CO882-(1-2) — Page 290

PUBLIC RECORD OFFICE

Reference :-

C.O. 882

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PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

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if silver, while the standard is gold, must contain the exact relative quantity of silver that corres- ponds with the portion of gold which it represents in intrinsic value. But even then there is the inconvenience of those constant variations, which, however small, in the relative value of the precious metals, would create corresponding differences between the intrinsic value of the coin and its standard value; which, if not attended with important consequences, yet might sometimes lead to anoma- lies and inconveniences which would be much better avoided. For example-if, with our gold standard, we had had a silver currency during the last year, coined according to the intrinsic relative value of the metals, it is certain that the rise in the price of silver for the Continent would have led to the exportation of such coin. And if, on the other hand, silver had fallen in price below the rate at which the coinage had been adopted, and the Mint were open, as it must be for a coin which forma the whole currency, silver would be imported and coined beyond the quantity required for the profit it gave, till the currency had become surcharged and depreciated. The inconvenience, therefore, of using coins as a currency (I do not speak of the subordinate coins required for change) of a different metal from the standard, is too great to be permitted in a sound system.

15. (3.) Money in account. This may or may not correspond with the coin in circulation. There is no principle involved in it. But if it does not correspond with the actual coin in circulation, it is

a matter absolutely essential that it should have a fixed and determinate relative value. In this coun-

try we had long no coin with which our money in account, the pound sterling, corresponded.

But

beyond a slight inconvenience, no evil arose from it, because its precise value in gold was as well deter- mined and understood as it is now, when it is repre- sented by the sovereign. Before that time a pound sterling represented 118 grs. of pure gold, the same as it has done since the sovereign was the current coin. But undoubtedly it is a matter of great con- venience, and makes the subject of the currency more simple, which is itself an object worthy of consideration, when we consider the great number

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of popular errors which exist on the subject, that the money in account should correspond with the current coin of the country.

16. The most perfect monetary arrangement

that can be adopted is, therefore,

17. (1.) A single standard, whether of gold or silver, is indifferent,

18. (2.) That the coin which forms the diroula-

tion should be of the same métal.

19. (3.) That the money in account should cor- respond with that coin.

Such is the arrangement of the monetary system

of England.

20. In Mauritius the arrangement is very dif ferent:

21. (1.) The standard is, or at least professes to be, of gold—the pound sterling.

22. (2.) The actual and only coin in circulation

is of silver-the English shilling and the Indian

rupee.

23. (3.) The money in account is the dollar but which has no coin either under that denomina- tion or any other which corresponds with it.

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24. A more imperfect condition, of a currency could not well be imagined, and especially when it

is borne in mind that the silver coins which form the circulation do not even bear the same intrinsic value as the nominal sum which they represent by 6 or

8 per cent. I a perfectly aware of all that has been maid in palliation of this anomalous state of things, and will have occasion to refer to it here- after. It is not a matter of surprise, that from de arrangement so imperfect, great confusion and intricacies should have arisen.

25. But as we must prørved in all our considera- tions upon the setul intrinsic values of the metals represented in all the various denominations of the coins which enter inte the Mauritius monetary sys- tem, the next point is to ascertain what those intrinsic values are.

of

26. (1.) The pound sterling contains 118 grains pure gold, which, at the proportion of 15·7 of

silver to of gold, which is wear enough for my present purpose, a pound sterling represents 1774 grains of pure silver,

27. (2.) The British dilling cobaine 60-7 grativn

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