Note 43 — CHAP. VII.

The circulation of stamped Spanish Dollars, in 1797, gave rise to a very extensive coinage of counterfeit money of the same species, which was generally executed in a very masterly manner, and before the fraud was discovered vast quantities were in the hands of many innocent members of the community. Several detections, however, having checked the circulation, and silver bullion having fallen greatly in price, those who were in the habit of dealing in base money availing themselves of this circumstance, purchased Dollars in great quantities at about 4s.. 2d. which they instantly stamped and circulated at 4s. 9d. and by which species of villainy large sums of money were suddenly amassed.—One dealer in particular is said to have made above £.5000 in six weeks. The Laws attaching no punishment to this unforeseen offence, and the Author representing the circumstances of the case to the Bank Directors, the whole were called in, leaving, however, in the hands of the dealers a large surplus of actual counterfeits,—which appears to have suggested to them the expedient of finding a market in the British American Colonies and the United States, where, in general, frauds are less likely to be detected from the payments being made (particularly in the West India islands) in dollars put up in bags containing a certain value in each. However, they were fortunately defeated in this object by the timely notice given, by the Author of this Treatise, to his Majesty's Secretary of State, and the American Minister, and through these respectable mediums commercial people were put upon their guard before the intended fraud could be carried into effect.