Franklin’s Observations On Coinage Circulating in the Colonies, July 1766

JCH22

In July, 1766 Franklin visited Georg-August-Universität Göttingen (University of Göttingen) in lower Saxony. Professor Gottfried Achenwall, interviewed Franklin over a series of meetings. Those interviews surveyed a wide range of subjects, as Achenwall sought to capture an overview of the English Colonies in the New World. Those conversations were in English as Franklin did not speak German. They covered a vast range of topics, and paint a vivid picture of the Colonies.

Of interest here, Franklin recounted the disparate exchange rate of coinage in the Colonies as compared to England. After independence, our Mint would free us (eventually) for such disparity. As told by Franklin:

“Hard money, as said before, is still scarce in the colonies, and more so in North America than in some of the Sugar Islands. So specie stands at a higher value than in Europe, and hence arises the difference between the English standard of coinage and the Currentfuss (Currency) which circulates in the colonies. For example, an English shilling in the colonies is worth, not 12 pence as in England, but 18 pence. This lower rate prevails in all the American colonies. (A similar condition exists in the French colonies.) A guinea is valued at 34 shillings. This is higher than its rate of value to the English shilling; but because of the convenience of this coin in transmission and acceptance in England it has acquired the higher value. The coinage most current in the colonies in business is the Spanish pieces of eight and Spanish gold pistoles. The first are worth in England 4s. 8d., in the colonies 7s. 6d. The latter are worth only 27s. They would be higher, but generally they are so clipped and cut that their value has fallen.
A bill of exchange on London usually is paid at 175 percent, that is, one English pound sterling at £1¾ in the Landfuss or “Currency.” But this rate rises and falls. Par is really 100: 133, but it is satisfactory if it is not over 166. During the last war the rate fell for a time to 125, because England made great remittances for the war and English soldiers brought over much hard money.
The currency is not of the same kind in all the colonies. In Jamaica, the island being rich by its produce and contraband trade, it is nearer the English standard. In some of the North American colonies, it varies much more from it than in Pennsylvania.”

The Papers of Benjamin Franklin , Vol. 13, January 1 through December 31, 1766, Leonard W. Labaree, ed, pp. 371-2 (1969); (Translated from “Einige Anmerkungen über Nordamerika, und über dasige Grosbritannische Colonien. (Aus mündlichen Nachrichten des Hrn. Dr. Franklins.),” Hannoverisches Magazin, 17tes, 18tes, 19tes, 31tes, 32tes Stücke (Feb. 27, Mar. 2, 6, Apr. 17, 20, 1767), cols. 257–96, 482–5085 (Princeton University Library).

golden

Very interesting!