Memoir, Correspondence, And Miscellanies, From The Papers Of Thomas Jefferson Volume I Part 12

10,000 dollars will require eight figures to express them, to wit, 14,400,000 units. A horse or bullock of eighty dollars' value, will require a notation of six figures, to wit, 115,200 units. As a money of account, this will be laborious, even when facilitated by the aid of decimal arithmetic: as a common measure of the value of property, it will be too minute to be comprehended by the people. The French are subjected to very laborious calculations, the Livre being their ordinary money of account, and this but between 1/5 and 1/6 of a dollar; but what will be our labors, should our money of account be 1/1440 of a dollar only? 2. It is neither equal, nor near to any of the known coins in value.

If we determine that a Dollar shall be our Unit, we must then say with precision what a Dollar is. This coin, struck at different times, of different weights and fineness, is of different values. Sir Isaac Newton's a.s.say and representation to the Lords of the Treasury, in 1717, of those which he examined, make their values as follows:

[Ill.u.s.tration: Sir Isaac Newton's a.s.say, page137]

The Seville piece of eight . . . . 387 grains of pure silver The Mexico piece of eight . . . . 385 1/2 "

The Pillar piece of eight . . . . 385 3/4 "

The new Seville piece of eight . . 308 7/10 "

The Financier states the old Dollar as containing 376 grains of fine silver, and the new 365 grains. If the Dollars circulating among us be of every date equally, we should examine the quant.i.ty of pure metal in each, and from them form an average for our Unit. This is a work proper to be committed to mathematicians as well as merchants, and which should be decided on actual and accurate experiment.

The quantum of alloy is also to be decided. Some is necessary, to prevent the coin from wearing too fast; too much, fills our pockets with copper, instead of silver. The silver coin a.s.sayed by Sir Isaac Newton, varied from 1 1/2 to 76 pennyweights alloy, in the pound troy of mixed metal. The British standard has 18 dwt.; the Spanish coins a.s.sayed by Sir Isaac Newton, have from 18 to 19 1/2 dwt.; the new French crown has in fact 19 1/2, though by edict it should have 20 dwt., that is 1/12.

The taste of our countrymen will require, that their furniture plate should be as good as the British standard. Taste cannot be controlled by law. Let it then give the law, in a point which is indifferent to a certain degree. Let the Legislatures fix the alloy of furniture plate at 18 dwt., the British standard, and Congress that of their coin at one ounce in the pound, the French standard. This proportion has been found convenient for the alloy of gold coin, and it will simplify the system of our mint to alloy both metals in the same degree. The coin too, being the least pure, will be the less easily melted into plate. These reasons are light, indeed, and, of course, will only weigh, if no heavier ones can be opposed to them.

The proportion between the values of gold and silver is a mercantile problem altogether. It would be inaccurate to fix it by the popular exchanges of a half Joe for eight dollars, a Louis for four French crowns, or five Louis for twenty-three dollars. The first of these, would be to adopt the Spanish proportion between gold and silver; the second, the French; the third, a mere popular barter, wherein convenience is consulted more than accuracy. The legal proportion in Spain is 16 for 1; in England, 15 1/2 for 1; in France, 15 for 1.

The Spaniards and English are found, in experience, to retain an over proportion of gold coins, and to lose their silver. The French have a greater proportion of silver. The difference at market has been on the decrease. The Financier states it at present, as at 141/2 for one. Just principles will lead us to disregard legal proportions altogether; to inquire into the market price of gold, in the several countries with which we shall princ.i.p.ally be connected in commerce, and to take an average from them. Perhaps we might, with safety, lean to a proportion somewhat above par for gold, considering our neighborhood and commerce with the sources of the coins, and the tendency which the high price of gold in Spain has, to draw thither all that of their mines, leaving silver princ.i.p.ally for our and other markets. It is not impossible that 15 for 1, may be found an eligible proportion. I state it, however, as a conjecture only.

As to the alloy for gold coin, the British is an ounce in the pound; the French, Spanish, and Portuguese differ from that, only from a quarter of a grain, to a grain and a half. I should, therefore, prefer the British, merely because its fraction stands in a more simple form, and facilitates the calculations into which it enters.

Should the Unit be fixed at 365 grains of pure silver, gold at 15 for 1, and the alloy of both be one twelfth, the weights of the coins will be as follows:

[Ill.u.s.tration: Projected Coin Weights, page138]

The quant.i.ty of fine silver which shall const.i.tute the Unit, being-settled, and the proportion of the value of gold, to that of silver; a table should be formed from the a.s.say before suggested, cla.s.sing the several foreign coins according to their fineness, declaring the worth of a pennyweight or grain in each cla.s.s, and that they shall be lawful tenders at those rates, if not clipped or otherwise diminished; and where diminished, offering their value for them at the mint, deducting the expense of re-coinage. Here the Legislatures should co-operate with Congress, in providing that no money be received or paid at their treasuries, or by any of their officers, or any bank, but on actual weight; in making it criminal, in a high degree, to diminish their own coins, and, in some smaller degree, to offer them in payment when diminished.

