who would do anything for their profit. The reason for the exportation, too, was plain, for the French
king, of late finding his money very scarce, had raised his coin 10 per cent., which was an encouragement to send silver to fill his coffers, and therefore the Jews exported it daily in very great quantities. The melting down of £1000 of milled money for exportation was attended with a profit of £25 ready money and upwards, silver being coined at the Mint at 5s. 2d. per oz., but at the time of exportation sold generally at 5s. 3 1⁄2d. The remedies proposed to the committee were either a prohibition of export or the enhancing of the English monies.