108 



Coin and Currency in [No. 9, new series. 



the current silver coins, and ordered that they should pass as sil- 

 ver, may, with its complete failure in its object, have done more 

 to inculcate sound economical views on this subject than any num- 

 ber of volumes.* 



Fraudulent interference with the standard of the coin may be 

 directed to reduction of the weight (in other words, raising the 

 denomination) or to adulteration of the material : or both these 

 may be combined, as was done in England in the end of Henry 

 VIII. and beginning of Edward VI., and in Scotland during the 

 minority of James VI. The first plan is of course open and avow- 

 ed. The second admits of some attempt at concealment and pro- 

 bably escapes discovery for some time.f But when the secret 

 does ooze out the public indignation is considerably more violent 

 than is ever excited by the raising of the denomination. This is 

 easily accounted for. When the weight of the coin is diminished, 

 the individual and the Government " start fair." The private 

 debtor pays his debts on as favorable terms as the public. In 

 the other case the Government has the advantage of the interval 

 between the adulteration and its discovery. I may observe that 

 this greater degree of public indignation produces one very im- 

 portant effect — the standard of purity is almost sure to be restor- 

 ed, the standard of weight seldom or never. 



Athens and Rome furnish us with examples of qualitative de- 

 preciation. Both cases to which I allude have been mentioned 

 before. The Athenians, in 407 B. C, issued a debased gold cur- 

 rency. The Roman Republic, about 90 B. C, adulterated its sil- 

 ver coinage ; the example was followed by private individuals, 

 and the evil reached a considerable height. In both these cases, 

 purity of standard was restored ; the Roman currency was re- 

 formed — the Athenians recalled their debased gold. 



We must not suppose that depreciations have always been due 

 to the " avarice and injustice of princes and sovereign states." 



* Yet we find Mr. Lowndes and a large minority of the House of 

 Commons at the time of the re-coinage in William III., proposing to 

 degrade the standard of British coinage. Their proposal was rejected, 

 chiefly owing to the influence of John Locke's writings. 



f King John of France swore the mint people to secrecy when he 

 tampered with the material of the coinage. 