That this subject may be properly prepared and in readiness for Congress to take up at their meeting in November, something must now be done. The present session drawing to a close, they probably would not choose to enter far into this undertaking themselves. The Committee of the States, however, during the recess, will have time to digest it thoroughly, if Congress will fix some general principles for their government. Suppose they be instructed,--

To appoint proper persons to a.s.say and examine, with the utmost accuracy practicable, the Spanish milled dollars of different dates in circulation with us.

To a.s.say and examine, in like manner, the fineness of all the other coins which may be found in circulation within these states.

To report to the Committee the result of these a.s.says, by them to be laid before Congress.

To appoint, also, proper persons to inquire what are the proportions between the values of fine gold and fine silver, at the markets of the several countries with which we are, or probably may be, connected in commerce; and what would be a proper proportion here, having regard to the average of their values at those markets, and to other circ.u.mstances, and to report the same to the Committee, by them to be laid before Congress.

To prepare an Ordinance for establis.h.i.+ng the Unit of Money within these States; for subdividing it; and for striking coins of gold, silver, and copper, on the following principles.

That the Money Unit of these States shall be equal in value to a Spanish milled dollar containing so much fine silver as the a.s.say, before directed, shall show to be contained, on an average, in dollars of the several dates in circulation with us.

That this Unit shall be divided into tenths and hundredths; that there shall be a coin of silver of the value of a Unit; one other of the same metal, of the value of one tenth of a Unit; one other of copper, of the value of the hundredth of a Unit.

That there shall be a coin of gold of the value of ten units, according to the report before directed, and the judgment of the Committee thereon.

That the alloy of the said coins of gold and silver shall be equal in weight to one eleventh part of the fine metal.

That there be proper devices for these coins.

That measures be proposed for preventing their diminution, and also their currency, and that of any others, when diminished.

That the several foreign coins be described and cla.s.sed in the said Ordinance, the fineness of each cla.s.s stated, and its value by weight estimated in Units and decimal parts of Units.

And that the said draught of an Ordinance be reported to Congress at their next meeting, for their consideration and determination.

Supplementary Explanations.

The preceding notes having been submitted to the consideration of the Financier, he favored me with his opinion and observations on them, which render necessary the following supplementary explanations.

I observed in the preceding notes, that the true proportion of value between gold and silver was a mercantile problem altogether, and that, perhaps, fifteen for one, might be found an eligible proportion. The Financier is so good as to inform me, that this would be higher than the market would justify. Confident of his better information on this subject, I recede from that idea.*

* In a Newspaper, which frequently gives good details in political economy, I find, under the Hamburg head, that the present market price of Gold and Silver is, in England, 15.5 for 1: in Russia, 15: in Holland, 14.75: in Savoy, 14.96: in Fiance, 14.42: in Spain, 14.3: in Germany, 14.155: the average of which is 14.615 or 14 1/2. I would still incline to give a little more than the market price for gold, because of its superior convenience in transportation.

He also informs me, that the several coins in circulation among us, have already been a.s.sayed with accuracy, and the result published in a work on that subject. The a.s.say of Sir Isaac Newton had superseded, in my mind, the necessity of this operation as to the older coins, which were the subject of his examination. This later work, with equal reason, may be considered as saving the same trouble as to the latter coins.

So far, then, I accede to the opinions of the Financier. On the other hand, he seems to concur with me, in thinking his smallest fractional division too minute for a Unit, and, therefore, proposes to transfer that denomination to his largest silver coin, containing 1000 of the units first proposed, and worth about 4s. 2d. lawful, or 25/36 of a dollar. The only question then remaining between us is, whether the Dollar, or this coin, be best for the Unit. We both agree that the ease of adoption with the people, is the thing to be aimed at.

1. As to the Dollar, events have overtaken and superseded the question.

It is no longer a doubt whether the people can adopt it with ease; they have adopted it, and will have to be turned out of that, into another track of calculation, if another Unit be a.s.sumed. They have now two Units, which they use with equal facility, viz. the Pound of their respective state, and the Dollar. The first of these is peculiar to each state; the second, happily, common to all. In each state, the people have an easy rule for converting the pound of their state into dollars, or dollars into pounds; and this is enough for them, without knowing how this may be done in every state of the Union. Such of them as live near enough the borders of their state to have dealings with their neighbors, learn also the rule of their neighbors: Thus, in Virginia and the Eastern States, where the dollar is 6s. or 3/10 of a pound, to turn pounds into dollars, they multiply by 10, and divide by 3. To turn dollars into pounds, they multiply by 3, and divide by 10. Those in Virginia who live near to Carolina, where the dollar is 8s. or 4/10 of a pound, learn the operation of that state, which is a multiplication by 4, and division by 10, _et e converso_. Those who live near Maryland, where the dollar is 7s. 6d. or 3/8 of a pound, multiply by 3, and divide by 8, _et e converso_. All these operations are easy, and have been found by experience, not too much for the arithmetic of the people, when they have occasion to convert their old Unit into dollars, or the reverse.

