The republic. [volume] (Washington [D.C.]) 1849-1853, 1850-12-14
scarcity OF silver Coin.

The following article, from the Philadelphia
North american, presents interesting statements
upon a subject of interest to commercial circles.
The scarcity Of silver coin for business purposes is
beginning to be severely felt in principal
cities:
The present scarcity Of silver coin is very incon
venient, and shows the expediency, il not the ne
cessity, OF an alteration Of the mint law.
The act of 1897 like those it superseded, proceeds
upon false principle, inasmuch 1t fixes a rela
tive value between gold and silver COINS at which
they are both, either of theIn legal tenders CIV
ing the payer the option Of selecting the least vau
able coin to discharge his debt, thus forcing the
circulation of one metal and banishing the other
from sight, Again, our coins are taken abroad at
their intrinsic market value, and consequently the
legally undervalued metal is always sought for at a
premium for expectation and sale, and this is
enough to prevent the banks from issuing dollar
OF it more than they can avoid.
The intrinsic value Of coins constantly huctuates
with the supply of the metal composing them; and
since, therefore, the true relative value OF gold and
silver is always changing, II s absurd to nix an ar
bitrary legal relative value which has the effect Of
making gold coin money, and silver coin con'no-
The fluctuations in the relative value Of gold and
silver have been greater than is usually supposed.
Judging from the English coinage, which, how
ever, is only an approximation, this value was, in
A. D. 1914, OF. Of gold was worth IL OF silver
i7i III, o. do do 1872 OF. do
1916, do do ll.2SoZ. do.
The fall in the value Of silver from 1916 TO I'LL
is attributed TO the supply from the American
mines, and the discoveries in California promise to
reverse the movement.
BY the act of Congress Of 1872, one o. of gold
made worth 10 OF. of silver and the practical
result was, that until 1884, gold coin not cir
culating currency, but was bought and sold at a
premium.
and that Of 1887 made il nearly the same. The
lativc values of gold and silver in the coinage of
England ia | TO laps; France, to 1915, nearly !;
United States, ! TO 10, nearly.
We now have an orer rdluoftos OF the gold, and
this has probably lately been increased by the pro-
duce Of the Russian and Californian mines.
The result is that silver coin is sought for expora
ton at a premium. and horded by the holders TO IN
extent that is becoming very nconyenient TO those
having payments Of wages or small sums, to make
and, the tendency of the arrivals Of California
gold is TO create high exchange on Europe, we
may expect that silver coin may be banished from
circulation or from the county.
The same results have occurred in other coun-
tries from the same causes. On the continent OF
Europe the current coins are oliver, gold generally
The British Mint Act of 1916 has remodicd the
evil for that untry by a simple provision making
gold coin only legal tender for more than forty
shllings, and silver coins for under that amount,
the silver coin being Mt the same time reduced to
weight, TO ensure its not being exported.
The extent Of this reduction, compared 10 our
standard, is shown by the fact that one hundred
dollars in American gold coin, Containing 2 ,322
grains fine eold,) would be coined at the British
mint into f20 los. n ID, and one hundred dollars
in silver coin, containing 81 .l25 grains Of fine
silver, would be coined into E22 l9s. l0ld Of Brit
ish silver.
Gold, therefore, is the legal currency Of Great
Britain-silver being plenty for change, and bear
ing the same relation TO gold that copper docs with
US to gold and silver.
II seems clear, that five make both gold and ell
yer legal tenders, we must make up our minds TO
do without one OF them; but If gold alone i legal
tender, can have both in convenient use.
The alteration proposed would have effect up
on existing contracts, as the standard Of gold coin
would remain unchanged, and the debtor would
not be permitted 10 pay in he reduced silver coin.
Further informant ton may be found in McCul-
lough's Com. Die; article Coin, american edi-
toni II.