DECIMAL COINAGE.

1st. Decimal Money of Account.

This is neither more nor lea than a scale for computing values, coincident with the established systems of numeration and notation. It must of neces- sity be simply decimal throughout. If the value of its unit or integer cone. spend with any degree of nearness to that of the pound-sterling, or if indeed it be at all higher than that of a dollar, the scale must also of necessity be; not decimal only, or even centesimal, but millesimal. To this it is objected —that it will necessitate the admission of farthings, now excluded from all large accounts ; and that it will require three subsidiary columns or places of figures, instead of two as at present. But the real force of these objec- tions will be apparent from a comparison of the actual practice under the two systems.

At present the insertion of a farthing requires two additional figures, and virtually one additional column. 'Under the system proposed, with the guinea unit, it will require simply the substitution of one figure for an- other,. and no additional figure or column whatever. For instance, 11d. will be written as 44 farthings or milles, llfd. as 47.

At present, although we use nominally one chief and two subsidiary co- lumns, yet in practice (to say nothing of the virtual extra column for far.: things) for every entry either of shillings. or of pence above 9, two figure's are required in each subsidiary column,. raising the number to four instead of two. Under the proposed system, with the guinea unit, subsidiary figures can in no case exceed three ; subsidiary columns, one. Take the instance of the sum ninety-nine pounds nineteen shillings and eleven-pence three- farthings,—rather an extreme case, certainly, but therefore showing the prin- ciple with all the greater clearness. Under the present system, it is written £99 19 llf ; under the new, G.95 999. In the one case, it requires four columns and eight figures ; in the other, columns two, figures only five.

2d. Coinage Proper.

In the definition of the unit of account and coinage, whatever that unit may ultimately come to be, three preliminary considerations which lie at the root of all coinage whatever must of necessity be involved,—the fineness or purity of the metal of which the coin representing such unit shall be composed, its weight, and its relation to the metals used for the other coins in the same currency.

In England, we choose to use, for monetary purposes, two different modes of expressing the fineness or purity of the metals employed. With regard to gold, we assume that each separate mass, however large or however small, is divided into 96 parts called grains,—i. e. into 24 carats of 4 grains each ; these grains, be it observed, having no relation whatever to the subdivisions of weight bearing the same name. With regard to silver, ;lye assume that each mass is of the weight of one pound troy, and therefore divisible rote 12 ounces, 240 pennyweights, or 6760 weight-grains. Surely all this com- plioation is quite unnecessary, and it were much better with regard both to gold and to silver to express the fineness decimally, or rather centesimally. Then again, with regard to the degree of fineness—the Mint standard for

gold is 11-12 or 110-120 pure ; for silver, it is 111.120: Surely it were bet- ter to make both of the same degree of fineness as the gold; and, in intro- ducing a new system on the avowed basis of simplicity and convenience, to avoid, as is done in other countries, the unnecessary complexity caused by this minute fractional variation.

In weighing silver and gold,, we choose to use a measure which is un- known in any other transaction of commerce, except the admixture and retailing of medicinal, (and then by a different mode of subdivision,)— namely, the pound troy, divisible as above mentioned into 12 ounces and 5760. weight-grains. The consequence is, confusion worse confounded two different pounds in weight, exclusive of the pound unit in money of account and exchange ; two different ounces.; two different drachms; two different proportions between the pound and the ounce; two different proportions be- tween the ounce and the drachm ; 12 heavy. ouncee.and 96 heavy drachms in the light pound ; 16 light ounces and 256 light drachms in the heavy pound. Surely it were better to sweep away, the whole;' to have but one general measure of weight ; and, if our money, or measure of value, is to be subdivided decimally, to let the measure of weight be decimally subdi- vided also.

What ought to be the basis, or the unit of the said general measure of weight, is a distinct question, into which I will not here enter, beyond repeating the conviction which I have expressed elsewhere : that the simplest, best, most convenient unit for every purpose, most scientific in its origin, most likely to be universally adopted and to continue permanently unchanged, is the French livre usuelle or hall-kilogramme—equal to 7117 grains English Troy, but divided into 10,000 decimal grains of its own.

