The Works of the Rev. Jonathan Swift/Volume 10/A Letter on Mr. Maculla's Project about Halfpence
A
LETTER
ON
MR. McCULLA'S PROJECT
ABOUT
AND A NEW ONE PROPOSED.
IN A LETTER TO DR. DELANY.
WRITTEN IN 1729.
SIR,
YOU desire to know my opinion concerning Mr. McCulla's project, of circulating notes, stamped on copper, that shall pass for the value of halfpence and pence. I have some knowledge of the man; and, about a month ago, he brought me his book, with a couple of his halfpenny notes: but I was then out of order, and he could not be admitted. Since that time, I called at his house, where I discoursed the whole affair with him as thoroughly as I could. I am altogether a stranger to his character. He talked to me in the usual style, with a great profession of zeal for the publick good; which is the common cant of all projectors in their bills, from a first minister of state down to a corncutter. But I stopped him short, as I would have done a better man; because it is too gross a practice to pass at any time, and especially in this age, where we all know one another so well. Yet, whoever proposes any scheme, which may prove to be a publick benefit, I shall not quarrel, if it prove likewise very beneficial to himself. It is certain, that, next to the want of silver, our greatest distress in point of coin is the want of small change, which may be some poor relief for the defect of the former, since the crown will not please to take that work upon them here, as they do in England. One thing in McCulla's book is certainly right, that no law hinders me from giving a payable note upon leather, wood, copper, brass, iron, or any other material (except gold or silver) as well as upon paper. The question is, whether I can sue him on a copper bond, where there is neither hand nor seal, nor witnesses to prove it. To supply this, he has proposed, that the materials upon which this note is written, shall be in some degree of value equal to the debt. But that is one principal matter to be inquired into. His scheme is this:
He gives you a piece of copper for a halfpenny or penny, stamped with a promissory note to pay you twenty pence for every pound of copper notes, whenever you shall return them. Eight and forty of these halfpenny pieces are to weigh a pound; and he sells you that pound, coined and stamped, for two shillings: by which he clearly gains a little more than 16 per cent, that is to say, two pence in every shilling.
This will certainly arise to a great sum, if he should circulate as large a quantity of his notes as the kingdom, under the great dearth of silver, may very probably require: enough indeed to make any Irish tradesman's fortune; which, however, I should not repine at in the least, if we could be sure of his fair dealing. It was obvious for me to raise the common objection, why Mr. McCulla would not give security to pay the whole sum to any man who returned him his copper notes, as my lord Dartmouth and colonel Moor were, by their patents, obliged to do. To which he gave me some answers plausible enough. First, "He conceived his coins were much nearer to the intrinsick value, than any of those coined by patents, the bulk and goodness of the metal equalling the best English halfpence made by the crown: That he apprehended the ill will of envious and designing people: who, if they found him to have a great vent for his notes, since he wanted the protection of a patent, might make a run upon him, which he could not be able to support: And lastly, that, his copper (as is already said) being equal in value and bulk to the English halfpence, he did not apprehend they should ever be returned, unless a combination, proceeding from spite and envy, might be formed against him."
But there are some points in his proposal which I cannot well answer for; nor do I know whether he will be able to do it himself. The first is, whether the copper he gives us will be as good as what the crown provided for the English halfpence and farthings; and, secondly, whether he will always continue to give us as good; and thirdly, when he will think fit to stop his hand, and give us no more? for I should be as sorry to be at the mercy of Mr. McCulla, as of Mr. Wood.
