IT is not pretended that the foreign coins are accurately rated in the Pamphlet on Monies. Precision in this case is of but little consequence in a publication, by a private person, which holds out intimation rather than instruction; and it remains with government to ascertain precisely the valuation of foreign coins.

What would be the tendency of rating foreign coins at more or less, in cents, than their exact current value abroad? I wish you to pause on this question,—weigh the probable consequences. To me it seems that more of cents would induce an importation of coin in lieu of goods.—Goods, which, if imported, would be used luxuriously: but they would pay customs to the public, which the coins would not. The money imported would, however, invigorate commerce and enterprize. In proportion, as money abounds in the country it will diminish in its importation from foreign parts: and goods, imported, will increase in the like proportion, in return for our exports. What will the politician think of the consequences of a great influx of luxuries in this case? Those luxuries are not to be prohibited; but an increase of impost, on them, and a proper drawback on a re-exportation may be a wholesome measure. The less frugal Planter says—"I am for under­rating foreign coins, as an encouragement to the bringing in more goods." This gay countryman speaks not from motives of national good: he would have an abundant [Page 2]influx of goods that he may buy them cheap, however ruinous to the merchant, and that then, beyond the supply of necessaries and comforts, he may riot in luxuries. There are those, of other classes of people, who would over-rate the foreign coins from the like motive, a little of self-gratification,—all are but men. The merchant, also for himself, wishes to see foreign coins valued, in cents, precisely according to their current value abroad;—because, when there is no overbearing influence applied for biassing the rates of money the one way or the other, it will assist commerce to seek, with itself, its own level, as doth water, until they settle, in unison, into an equal and unabating stream of employment and wealth to the nation.^* It is not meant but that the great representative may and ought, and therefore will interfere when necessary for curbing enormities which oppose fair trade, or the interests of the nation or of commerce in general: but, a free government will be cautious not to disturb the natural current of monies and trade, lest they be driven to countries unused to check their better inclination.

The Writer of the Essay on Monies submitted the name, "Dollar," against his own judgment. It was not an essential, and the Congress in 1785 had adopted it. He conceived, that denomination was not so proper as some definite or original term would be. There are dollars of various countries and values: and it threatens to be an inconveniency, that within the United States there should be monies of Spain, worth 108 cents, of a 50 d. dollar, and [Page 3]at the same time monies of the country, of the same denomination, worth but 100 cents, (at most 105 cents) from whence may arise some uncertainty in dealings and in conversations, when "dollars," indefinitely, are expressed. A hasty bargain is made for 100 "dollars." What, before a jury, are these dollars? Before judges of the superior courts, they are declared to be dollars of the United States: before judges in by-places, there may, in practice, be some little latitude taken for declaring them to be the one or the other:—Inclination, sometimes, has a powerful influence over judgment. If we say, "Fleece dollar"—or "Con­gress"—or "Federal dollar," in either case it is a com­pound and prolix term. If called a "Fleece"—so of an "Eagle," the term is indefinite. "Dollar," however, is familiar to the people: Are the variety of dollars and their respective values also familiar to them?—A contract is made to pay 1000 dollars: the hand writing of the defendant is well proven; but there is no proof of the place where the contract was made, or for what dollars: in fact, it was made at the Havana, and pieces of eight rials, of Spanish money, were meant; yet judgment is rendered, in our courts, for dollars of the United States, of the value of 100 cents, whereas the plaintiff ought to have been paid dollars of 108 cents: so that he loses 80 dollars of his just due.

In valuing Spanish pieces of eight, it may be noted that nearly all, now in circulation, are of CHARLES III, and that these dollars are inferior to dollars of the former Kings of Spain, both in weight and fineness:—the old, more perfect dollars of Spain, are for ever gone. The medium weight of 13 Mexican pieces of eight of CH. III, was 416⅓ grains. Har­rison's London prices current, for May 1784, make all the pieces of eight sell at 5 s. 2½ d. an ounce; except the new dollars of Spain, which were at 5 s. 1½ d. so that the pieces of eight of CH. III, are worth but 53 d. 15/100, or 106 cents, 3 mills, of a 50 d. dollar; when the old dollars are worth 54 d. nearly, or 108 cents. The proportions of fine silver and of alloy in the pieces of eight of CH. III, may be discovered by calcu­lation [Page 4]on the value of them at market. They there sell lower than other Spanish pieces of eight as 61½ to 62½ in the ounce. It may be presumed, the acute dealers, in bullion, procured that new money to be nicely assayed at the mints, for ascer­taining its purity, before the price was set at market.

Portugal money of account is in rees and mill rees:—1000 rees are a mill ree. They are separated by dotting off three figures from the right or unit side: so that 2000 and 4000 are 2.000 M. R. and 4.000 M. R. The coins of that nation have their value expressed on them in figures; and there are coins impressed with 20000, meaning so many rees or 20 mill rees. Fifty-four pence sterling are of the value of 800 rees. Likewise the Spaniards impress on their pieces of eight the figure 8, meaning thereby eight rials; from whence the name "piece of eight."—Will American coins be marked in figures with their value in cents?

