Papers Relating to the Foreign Relations of the United States, Transmitted to Congress, With the Annual Message of the President, December 1, 1879
No. 199.
Mr. Welsh
to Mr. Evarts.
London, July 11, 1879. (Received July 23.)
Sir: Referring to your dispatch No. 296, of the 23d May last, directing that information be obtained for the Secretary of the Treasury, respecting the amount of gold and silver coin and bullion and paper currency in Great Britain, I have the honor to say that your inquiries were duly transmitted to the British Government. Pending their reply, I requested a report from Mr. George McHenry upon the same subject. I send herewith a copy of Mr. McHenry’s letter to myself, and of the tables inclosed by it.
I have, &c.,
Mr. McHenry to Mr. Welsh.
My Dear Mr. Welsh: You will perceive by the inclosed tables that “annual” figures would be no guide. For that reason, I begin with 1858, the year in which this country first required the imports of gold and silver to be registered. The statistics of England are not nearly so complete as those of the United States. Even the board of trade returns are not “the thing.” They first give the imports of gold, valued at £3 17s. 9d. per ounce in bullion, or if in sovereigns £3 17s. 10½d per ounce. Then the next table contains the imports of silver, without giving quantities, only market values at the time of arrival. Then comes the “total of gold and silver.” No one cares about such a “total.” Then comes the exports of gold and silver. I have, therefore, altered the modus operandi, by putting the gold imports and exports in one table, showing the balances each year, and the silver imports and exports in another table, with the balances. It is unfortunate that our $5 piece is not of the exact weight and fineness of the sovereign. If it were, we would save the three half pence per ounce on all the gold we export and import. We only get, as you will see, £3 17s. 9d. per ounce, and have to pay £3 17s. 10½d. per ounce. If the two coins were of the exact value of each other, they would circulate side by side, just as the Australian sovereigns rank with those of England.
Yours truly,
His Excellency John Welsh.
the united kingdom of great britain and ireland.
Answers to Mr. Welsh’s questions.
There is no gold or silver coin or bullion in the treasury, excepting a small amount for petty cash. All the government receipts and payments are made through the Bank of England, including salaries, which are paid quarterly.
The weekly government balances in the Bank of England in 1878 were:
| January | 3 | £5,903,097 | July | 4 | £7,539,039 |
| 10 | 4,384,488 | 11 | 4,757,974 | ||
| 17 | 3,663,542 | 18 | 4,030,627 | ||
| 24 | 3,705,653 | 25 | 3,567,759 | ||
| 31 | 3,679,555 | August | 1 | 3,567,542 | |
| February | 1 | 4,758,947 | 8 | 3,622,089 | |
| 14 | 5,697,255 | 15 | 3,534,304 | ||
| 28 | 6,524,776 | 22 | 3,055,549 | ||
| 28 | 6,884,911 | 29 | 3,441,090 | ||
| March | 7 | 10,140,493 | September | 5 | 3,436,435 |
| 14 | 11,312,460 | 12 | 4,425,152 | ||
| 21 | 11,824,027 | 19 | 4,583,838 | ||
| 28 | 12,287,814 | 26 | 4,674,065 | ||
| April | 4 | 9,852,358 | October | 3 | 4,502,795 |
| 11 | 9,110,105 | 10 | 4,141,753 | ||
| 18 | 7,241,867 | 17 | 3,156,132 | ||
| 25 | 7,895,587 | 24 | 2,929,211 | ||
| May | 2 | 7,357,757 | 31 | 2,715,768 | |
| 9 | 7,085,313 | November | 7 | 3,389,729 | |
| 16 | 6,726,485 | 14 | 2,662,003 | ||
| 23 | 6,250,787 | 21 | 2,946,356 | ||
| 30 | 6,743,142 | 28 | 3,111,753 | ||
| June | 6 | 6,951,475 | December | 5 | 3,595,752 |
| 13 | 7,184,754 | 12 | 4,484,391 | ||
| 20 | 7,470,884 | 19 | 5,123,410 | ||
| 27 | 7,940,265 | 26 | 5,577,109 |
[The public deposits m the Bank of England during 1878, owing to the war troubles, were somewhat smaller than usual. I should say that they averaged 25 to 30 per cent. less than usual. But I selected 1878 as the latest whole year.—G. McH.]
| In 1858 the amount of gold in circulation was estimated at | £90,000,000 |
| In 1872 the amount of gold in circulation was estimated at | 107,637,000 |
| In 1875 the amount of gold in circulation was estimated at | 118,112,000 |
| In 1876 the amount of gold m circulation was estimated at | 112,368,000 |
(See Report of Silver Committee, Appendix, p. 1.)
