The enquirer. [volume] (Richmond, Va.) 1804-1815, 1811-01-10

|
with COINS of the u. States.
| The act of loth April. 1906. was pretica-
tee ON the superstition that 81 2-4 grams of
Spanish Standard gold contained % Sd
grains OF pure gold and were therefore t.
qualIn value to q grains standard gold of
| the United States, or 10 orc dollar current
money of the United States But that sup
position is proven by the assays to have
been erroneous, the standard of Spanish
gold coins being worse or containing more al
10y than was then believed That standard
varies according to the years of the coinage.
he COINS OF the year 1906 are the lowest
and verse by more than four and half per
cent. than the value fixed by the act OF 10th
May, 1906. Those of the year 1907, are
worse than those of the years prior to 1906
and those OF the year 1903, are worse than
those OF 1907. Those OF the years prior to
1906, though better than the subsequent
coinages. are almost 8 i'2 per cent worse
than the value fixed by the act of Nay,
1906.
Taking the general average ofthc several
eolnages it appears that they should be Ia
Ken at the rate of % $4,000 grains Cnstead
OF II 4O-lO0) for one dollar; and that the
difference between their intrinsic value and
tn 1T fixed by the act of April, 1906, is al
mos, tnur per cent 6 o36-1OO0 per cent?
Ii therefore the ACT should be revived
without any alteration, every person recev-
ing those COINS III payment, would in faCt be
compelled to receive only nineiy-six instead
OF one hundred cents on every dollar paid
TO MIN. The unavoidable effect OF putting
III circulation any one spec+ 5 of coin at a
rate higher than its know, .-.trinsic value, is
10 invite ITS impoT alton and increased cir
culation, and TO drive out of circulation the
other species. Every bank, if Called on 60
pay Its no.es in specie, will in that case
pay with chat species of coiG and the whole
paper circulating medium must after while
be depreciated In the same propurtIou-
The only gu I'd against the abuse and Cun-
sequent depreciation of bank paper is
str.ct adherance to the principle that pay
ment may at any t"!c 6e demanded in spe-
Gle. rated at Its iatrlnsic value.
On the other hand it is not less erue tha
the gold coins or Spain wer- made legal
scnder by law FOR certain number Of years
at higher rate than {, were really worth;
that to the very last day OF tr at pc Rod eve
| ny person WAS compelled to recri i've them
In payment at tina tate; and that at the
expiration OF the per cd, quaint Y OF that
gold necessarily r, manned in he hands of
some persons on whom the loss falls by ,ne
unavailable effecl he law and without
any fault OF theirs Il is in order to relieve
those persons Jhat il is proposed to make
the loss fall on the Commcniry, by reviving
! the law WITHOUT al GRAFTON, that is to say by
EPntong again the coins in circulation at a
higher race than their intrinsic value
Inc two questions put by the committee
a'e, whether the statute rate of these coins
should not be made to conform with t,eir
intrinsic value, and whether, i'm order TO
reHeVe individuals from the loss resulting
rom the late erroneous legal estiIna Of
thsr value, it would not be eligible that the
a't1erenSe should be paid by government.
10 the hrs question can have no nesi.
tatlon' Tor he above mentioned reasons, to
| answer IN the affirmative The second
question is of a more doubtful nature. But
1 1t shall be thought just that the loss
s"oud fall on the Community rather than on
| individuals, u will certainly be preferable 10
pay at once the difference, rather than know
| '"Sy 20 make the CONS again legal tender
DIT niSher rate than they are worth
should that measure be adopted, the mode
| proposed by the committee, viz. to direct
tue mint to receive that species of gold for
snort time attne former statute rate, the
United States paying The difference. ap-
pears also the most smpJs and eligible
manner of effecting the object. The fol-
loving provisions are in that case respect
fully suggested.
| l. Inat as the assays of the coins of the
years 1909 and 1910, have not yet been re-
ceived. and as Spanish gold ceased to be a
legal tender early in the y ar 1909, the reyi-
val OF the law making them a legal tender.
should apply only to coins coined prior to the
Iyear 1909.
2. Ih4t, for the same reasons, the sta
tute value should be fixed at a rate not
higher than the average of the ASSAYS here
ltotore made; that is TO say. that they 5hou d
pass at rate not higher than % So 100
grams for one hundred cents.
3. Ina, Tor the same reasons, the obi
cation o the mint ia receive those coins ~
their former statute rate, should be limited
to con coined Pri rto the yeli 1909
H. That, as the iudemnihcation To iodi,i-
lduals. arises from equitable consider LON.
and not from an abs Lutte legal obljga ion
the period, during which the coins shall %
received at the mint at their former st.tufc
value, be made so short as to preclude he
possibility OF embracing speculative imDor.
tations Oae month from the passing of the
law would seen sufficient
s. That no such coin shall be Tins receiv.
ed at the mint at its former statute value.
unless proof at least OF affidavit. be rnaNe,
that the persons claiming the benefit of the
provision had &c ualIy received the same at
that value prior 70 the time when the law
making it legal tender expired.
1t will also be necessaryin that case. that
= an appropriation should be made to enable
; the mint to carry the provision into effect
! ne amount OF that appropriation should