“The ruine of their Diana”: Lowndes, Locke, and the Bankers

Lowndes and Locke on the Value of Money

“…However, according to Kleer (see Kleer, 2004), Lowndes did indeed believe that his debasement would cause re-distributive effects, despite his contrary public pronouncements. According to Kleer, Lowndes believed that his debasement would benefit the class that Lowndes intended to benefit (at the expense of the rest of society), which was the financiers of the English crown, then in desperate need of money to fight on the Succession War on the Continent.…”

The Conflict in the Lockean State of Nature

“…First, some commentators debate the existence of the quantity theory of money in Locke's work (Walter Eltis 1995;Arthur Leigh 1974). Second, other scholars analyze the influence of Locke's monetary policies on the exchange rate mechanism (Richard Kleer 2004;James Morrison 2008), and criticize the consequence of Locke's plan not to devalue in 1695 (Joyce Appleby 1976;Eltis 1995; François Velde and Thomas Sargent 2002;Daniel Carey 2011). Third, we find many papers aiming at explaining Locke's monetary policies through the socio-political context (Constantine Caffentzis 1989;Kelly 1991), Locke's theoretical foundations (Kepa Ormazabal 2012), 2 or Locke's philosophical ideas and his semantic and language theory (Caffentzis 1989, p. 7;2003;Carey 2014).…”

“…He also wants policies that lead to a low "natural" interest rate. On Locke's monetary policies that the State should implement, see, among others,Eltis (1995),Velde and Sargent (2002),Kleer (2004), and Carey (2011). 54 "Nor indeed, things rightly considered, do Gold and Silver drawn out of the Mine equally Enrich, with what is got by Trade"(Locke 1692, p. 222).…”

“…He also wants policies that lead to a low “natural” interest rate. On Locke’s monetary policies that the State should implement, see, among others, Eltis (1995), Velde and Sargent (2002), Kleer (2004), and Carey (2011).…”

Review of periodical literature published in 2004

“…This is evident in Kleer's study of the re‐coinage crisis of 1696, in which rising gold and silver prices and falling mint production produced a currency crisis, on which John Locke was asked to advise. Kleer explores how Locke's ‘advice’ on behalf of stability overcame the treasury secretary's desire for revaluation, and deterred clipping and the export of specie. Johnson explores a broader normative theme in this period, the process by which exchange relationships shifted from a basis in the bonds and virtues of ‘friendship’ to those of contract and rational self‐interest.…”