Although Congress divided monies of account into dollars, dimes, cents, and mills, which is a very excellent division, and the principle will be retained, yet it probably will happen in practice, that accounts will be kept in dollars and cents, with the fractions of cents called mills; Do. 368 C. M. 98.9. that is 368 dollars, 98 cents, 9 mills; or Do. 368. C. M. 98.9. in one column: or, it may be, according to the Portugal method, 368.989, which are so many dollars and mills; for, 1000 mills are one dollar, as 1000 rees are one mill ree. There is, I believe, no money of account so manageable, [Page 5]by the accountant, as those of the United States of America, and Portugal:—To me the method of dollars and mills appears the best: 234 Do. 906 M., or 234,,906.—If I am to settle accounts with people who use all the different methods, it is quite as easy to me as if we all were in one and the same method: my 234.906 are by dots at once shifted into 234 Do. 9 Di. 06 M.—234 Do. 90 C. 6 M., or into 23 E. 4 Do. 90 C. 6 M.; yet those people cannot quite so easily throw theirs into my denominations. But until the denominations of monies of account and coins are confirmed or altered, it may be well to keep our accounts in cents alone, as there is the least probability of a change in this name.

It may be considered, whether the declaring that "French and British coins shall pass current in payment of all debts and contracts for money," will not be improper; as they are generally so worn as to fall greatly short of their weights and value. French crowns, of the commercial standard, ought to weigh 464½ grains, to be worth 5 s. sterling, or 120 cents: yet, what are in circulation, average only about 447 grains, equal to 4 s. 9¾ d. or 115C. 5M.—English crowns are scarcely an object—there are none in circulation—English shillings are as trash—20 of them, taken at random, averaged but 8½ d. sterling. or 17 cents. The laws of those countries make it penal to send their national cash abroad. Amongst the commercial nations, perhaps, the motive for this pro­hibition,—exclusive of the consideration of heavy charges to their nation, on expensive coinages often repeated, is not with the desire of locking it up from circulating in other countries; because, the more free and extensive it circulates the better are its purposes answered. A system of commerce, which carries out money, will bring bullion home.—Countries the richest in commodities, nevertheless, require bullion in many branches of their commerce: and as the monies of all other nations are, to them, but bullion, whilst they have an influx of it sufficient for their purpose, the quantity of [Page 6]their national money needs not be so great as otherwise would be requisite; and then expensive coinages are lessened. Britain seems to have greatly declined in coining silver, from this principle,—nor do I know that she has coined any silver for many years past, of any consideration.

Gold may be preferred to silver, for our national money, at least for awhile, as the coinage of it is considerably cheaper than of silver. Spanish silver coins, together with the gold of Spain and Portugal, may be tendered in payments: at the same time, a moderate sum of national silver ought to be always in circulation, together with our gold coin to a larger amount, as bullion gold shall happen to come into the mint. It would, respecting the public, be improper to give currency to foreign coins by a perpetual or long continued law: more­over our citizens would be subject, by such laws, to great imposition from a depraved coinage, which could be pro­duced at the will of the foreign sovereign,—and it might injure our commerce and the commonwealth in general. If the foreign nations should be displeased with such a public act as might seem to give encouragement to the drawing away their monies from them, which at great expence were coined for their own use within their own dominions, and not for the purposes of strangers,—commerce, in despite of opposition, will counteract the views of such complaints, and perhaps defeat all the means that government could reasonably apply for answering the expectation of the com­plainants: for if in such case the foreign coins are left to their own bias, to follow in the train of commerce, they will become, or continue current by common consent; and there will presently be a sufficiency of national money for the purposes of formal tenders in controverted cases: under which circumstances, the municipal laws which gave cur­rency and force to those coins, may be repealed, or not, as shall then appear adviseable. If nothing forbids, silver car­ried to the mint to be exchanged for national coin, may be paid for in gold, free of all expence, loss, or delay. The cost on the coinage of the gold will be about 3 per cent. to [Page 7]the States: Those who carry bullion gold to the mint, will, it is supposed, also receive its value in national gold or silver coin, clear of expence or loss.

Whilst money of the Banks, whether it be in paper or bullion, and Spanish coins are current as is the national money, by consent through the influence of commerce, although they be not money known to the municipal law, and therefore not a subject of tender, all the purposes of a foreign commerce are answered by them, and also most of the inland demands; so that formal tenders, which must be in national money; being very few, a less quantity of the national coin suffices. Spanish money is not liable to the objections made above, respecting the English and French crowns:—it is but little wore. The portion of it which passes through our hands, is soon dispersed over Europe or sunk in India:—the absence whereof is yearly renewed, from the mines of new Spain, with a coin that is fresh and perfect: so that, if the States should think it proper, until trade is more favourable to us, and we can afford to coin more largely, the act may be, that until such a time (the year 1800) Spanish milled and coined monies, and Portugal gold, shall pass current in payments within the United States of America.

If the devices on the American coins, shall generally be of subjects of great national concern, the Printing Press is a candidate for a place among them—Vehicle of Science—Prop of Liberty!

However mistaken may be the principles of this Piece, it perhaps will promote one good—Thought, with investi­gation, on a subject particularly interesting at this time.