The amount of gold now in circulation is probably £133,000,000.
In 1860 the amount of silver in circulation was estimated at £14,799,000. In 1875 [Page 434] (December 31) the amount of silver in circulation was estimated at £19,536,000. (See Report of Silver Committee, Appendix, p. 1.)
The amount of silver now in circulation is probably £20,000,000.
The amount of paper money in circulation is about £46,000,000. (See Statistical Abstract, pp. 119–121.)
Previous to 1858 there was no registry kept at the custom-house of the imports of gold and silver, only of the exports. The subjoined tables will, therefore, date from that year.
Amount of gold and silver, also copper, annually coined.
| Years. | Gold. | Silver. | Copper. |
| 1858 | £1,231,023 | £445,986 | £13,440 |
| 1859 | 2,649,509 | 647,064 | 8,512 |
| 1860 | 3,121,709 | 218,403 | 37,990 |
| 1861 | 8,191,170 | 209,484 | 273,578 |
| 1862 | 7,836,413 | 148,518 | 352,800 |
| 1863 | 6,997,212 | 161,172 | 158,648 |
| 1864 | 9,535,597 | 535,194 | 58,069 |
| 1865 | 2,367,614 | 501,732 | 57,493 |
| 1866 | 5,076,676 | 493,416 | 50,624 |
| 1867 | 496,397 | 193,842 | 33,301 |
| 1868 | 1,653,384 | 301,356 | 16,328 |
| 1869 | 7,372,204 | 76,428 | 20,832 |
| 1870 | 2,313,384 | 336,798 | 32,704 |
| 1871 | 9,919,656 | 701,514 | 7,616 |
| 1872 | 15,261,442 | 1,423,836 | 47,413 |
| 1873 | 3,384,560 | 1,081,674 | 46,218 |
| 1874 | 1,461,565 | 890,604 | 65,632 |
| 1875 | 243,264 | 594,000 | 69,813 |
| 1876 | 4,696,648 | 222,354 | 61,450 |
| 1877 | 981,468 | 407,882 | 51,146 |
| 1878 | 2,132,245 | 614,426 |
The gold sent to the mint is coined, without charge, into sovereigns and half-sovereigns, at the rate of £3 17s. 10½d. per ounce. Practically, however, the bank of England is the mint’s only customer. The bank by its charter is obliged to purchase the gold at £3 17s. 9d. per ounce; and importers prefer to so dispose of it rather than await the time occupied in the process of coinage. When there happens to be a simultaneous export demand for gold bullion with the imports, gold in the open market commands a fraction over £3 17s. 9d. per ounce. The gold coinage of the kingdom is supplemented by Australian sovereigns. Silver is coined solely on behalf of the government at large annual profits, notwithstanding it redeems the worn silver coins at par. Part of the profit on silver is lost by the expense and waste connected with the gold coinage.
gold.
The imports of gold were not registered at the custom-house before 1858. The subjoined table shows the imports and exports since then.
