The Sun.
London, England, 1840-01-07 00:00:00

LONDON :
TUESDAY, JANUARY 7, 1840.

Before entering into the merits of Mx. JONES
LOYD'S pamphlet, we must say a word or two on
the erroneous notion which he seems to share, with
many other persons, that bank notes are money,
and that to issue such notes is a trespass or infringe-
ment on the Royal prerogative.

Let us begin by looking at what the privilege of
coining, as now exercised, actually consists in.
First, the Royal authority declares and settles what
quantity of alloy shall g' with the precious metals,
into what portions, they shall be divided, and how
they shall be stamped and marked. It makes Min
regulations isTow,:so little is there of arbitrariness
even in these, that at this moment a discussion is
going on, 'not in the Mint, but in the public press,
as to the mode of dividin the coins, and science
alone., not the Royal prerogative can lay down just
Miles for the division. In fact, nearly
.all that
Royal power can do on this point, is to decree the
heraldic ornaments of the coin, and one or two
other trifling matters, which it settles by the help •f
the King-at-Arms, the chemist, and the assayist.

Secondly, The Mint determines the proportions
in which silver and copper money shall exchange
1 for gold money. It cannot determine the value of
any single coin in the market, for that depends on
1 its own intrinsic qualities, and on the estimate
1 Psrmed of it by the public. Neither can it deter-
' aline the relative value of the metals; and the Mint
regulation, that so much silver is worth so much
gold, is, generally speaking, a most mischievous
(
i untruth, which is continually falsified by the prices
I of the two metals in the market. We apprehend
ithat these two operations—the former of which is
if useful, as enab!ing the people easily to distinguish
1 one coin from another, and the other an injury—
!
are all that the Government can do in eoinng
money. It settles the outward form and size Of the
individual pieces, but over all the substantial pro-
iperties of the metals it has no more influence than
over the seasons.
It cannot settle the value of money in relation
to Other commodities, and if it fix the relative value
of silver and gold different from the market value,
one or the other will disappear from eiteulation .
Nor can the Government, which is of infinitely
more importance, regulate the quantity of stoney in
circulation. Both points are amply proved by
the great alteration which took place is the value
of the precious metals subsequent to the discovery
of America, when that value fell very much, and
continued to fall, for many years. No Government
bad the smallest influence either in hastening or in
retarding, by its Mint regulations, that remarkable
change in the quantity and value of gold and silver.
Sintte the commencement of this century, in conse-
quence of the rapid increase of population and
trade, throughout the civilized world, conjoined
,rith the tevolutions in South America, which have
Croinished the supplies from the mines, it is sup-
posed that a contrary effect has taken place, and that
the value of gold and silver, in reference to the bulk
of commodities, has been enhanced, and is enhanc-
ing:At :1 . s the quantity, therefore, of the precious
metahabtairtable, in relation to the business to be
trarisscieCwnlch determines at all times, and in all