FORMERLY DIRECTOR OF THE BUREAU OF STATISTICS 
OF THE UNITED STATES OF AMERICA ; 
 MINING COMMISSIONER 
TO THE MONETARY COMMISSION OF 1876 ; 
AUTHOR 
OF 
 " A HISTORY OF MONETARY SYSTEMS,"
 "THE SCIENCE OF MONEY,"
 et cetera, 
et cetera,
...
"
 NEW YORK 
 THE CAMBRIDGE ENCYCLOPEDIA COMPANY 
 62 Reade Street 
 1899 
 COPYRIGHT 
 BY ALEX, DEL MAR   
 1899. 
 3q. 
 INTRODUCTION. 
 THE monetary systems of the present day are an historical 
development; they descend from the principles enunciated in the 
 great   Mixt Moneys case of 1604,  the circumstances connected with 
 the Spanish Conquest of America; the   Spanish Free Coinage Act 
of 1608,   the  British  Free Coinage Act of 1666, 
and the invention of the coinage and printing presses. 
It would therefore seem necessary that writers on the subject 
should possess some familiarity with these topics. 
But though the author of the present work has consulted many treatises 
relating to monetary systems he has never yet met with one 
which evinced the least grasp of these various historical  elements. 
Some of them contain information relative to the details of monetary issues. 
These, when carefully collated, 
are of value to the historian and commentator. 
But for the most part books on money 
are filled with doctrines, 
or worse yet, mere dilutions of doctrines, 
without history or experience to support them; 
doctrines based on words, on definitions, 
on figments of the mind, false, worthless, 
misleading, mischievous and hurtful. 
 The legal, political and social character of Money; 
its influence upon the public welfare; 
the prominent place it has occupied in the annals 
of the past; 
the countless experiments that have been made 
 in the fabrication and emission of its symbols; 
the civic struggles that have centred upon its control; 
and the learning that has been devoted to its principles 
by philosophers, legislators and jurists, 
surely claim for its historical treatment 
some better preparation than doctrines. 
The Father {i.e. René Descartes - French 
Philosopher and Scientist -} of the Inductive method 
was born more than three centuries ago; 
yet it is only now that his method 
is being applied to the study 
of 
Money. 
 I. — 
The Mixt Moneys case decided that Money was a Public Measure, 
a measure of value, and that, like other measures, it was necessary 
 in the public welfare that its dimensions or volume should be limited, 
 defined and regulated by the State. 
The whole body of learning 
left us by the ancient and renascent world 
was invoked in this celebrated dictum:
 Aristotle, Paulus, Bodin and Budelius 
were summoned to its support; 
the Roman law, the common law 
and the statutes all upheld it; 
"the State alone had the right to issue money 
and to decide of what substances its symbols 
should be made, whether of gold, silver, brass, 
or paper."
"Whatever the State declared to be money, 
 was money." 
That was the gist of it. 
(For a full account of this famous case, 
see the author's "Science of Money," ch. iv.) 
 This decision greatly alarmed the merchants of London, 
and for more than half a century after it was enunciated 
they were occupied with efforts to defeat its operation. 
In 1639 they succeeded in getting the matter before 
the Star Chamber; but their plans were rejected. 
 The Revolution of 1648 postponed their projects. 
The Restoration of 1660 revived them. 
Their final success dates from 1666. 
Meanwhile other things had happened. 
 II. — 
In the contracts which it made with Columbus, 
Cortes, Pizarro, De Soto and the other commanders 
whom it sent forth to discover or plunder America, 
the Crown of Spain always stipulated that
the Quinto — one-fifth — of the spoil 
should be reserved for the king.
 
The remainder, if of gold or silver, 
might then be melted down and stamped
with its weight by public officials 
and then shipped to Spain for coinage. 
At each step of these operations the Crown 
exacted a fresh tax, seigniorage, derecho, haberia, etc., 
so that by the time the plunderer or miner got back his metal, 
one-third to one-half of it had found its way into the royal coffers. 
The delay and risk of shipment to Spain supported a clamour 
for Colonial coinage and Colonial coinage resulted in an agitation 
to abolish all coinage fees except the Crown's Quinto: an agitation 
which ended in securing the "free" coinage edict of 1608.
 
Under this edict all gold and silver which had paid the Quinto 
on acquisition or production, was required to be coined 
by the Royal officials for private individuals 
free of charge and without limit. 
The granting of such a privilege bespeaks 
the employment of coining machinery, 
for the Crown could hardly have afforded it 
so long as coins had to be made by hand. 
