on the basis then assigned to it. Of course, the premium on the precious metals reappeared, and efforts to repress it by law were vain. It had to be recognized, and in 1647 a decree permitted it to the extent of twenty-five per cent, with stern punishment for those who should exceed the limit.
There could be no prosperous trade subject to such fluctuations in the standard of value, and the royal revenues must have suffered accordingly, for the next change was distinctly a method of raising money. The old calderilla coinage of Philip II had remained thus far undisturbed, and now by a cédula of November 11, 1651, all the rest of the base coin was restored to the value which it had borne prior to the reduction of 1642. The profit of this increase was reserved to the crown by requiring all holders of vellón to bring it to the mints within thirty days, after which it was demonetized and could no longer be used as currency. They were to receive its present value in the restamped issue at the new rate, and any one hoarding or passing the old money after the expiration of the limit incurred death and confiscation. The premium on specie, in spite of the law of 1647, had already reached fifty per cent, and the sternest penalties were decreed to prevent its rising above that figure—for a first offense, confiscation and six years of presidio (service in the African forts) for nobles, confiscation and six years of galleys for plebeians; for a second offense, death without distinction of rank. If absolute power could regulate values, Spanish thoroughness would have accomplished it.
Kings may propose, but in matters like this it is the people that dispose. The natural result of this measure was to drive not only the precious metals but even the calderilla out of circulation. It required only six months to demonstrate the error committed, and a heroic effort to bring some sort of order into the medium of exchange was made in a pragmatica of June 25, 1652. Under this the old calderilla remained unchanged, but the vellón grueso, or large coinage, which had been advanced in value six months before, was reduced to one fourth, at which it was to be current until the end of the year, and on January 1, 1653, it was to be demonetized and its use prohibited under the severe penalties for passing false money. The plan of seizing it all and sequestrating it at a given hour throughout Spain was adopted, but the crown proposed to assume the loss, not only on about seven millions of the restamped coin in the treasury, but by giving to those who surrendered it assignations on the tobacco tax, bearing five per cent interest. All arrears of taxes were also receivable in it for two months, and various other methods were offered of relieving the community. All the vellón grueso thus received was to be melted down, and to make a market for the copper the laws pro-
