Alma record. (Alma, Mich.) 1878-1928, 1896-02-14
LAW ANDGOLDVALUES
DEMONETiZE 1T AND ITS PRICE
WILL FALL AT ONCE.
In That Respect n IL No Better than sill
ver-StiI the Pritocrsts Claim that
NAV.


in London averaged f3 lis. Gl. an
ounce, while the mint rate was t3 IFS.
10hd. In other words, an ounce OF
gold in the form of coin was worth AZ
pence more than the same gold was be-
fore it was coined. Why? The gold
lite persistently claims that the value of
gold is altogether independent of coin
age. Then what reason was there for
English coin being worth 4l2 pence an
ounce more than plain gold bullion ?
There could be but one reason. The
coin was more desirable than the bull
lion. But why more desirable? There
was just one thing that could be done
/ with coin that could not be done with
uncoined bullion. People could pay
their debts with it, The coin was lie
gal tender" The man who owed an
other a pound sterling could tender a
gold sovereign in full payment and the
creditor was legally bound TO take it,.
But ten tons OF gold bullion at the mar
ket price, OF which We hear so much,
would not be a good tender for the
smallest debt. Therefore a man who
broker for less than its coinage rate in
order to get money, because with money
he could pay his debt or procure any
thing else that he needed.
But it may be asked How was il
that the bullion was worth less than
the coin when coinage was free? For
the simple reason that there was de-
lay in executing the coinage. When a
man deposited gold at the mint. on an
average he had 10 wait about sixty
days for returns. Rather than do this
he took the bullion TO some broker and
suffered a loss of ~ pence on each
ounce in order TO at once get the coin
But in 1914 the English Parliament
passed law compelling the Bank Of
England to receive all gold bullion of
sufficient fneness and pay for it at the
rate of e Us 9d. an ounce. the bank
being allowed margin of 112 pence
per ounce on the mint rate Of E3 lis.
1012d From that day to this there has
never been an ounce of gold bought or
sold in the London market for less than
the price set upon it by the law
Here in America if the depostor of
gold had to wait for his money, the
bullion would be worth less than the
coin, and the difference would be in
proportion 10 the length OF the wait
If instead of waiting sixty days, as
formerly in England, the deposition had
to wait five years TO get his coin. it is
scarcely necessary to say that the diff
ference would be very great. If the
bullion could not be coined at all the
difference would be still greater. But
there is no delay and no charge for
coinage AS soon as the value of a
deposit is ascertained the depositor re-
ceives a draft for the amount, and the
transaction is closed so far as he is
concerned. The coinage is then eXecut-
ed according TO the capacity or convent
ence of the mint.
or course the closing of the Ameri-
can mint TO gold would not destroy to
coinage value elsewhere. The minis OF
other countries remaining open it would
be coined in those countries at the rates
prescribed by law. For example il
would still be coined in England at E3
lis. 101Ad. an ounce. because the law
provides that any person depositing
gold at the royal mint may have il
coined into money at that rate.
If every other country in the world
should prohibit the coinage or use of
gold as money it would still be coined
at E3 Us 10lad. in England under the
existing Jaw. It's nominal or money"
value would be the same. But its value
in exchange would be less II would
not buy SO much. II man could not
use gold as money anywhere except in
England he would be very silly to give
as many bushels of wheat or pounds of
cotton for an ounce of gold as he will
give now when il can be coined and
used in many countries.
So We see that the expressions that
a gold dollar is always worth a dol
lar" or 100 cents" and that gold
bullion is just as good as gold coin
do not touch the essence of the money
question at all. Gold bullion is as
good as gold coin for the simple reason
that the law makes it so-that is. by
operation OF law gold bullion is in
stantly convertible into coin, and with
out expense.
But if there were charge for coin
ing, as above stated a delay in getting
returns. the bullion would not De
worth as much as coin.
We also see that The money value
of gold is entirely matter Of law, be
cause money itself is matter of law.
When we say that an ounce of pure
gold is worth $2067 we simply mean
that On ounce of the metal will cut and
STAMP INTO that amount of money. But
il there were no law on the subject
gold would have no coinage value at
all. because it could not be coined. It's
value. then, would be just what it
would exchange for in wheat, or cot
toL 1r ccrn, or whatever might be
wanted. And this is the fact now. The
vol ,-ol,,, ,f ap,.I If-,e~ &c what IL will