The daily crescent. [volume] ([New Orleans, La.]) 1848-1851, 1850-12-21
scarcity of silver Coin.

The following article, which we find in the
Philadelphia North American, presents interesting
statements upon subject of marked interest, espe
ciay to commercial circles. The scarcity of silver
coin for business purposes is severely felt in this
city
The present scarcity of silver coin is very incon.
venient and shows the expediency if not the neces
slty, OF an alteration of the mint law.
The act of 1887, like those il superseded. pro
ceeds upon false principle, inasmuch asst fixes
relative value between gold and silver coins, at
which they are both, or either of them legal ten
ders, giving the payer the option of selecting the
least valuable coin to discharge his debt thus fore
ing the circulation OF one metal and banishng the
other from sight. Again-our coins are taken
abroad at their intrinsic market value and conse
quently the legally undervalued metal is alwavs
sought Tor at premium for expectation and sale
and this IS enough to prevent the banks from ssu-
ing dollar OF 1t more than they can avoid
The intrinsic value of coins constantly Auctnate
with the supply of the metal composing them and
SINCE therefore, the true relative value of gold and
silver IS always changing, it is absurd to fix an
arbitrary legal relative value, which has the effect
OF making gold coin money, and silver coin COM
nt09tty, or the reverse.
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. i5da o. oil gold was worth. o. silver
f5i5 5f5 & $$ $ $$ & $s e e
The fall in the value Of silver from 1916 to 1717,
IS attributed to the supply from the American
mnes and the discoveries in California promise to
reverse the movement.
ny the act OF Congress of 1892, one ounce of
gold was made worth Is ounces of silver. and the
practical result was that until 1884, gold coin was
not circulating currency but was bought and
sold at premium.
The act nj 1874 rn,Ia A.
and that of 1887 made it nearly the same. The
relative values OF gold and silver in the coinage of
England is l to l4-2S; France l to l5-5 nearly
United States, to 10 nearly
We have an oUer Uat'tattOa of the gold, and this
mas PROBABLY lately been increased by the produce
OF the Russian and Californian mines
The result is that silver coin is sought for expor
tatlon at premium, and boarded by the holders to
an extent that is becoming very inconvenient to
those having payments OF wages, or small sums
to make and as the tendency Of the arrivals of Cali
loFhla gold IS to create high exchange Europe,
we may expect that silver coin may be banisbed
from circulation, or from the country
he same results have occurred in other coun
tTles from the same causes. On the continent of
Europe the current coins are silver gold generally
bearing premium
The British Mint Act of 1916 has remedjed the
evil OF that country by simple provision making
gold coin only legal tender for more than forty
shlilings, and silver coins for under that amount
the silver com being at the time reduced to
weight, to insure its not being exported
he extent OF this reduction, compared to our
standard, is shown by the fact that loo dollars in
Anglican gold coin, Containing 1922 grains of inel
gold,) would be coined tho British Mint .ntu.S
lL2O ~ 3D., and 100 dollars in silver coin,
Containing 81, l2j grains of fine silverO would be
coined into E22 l9s. l0kd. of British silver.
- Gold, therefore, is the legal currency of Great
being plenty for change-and bear
ing the same relation 10 gold that copper does with
US tc go and silver
1t seems clear, that if we make both gold and
silver lega. tenders, must make up our minds ]
to do without one of them; but if gold alone is j
a legal tender we can have both in convenient use
The alteration proposed would have no effect
upon existing contracts, the standard of gold |
com would remain unchanged, and the debtor |
would not be permitted to pay in the reduced sill.
yer coin.
Further information may be found in McCul- !
lough's Com. Die. article Coin, american edi. /
Iion7 T. /