As a matter of fact coining machinery was employed 
in Italy and Spain 
about themiddle of the 16th century. 
 III. — 
Before the Crown of Spain
proclaimed "free" coinage 
for Quinto-paid metal in America, 
much of the metal plundered from the natives 
or acquired through the repartimentosystem, 
}of which more anon,{ 
was smuggled out of the Colonies 
and found its way to Holland, France and England. 
With "free" coinage in Spanish America 
this movement slackened, 
and this cessation of the illicit trade 
in the precious metals 
furnished a pretext 
to the London merchants 
for renewing their demands upon the Crown 
for gratuitous and unlimited coinage. 
But their main argument 
was supplied by the  East India Company, 
who were anxious to ship silver to India in exchange 
for 
 gold, 
a transaction that at that time afforded a profit of cent per  cent. 
Behind this argument there was bribery of the court officials, 
 of the king's mistress, Barbara Villiers, and even of the king 
(Charles II.,) himself. After several years of intrigue, the merchants 
finally succeeded; and in 1666 was enacted that "free" coinage law
 which practically altered the monetary systems of the world and laid 
the foundation of the Metallic theory of money. The specific effect 
of this law was to destroy the Royal prerogative of coinage, nullify 
the decision in the Mixt Moneys case and inaugurate a future series of 
 commercial panics and disasters which down to that time were totally 
 unknown. 
 IV. — 
The Spanish Crown rewarded its Conquistadores and their followers 
not with grants of land in America but with grants of Indians, nominally 
as vassals, but practically as slaves. These grants were called 
repartimientos, afterwards encomiendas. They virtually 
 awarded to the grantee the right to seize upon a specified number of 
 the natives and compel them to produce gold and silver for nothing. 
 Millions of lives were thus granted away and millions of ducats were 
 the result; but besides the lives they cost, these millions cost nothing 
 to the Spaniards, whose acquisitions of the precious metals, whether 
 by plunder or through their repartimientos, had therefore no relation 
 to that "cost of production " which forms the fallacious basis 
of the Metallic theory. 
 V. —
 It has been already intimated that coining machinery 
was employed in Italy and Spain during the 16th century. 
Evelyn, in his work on Medals, asserts that Jerome Cardon, 
who died in 1576, described a coining press used in the Venetian mint, 
"which both stamped, cut and rounded money by one operation only." 
This device is also mentioned by Benevenuto Cellini, who died in 1570. 
Previous to the invention of coining machinery, an ordinary workman 
could turn out not more than 40 or 50 coins a day. 
With the laminating-mill and screw-press, which was employed in Spain 
so early as 1548, he could turn out several thousand coins a day. 
These labour-saving machines entirely changed the relations of Money 
to exchange and society; a revolution which was still further advanced 
by the application of the printing press to the issues of Money, 
the earliest examples of which, 
within the scope of the author's researches, 
were the pasteboard (embossed) dollars of Leyden 
issued in 1572. 
 VI. — 
The invention of coining machinery had still another important 
consequence: it multiplied counterfeits, not necessarily base 
 coins, but forged coins containing as much or more fine metal than 
 the genuine ones; but metal that had not paid the Quinto. 
In 1569 Phillip Mastrelle, who brought a coining press 
from France into England, was detected in making coins 
on his own account, an offense for which he was executed. 
Fenelon states that in 1574 certain 
Germans, Hollanders and Frenchmen, 
in England, 
were detected in forging a million crowns 
of the coins of France, Spain and Flanders; 
and that this was done as a political measure, 
with the connivance of some of the ministers 
of Queen Elizabeth. 
The Marquis de Tavannes assures us that Salcede, 
who was executed at Paris in 1582  
had grown rich from the profits 
of what he termed  forgery,  
>but what, according to the  Metallic school, 
was really only justifiable private coinage;
because the forged coins contained 
more silver than the genuine. 
These offenses could only have been profitable 
when committed with the aid of coining machinery, 
whose influence upon exchange and society 
must have become in this manner greatly augmented. 
("Barbara Villiers, Or a History of Monetary Crimes" p. 18.) 
 With this brief Introduction the author commends 
his book to the indulgent public. 
Should his health permit, 
it will be followed 
by the 
"History of Money in America, 
from the Adoption of the Constitution 
to the present time," and this will form the last of a series 
 of monetary histories, which, commencing with a History of the 
 Precious Metals, and followed by a History of Monetary Systems, 
 now embraces all the principal States of the world, both ancient 
and modern. 
 Alexander Del Mar, 
Washington, D.C., 1899