There is another difficulty of the last importance. It is known enough that the crown is supposed to be neither gainer nor loser by coinage of any metal: for they subtract, or ought to subtract, no more from the intrinsick value than what will just pay the charges of the mint; and how much that will amount to is the question. By what I could gather from Mr. McCulia, good copper is worth fourteen pence per pound. By this computation, if he sells his copper notes for two shillings the pound, and will pay twenty pence back, then the expense of coinage for one pound of copper must be sixpence, which is 30 per cent. The world should be particularly satisfied on this article, before he vends notes; for the discount of 30 per cent is prodigious, and vastly more than I can conceive it ought to be. For, if we add to that proportion the 16 per cent, which he avows to keep for his own profit, there will be a discount of about 46 per cent. Or, to reckon, I think, a fairer way: whoever buys a pound of Mr. McCulla's coin, at two shillings per pound, carries home only the real value of fourteen pence, which is a pound of copper; and thus he is a loser of 41l. 13s. 4d. per cent. But, however, this high discount of 30 per cent will be no objection against McCulla's proposal; because, if the charge of coinage will honestly amount to so much, and we suppose his copper notes may be returned upon him, he will be the greater sufferer of the two; because the buyer can lose but fourpence in a pound, and McCulla must lose sixpence, which was the charge of the coinage.
Upon the whole, there are some points which must be settled to the general satisfaction, before we can safely take Mr. McCulla's copper notes for value received; and how he will give that satisfaction, is not within my knowledge or conjecture. The first point is, that we shall be always sure of receiving good copper, equal in bulk and fineness to the best English halfpence.
The second point is, to know what allowance he makes to himself, either out of the weight or mixture of his copper, or both, for the charge of coinage. As to the weight, the matter is easy by his own scheme; for, as I have said before, he proposes forty-eight to weigh a pound, which he gives you for two shillings, and receives it by the pound at twentypence: so that, supposing pure copper to be fourteenpence a pound, he makes you pay 30 per cent for the labour of coining, as I have already observed, beside 16 per cent when he sells it. But if to this he adds any alloy, to debase the metal, although it be not above 10 per cent; then Mr. McCulla's promissory notes will, to the intrinsick value of the metal, be above 47 per cent discount.
For, subtracting 10 per cent off sixty pounds worth of copper, it will (to avoid fractions) be about five and a half per cent in the whole 100l., which, added to
| 41 | 13 | 4 | ||
| 5 | 10 | 0 | ||
| will be per cent | 47 | 3 | 4 | |
That we are under great distress for change; and that Mr. McCulla's copper notes, on supposition of the metal being pure, are less liable to objection than the project of Wood, may be granted: but such a discount, where we are not sure even of our twentypence a pound, appears hitherto a dead weight on his scheme.
Since I writ this, calling to mind that I had some copper halfpence by me, I weighed them with those of Mr. McCulla, and observed as follows.
First, I weighed Mr. McCulla's halfpenny against an English one of king Charles II; which outweighed Mr. McCulla's a fourth part, or 25 per cent.
I likewise weighed an Irish Patrick and David halfpenny, which outweighed Mr. McCulla's 12½ per cent. It had a very fair and deep impression, and milled very skilfully round.
I found that even a common harp halfpenny, well preserved, weighed equal to Mr. McCulla's. And even some of Wood's halfpence were near equal in weight to his. Therefore, if it be true that he does not think Wood's copper to have been faulty, he may probably give us no better.
I have laid these loose thoughts together with little order, to give you, and others who may read them, an opportunity of digesting them better. I am no enemy to Mr. McCulla's project; but I would have it put upon a better foot. I own that this halfpenny of king Charles II, which I weighed against Mr. McCulla's, was of the fairest kind I had seen. However, it is plain, the crown could afford it without being a loser. But it is probable that the officers of the mint were then more honest than they have since thought fit to be; for I confess not to have met those of any other year so weighty, or in appearance of so good metal, among all the copper coins of the three last reigns; yet these, however, did much outweigh those of Mr. McCulla; for I have tried the experiment on a hundred of them. I have indeed seen accidentally one or two very light: but it must certainly have been done by chance; or rather I suppose them to be counterfeits. Be that as it will, it is allowed on all hands, that good copper was never known to be cheaper than it is at present. I am ignorant of the price, farther than by his informing me that it is only fourteen pence a pound; by which, I observe, he charges the coinage at 30 per cent; and therefore I cannot but think his demands are exorbitant. But, to say the truth, the dearness or cheapness of the metal does not properly enter into the question. What we desire is, that it should be of the best kind, and as weighty as can be afforded; that the profit of the contriver should be reduced from 16 to 8 per cent, and the charge of coinage, if possible, from 30 to 10, or 15 at most.