| Years. | Imports. | Exports. | Excess imports. | Excess exports. |
| 1858 | £22,793,126 | £12,567,040 | £10,226,086 | |
| 1859 | 22,297,698 | 18,081,139 | 4,216,559 | |
| 1860 | 12,584,684 | 15,641,578 | £3,056,894 | |
| 1861 | 12,163,937 | 12,138,372 | 25,565 | |
| 1862 | 19,903,704 | 16,011,963 | 3,891,741 | |
| 1863 | 19,142,665 | 15,303,279 | 3,839,386 | |
| 1864 | 16,900,951 | 13,279,739 | 3,621,212 | |
| 1865 | 14,485,570 | 8,493,332 | 5,992,238 | |
| 1866 | 23,509,641 | 12,742,059 | 10,767,582 | |
| 1867 | 15,800,159 | 7,889,430 | 7,911,129 | |
| 1868 | 17,136,177 | 12,708,508 | 4,427,869 | |
| 1869 | 13,770,812 | 8,473,699 | 5,297,113 | |
| 1870 | 18,306,728 | 10,013,521 | 8,793,207 | |
| 1871 | 21,618,924 | 20,698,275 | 920,649 | |
| 1872 | 18,469,442 | 19,148,916 | 1,279,474 | |
| 1873 | 20,611,165 | 19,071,220 | 1,539,945 | |
| 1874 | 18,081,019 | 10,641,636 | 7,439,383 | |
| 1875 | 23,140,834 | 18,648,296 | 4,492,538 | |
| 1876 | 23,475,975 | 16,515,748 | 6,960,227 | |
| 1877 | 15,441,985 | 20,361,386 | 4,919,401 | |
| 1878 | 20,872,216 | 14,968,507 | 5,903,709 | |
| 391,007,412 | 303,997,043 | 96,266,138 | 9,255,769 | |
| 303,997,043 | 9,255,769 | |||
| Excess imports | 87,010,369 | 87,010,369 |
silver.
The imports of silver were not registered at the custom-house before 1858. The subjoined table shows the imports and exports since then.
| Years. | Imports. | Exports. | Excess imports. | Excess exports. |
| 1858 | £6,700,064 | £7,061,836 | £361,772 | |
| 1859 | 14,772,458 | 17,607,664 | 2,835,206 | |
| 1860 | 10,393,512 | 9,893,190 | £500,322 | |
| 1861 | 6,583,108 | 9,573,276 | 2,990,168 | |
| 1862 | 11,752,772 | 13,314,228 | 1,561,456 | |
| 1863 | 10,888,129 | 11,240,671 | 352,542 | |
| 1864 | 10,827,325 | 9,852,561 | 974,764 | |
| 1865 | 6,976,641 | 6,599,192 | 377,449 | |
| 1866 | 10,777,498 | 8,896,552 | 1,880,946 | |
| 1867 | 8,020,888 | 6,435,487 | 1,585,401 | |
| 1868 | 7,716,418 | 7,511,706 | 204,712 | |
| 1869 | 6,730,179 | 7,903,829 | 1,173,650 | |
| 1870 | 10,648,940 | 8,906,169 | 1,742,771 | |
| 1871 | 16,521,703 | 13,062,396 | 3,459,507 | |
| 1872 | 11,138,570 | 10,586,945 | 551,625 | |
| 1873 | 12,988,066 | 9,828,065 | 3,160,001 | |
| 1874 | 12,298,169 | 12,211,957 | 86,212 | |
| 1875 | 10,123,955 | 8,979,746 | 1,144,209 | |
| 1876 | 13,578,269 | 12,948,334 | 629,935 | |
| 1877 | 21,710,814 | 19,436,173 | 2,274,081 | |
| 1878 | 11,549,274 | 11,718,039 | 168,765 | |
| 232,696,972 | 223,568,576 | 18,571,935 | 9,443,539 | |
| 223,568,576 | 9,443,539 | |||
| Excess imports | 9,128,396 | 9,128,396 |
It is impossible to tell what quantity of gold and silver is consumed annually in the arts and manufactures. There are no reliable data in respect thereto.
The excess of gold imports over exports, 1858 to 1878, may thus be accounted for:
| Increase in circulation, say | £43,000,000 |
| Increase in stock of bullion, say | 5,000,000 |
| Gold plate manufactured, say | 2,000,000 |
| Arts and manufactures, say | 20,000,000 |
| Emigrants and other passengers, say | 17,000,000 |
| 87,000,000 |
The excess of silver imports over exports, 1858 to 1878, may thus be accounter for:
| Increase in circulation | £5,000,000 |
| Arts and manufactures | 4,000,000 |
| 9,000,000 |