Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-02-22
Demonetizing Gold

The suggestion contained in the follow
ing note is not new. We have heard IL De-
fore. But If the accepted teachings Oh
financial science are founded on rock SO
IN sneak. then the suggestion is not only
impracticable. but one that may De SET
down "a impossible of ever being convert
cd into fact. We quote;
PETERSBURG, Va, February 10, 1871.
To he Editor of the Dispatch
Dear sir.-Ouite a regular reader OF your
naner and admirer of your position on the
silver question, will you please state why
cold could not be demonetized and classed
With fine other precious metals platinum
for instance and precious stones, having
o1l,J siipe,. and paper money based on silver
for purposes OF circulationI You Will much
obhge one who appreciates your position
Very respectfully, u
We have heretofore explained that real
money defes FIRE, transportation, and the
crucible. and that its value can as well
be determined by weight as by tale. To
weigh it., as is the practice OF the Bank
of England, we believe, or as is often done
there, OF any rate, is to learn how many
ounces or pounds Of it there are in the
quantity weighed; and to learn that fact
is 10 learn its correct value or mint value.
Real money does not need TO ask the Gov
eminent to impress upon its face the
words. This is q dollar" All that it asks
is a certificate that there are Is $40 grains
Of gold. The fact that it is dollar will
make itself known.
So real money, its weight having been
ascertained, may be carried from the
United States to England, France, OF Ger
many. and be just as good in those coun-
tries as here. 1t is the gold that has value,
not the Governments certificate. The
COLDS the gold for oil that" The crucible
has no terrors for such q metal; for, con-
verified into bullion, it has the same value
it had as a coin. There is Of course little
loss that results from handling coins of the
precious metals; and 80 in the course Of
our regular business transactions, and with
the tacit consent Of the Government and
the community, we often pass coins which
lack small fraction of grain of contain
ing as much gold as they ought to contain.
But this fact is not inconsistent with the
statement that to certify the number Of
grains of gold in coin is to tell its value.
So If we send coins TO Europe which do
not contain by weight as many grains Of
gold az they contain by tale, we shall lose
the difference between the value as fixed
by weight and the value as determined by
tale.
If these premises he true it follows that
it would not be within the power OF the
United States Government, acting by it
self, to demonetize gold in the sense in
which our correspondent suggests that it
might be demonetized. We could forbid
gold coins to be received at our custom
houses and internal-revenue Offices, and
vet if Europe should continue TO use and
treat gold as it now uses and treats it that
metal would be worth Just what it is now
worth and would persist IN being the sole
standard Of values.
When all is said that can be said on this
subject we come back to the principles
enunciated in this article. The difference
between the monometallists and the bi,
| metallists seems to be based upon the facts
OF truisms which we have here set forth
But this is not the whole truth. There are
other, many other, facts to be taken into
consideration when we undertake to fix q
standard of values. Therefore we would
have the monometallists, as well as the BIZ
metalhsts, liberal in their notions-men Of
wide horizons, who can understand that
wisdom will not die with them. Financial
and social problems are not always easy tC
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