English currency was in disarray in the late 17th century. Hand-struck
silver coins from prior to 1662 had been clipped around the edges and thus their value (weight) reduced so that they were no longer a viable tender, especially abroad. The machine-struck
silver coins produced by the
Royal Mint in the
Tower of London after 1662 were protected from clipping by an engraved, decorated and milled edge, but were instead forged, both by casting from counterfeit moulds and by die stamping from counterfeit dies. By 1696 forged coins constituted about 10% of the nation's currency. The currency had a third problem: its value as silver bullion in Paris and Amsterdam was greater than the face value in London. Vast quantities of coins were melted and shipped abroad — an
arbitrage market. New
Acts of Parliament were passed in order to create the
Bank of England and protect national military security. This situation prompted
William Lowndes of the Treasury to ask
Isaac Newton for help. Chaloner was part of one of the many coining gangs that existed. He was taught the subtle techniques of moulding "milled edges" and counterfeiting coins by Patrick Coffey, a
goldsmith. Thomas Taylor, a master
engraver and
printer, made the
dies. In 1691, Chaloner produced French Pistoles worth about 17 shillings each, using an
alloy of
silver. Then he produced English
guineas that were
gilded by Patrick Coffey and Chaloner's own
brother-in-law Joseph Gravener. The chain was completed by Thomas Holloway and his wife who passed the coins to petty crooks for circulation. Chaloner was renowned in the coining community for the quality of his work and his prolific success. He purchased a large house in the semi-rural suburb of
Knightsbridge, rode in a carriage, bought
plate and dressed like a gentleman.
Isaac Newton noted that Chaloner was: Chaloner now abandoned his family and had affairs with female coiners, among them Joan Porter (
fl. 1692–1699). It was in the guise of a knowledgeable but respectable citizen that he became able to "offer his services" to
Parliament and the Royal Mint. In mid-1692 William Blackford was condemned for passing out counterfeit guineas and denounced Chaloner, so he absconded until after Blackford was hanged. His next scheme was for forgeries of the mint's "machine-struck" coins. He recruited Thomas Holloway and bought a house in
Egham,
Surrey, where the noise of coining and hot moulding machines would not be suspicious. It was also outside the legal boundary of London. Among the group was John Peers, a molten metal and moulding specialist. On 18 May 1697 he appeared before magistrates on an unrelated charge, and denounced Chaloner's Egham operation as part of his plea. Newton heard about this by accident three months later, so arrested Peers for questioning and then recruited him as an agent. Peers rejoined Holloway in Egham and produced 18 forged shillings, enabling Newton to arrest Holloway for coining. An inventive coiner, Chaloner taught Thomas Holloway a new method of coining, using small, easily concealed stamps. By the 1690s Chaloner had become: == Royal Mint scams ==