The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-11-06
THE VALUE OF MONEY.
1T HAS ALWAYS DEPENDED ON
LEGISLATION.

NATIONAL IL ONE, WIS, oct. 26, 70.
Editor Representative:
Sir; Some time ago l saw in THE
REPRESENTATIVE statement that
in 1874 the English Parliament passed
an act fixing the price of an ounce of
gold land that by virtue of said act the
Bank Of England was compelled to re-
ceive all gold offered at said fixed
price. Some Cyclopadia is referred to
as authority for the statement, but /
have forgotten which one. If these
things be true what is the use OF all
this 'bosh" we hear and read about
gold standing on its own feet, regard
less of legislation. II this statement
concerning the English Parliament
and gold is true, l will venture to say
that the fact is not known to 10 per
cent of voters of this country; for with
all our boasted int ligence, find by
experience that the masses seem to
know but little about the money
problem and many Of them have ap-
parently no desire to know anything
about it. But as soon as they finally
(Which they must) wake up to the real
situation | imagine thew will soon
make short work of the ROthSchilds.
etc.
You will confer a great favor on me
Al
little more light on this subject. Cold
facts are what count and the mere
statement with prooG that the price
of gold is really fixed by legislation in
England. will do more to wake up the
people than shouting gold-bug, usurer,
ETC., ETC., from the house-tOps the
year round.
So please let the people know, through
THE REPRESENTATIVE, Just how this
thing stands, and in what CylOpadia
reference to the matter may be found.
Respectfully yours.
MICHAEL HICKEY.
In reply, we would say that the kind
and value of money has always been
determined by the consent of the peo
pie, expressed in rude ages by custom
and usage, and in more developed con-
ditions of society by the utterances Of
the law making power, whether it be
king, parliament or congress.
All kinds of materials have been
used, in different ages, as money
grain, tobacco, soap, iron, copper.
lead, tin, gold, silver, nails, spikes
shells, deer-skins, 'beads, rings, coon
skins. sheep and oxen. (Encyclop. Brit
tan. Vol. XVI p. 723). In Illinois, in
1887, coon-skins were declared by law
legal tender; and in the territory Of
Franklin, (Which preceded Tennes-
see), the officers Of government were
paid their salaries in SO many deer or
other skins per annum.
Scion, the great law-giver of the
Greeks, and the wise st man of antic-
guilty, when appealed to by his coun-
trymen to give them relief from uni
versal bankruptcy, brought on them
by the usurers, reduced the quantity
OF silver in the Athenian coinage 80
per cent; so that 1873 new dr0chnap
were only equivalent to 100 Of the old
ones, thus slicing off 38 per cent Of
the peoples debts, and saving his
country from universal ruin. Momm-
sen says, in his History OF Rome.
(Vol. LIP. 1879, speaking Of the Roman
people at the time Hannibal threat
ened the life of the republic, -''the
Romans had debased the silver and
copper coin, raised the legal value of
the silver currency more than third,
and issued gold coinage far above
the value of the metal" Rome did
what we did during our civil war
when we put forth the greenbacks.
"The gold aWeos," says the Encyclo-
p9dia Britannica, (Vol. XVI, p. 1869
twas at first 14Oth of pound, but at
the time Of Augustus it was only
l-45th, while under Constantine it had
come to be only lid"
In 1900 Edward l, reduced the
amount of silver in the coins by 1881
per cent; SO that 20 shillings 8 pence
were coined out of the Tower pound
instead of 20 shillings as previously,
Ibid p. 1917. This process was con-
tinued by law until the year 1900, when
81 shllings were coined out of the
pound instead Of 20, as in 1900. The
first English gold coinage was in 1857
in the reign of Henry III. 1t was
after century. In Henry VIII's time
the silver pieces contained, by law,
but 4 on. Of silver to OF. Of base
metal! The gold standard fell, by
law, from $685. gold in 1477 to 9l6.6l
in 1873.
If our friend will look at the Ency-
clopedia Britain. Vol. XVI, p. 4So, he
will see that the gold bullion used in
coinage in the English minis is sup
piled almost entirely by the Bank of
England: and that the Bank is bound,
by lao, to purchase all gold bullion Of
fered for sale. at So. lis. cd. an ounce.
This fixes the price or value of gold
throughout the British Empire, and
in fact throughout the whole world;
for as long as the Bank of England is
compelled by law to pay e3. Us I'D. an
ounce no man in the world will see it
for less. Just as we have always
argued that whenever great nation,
like the United States, "opens its minis
and agrees to receive silver bullion
and give in exchange for it silve
coins at 100 cents on the dollar
that makes silver worth 100
cents on the dollar throughout
the nation and the whole
world for no man would sell it for
less in England or France or Australia
than it would be worth here.
Our friend is right when he calls the
arguments Of the gold-bugs "bosh."
They are all "bosh, "-the sheerest
"bOsh."
The history of the human family,
ever since civilization was established,