But notwithstanding these imperfections, the convenience of gold or silver coinage, as money, has led to the universal adoption of one or the other, or of both conjointly, as the standard of value. The objec tions to a double standard have already been noticed, but throughout a long period of the Watery of this country we find gold and silver pro-, railing equally as standards. There appears to have been no public coinage of gold at the royal mints prior to the 41st Ilenry III. The gold pennies coined at that time were expressly declared not to be a legal tender, and never obtained a very general circulation. Silver was then the universal medium of exchange, and the people were mete cu toned to the use of gold as money : but as their commerce and riches increased, gold naturally became more convenient for large pr.•ay menta. The results of this program became apparent in the reign of Edward III., who established a general circulation of gold coins, which, though partially introduced nearly a hundred years before, by Henry Ill., had not been continued by his succeeders. From this time gold and silver coins circulated together, and were both legal tenders. To what an extent their relative value varied at different periods, has already been noticed ; but they were equally recognised by law as authorised standards of value in all payments whatever, until the year 1774, when it was declared by statute (14 Geo. Iii. c. 42) that, in future, silver coins should not be a legal tender in payment of any sum exceeding 251., except accordiug to their value by weight, at the rate of 5s. 2d. an ounce. This was a temporary law, but was con tinued by several statutes until the year 1816, when the legal tender of silver coins was further restricted to payments not exceeding forty shillings (56 Geo. IfI. c. 68). And thus, as all large payments were made and calculated in gold coins, gold became the sole standard of value, so far as coinage alone was the real medium of exchange.
The expediency of adopting gold as the standard instead of silver, has been a question of much controversy amongst the highest autho rities upon monetary affairs. It was the opinion of Locke, of Ilar•ris, and Sir William Petty (all great authorities), that silver was the general money of England, and the measure of value in its commercial dealings with other countries. Its general adoption for such purposes was urged as a proof of its superiority as money over gold; and of this opinion are some writers of high authority at the present day. On the other hand it has been argued, that the metal of which the chief medium of exchange is fabricated, should have reference to the wealth and commerce of the country for which it is intended ; that copper or silver coins of the lowest denominations suffice for the convenience of a very poor country ; but that as a country advsuces in wealth its commercial transactions are more costly, and require coins of corres ponding value. As a matter of oonvenicnce this is undoubtedly true. Gold is the standard in England ; silver is the standard in Holland and other countries ; France has • double standard, silver and gold ; and the comparative facility for effecting large payments in the current coins of those countries can admit of little doubt. habit will
familiarise the use of silver, and render a people insensible to its incon venience ; but it is certain that in England fifty sovereigns can be carried about in a man's waistcoat pocket, while in France the value of that sum in silver would weigh about 15 lbs. troy. The fixed price of gold, of the coinage standard of 22 carata fine to 2 of alloy, at the Mint or Bank of England is at the rate of 3L 17s. 9d. per oz. There is no fixed price for silver ; but the average on a long number of year. Is almost exactly fa. The Mint coins one ounce of silver (tint standard) into Ga. 6d., and obtains therefore 4d. or 6d. on the ounce profit for coinage. For gold coinage it only charges • small seignorage; the Bank of England, by an arrangement with the Government, receiving gold at the fixed rate of 3/. I7s. 9d. per ounce (Mint standard), and returning it coined at the rate of 3L 17s. Iffild. per ounce. The price of gold is therefore kept at a standard deviating only by 14(1. per ounce.
But the convenience of coin for a certain class of payments is a question quite distinct from that of its fitness for a standard of value. It is not necessary to exclude gold from the coinage because it is not adopted as the standard ; it may be circulated as freely as the people desire to use it, while, instead of being the legal standard, its value may be calculated in silver. If silver be the 'standard, a large gold coinage may circulate at the same time for the convenience of larger payments, just as salver circulates for small payments where gold is the standard. In either case, however, that metal wbich is chosen by the state as the lawful standard governs all calculations and bargains, while the other metal merely conforms to its standard, and is aubsidiary to it. But even if the relative convenience of gold or silver as a Asturian' were the solo question, it could not be determined by the modes of effecting large payments only. All payments are calculated as easily in the coins of one metal as of another, in whatever form they may be actually effected. lint by far the greater number of bargains are made for articles of small value. It is in silvcr and copper Opt the consumption of all commodities is mainly paid for. The wages of the country are paid and expended in that term ; and in that form the prices of nearly all the ordinary articles of daily use are calculated.
The fitness of • standard however cannot be determined solely by considerations of convenience; for we must chiefly regard its intrinsic qualities as a permanent measure of value. If ow shall uniformity of value be maintained as far as practicable in the money of a couutry ? is the main question to be determined; and not, Which is the most convenient form in which to make bargains ! In what medium shall the whole property of the country he valued, from one year to another. By what standard shall the relative value of all things be compared! How shall fluctuations be restrained in the value of this standard itself 1 These are the questions; to be answered.