Of the Ordaining of solid Payments
Solid payments are meant where Contracts are made for payment of so many solid species of Money, or of so many double Pistoles, or so many French Crowns, or so many English Angels, or Soveraigns or Shillings, and therefore termed solid payments, because they are restrained to those solid species which are contracted for, and to never alter in payment although the value of the species should alter; as however the value of Angels or Soveraigns which were coined for ten shillings, be raised to eleven shillings, yet he which hath contracted to pay so many Angels or Soveraigns shall pay never awhit the less in number, because their value is raised, and so in the other species of French Crowns and Pistoles: But he that made a contract when Angels and Soveraigns were valued at ten shillings, to be paid, at such a day to come, one hundred pounds, before which day the value of Angels or Soveraigns was raised to eleven shillings; whereas he should be paid at the time of his contract for one hundred pounds sterling, two hundred Angels or Soveraigns, he shall now be paid but one hundred fourscore and one Angels or Soveraigns and nine shillings, because the sum of a pound sterling is not restrained to any solid species, but is rather imaginary and abstracted from the matter guided according to the uncertain valuation of the species of Money, wherein the payment is made.
This proposition of ordaining all contracts for payments to be restrained to solid species of Money, hath bin often agitated in France, as a soveraign Remedy against the main inconveniences which do arise in this subject of Money, for the discussing of the truth and efficacie of which proposition, it will be necessarie to relate the success thereof in that Kingdom, in the years 1575 and 1576.
The people in France, contrary to the King's Ordinance, and in despight of all Remedies which could be thought of to prevent it, had raised both the Gold and Silver so excessively, as a French Crown in Gold was valued at seven livres and an half, and at eight livres, a Livre in France being the tenth art of a pound sterling, and is an abstracted sum consisting of twenty sols, as our pound sterling doth consist of twenty shillings, there being no certain species of Money called a Livre, and according to the value of Gold, their Silver likewise was overvalued, and the species of forreign Coins both of Gold and Silver were current likewise at the like value in proportion; by means whereof it is hardly credible what quantities of Gold and Silver, both of Forrein and Domestick Coins that Countrie did then abound with. But their Base money which was not raised in proportion to the Gold and Silver, and did really contain in Intrinsical value much more than the Gold and Silver Coins, in proportion to the value at which they were current, was for the most part either transported or secretly melted down to extract the Silver thereout.
And if this had been all the Inconvenience, they would never have complained; but in consequence of this, the prices of all things did rise so excessively, that all such who lived upon Pensions, or Wages, or Fees, or antient Rents did manifestly see themselves unable to subsist: but above all, the King was most heavily prejudiced, so it was like to grow to some great Confusion in that State.
Hereupon in the year 1577, there was a new Ordinance made, treated and published with the greatest deliberation and solemnity that every any Edict was of this kind in France. And first the French Crown, weighing 2 deniers and 15 grains, after the French weight, and 23 Carrats fine, from eight livres was reduced to the value of sixty Sols, which is equal to three livres; and all the pieces of Silver of French coins, were reduced to a value answerable to that, the sols likewise, and other base Money coined proportionable thereunto, and to the end they might never be again raised by the People to an higher value.
First, All forrein coins both Gold and Silver, except Pistollets and Doublons of Spain were upon great penalties forbidden to be brought in otherwise then as Bullion, and made incurrent. Then there were very severe Prohibitions made that no man should afterwards make Contracts of payment in livres or any other abstracted sums, but only in the solid species of Crowns: And to the end that payment might be made as well in Silver as Gold, there were in Silver coined quarter-Crowns, and half quarter-Crowns, and the other species of Silver already extant were valued proportionable to them, only sixty sols were made equal to a Crown, which held no proportion with a Crown either in name or in intrinsical value, by reason, that in the sols and other base Money, the Copper with which they are allayed is valued, and there is a much greater charge laid on the coinage of them than of other Moneys: yet notwithstanding it is very strange, how well this Edict did keep the people of France in order for three or four and twenty years, so as in all that time, the value of the Gold nor Silver was never raised.
But by degrees they did find that the Kingdom grew drained of that great quantity of gold and silver with which it formerly abounded, and their commerce and Trade did visibly decay; they found themselves full of forrein Manufactures, but their own Manufactures had ill vent, and at length the people, notwithstanding the Prohibition, began to take Forrein coins as current, and received both them and their coins, at a higher value than the King's edict did admit, so as in the year 1602 their complaint grew as loud and as sharp as in the year 1577, though of a cleer contrary condition, and there grew new consultations and enquiries into the Remedies of these Inconveniences.
Many who were very much taken with the former Edict of 1577, did advise that the same Edict should be more rigidly maintained, and that all forrein coins should be absolutely banished, and that the former Edict might be now reformed in that only point, which was deficient (viz.) That the Sols might either be coined of purer Silver, or if they did remain of the former Allay, that the King would so dispose of the charge of the Allay and coinage as they might answer in their Intrinsical value to the gold and the Silver; and that for the remedy of the Penury of Money, strict sumptuary Laws might be put in practice against Forrein Manufactures, and superfluous Commodities.
But against this it was objected, That now they found by experience the effect of the former Edict of 1577, and this addition of sumptuary Laws would give little help, because the licence of the times and difficulties in the thing it self were such as they would never be put in execution.,
In conclusion a new Edict was set forth in Anno 1602 by which the Contracts in the solid species in Crowns were abolished and the Contracts in Livres again authorised. The Crown in Gold was value at three Livres again authorised. The Crown in gold was valued at three Libres and four sols, and all forrein coins were made current in a proportionable rate: and upon it ensued that the people did every day raise the price of all Gold both forrein and domestick higher and higher by degrees, so as in the year 1614, the King by his Edict was enforced to make good the raising of the people, and to set a value upon the French Crown, of 3 Livres and 15 sols, which is seven shillings and six pence sterling, and yet still the people raised it higher, and all other Gold in proportion, which hath yet this further Inconvenience with it, That being raised by degrees, they cannot raise the Silver together with it, so as in time it will breed so great a Disproportion between the Silver and the Gold as they will have little Silver left; and that such as through the exceeding lightness cannot with profit be made away.
I shall not now need to speak any more of the Inconveniences which may grow by ordaining of solid payments because they have been sufficiently expressed in the relation of these proceedings in France. But I will only add this, that there is not true soliditie in payments, but to contract for so much in weight and so much in fineness, for if you should ordain all payments to be made in such or such species of Money, it is true that the raising of those species of Money could breed no alteration in your payments: but suppose the Prince should coin these species, either baser in Allay or lighter in weight, then should your payment be subject to the same alteration as if you had contracted for abstracted sums.
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