Collected Political Writings of James Otis. Otis James
or two three mistakes in this Act, it is possible there may be; however, if there are two hundred, all I shall say to them at present is, that when they are clearly pointed out, they ought to be amended, only it seems strange that there should be any mistakes in this Act, considering the great abilities of the gentleman, who at the time of making it, ruled our Councils, and was the Prime Conductor of all our public affairs: But as I hold all men to be in a degree fallible, Humanum est Errare,1 I will not impute these Errors to a whimsical conscience, or any other wrong cause, but to the fate of all
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human affairs. From the same source its probable may be derived an error more palpable than any yet mentioned.
In the grand settlement of our so much boasted perpetual and invariable standard, coin’d Silver, and Silver Bullion, are together made lawful money, and the measure of commerce, which is not only making two measures, which may vary, but which in fact are, and ever will be, variant from each other.
Gold has been, and may be coined, and have a price fixed, that is made money; but Bullion which is uncoined Silver, and Gold, never were nor can be the money of any country.
“The coining of Silver, or making money of it, (says Mr. Locke) is the ascertaining its quantity by a Public Mark, the better to fit it for commerce.”
“The precise weight & fineness by law appropriated to the pieces of each denomination, is called, The Standard.”
[Continuation of the Piece began in our last.]
IF we are to look no farther than the act of 1749 for a standard, we shall find there established, as the measure of commerce, silver bullion indefinitely, at the rate of 6s. 8d. and coined silver, (tho’ but one species of this) to wit, Spanish Mill’d Dollars at 6s.
Now though it is very improbable that “an empty popular declaimer,” “one who is fond of harranguing the Mobb,” (the best appellations which, I hear some have dignified me with) should have any clear Ideas of the terms, Money, Standard, Sterling Standard or be able to reason distinctly about money in general, or the laws of this Province in particular; yet that the reader may, the following extracts are inserted. Those who are curious will consult the Authors at large, “Money is the Metal, be it Gold or Silver, that receives authority by the Prince’s impress, to be current; for as wax is not a seal without a print, so metal is not money without impression.” Co. Lit. 207. “The legitimation of money, and the giving it its denominated value, is justly reckoned inter Jura Majestatis,2 and in England it is one special part of the King’s prerogative. Money is the common measure of all commerce, almost thro’ the world; it consists principally of three parts; 1. The material whereof it is made. 2. The denomination or intrinsick value. 3. The impression or stamp. I. The material in England is either pure Silver, or pure Gold, whereof possibly some money
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anciently was made here in England or else Silver and Gold mixed with an alloy, which was usually, and is hitherto a small proportion of Copper. The standard of the money in England, that hath for many ages obtained, is that, which is commonly called Sterling Gold or Sterling Silver, for tho’ the denomination of sterling was at first applied to the coin of Silver, and to that coin which was the peny commonly called Sterlingus, yet use hath made it applicable not only to all kind of English coin of silver, but also to coin of gold, and this is called the standard of coin. In the case of money newly coined by the King’s authority in England, a proclamation is not absolutely necessary to the legitimation thereof or making it current. The true old Sterling standard, both of Gold and Silver, hath been the only standard of the English current money. I find rarely any proclamation for the setting of the rate of new coin, but only as before, when the denomination of what is in being is inhansed, or abated, or recalled; so that the indenture of the mint and common reputation is that which must try what is English money,” (H.P.C.). “That in regulating the current value of money among ourselves, we ought to have regard to the practice of neighbouring countries, is a mistake of so capital a nature, that it is of consequence to have it obliterated from the minds of men. And it is easy to demonstrate in regulating the current value of the coin of a kingdom, it is of no moment to regard the conduct of neighbouring states.”
S.D.C. Postle. V. Coin.
“It appertains to the King only to put a value to the coin, and to make a price of the quantity, and to put a print to it, the which being done, the coin is current for so much as the King has limited.” (Arg. Pl. C.) It was resolved as the King may make money of what matter and form he pleases, and establish it, that so he may change the money in substance and impression, and inhance or abate the value thereof, or utterly decry and annul it, so as to be only Bullion, at his pleasure. It was resolved, that it belongs solely to the King of England to make or coin money within his dominions, so that no other person can do it without special licence of the King; and if any presumes to do it of his own head, this is treason against the person of the King by the common law. Every piece of money ought to have its denomination or valuation, for which it shall be accepted, or paid, as for a peny, a groat, or a shilling, and all this ought to be done by authority and command of the Prince, and ought to be done by proclamation of the Prince. Davis.
A tender may be made in foreign money, current by parliament or proclamation. Co. Lit.
The King by his proclamation may make any coin lawful money of England; a fortiori he may by his proclamation only, establish the standard of monies coined by his authority, within his proper dominions.
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Viner. Prerog.
From the above authorities, I think it evident that the King’s coin, as well gold as silver, is lawful money of Great Britain, sterling standard money, and a legal tender, as is also even foreign gold at such a rate as the King by his prerogative alone a fortiori, at such rates as the King, lords and commons, that is the parliament, may be pleased to establish. A vulgar error that no gold is a lawful tender has indeed prevailed here; but I believe it never was questioned in England, whether the king’s coin, either of gold or silver, was such.
I shall now examine the act of 1749. In the title of said act are these words; “for ascertaining the rate of coined silver in this province for the future”; and in one of the preambles these words, “and it being of great importance that all possible means should be used for establishing an invariable silver currency for the future,” but not a word in the whole act of the alloy of the silver. This is the first time that silver was ever establish’d as money, without fixing the alloy, or fineness. Dollars indeed, are by this act made a tender in discharge of these invariable silver contracts; but the fineness of these is also indeterminate so that as I said before, silver indefinitely, that is silver bullion, and spanish milled dollars of any alloy, are both together the money established by this act; what is worse, even dollars are no tender according to some Gentlemens way of arguing; for the act only ascertains the rate beyond which they shall not be passed, and nothing prevents their being payed at a less rate, nor obliges the creditor to receive them at that, unless you’ll say that, all silver indescriminately, is lawful money of this province at 6s. 8d. per ounce, as this act imports, and that a man is obliged to take fish scales, (as they are vulgarly called) pistareens, and old plate at 6s 8d. per ounce, without regard to the alloy, or fineness; which is contrary to common justice, as well as common sense.
What shall we say then? have we no standard at all? I answer, yes, a very good one, but it is not to be found in the act of 1749 but in one, that by the wording of this, seems to have been overlooked at that time; I mean the 14 George II C 4, by which it is enacted, “that all coined silver of sterling alloy; shall be accounted paid and taken, as lawful money of this province, at the rate of 6s 8d. per ounce, troy weight, and other money in the same proportion; and no otherwise; and all private trade, and dealings, where