The republic. [volume] (Washington [D.C.]) 1849-1853, 1852-05-10
No. $50.

thorize the mint to coin half and quarter dollars
dimes and half dimes at reduced weight, and I,
sell the same at par for gold II 10 only by reduc
ing the weight that the Govornmcnt can afford to
sell silver coins at all; and therefore brought
to this dilemma, either silver coins at ALL or sil
yer coins Of less weight than formerly. II Ia true
the bill in view of still greater fall in gold here
after, has reduced the weight Of the new silver
coins more than is absolutely indispensable al this
time; but, in view OF the permanency Of the law
not more than prudence requires.
And now call your attention 10 another funda
mental error Of Mr.. Gougc and your cotrespon-
dent, namely that the palue Of the new pieces will
be deprecated in proportion to their reduction o
icfght II this were 30, the law would be entirely
nugatory. For example, ut the present premium
on silver, 203 grains are worth 80 cents in gold
IN the new issue, 1872 grains TO be coined into
80 ccnts, and to he sold only at par. Of course
therefore, If the whole value Of the new piece wac
In the siiUer Il contained, no one would purchase
II, since outside OF the mint more silver could be
got for a certain price than within ii.
The source Of the error Of these gentlemen lies n
overlooking the fact that money has ntwofold va
lue-first from the metal it coptains second, from
lts manufactured condition as coin. In thit
country--conage being for the most part free
there is no cost OF manufacture added to tho value
OF the coin, except in the case Of the copper and
three cent coinage. But it is nevertheless true
that Government having the monopoly Of coinage
can, either by direct indirect charge for the
manufacture enhance the value Of it's issues in cir
culation to very considerable extent beyond their
intrinsic value. Thus the copper cent, which
passes for the hundredth Of dollar, is worth less
than twotbirds of cent-the tbrce-ccn piece
about two and half cents but the pieces are en-
hanced in value by coinage. SO as to be worth what
they profess to be- The proof that they Of their
professed value is, that they actually sold and
pas, at par. A thing ia certainly worth what il
will fetch. F,
We may therefore be certain that the new silver
coinage, inasmuch il will be sold at par witt
gold, will be worth dollar for dollar much as al
equivalent value of gold coin What possible eff
feet, then, can it have in dcprecinting the cur.
rcncy? Certainly no more than equal value in
gold would have. IT would simply fiji up chan
mel Of circulation where gold, from Its nature
not go and where the present silver coins are not
likely ever to return.
And precisely in the same manner, as the new
silver coinage will be kept at par with gold, may
they, if necessary, hereafter be kept at par with
silver dollars. HCongrcss should attach the unit
OF money solely 10 the eivcr dollar excluding gold
the purchases Of the subdivisions thereof wouE be
paid for in the standard silver dollars. Bring
worth what they cost, II follows indisputably that
they would pass concurrently and at par with ell
yer dollars. repeat therefore, that il is a signal
merit of Mr.. Hunters bill, that the great ques-
ton, What shall be the future standard, gold or
silver! is left entirely open for future adjustment
II only does what should be carried out in every
correct money system, protect the minor currency
by seigniorage or over valuation, whether the
standard be gold-silver, or both.
Having already greatly extended this communi-
cation, will simply add that. inasmuch ms have
shown that the new silver coinage will be worth
dollar for dollar, much as gold, II will have nc
more tendency TO exclude the present silver than
gold itself has; that the fears Of Mr.. Gouge on
that ground could not be realized.
will further remark that while IL is true tha
the half dollar, while silver was the basis Of th'
| specie currency, constituted the bu k of the ma
tional coinage, and practically represented the mo
ney Of account. yet this originated rather from
cdent than preference; the causes bcing-frst, tba
the coinage Of dollars was suspended at the min
by order of Government; second, that dollar is
sues were supplied by importation from Mexico
&c. That there would be any difficulty If silvc
dollars be hereafter adopted as the cole STANDARD
and legal tender for all sums, in supplying the
rency with them to any extent required, l have N
\ idea.
Very respectfully. p.
PHuApELPHiA, May ;, 1852.