Mr. McCulla must also give good security that he will coin only a determinate sum, not exceeding twenty thousand pounds; by which, although he should deal with all uprightness imaginable, and make his coin as good as that I weighed of king Charles II, he will, at 16 per cent, gain three thousand two hundred pounds: a very good additional job to a private tradesman's fortune!
I must advise him also to employ better workmen, and make his impressions deeper and plainer; by which a rising rim may be left about the edge of his coin, to preserve the letter from wearing out too soon. He has no wardens, or masters, or other officers of the mint, to suck up his profit; and, therefore, can afford to coin cheaper than the crown, if he will but find good materials, proper implements, and skilful workmen.
Whether this project will succeed in Mr. McCulla's hands (which, if it be honestly executed, I should be glad to see) one thing I am confident of, that it might be easily brought to perfection by a society of nine or ten honest gentlemen of fortune, who wish well to their country, and would be content to be neither gainers nor losers, farther than the bare interest of their money. And Mr. McCulla, as being the first starter of the scheme, might be considered and rewarded by such a society; whereof, although I am not a man of fortune, I should think it an honour and happiness to be one, even with borrowed money upon the best security I could give. And, first, I am confident, without any skill but by general reason, that the charge of coining copper would be very much less than 30 per cent. Secondly, I believe ten thousand pounds, in halfpence and farthings, would be sufficient for the whole kingdom, even under our great and most unnecessary distress for the want of silver; and that, without such a distress, half the sum would suffice. For, I compute and reason thus: the city of Dublin, by a gross computation, contains ten thousand families; and I am told by shopkeepers, "That, if silver were as plenty as usual, two shillings in copper would be sufficient, in the course of business, for each family." But, in consideration of the want of silver, I would allow five shillings to each family, which would amount to 2500l.; and, to help this, I would recommend a currency of all the genuine undefaced harp halfpence, which are left of lord Dartmouth's and Moor's patents under king Charles II; and the small Patrick and David for farthings. To the rest of the kingdom, I would assign the 7500l. remaining; reckoning Dublin to answer one fourth of the kingdom, as London is judged to answer (if I mistake not) one third of England; I mean in the view of money only.
To compute our want of small change by the number of souls in the kingdom, beside being perplexed, is, I think, by no means just. They have been reckoned at a million and a half: whereof a million at least are beggars in all circumstances except that of wandering about for alms, and that circumstance may arrive soon enough, when it will be time to add another ten thousand pounds in copper. But, without doubt, the families of Ireland, who lie chiefly under the difficulties of wanting small change, cannot be above forty or fifty thousand; which the sum of ten thousand pounds, with the addition of the fairest old halfpence, would tolerably supply: for, if we give too great a loose to any projector to pour in upon us what he pleases, the kingdom will be (how shall I express it under our present circumstances?) more than undone.
And hence appears, in a very strong light, the villany of Wood, who proposed the coinage of one hundred and eighty thousand pounds in copper, for the use of Ireland: whereby every family in the kingdom would be loaded with ten or a dozen shillings, although Wood might not transgress the bounds of his patent, and although no counterfeits, either at home or abroad, were added to the number; the contrary to both which would indubitably have arrived. So ill informed are great men on the other side, who talk of a million with as little ceremony as we do of half a crown!
But, to return to the proposal I have made: suppose ten gentlemen, lovers of their country, should raise 200l. apiece; and, from the time the money is deposited as they shall agree, should begin to charge it with seven per cent for their own use: that they should, as soon as possible, provide a mint and good workmen, and buy copper sufficient for coining two thousand pounds, subtracting a fifth part of the interest of ten thousand pounds for the charges of the tools, and fitting up a place for a mint; the other four parts of the same interest to be subtracted equally out of the four remaining coinages of 2000l. each, with a just allowance for other necessary incidents. Let the charge of coinage be fairly reckoned; and the kingdom informed of it, as well as of the price of copper. Let the coin be as well and deeply stamped as it ought. Let the metal be as pure as can consist to have it rightly coined (wherein I am wholly ignorant) and the bulk as large as that of king Charles II. And let this club of ten gentlemen give their joint security to receive all the coins they issue out for seven or ten years, and return gold and silver without any defalcation.
