NOTE.
The matter of this tract explains itself. M'Culla's project was
to
put in circulation notes stamped on copper to supply the
deficiency
in copper coins which Wood attempted. Swift, apparently, took
a
mild tone towards M'Culla's plan, but thought that M'Culla
would
make too much out of it for himself. He made a counter
proposal
which is fully entered into here. Nothing came either of
M'Culla's
proposal or Swift's counter-suggestion.
* * * * *
The present text is based on that given in the eighth volume of
the
edition of 1765, and compared with that of Faulkner's edition
of
1772. Faulkner's edition differs in many details from that
given by
Scott. The first sheet only of the original autograph
manuscript is
in the Forster Collection at South Kensington.
[T. S.]
A LETTER ON MR. M'CULLA'S PROJECT ABOUT HALFPENCE, AND A NEW ONE
PROPOSED.
SIR,
You desire to know my opinion concerning Mr. M'Culla'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 public good, which is the common cant of all projectors
in their Bills, from a First Minister of State down to a corn-cutter.
But I stopped him short, as I would have done a better man; because it
is too gross a pretence to pass at any time, and especially in this
age, where we all know one another so well. Yet, whoever proposeth any
scheme which may prove to be a public benefit, I shall not quarrel if
it prove likewise very beneficial to the contriver. 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 Mr. M'Culla'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
and silver) as well as upon paper. The question is, whether I can sue
him on a copper bond, when there is neither his hand nor seal, nor
witnesses to prove it? To supply this, he hath proposed, that the
materials upon which his note is written, shall be in some degree of
value equal to the debt. But that is one principal matter to be
enquired 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 twentypence for every pound of the
said copper notes, whenever you shall return them. Eight and forty of
the 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 sixteen per cent.; that is to say, twopence 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. M'Culla
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.[113] To which he gave some answers
plausible enough. First, “He conceived that his coins were much nearer
to the intrinsic value than any of those coined by patents, the bulk
and goodness of the metal fully 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 proposals which I cannot well
answer for; nor do I know whether he would 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 lie at the mercy of Mr. M'Culla, 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 the
coinage of any metal; for they subtract, or ought to subtract, no more
from the intrinsic value than what will just pay all the charges of the
mint; and how much that will amount to, is the question. By what I
could gather from Mr. M'Culla, good copper is worth fourteenpence per
pound. By this computation, if he sells his copper notes for two
shillings the pound, and will pay twentypence back, then the expense of
coinage for one pound of copper must be sixpence, which is thirty per
cent. The world should be particularly satisfied on this article before
he vends his notes; for the discount of thirty per cent. is prodigious,
and vastly more than I can conceive it ought to be. For, if we add to
that proportion the sixteen per cent. which he avows to keep for his
own profit, there will be a discount of about forty-six per cent. Or,
to reckon, I think, a fairer way: Whoever buys a pound of Mr. M'Culla's
coin, at two shillings per pound, carries home only the real value of
fourteenpence, which is a pound of copper; and thus he is a loser of
41l. 13s. 4d. per cent.[114] But, however, this high discount of
thirty per cent. will be no objection against M'Culla's proposals;
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 the pound, and M'Culla must lose sixpence, which was the charge of
the coinage.[115]
Upon the whole, there are some points which must be settled to the
general satisfaction, before we can safely take Mr. M'Culla'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 his 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 thirty per cent. for the labour
of coining, as I have already observed, besides sixteen per cent. when
he sells it. But if to this he adds any alloy, to debase the metal,
although it be not above ten per cent.; then Mr. M'Culla's promissory
notes will, as to the intrinsic value of the metal, be above
forty-seven per cent. discount.
For, subtracting ten per cent. off sixty pound's 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. M'Culla's
copper notes, on supposition of the metal being pure, is 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. M'Culla, and observed as
follows:
First, I weighed Mr. M'Culla's halfpenny against an English one of
King Charles II., which outweighed Mr. M'Culla's a fourth part, or
twenty-five per cent.
