22 APRIL 1854, Page 16

DECIMAL COINAGE.

London, 19th April 1854.

SIR—For some time past no allusion has been made in Parliament to the system of Decimal Coinage, for which commercial and scientific men ex- pressed last year so much anxiety. The reason of this, whether it is to be ascribed to an intention of postponing the measure "on account of the war," or to a proposed introduction of it at a period so late in the session as to pre- clude discussion, or to any other cause, I do not at all know. But be this as it may, I am desirous, with your permission, to draw attention to one con- sideration which has hitherto escaped notice, in support of the plan sub- mitted to the Committee by Mr. Headlern, (with whom I have not the plea- sure of being acquainted,) and by the Committee rejected.

_That plan ,is described in the Committee's Report as "the one recom- mending the retention of the present farthing as the basis of a new system of coinage, leaving its relation to the existing penny untouched." It is re- jected by the Committee, partly on account of its thus proposing to retain

the existing ny, or a coin of four farthings ; partly on account of its involving a ntinuance of the, pound sterling as the integer of value.

Into these objections my limited space does not permit me here to enter, beyond observing that the four-farthing penny forms no necessary part of the plan, and ought certainly to be excluded ; and that the evils apprehend. ed from a discontinuance of the pound sterling seem to be very much exag- gerated. The grounds on which I wish to draw attention to the integer of 1000 present farthings, proposed by. Mr. Headlam, are these. It is acknowledged on every side, that a great part of the advantages of a decimal system of coinage will be lost, unless this be accompanied by a de- cimal system also of weights and measures.

It is equally desired that, if possible, such system of weights and measures shall be not only decimal, but international or universal,—i. e. that it shall not be confined to the United Kingdom, or even to the British dominions, but be used in all other commercial countries also.

The simplest and most direct step towards the introduction of such uni- versal decimal system would unquestionably be the adoption by England of the present French pound, the livre usuelle, or half-kilogramme, with deci- mal subdivisions.

Now it so happens, that the value of a French pound of gold, of the Eng- lish standard of fineness, and at the English Mint price, amounts to a sum which, divided by the nearest decimal number without a fraction, will yield an integer or unit differing by less than a halfpenny from that proposed by Mr. Ileadlam.

This will be at once apparent from the following short calculation- 1 Troy ounce = 480 Troy grains. 1 French pound = 7717 Troy grains. 480 Troy grains of standard gold 11-12 pure = 3/. 17s. bOtd. = 3738 far-

things. Tr. gr. Farthings. Tr. gr. Farthings.

480 : 3738 : : 7717 : 60,096.1375

Farthings. Farthings.

60,096.1375 = 60 = 1,001.6022

If the integer thus found—that is, one-sixtieth of a French pound of standard gold—be designated "a guinea,"—if it be divided into 1000 farthings, and if each of such new farthings be legally pronounced to be (as it virtually is) equivalent to a farthing of the currency now in use, the alteration will practically, be productive neither of confusion nor of change of value. The guinea ' integer, and its relations to a pound sterling, will be perfectly intelligible both to Englishman and to foreigner ; it will mis- lead no one; it will obviate all necessity for the complicated system of compensation or compromise inseparable from the plan recommended by the Committee; the exchanges will, as it were, instantaneously adjust them- selves to it ; and after a month's experience, it will be as familiar and as easy as if none other had ever existed Resting, as it will, upon a basis as exact, scientific, and convenient, as the present is empiric, anomalous, and difficult of computation, its use as a common standard of commercial re- ference and valuation will sooner or later become universal.

The French pound, if adopted, will be fitly subdivided into 10,000 decimal grains, in the following manner. 1 decimal grain,

10 = 1 decimal scruple,

100 = 10 = 1 decimal drachm, 1000 = 100 = 10 = 1 decimal ounce, 10,000 = 1000 =100 = 10 = 1 decimal pound, livre usuelle, or half-kilogramme = 7717 Troy grains.

If thought desirable, the introduction of such French or decimal pound may be made gradual, by applying it, in the first instance, to monetary pur- poses only ; then to the purchase and sale of all metals; afterwards to Go- vernment contracts of every kind—to customs and excise duties ; and finally, to all commercial transactions whatever.

There are a few additional remarks which I should be glad to lay before you relating to the silver standard and coinage, the proper subdivision of coins, and their nomenclature. But these, not to lengthen unduly the pre- sent letter, I will, if you please, reserve for a second communication.