Let the same club, or company, when they have issued out the first two thousand pounds, go on the second year, if they find a demand, and that their scheme has answered to their own intention as well as to the satisfaction of the publick. And, if they find seven per cent not sufficient, let them subtract eight, beyond which I would not have them go. And when they have in two years, coined ten thousand pounds, let them give publick notice that they will proceed no farther, but shut up their mint, and dismiss their workmen; unless the real, universal, unsolicited declaration of the nobility and gentry of the kingdom shall signify a desire that they should go on for a certain sum farther.
This company may enter into certain regulations among themselves; one of which should be, to keep nothing concealed, and duly to give an account to the world of their whole methods of acting.
Give me leave to compute, wholly at random, what charge the kingdom will be at, by the loss of intrinsick value in the coinage of 10000l. in copper, under the management of such a society of gentlemen.
First, It is plain, that instead of somewhat more than 16 per cent, as demanded by Mr. McCulla, this society desires but 8 per cent.
Secondly, Whereas Mr. McCulla charges the expense of coinage at 30 per cent, I hope and believe this society will be able to perform it at 10.
Whereas it does not appear that Mr. McCulla can give any security for the goodness of his copper, because not one in ten thousand have the skill to distinguish; the society will be all engaged that theirs shall be of the best standard.
Fourthly, That whereas Mr. McCulla's halfpence are one fourth part lighter than that kind coined in the time of king Charles II, these gentlemen will oblige themselves to the pubiick, to give the coin of the same weight and goodness with those halfpence, unless they shall find they cannot afford it; and, in that case, they shall beforehand inform the publick, show their reasons, and signify how large they can make them without being losers; and so give over or pursue their scheme, as they find the opinion of the world to be. However, I do not doubt but they can afford them as large, and of as good metal, as the best English halfpence that have been coined in the three last reigns, which very much outweigh those of Mr. McCulla. And this advantage will arise in proportion, by lessening the charge of coinage from 30 per cent to 10 or 15, or 20 at most. But I confess myself in the dark on that article: only I think it impossible it should amount to any proportion near 30 per cent; otherwise the coiners of those counterfeit halfpence called raps would have little encouragement to follow their trade.
But the indubitable advantages, by having the management in such a society, would be the paying 8 per cent instead of 16, the being sure of the goodness and just weight of the coin, and the period to be put to any farther coinage than what was absolutely necessary to supply the wants and desires of the kingdom: and all this under the security of ten gentlemen of credit and fortune, who would be ready to give the best security and satisfaction, that they had no design to turn the scheme into a job.
As to any mistakes I have made in computation, they are of little moment; and I shall not descend so low as to justify them against any caviller.
The strongest objections against what I offer, and which perhaps may make it appear visionary, is the difficulty to find half a score gentlemen, who, out of a publick spirit, will be at the trouble, for no more profit than one per cent above the legal interest, to be overseers of a mint for five years; and perhaps, without any justice, raise the clamour of the people against them. Besides, it is most certain that many a squire is as fond of a job, and as dextrous to make the best of it, as Mr. McCulla himself, or any of his level. However, I do not doubt but there may be ten such persons in this town, if they had only some visible mark to know them at sight. Yet I just foresee another inconveniency; that knavish men are fitter to deal with others of their own denomination; while those who are honest and best intentioned may be the instruments of as much mischief to the publick, for want of cunning, as the greatest knaves; and more, because of the charitable opinion which they are apt to have of others. Therefore, how to join the prudence of the serpent, with the innocency of the dove, in this affair, is the most difficult point. It is not so hard to find an honest man, as to make this honest man active, and vigilant, and skilful; which, I doubt, will require a spur of profit greater than my scheme will afford him, unless he will be contented with the honour of serving his country, and the reward of a good conscience.
After reviewing what I had written, I see very well that I have not given any allowance for the first charge of preparing all things necessary for coining, which, I am told, will amount to about 200l., beside 20l. per annum for five years rent of a house to work in. I can only say, that, this making in all 300l., it will be an addition of no more than 3 per cent out of 10000l.
