The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-18
ENGLAND'S "CLIPPED" COINS.
Trade Began to Return When the
Cheap Money Was Abolished.

New York Mail and Express.
1t was not until 1896, during the reign Of
King William III, that the odd-looking.
lrregular-ShaDed cut and hammered coins
of the early Britons were entirely abol-
ished by. Parliament, although the circula-
ton of them had often been the subject of
legislation, and had constantly caused
wrangling and dissension throughout the
kingdom and seriously interfered with
The history of these Clipped coins is
beth curious and interesting. Prior to the
time of Charles II the metal of which the
hard money of the realm was made was
cut with shears into about the proper size
and shape. and afterward hammered into
a semblance of rOundnesS. Some of the
crowns, half-crownS and shillings con-
tanned va little more. some a little less, of
metal; none was exactly round. and the
rims were not marked. Consequently clip
ping" proved a profitable industry. In the
time of Elizabeth laws were enacted max
ing clipping" ali act of treason and pun
ishable with death. as was counterfeiting
The business, however. was so lucrative
as stopping the crime was concerned. The
whole realm looked upon the offense len
iently. To pass n half-crown after pairing
a pennywcrth of silver from it NaSsrather a
matter of congratulation than disgrace. 1t
is said of three eminent London g~oldsmiths
that they were invited to send Gi00 each
in current silver to be tried in the balance.
Three hundred pounds ought to have
weighed about 1000 ounces The actual
weight proved to be 624 ounces.
Finally, hoping to better the monetary
situation, the government established q
fNlIl III the 1OW6F OF LONDON. 1T was a
cumbersome machine, as compared with
modern inventions. and worked by horse
power. But the coins which it turned out
were a great Improvement over the old.
They were circular. of uniform weight and
not easily counterfeited. having an inscrip-
ton around the edge. These new coins and
the old ones circulated side by
side. and were received in public and pri-
vate payments.
drove the good money out of circulation.
No matter how industriously the, mint
worked nor how many wagon loads of shin
ing coins it turned out, they vanished as
fast as they appeared.
The reason for this is concisely stated by
Macaulay, as follows: "A clipped crown on
English ground went as far in the pay
ment of a tax or a debt as a Ynilled crown.
But the milled crown. as soon as it had
been flung into the crucible or carried
across the channel. became much more val
liable than the clipped crown. 1t might.
therefore, have been predicted, as conf
IDENTIFY as anything can be predicted which
depends on human will, that the inferior
which they could fetch the same price as
the superior pieces, and that the superior
pieces would a k some form or fly to some
place in which they might get some advan-
tage from their superiority"
The c4fis came at last on the morning
of Nov. -, 1895. and it gave to England a
currency which increased trade. brought a
return of confidence and advanced her to
prosperity by leaps and bounds. OF course.
this was not all apparent at the time, and
at the meeting of Parliament aforesaid,
when King William, in his address, spoke
strongly OF the evils WHICH Idu arisen from
the deplorable state of the coin, and of the
necessity for a speedy remedy. there was
en- audible hum. which was not all assent.
Some were faint-hearted. others incompe-
tent TO suggest help. and one member
feared the nation could bear neither the
disease nor the cure
After Infinite wrangling a bill introduced
by Montague, a noted statesman of the day.
was passed. after slight alterations. 1t
provided for ~reeoinage of all the silver at
the old standard of weight and fineness,
without loss to the holder. Within a GER
tain fixed time all holders of coin present
ing it at the mat were entitled to a certifi-
cate which would be redeemed in new
milled coins. The old clipped coins were
not to pass after that date.
II was estimated that this would require
ait least E1.2G0,0 o. to make good the def
ciencies of the clipped coins. This the Bank
of England undertook to advance on good
security. The security was furnished by
an im1ost on the windows, known as the
window tax" which, though doubtless a
great evil. must be considered as a blessing
when compared with the curse from which
il rescued the nation
Thus England solved her difficulty. How
applicable is the lesson to our own financia
crisis? Could any argumen for SOUND
money be more striking than this?