The proportions at:present observed in the English Mint between the several metals used in coinage (exclusive of the seignorage on silver) are— gold 110-120 pure to silver 111-120 pure, as 1 to 15'0725; gold 110-120 pure to silver 110-120pure, as 1 to 15.2096; silver 111-120 pure to pure copper, (wholly arbitrary,) as 1 to 37.6737 ; and silver 110-120 pure to pure copper, wholly arbitrary aleo,) as 1 to 38'0160. Surely it were more convenient to re- ject all these fractions, and make the proportions, what they already are in the mints of some foreign countries, of standard gold to standard silver of the same fineness as 1 to 15, and of standard silver to standard copper as .1 to 40. The result would be, that every separate coin (except those of seignor- aged silver) would be a definite aliquot part, not of the unit of money only, but of the unit of weight likewise. Finally, instead of computing the Mint price of standard gold as 3/. 17s. Iflid. (3738 farthings) per troy ounce, or 461. 14s. 6d. (44,856 farthings) per troy pound, as is the practice now, it were surely easier and more convenient to reckon it as is proposed, at 6 guineas (6000 farthings) per decimal ounce, or 60 guineas (60,000 farthings) per decimal pound. For the continuance of the present very complex system, of which a few features are thus exhibited, I know of no earthly reason whatever, except the very palpable but not very satisfactory one,, that this system is and has been for some time in existence.

3d. Thousand-Penny Standards.

To 'what has been said above, of the standards which it is proposed to sub- stitute for those now in use, two facts only need to be added, to show with what peculiar propriety those standards will apply to the thousand-penny unit alluded to in the concluding paragraphs of the postscript to my last letter. The name of "pound," as applied to our present monetary unit, is derived from the filet of that unit having been originally equivalent te a pound troy weight of standard silver. According to the standards suggested above, the decimal pound weight of silver 11-12 pure will be the exact equivalent of the thousand-penny unit, called by me for distinctness sake a "stator or besant" ; by Mr. Yates, a "royal."

The "pennyweight," as a subdivision of the pound troy, was originally the weight of the coin called a penny, in standard silver. The thousandth part of the decimal silver-pound, namely, the "silver-scruple or silver-penny," will be the exact value of the penny now proposed. The scale of money of account, under the thousand-penny scheme, will stand thus-

1 —, Silver pound; stater, besant, royal, or aureus = 10 —, silver- ounces, patagons, or sequins = 100 —, silver-drachms, francs, or ten-penntes = 1000 silver-scruples, or pennies.

The sum above mentioned, 991. 19s. 1 ltd., will under this scheme be written as A.23 9991.

Your obedient servant, H.

Postscript,15th October.—The plan of your last correspondent "A. D. M.," having for its unit the pound-sterling, is essentially the same as that of the Committee, with some variation in details.

A. D. M. will, / believe, find that his several proposals for the division of the pound into 10 florins and 1000 cents, the issue of a 4-cent (or 4-mil) piece, and the decimal subdivision of the 7000 troy-grains composing the pound avoirdupois, have been already respectively suggested by the Liverpool Cham- ber- of Commerce, more than one witness before the Committee, and Mr. Henry Taylor. He shows, very neatly, that 1 penny of present money would be exactly equal to 4 1-6 new cents (or mils) ; but, as far as I can perceive, he does not show in what way payment is to be made of the odd 1-6 cent or mil, or of the proportionate deficiency in exchange for a halfpenny or farthing.

His calculation is ingenious, that by taking 3-100 of the avoirdupois- pound, or 210 troy-grains, as the weight of a single letter, instead of 218k troy-grains as at present, the difference in weight will be about commensu- rate with the difference in value between the present penny and the new 4- cent (or 4-mil) piece. But I fear this consideration will hardly compensate for the inconveniences which have induced some to pronounce the Committee's scheme to be "impracticable." To enter fully into his proposal for adopting the French standard of fine- ness, 9-10 pure, would require more space than I have really courage to ask ;

and I will only therefore offer three short observations. (1st) Of the literally innumerable proportions which may be proposed as standards, there are three which appear to me to be deserving of' more attention than others,—namely, the French above mentioned, that of English gold, and that of English sil- ver ; respectively 108-120, 110-120, 111-120, .or90, 912-3, and 921 per cent, pure. (2d.) The criterion by which the respective merits of these three pro- portions ought to be determined is, the closeness with which, under each, the new substitutes for the present standard coins of the world. the English sovereign and the Spanish dollar, will coincide with these coins respectively. (3d.) Judged by this criterion, I believe that the standard of English gold, 11-12, 110-120, or 91 2-3 per cent pure, will be found to be the best. It is also the one best fitted for the only purpose for which any alloy whatever is admissible,—namely, the increase of hardness in the minted metal.

H.