I likewise weighed an Irish Patrick and David halfpenny, which
outweighed Mr. M'Culla's twelve and a half per cent. It had a very fair
and deep impression, and milled very skilfully round.
I found that even a common halfpenny, well-preserved, weighed equal
to Mr. M'Culla'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. M'Culla'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. M'Culla's, was of the fairest kind I had
seen. However, it is plain the Crown could afford it without being a
loser.[116] 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. M'Culla; 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,
further than by his informing me that it is only fourteenpence a pound;
by which, I observe, he charges the coinage at thirty per cent.; and
therefore I cannot but think his demands are exorbitant. But, to say
the truth, the dearness or cheapness of the metal do 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 sixteen to eight per cent.; and the
charge of coinage, if possible, from thirty to ten, or fifteen at most.
Mr. M'Culla 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 sixteen
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 hath no wardens nor 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. M'Culla'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,
further than the bare interest of their money. And Mr. M'Culla, 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 thirty 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 2,500l.; 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 7,50l. 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, besides 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 villainy of Wood, who
proposed the coinage of one hundred and eight thousand pounds in
copper, for the use of Ireland; whereby every family in the kingdom
would be loaden 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. a-piece; 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
2,000l. 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 hath answered to their own intention, as well as to
the satisfaction of the public. 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 five years coined ten thousand pounds, let
them give public notice that they will proceed no further, 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 shall 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 intrinsic value in the coinage of
10,000l. in copper, under the management of such a society of
gentlemen.
First, It is plain that instead of somewhat more than sixteen per
cent. as demanded by Mr. M'Culla, this society desires but eight per
cent.
Secondly, Whereas Mr. M'Culla charges the expense of coinage at
thirty per cent., I hope and believe this society will be able to
perform it at ten.
Thirdly, Whereas it doth not appear that Mr. M'Culla 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. M'Culla'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 public, to give their 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 public, 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 outweighed those of Mr. M'Culla. And this advantage
will arise in proportion, by lessening the charge of coinage from
thirty per cent. to ten or fifteen, or twenty at most. But I confess
myself in the dark on that article; only I think it impossible it
should amount to any proportion near thirty per cent.; otherwise the
coiners of those counterfeit halfpence called raps[117] would have
little encouragement to follow their trade.
But the indubitable advantages, by having the management in such a
society, would be the paying eight per cent. instead of sixteen, the
being sure of the goodness and just weight of the coin, and the period
to be put to any further 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 objection 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 public 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 dexterous to
make the best of it, as Mr. M'Culla 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
public, 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.
besides 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 three per cent. out of 10,000l.
But the great advantages to the public, 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 one per cent.
above the legal interest for the money they advance; which will hardly
afford them coffee when they meet at their mint-house.
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 public 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 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. M'Culla's
copper notes. They were sent to me by a person well skilled in such
calculations; and therefore I refer them to the reader.[118]
Mr. M'Culla charges good copper at fourteenpence 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. M'Culla's copper is fourteenpence per pound avoirdupois.
Two of Mr. M'Culla'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. M'Culla's profit, in point of weight.
The old Patrick and David halfpenny weighs 149 grains.
Mr. M'Culla's halfpenny weighs 131 grains.
———
The difference is 18
Which is equal to 10-1/2 per cent.
The English halfpenny of King Charles II. weighs 167 grains.
M'Culla's halfpenny weighs 131 grains.
———
The difference 36
Which difference, allowed a fifth part, is 20 per cent.
ANOTHER COMPUTATION.
Mr. M'Culla 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,
he 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 public loses per cent. 60
If Mr. M'Culla's coins will not pass, and he refuses to receive them
back, the owner cannot sell them at above twelvepence per pound weight;
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 l.300 laid out for tools, a mint, and house-rent,
charge 3 per cent. upon the coinage of l.10,000, 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. M'Culla'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.