2. As to the Unit of the Financier; in the States where the dollar is 3/10 of a pound, this Unit will be 5/24. Its conversion into the pound then, will be by a multiplication by 5, and a division by 24. In the States where the dollar is 3/8 of a pound, this Unit will be 25/96 of a pound, and the operation must be to multiply by 25, and divide by 96, _et e converso_. Where the dollar is 4/10 of a pound, this Unit will be 5/18. The simplicity of the fraction, and of course the facility of conversion and reconversion, is therefore against this Unit, and in favor of the dollar, in every instance. The only advantage it has over the dollar, is, that it will in every case express our farthing without a remainder; whereas, though the dollar and its decimals will do this in many cases, it will not in all. But, even in these, by extending your notation one figure farther, to wit, to thousands, you approximate a perfect accuracy within less than the two thousandth part of a dollar; an atom in money which every one would neglect. Against this single inconvenience, the other advantages of the dollar are more than sufficient to preponderate. This Unit will present to the people a new coin, and whether they endeavor to estimate its value by comparing it with a Pound, or with a Dollar, the Units they now possess, they will find the fraction very compound, and of course less accommodated to their comprehension and habits than the dollar. Indeed the probability is, that they could never be led to compute in it generally.

The Financier supposes that the 1/100 of a dollar is not sufficiently small, where the poor are purchasers or vendors. If it is not, make a smaller coin. But I suspect that it is small enough. Let us examine facts, in countries where we are acquainted with them. In Virginia, where our towns are few, small, and of course their demand for necessaries very limited, we have never yet been able to introduce a copper coin at all. The smallest coin which any body will receive there, is the half-bit, or 1/20 of a dollar. In those states where the towns are larger and more populous, a more habitual barter for small wants, has called for a copper coin of 1/90 or 1/96 or 1/108 of a dollar.

In England, where the towns are many and pouplous, and where ages of experience have matured the conveniences of intercourse, they have found that some wants may be supplied for a farthing, or 1/208 of a dollar, and they have accommodated a coin to this want. This business is evidently progressive. In Virginia we are far behind. In some other states, they are farther advanced, to wit, to the appreciation of 1/90, 1/96 or 1/108 of a dollar. To this most advanced state, then, I accommodated my smartest coin in the decimal arrangement, as a money of payment, corresponding with the money of account. I have no doubt the time will come when a smaller coin will be called for. When that comes, let it be made. It will probably be the half of the copper I propose, that is to say 5/1000 or.005 of a dollar, this being very nearly the farthing of England. But it will be time enough to make it, when the people shall be ready to receive it.

My proposition then, is, that our notation of money shall be decimal, descending _ad libitum_ of the person noting; that the Unit of this notation shall be a Dollar; that coins shall be accommodated to it from ten dollars to the hundredth of a dollar; and that, to set this on foot, the resolutions be adopted which were proposed in the notes, only subst.i.tuting an inquiry into the fineness of the coins in lieu of an a.s.say of them.

[NOTE G.]

I have sometimes asked myself, whether my country is the better for my having lived at all. I do not know that it is. I have been the instrument of doing the following things; but they would have been done by others; some of them, perhaps, a little better.

The Rivanna had never been used for navigation; scarcely an empty canoe had ever pa.s.sed down it. Soon after I came of age I examined its obstructions, set on foot a subscription for removing them, got an act of a.s.sembly pa.s.sed, and the thing effected, so as to be used completely and fully for carrying down all our produce.

The Declaration of Independence.

I proposed the demolition of the Church establishment, and the freedom of religion. It could only be done by degrees; to wit, the act of 1776, c. 2. exempted dissenters from contributions to the Church, and left the Church clergy to be supported by voluntary contributions of their own sect; was continued from year to year, and made perpetual 1779, c. 36. I prepared the act for religious freedom in 1777, as part of the revisal, which was not reported to the a.s.sembly till 1779, and that particular law not pa.s.sed till 1785, and then by the efforts of Mr. Madison.

The act putting an end to entails.

The act prohibiting the importation of slaves.

The act concerning citizens, and establis.h.i.+ng the natural right of man to expatriate himself at will.

The act changing the course of descents, and giving the inheritance to all the children, &c. equally, I drew as part of the revisal.

The act for apportioning crimes and punishments, part of the same work, I drew. When proposed to the Legislature by Mr. Madison, in 1785, it failed by a single vote. G. K. Taylor afterwards, in 1796, proposed the same subject; avoiding the adoption of any part of the diction of mine, the text of which had been studiously drawn in the technical terms of the law, so as to give no occasion for new questions by new expressions.