ת
·「 ༴། ཟ། ་ 5།
PUBLIC RECORD OFFICE
Reference:→→
C.O. 882
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
24
5 dollars; and that dollar, it was declared, was equal to 4 francs in 1 or 2-franc pieces, which at 10d. each, is 48.; or the pound sterling contracted to be paid was payable with 24 francs at 10d. each; or with 1665-6 grains of silver in place of 1774·】 grain.
If
51. But then it may be contended that this depreciation before 1843 was only in reference to a foreign silver coin erroneously rated, and after 1843 in reference to the Indian rupee under the conven- tional rate, and not in reference to British silver. But the reply to that argument is obvious. British silver had maintained its full nominal value in sterling, then it would have always corresponded with the gold coin, and would have commanded at all times éxactly the same premium as the gold sovereign. That British silver did command some premium for the purpose of paying taxes and duties, is admitted by all, but it was always small, and seems to have been commonly a remuneration to the broker for the trouble of collecting it, rather than an actual test of a higher value. The persons parting with it seldom received any premium, while those who got it paid a premium for col- lection. I will even go the length of admitting that the Mint regulation, and the fact that British silver was alone received in the payment of duties and taxes, had a tendency in some particular states of the market, and when the exchanges were favourable, of giving some superior value to the token than it possessed intrinsically. But in other states of the market, and when the exchanges were adverse and coin was to be exported, those causes entirely ceased to affect the value of the coin, for reasons I have already explained. But, making that admission, there is an undoubted fact which proves beyond any question, that British silver was, in spite of those checks, always less or more depre- ciated below its nominal sterling value; and that is, that a premium upon gold always existed, though there was none on British silver, and that when the Jatter commanded a premium, that on gold was still much higher. In 1841, when British silver was † to 1 per cent. premium, gold was 5 to 6 per cent. In 1842, when British silver was 5 to 6 per cent. premium, gold was 14 to 15 per cent,; and in 1843, just before the Convention was entered into, when British silver was 14 to 15 per cent, premium, gold was 18 to 20 per cent.; British silver was fre,
25
quently at par, but gold always commanded a pre- mium, even in 1835, when a sum of 1,200,0001. in gold was introduced for the slave compensation. With these facts before us, it is impossible to con- tend: first, that the currency was not depreciated to the extent of the premium which the sovereign bore; and second, that British silver bore its nomi- nal sterling value, or that it was not depreciated below that, in proportion to the superior premium which gold bore to it.
52. The Proclamation of 1843 introduced for the the first time the correct rating of French coins in sterling money; but it considerably underrated the Indian rupee. But this measure, though an im- provement on all former ones, would have failed in its object of erecting a circulation of full sterling value, as it was not accompanied by a limit of tender for British silver, which it was intended still should constitute the whole of the circulation.
But as
it was not contemplated to make any adjustment of existing obligations, by converting the proposed new dollar, for the first time raised to 4s. sterling, by adding to it a limit of tender, it is plain that a great act of injustice would have been done to all debtors, who would have been called upon to pay 354-8 grs, of silver for every dollar of existing debt which had been contracted prior to 1838 at 333-1 grs, and between 1838 and 1843, at 344.9 grs. of silver; giving a profit to the creditor of 10 grs, to the dollar at least, or of about 3 per cent.
But
this measure has been a dead letter, in consequence
of the Convention of 1843.
53. By that Convention the public determined that the rupee should represent 28., or the of a pound, and that two should represent a dollar in account. This arrangement has continued unbroken
to the present day. They therefore established the dollar at 930 grs. of silver, or at 3s.-84d, of sterling money, and the pound at 16 grs., or 188. 7fd. Thus, while the plan of the Treasury would have benefited the creditor at the cost of the debtor, by about 3 per cent., the plan adopted by the Conven- tion benefited the debtor at the cost of the creditor, by more than 4 per cent., or by 14:9 grs. of silver on every dollar of existing debt.
84. I would make one remark bere on the sub- ject of such conventions on the part of communities H