The herald., 1896-10-18
ACKNOWLEDGEMENTS =
!: OUR FINANCIAL HISTORY
Copied from Encyclopedia of Universal
History. by John Clark Ridpath, LII.
d. Vol. w., pages 1867.

1t needs no comment. 1t tells the
story.
"The year 1873 was noted in the f1nan-
cial history of the United States for
the important congressional measure
known as the demonstration of Silver.
When the American Republic was in
stituted in 1883 one of the most import
ant matters imposed on the treasury
was the establishment Of a system of
coinage. At that time there might be
said to be one unit of value in the old
thirteen states. In general, the Brit
ish system had prevailed, and the pound
sterling, with its subdivisions of shil-
lings and pence, was recognized as the
money of account. The revolution had
dissipated coin from the country and
the devices of paper money used in
the epoch of independence were various
and uncertain. BY the first coinage reg
ulations of the United States, the stand
ard unit of value was the American sill
Yer dollar, containing three hundred
and seventy and one-fourth grains of
pure silver. The reason of fixing upon
this particular weight was that the
Spanish dollar, largely circu-
lated at the time in the states, was
three hundred and seventy-one and
one = fourth grains of pure met
al. Since the people were al
ready familiar with this dol
lar and used it largely as a unit of ac-
counting, Mr.. Hamilton wisely adapted
the new national standard to the ex
listing dollar. By such a measure 1t
was practicable to recoin the Spanish
dollar into the new American dollar.
From the date of the adoption of this
standard, in 1892, until 1873, the quanti-
ty of pure metal in the standard unit
had never been changed though the
q Of oil -tnfn cd tn he dal-
lar had several times been altered.
From 1892 to 1S49 this American silver
dollar was the only standard unit of
money and account. In the latter year,
however, the discovery of gold in Cali
fornia led to the establishment and
coinage of gold dollar, and from that
time forth the standard unit of value
existed in both metals. For nearly a
quarter Of century the double unit
prevailed, during which time it may
be said to have been difficult to deter
mine whether, in accounting in the
United States, gold was measured by
the silver standard, or silver by the
at time when, owing to the premium
on gold. and silver both metals were out
of circulation, series of acts were
passed upon by congress bearing upon
the standard of value, whereby the legal
| tender quality Of silver was first abridg-
/ GU dH4 tHcH dUOllSHtu. lucSc eHACt.
ments were completed by the report of
| the coinage committee in 1874, by which
| the silver dollar was finally omitted
from the list of coins to be struck at the
national nints. The general effect Of
these acts was to leave the gold dol
lar of Atwenty-three and twenty one
hundredths grains the single standard
unit of value in the United States.
"In course of time the Interior object
| of this demonetization of silver became
sufficiently apparent. The manipula-
tors of the measure had foreseen that
the national paper currency Of the coun-
l try was destined in few years to coma
] to- pAfwith coin-that is, that specie
Payments must soon be resumed by the
gavernment. Meanwhile, there came
/ the discovery of the inexhaustible sill
ys9 mmes in the western mountains.
Emf3 ss1te long, be abundant and cheap.
! II T6E metal should be retained In the