april — sept. 1859.] Ancient and Modern times. 



115 



of Eastern currencies : and the relative superiority in value of 

 gold has consequently always been much lower in the East than 

 in Europe. While the ratio in Europe is about 15 : 1, in the East 

 it is 10 (or at most 12) : 1. Adam Smith states that in his time, 

 while in the Calcutta Mint (as in England) the proportion was 

 15 : 1, in China it was 10 : 1 and in Japan 8:1. Of course un- 

 der these circumstances it is more profitable to bring silver to the 

 East than gold ; and accordingly the former has always immense- 

 ly preponderated in the imports. This preponderance has been 

 so marked that Mr. Meggens, an authority of considerable weight 

 in politico-economical question, and more than once quoted by 

 Smith, accounted for the difference between the ratio of the values 

 of gold and silver in the European market and that of the quan- 

 tities brought into Europe, by pointing to the large exports of 

 silver to the East. The proportion of the silver brought annually 

 from America to the gold was 22 : l — while the relative values of 

 the metals were as 14 (or 15) : 1. I have said enough in a for- 

 mer part of this paper to render it unnecessary now to dwell 

 upon Mr. Meggens' mistake. I have mentioned him here only to 

 show the great preponderance of silver over gold, in exports to 

 the East in his time. 



The complaint that the East was taking gold and silver from 

 Europe is as old as Pliny's time. He mentions (Nat. Hist. lib. 

 xii. cap. 18y/ the silks, spices, &c. imported into Italy from the 

 East, and adds — " Minimaque computatione millies centena mil- 

 lia sestertium, annis omnibus, India et Seres peninsulaque ilia 

 [Arabia] imperio nostro demunt." In 1600, when the East India 

 Company obtained their Charter, the importance of gold and silver 

 as articles of export to the East was so well known that that body 

 obtained leave to convey eastwards annually £30,000 worth of 

 foreign coin or bullion. The Mercantile System was at that time 

 so powerful that this permission was saddled with a condition 

 that within six months of the termination of every voyage, the 

 Company should re-import into England an amount of gold and 

 silver equal to the quantity of silver exported. 



From the time of the discovery of the American mines until the 

 revolutionary disturbances to which I have before referred, the 

 Vol. xx. o. s. Vol. yi. n. s. 