But the great advantages to the publick, by having the coinage placed in the hands of ten gentlemen such as I have already described (if such are to be found) are these:
First, They propose no other gain to themselves than 1 per cent above the legal interest for the money they advance; which will hardly afford them coffee when they meet at their minthouse.
Secondly, They bind themselves to make their coins of as good copper as the best English halfpence, and as well coined, and of equal weight: and do likewise bind themselves to charge the publick with not one farthing for the expense of coinage, more than it shall really stand them in.
Thirdly, They will, for a limited term of seven or ten years, as shall be thought proper upon mature consideration, pay gold and silver, without any defalcation, for all their own coin that shall be returned upon their hands.
Fourthly, They will take care that the coins shall have a deep impression, leaving a rising rim on both sides, to prevent their being defaced in a long time; and the edges shall be milled.
I suppose they need not be very apprehensive of counterfeits, which it will be difficult to make so as not to be discovered: for it is plain that those bad halfpence called raps, are so easily distinguished, even from the most worn genuine halfpenny, that nobody will now take them for a farthing, although under the great present want of change.
I shall here subjoin some computations relating to Mr. McCulla's copper notes. They were sent to me by a person well skilled in such calculations: and therefore I refer them to the reader.
Mr. McCulla charges good copper at fourteen pence per pound; but I know not whether he means avoirdupois or Troy weight.
| avoirdupois is sixteen ounces to a pound | 6960 | grains. | |
| A pound Troy weight | 5760 | grains. |
Mr. McCulla's copper is fourteenpence per pound avoirdupois.
| Two of Mr. McCulla's penny notes, one with another, weigh | 524 | grains. |
| By which computation, two shillings of his notes, which he sells for one pound weight, will weigh | 6288 | grains. | |
| But one pound avoirdupois weighs, as above | 6960 | grains. |
This difference makes 10 per cent to Mr. McCulla's profit, in point of weight.
| The old Patrick and David halfpenny weighs | 149 | grains. | |
| Mr. McCulla's halfpenny weighs | 131 | grains. | |
| The difference is | 18 |
Which is equal to 10½ per cent.
| The English halfpenny of king Charles II weighs | 167 | grains. | ||
| McCulla's halfpenny weighs | 131 | grains. | ||
| The difference | 36 |
Which difference allowed, a fifth part is 20 per cent.
ANOTHER COMPUTATION.
Mr. McCulla allows his pound of copper (coinage included) to be worth twentypence; for which he demands two shillings.
| His coinage he computes at sixpence per pound weight; therefore, laying out only twentypence, and gaining fourpence, he makes per cent profit | 20 | |
| The sixpence per pound weight, allowed for coinage, makes per cent | 30 | |
| The want of weight in his halfpenny, compared as above, is per cent | 10 | |
| By all which (viz. coinage, profit, and want of weight) the publick loses per cent | 60 |
If Mr. McCulla's coins will not pass, and he refuses to receive them back, the owner cannot sell them at above twelvepence per pound; whereby, with the defect of weight of 10 per cent he will lose 60 per cent.
The scheme of the society, raised as high as it can possibly be, will be only thus:
| For interest of their money per cent | 8 | |
| For coinage, instead of 10, suppose, at most, per cent | 20 | |
| For 300l. laid out for tools, a mint, and house rent, charge 3 per cent upon the coinage of 10000l. | 3 | |
| Charges in all, upon interest, coinage, &c. per cent | 31 |
Which, with all the advantages above-mentioned, of the goodness of the metal, the largeness of the coin, the deepness and fairness of the impression, the assurance of the society confining itself to such a sum as they undertake, or as the kingdom shall approve; and lastly, their paying in gold or silver for all their coin returned upon their hands, without any defalcation, would be of mighty benefit to the kingdom; and, with a little steadiness and activity, could, I doubt not, be easily compassed.
I would not in this scheme recommend the method of promissory notes, after Mr. McCulla's manner; but, as I have seen in old Irish coins, the words civitas dvblin. on one side, with the year of our Lord and the Irish harp on the reverse.