The republic. [volume] (Washington [D.C.]) 1849-1853, 1851-01-20
From the Cbarissfon IS e. Nsus.
Gold and silver Coinage.

The delay of Congress IN reforming our coinage,
by readjustng the relative value of gold to silver,
is extending and aggravating the commercial in,
convenience arising from generalization of
one of these metals where both employed
the standard of value. Gold is overvalued IN our
lave and mint regulations as compared with sill
yer No contracts paid-no purchases made,
to any large extent, in silver. On the contrary,
it bears premium, and being undervaineo IL
largely exported. Instead of its forming a sub
sidiary currency its increasing scarcity will coon
compel resort TO those miserable paper substl-
tutes, which represent the aliquot parts OF
dollar.
II s well known that before 1884, in the coinage
of the United States, gold was undervnlued. The
consequence was, that our gold coins were all ex-
ported Gold was bought and sold at premium.
We then erred in the other extreme. As we had
declared by the act of 1892 that one ounce of gold
was worth fifteen ounces OF silver 30 by the act OF
1884 affirmed that one ounce OF gold was of the
ue of sixteen ounces of silver, when the intrn-
sic relative value was III medium between these
extremes. The disadvantage Of double standard
is that frequent readjustnents become necessary.
No will pay debt in either OF the precious
metals which is undervaiued Practically then all
pa yments made in the overvalued metal, and
the law is defeated which intends that both shall
become portion of the circulating medium. ii
the more costly metal Is made the standard ior
sums above a certain sum, and the least costly de-
clared tender for Gums within that limit, II Sc
cures the least expensive metal for all small or
subsidiary payments. The British system is III
this respect the best in the world. Gold ID the
standard for all sums above forty shillings, and
silver for all sums under that amount-the Govern
ment retaining the power to issue silver coin In It's
own ha nds. The effect of this is, that an abund-
of silver coin always continues in circulation,
as a bordinate subsidiary currency 30 neces-
sary in small payments and for the retail transac-
tons of society, whilst gold coin Is employed as
the basis and support OF the paper system ana the
medium of large payments.
Let Congress then abolish that anomaly, a dou-
bic standard, keeping silver i'll subordinaiion TO
gold in our coinage, by making it legal tender
for limited amounts only Then we shall not have
to change our system under every temporary va
ration in the relative value of the metals At all
events it is less evil that there should be an un-
LIBERALIZATION in coinage of gold than OF silver,
for an expor tion and scarcity of the latter de-
ra nges all the lesser wheels in the economical ma
ncry of society whilst the absence of gold would
only impose higher charge on our banking IN
stitutions to supply themselves with that metal,
if it made legal tender for only sums over
five dollars.
No doubt that the present premium on and scar
city Of silver is partly attributable to temporary
auses to boarding, on the apprehension of war In
Europe, and increased demand to flll the mill
tary chests Of its powers, preparing expensive ar
maments The fall of gold in relation to silver Is
contemporary event which promises to be OF rather
Ion ger dutation; still systems OF coinage ought To
be framed to adjust themselves, with the least
disturbance, to the changes which are INDUCED oy
external huc uctuatons-by an alteration OF demand
| and supply. All countries that cucumber them
selves with what is called double standard oil
vaue-a standard both Of gold and silvcr-have TO
ma frequent readusments OF their relative value
and consequently expose themselves to much need
less embarrassment.