The Law of Nations. Emer de Vattel
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§106. Duty of the nation or prince with respect to the coin.
The impression on the coin becoming the seal of its standard and weight, a moment’s reflection will convince us that the coinage of money ought not to be left indiscriminately free to every individual: for by that means, frauds would become too common;—the coin would soon lose the public confidence; and this would destroy a most useful institution. Hence money is coined by the authority and in the name of the state or prince, who are its surety: they ought therefore to have a quantity of it coined sufficient to answer the necessities of the country, and to take care that it be good, that is to say, that its intrinsic value bear a just proportion to its extrinsic or numerary value.
It is true, that, in a pressing necessity, the state would have a right to order the citizens to receive the coin at a price superior to its real value: but as foreigners will not receive it at that price, the nation gains nothing by this proceeding: it is only a temporary palliative for the evil, without effecting a radical cure. This excess of value, added in an arbitrary manner to the coin, is a real debt which the sovereign contracts with individuals: and in strict justice, this crisis of affairs being over, that money ought to be called in at the expense of the state, and paid for in other specie, according to the natural standard; otherwise this kind of burthen, laid on in the hour of necessity, would fall solely on those who received this arbitrary money in payment: which would be unjust. Besides, experience has shewn that such a resource is destructive to trade, by destroying the confidence both of foreigners and citizens,—raising in proportion the price of every thing,—and inducing every one to lock up or send abroad the good old specie; whereby a temporary stop is put to the circulation of money. So that it is the duty of every nation and of every sovereign to abstain, as much as possible, from so dangerous an experiment, and rather to have recourse <46> to extraordinary taxes and contributions to support the pressing exigencies of the state.*
§107. Their rights in this respect.
Since the state is surety for the goodness of the money and its currency, the public authority alone has the right of coining it. Those who counterfeit it, violate the rights of the sovereign, whether they make it of the same standard and value or not. These are called false-coiners, and their crime is justly considered as one of the most heinous nature. For if they coin base money, they rob both the public and the prince; and if they coin good, they usurp the prerogative of the sovereign. They will never be inclined to coin good money, unless there be a profit on the coinage: and in this case they rob the state of a profit which exclusively belongs to it. In both cases, they do an injury to the sovereign; for the public faith being surety for the money, the sovereign alone has a right to have it coined. For this reason the right of coining is placed among the prerogatives of majesty, and Bodinus relates,* that Sigismund Augustus, king of Poland,31 having granted this privilege to the duke of Prussia, in the year 1543, the states of the country passed a decree in which it was asserted that the king could not grant that privilege, it being inseparable from the crown. The same author observes, <47> that, although many lords and bishops of France had formerly the privilege of coining money, it was still considered as coined by the king’s authority: and the kings of France at last withdrew all those privileges, on account of their being often abused.
§108. How one nation may injure another in the article of coin.
From the principles just laid down, it is easy to conclude, that if one nation counterfeits the money of another, or if she allows and protects false-coiners who presume to do it, she does that nation an injury. But commonly criminals of this class find no protection any-where,—all princes being equally interested in exterminating them.
§109. Of exchange, and the laws of commerce.
There is another custom more modern, and of no less use to commerce than the establishment of coin,—namely exchange, or the traffic of bankers, by means of which a merchant remits immense sums from one end of the world to the other, at a very trifling expense, and, if he pleases, without risk. For the same reason that sovereigns are obliged to protect commerce, they are obliged to support this custom, by good laws, in which every merchant, whether citizen or foreigner, may find security. In general, it is equally the interest and the duty of every nation to have wise and equitable commercial laws established in the country.
Second Object of a good Government,—to procure the true Happiness of the Nation.
§110. A nation ought to labour after its own happiness.
Let us continue to lay open the principal objects of a good government. What we have said in the five preceding chapters relates to the care of providing for the necessities of the people, and procuring plenty in the state: this is a point of necessity; but it is not sufficient for the happiness of a nation. Experience shews that a people may be unhappy in the midst of all earthly enjoyments, and in the possession of the greatest riches. Whatever may enable mankind to enjoy a true and solid felicity, is a second object that deserves the most serious attention of the government. Happiness is the point where centre all those duties which individuals and nations owe to themselves; and this is the great end of the law of nature. The desire of happiness is the powerful spring that puts man in motion: felicity is the end they all have in view, and it ought to be the grand object of the public will (Prelim. §5). It is then the duty of those who form this public will, or of those who represent it—the rulers of the nation—to labour for the happiness of the people, to watch continually over it, and to promote it to the utmost of their power.
To succeed in this, it is necessary to instruct the people to seek felicity where it is to be found,—that is, in their own perfection,—and to teach them the means of obtaining it. The <48> sovereign cannot then take too much pains in instructing and enlightening his people, and in forming them to useful knowledge and wise discipline. Let us leave a hatred of the sciences to the despotic tyrants of the east: they are afraid of having their people instructed, because they chuse to rule over slaves. But though they are obeyed with the most abject submission, they frequently experience the effects of disobedience and revolt. A just and wise prince feels no apprehensions from the light of knowledge: he knows that it is ever advantageous to a good government. If men of learning know that liberty is the natural inheritance of mankind, on the other hand they are more fully sensible than their neighbours, how necessary it is, for their own advantage, that this liberty should be subject to a lawful authority:—incapable of being slaves, they are faithful subjects.
The first impressions made on the mind are of the utmost importance for the remainder of life. In the tender years of infancy and youth, the human mind and heart easily receive the seeds of good or evil. Hence the education of youth is one of the most important affairs that deserve the attention of the government. It ought not to be entirely left to fathers. The most certain way of forming good citizens is to found good establishments for public education, to provide them with able masters,—direct them with prudence,—and pursue such mild