Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1893-11-03
Coins and Values.

In view of the vaguenes of much of the
talk about our finances, it is well &C.
casionally to see just what the COINS are
that are under discussion. We now have
in use four silver and FIVE gold coins, The
silver coins are the dime, the quarter, the
half-dollar, aud the dollar the gold coins
are the dollar, the quarter-eagle, the half
eagle, the eagle and the dOuble-eagle.
The values of these CONS are of two
kinds; the value given by law and the
intrinsic value, One of the crucial facts
in the present monetary controversy is
that the legal value ard the intrinsic
value is the same in the case of all the
gold COINS. They are worth 10 more
when coined than when beaten out of
recognizable shape and they are of rear
ly stable value all over the earth-in
America or in Europe.
But in the case of the silver COINS there
is wide discrepancy between the legal
and the intrinsic values. A piece
of silver which the law compels a
laborer to take for dollar in payment
for work could be bought if not coined,
for sixty-fve cents. If taken to London
or Paris it could be sold only for sixty
five cents, whether with or without the
governments stamp. In other words, its
intrinsic value is only sixty-five cents.
So of the other silver coius. The legal
value of the dime is ten cents the in
trinsic value only SIX and eight hundredths
cents. The quarter is worth by law
twenty-five cents; intrinsically, about
fifteen cents The half-dollar intrlnsically
is worth thirty cents. Legally. ten silver
dollars are equal in value TO one eagle /;
intrinsically an eagle is worth more than
fifteen silver dollars.
A natural question here is, why is there
such variation in the relative values of
coins OF the same system, intended to
circulate together, and to be received in
business irdiferently' As to the sub
sidiaTy coins, the dimes, quarters and
halves, the answer is that the quantity of
silver contained in them was fixed by
law many years ago, when the value of
silver was advancing and if the quantity
of silver in these coins had then been
made enough to equal their legal value,
in few years, their intrinsic value would
have gone beyond their legal yalue; and
they would have been worth more as
bullion than as COLI. Consequently, there
would have been a profit in melting the
COINS and they would have disappeared
from circulation. Moreover, as small
coins are not made legal tender, and are
really on.y tokens, there is no harm done
In having them lightweight.
But with the silver dollar the conse-
quences are more serious. A man who
has contract to make on which he will
be paid a year hence, wonders whether
be will be paid in hundred-cent gold do!-
lars or in sixty-Eve-eent silver dollars.
As long as the United States government
is willing to bolster up the sixty-fve-cent
dollar. with thrty-fve cents Of govern
ment credit, the business man does not
care which dollar be will get. Bat when
be becomes doubtful how long the govern
ment will be able TO keep up the parity
between the two dollars, he declines to
make contracts, and business Is said to lie
depressed"
The method by which these two dol
ars one worth only sixty-fve cents and
The other worth one hundred cents, are
Kept aAOat lis by virtue of added value
yiyen by the governments promise to use
III its resources to keep the holders of
ixty-fve cent dollars secure against loss
Unless the government continues to do
bis, it " i'll be guilty of dishonesty. 1t
) as much bound to give to these CONS
be sustaining help Of Its credit as to the
reenbacks.
But the continued coinage of unknown
llllions of these lightweight dollars. IN.
err the Sherman law, will ultimately ex.
aust even the resources of this country.
q keeping a million dollars gong $780,
% OF credit is used up.
We are already at the danger line.-
ol.im0rs ystes.