Man of Equations, Man of Evidence

Celestial Calculations and Back-Alley Pursuits

Isaac Newton, the discoverer of universal gravitation. Records still exist today showing that he disguised himself to gather information in taverns and repeatedly interrogated suspects. Why was the man who calculated the motions of celestial bodies cross-examining witnesses in the back alleys of London?

Silver Coins That Lost Their Credibility

In the 1690s, England's silver coinage was at a breaking point. The old hammered coins remaining in circulation were clipped and worn, weighing significantly less than they should. If the currency's credibility collapsed, commerce and taxation would grind to a halt. In 1696, the state embarked on the "Great Recoinage." It recalled the old coins from circulation at their face value and restruck them as new, milled coins.

During the recoinage, the nation was divided on what the standard for the currency should be. One proposal was devaluation to match the reality of the clipped coins, while the other, advocated by the philosopher John Locke, was to maintain the old standard by restoring the original weight. The debate ended in Locke's victory, and the standard was preserved, but this choice came with the painful consequence of depressing prices. It was into this undertaking that Newton arrived to take up his post.

The Tenacity of Warden Newton

In 1696, Newton was appointed Warden of the Mint. He could have treated it as an honorary position, but he did not. Not only did he direct production management for the Great Recoinage, but he also personally led the effort to apprehend counterfeiters.

His primary target was a master counterfeiter named William Chaloner. With great tenacity, Newton sought out witnesses, gathered testimony, and closed off every avenue of escape one by one. Cornered, Chaloner was sent to the gallows in 1699. The credibility of a currency is only maintained when it is backed by enforcement that does not tolerate forgery. The man of equations was also a man of evidence.

The Ratio Recommendation and Its Aftermath

Promoted to Master of the Mint in 1699, Newton remained with the institution until his death in 1727. In 1717, as Master of the Mint, Newton submitted a report on the bimetallic ratio between gold and silver, and the value of the guinea was fixed at 21 shillings.

However, this decision had further consequences. Under this ratio, gold was overvalued and silver was undervalued in England. As a result, good silver coins were taken abroad, silver flowed out of the island, and only gold remained in the country. England's currency thus effectively slid into a de facto gold standard. What he did was recommend a ratio. Whether that was what Newton intended is still debated today.