The Morristown gazette. [volume] (Morristown, Tenn.) 1867-1920, 1878-07-17
MONETLzATfON OF SILVER.
June -, 1878.

MONETLZATTON OF SILVER.
In 1891, Alexander Hamilton fill
ed. in the administration OF Wash
ington. the position of the first Sec.
rotary of the Treasury of that form
OF Government which had succeed
ed by the voice Of the people, the
old confederation of the thirteen
American colonies. which had thrown
off their allegiance to the British
crown. and by the war of Revolution
effected their independence.
Except Carolina aud Massachu
sets. none OF the original thirteen
sovereignties on this continent had
exercised that attribute Of sover-
ignity comprised in the power to
coin money. and these two provin-
ces had exercised this function only
to a very limited extent.
The money in circulation through
out the new territory OF the new
government called into existence by
the constitutional convention over
which Washington presided. was
composed of coins which had drifted
to these shores from all parts of the
old world, the greater portion being
from the mint of Spain, that coun-
try at the time, through her colonies,
being the chief source of the supply
Of the precious metals used in the
commerce of the world.
The necessity for an Independent
mint for the new government estab-
lished by Hamilton and his compa
triots was among the first things to
force itself upon his consideration
as Washington's Secretary of the
Treasury. He found in existence
and used by coGmon consent of the
commercial world as representatives
of value, two metals, Gold and Sill
yer. So that in the establishment
of system o: coinage for the new
nation the first problem for his de
termination was the ascertainment
Of the relative value of the two met
ais to be used. and the erection of a
single standard Of value for the two,
so that the coins of each metal to be
omitted by the mint, Of similar de-
nominations. or their multiple,
should have equal values; in other
words, he had TO determine what
should be the dollar of the new gov
eminent. how much of either metal
it should contain.
Hamilton adopted gold as the
metal best fitted to serve rs the unit
Of value. and he gives his reasons
for this in his celebrated report:
"That species of coin" says he.
speaking of the old Spanish silver
dollar, 'has never had any settled or
standard value. according to weight
or fineness, but has been permitted
to circulate by tale. without regard
to either, while gold has a fixed
price by weight. with an age to its
fneness. This greater stability of
the value of gold coins is an argu-
ment OF force for regarding the
money unit as having been hitherto
virtually attached to gold rather
than to silver. Twenty -four and
six.eighths grains of fine gold have
corresponded with the nominal val
ne OF the dollar in the several States
without regard to the successive
of its intrinsic worth.
this nominal value Of the dollar cor
with something between
368 and 374 grains of fine silver.
AS long as gold, either from its in
trinsic superiority as q metal, from
its greater rarity. or from the preju-
dices Of mankind, retains so consid.
cradle re-eminence in value over
silver, as it has hitherto had, q nat
nral consequence of this seems to
be that its condition will be more
stationary"
The youthful Secretary, with the
best Judgment that could be formed |
1t that day of imperfect means for
Itatistical information. fixed the re-
alive value of the two metals at
,ne of gold for fifteen Of silver-the
init or gold dollar TO be 24.74
,rains. and the silver dollar to be
i7I.25 grains.
In fixing this ratio. Mr.. Hamilton
made q mistake; he under valued
,old in the relation he established.
The gold in, his coin, was werth
more In foreign countries than their
egal value at home. and they at
'nce became objects Of export al
most as fast as they were emitted.
md in 1919 a committee Of the
House OF Representatives said in
eport 10 that body. 'GOId can hard