The times. [volume] (Richmond, Va.) 1890-1903, 1896-07-31

Tho pound sterling was originally 4
pound weight OF silver. Ii was divided
into twenty parts called srillings, ami
each or these was divided into twelve
parts chilled pennies IN penuyWeights.
Thus the penny was originally a silver
coin weighing the 2i0ih part OF a pound.
This was the starting point OF the Eng
lish monetary system. At the time when
the silver pound with IT'S subdivisions
was established by royal decree there was
no gold coinage in England but Il was
introduced in the year l3i5. at which time
another royal decree prescribed that one
pound weight OF coined gold should pass
as the equivalent Of 4 - pounds OF
coined silver Then followed a series OF
debascments OF the coinage which were
effected by successive kings by the act
OF coming a larger number Of sMllnss
out OF the pound Of silver. until. in the
reign OF Elizabeth. the number was sixty
two. at which il remained unchanged
until silver ceased 10 be legai-tendcr
money I'm Great Britain. Although the
silver coinage remained unchanged. tho
gold coinage was frequently altered, ana
these changes were necessary, l-r'dlise
the market value Of the two metals varied.
In the reign of Elizabeth the ratio
was II TO l. but an ounce OF gold was
worth a fraction more than eleven ounces
Of silver in the market. So gold was
melted or exported until there was prac-
ITALY none left IN the country Ac-
cordingy the legal ratio was hXed az
about y 10 l. This WIS close to the
market ratio. but IL did not remain so
The ratio had to De changed soon AFTER
ward 20 13 In 1868 IT was changed TO
l1-2 and I'm 17l7 10 10 II. This ratio was
too high II caused an expectation OF
eilvar 10 such an extent that the country
was left without small change except
coins that had been much Worn or clipped.
A. an sflvcr coins were FUN legal tender
noonle selected the poorest ones In cir
culation T., pay their debts with and sent
the best ones ont Of the country The
OWL became al last intolcrablo. ana PAR
Lament passed n law in ll4 limiting
tho LEGAL tender ~ silver 10 . pounds
This WAS tho first dcmonetizaiion OF
silver in England. although tho coinage
~ that metal was not forbidden until
r-qS arI tho gold standard was not
formally adopted until 1916
In 1--t the standard gold coin or fuE-
land was the guinea n had been madc
current m the rate of u shillings nv
ROYAL PROCLAMATION In 1917. The present
sovereign or pound sterling. derives its
welrht from the guinea Of III contain
ING ono twentv-frst part less gold than
the guinea Weighing 1921 troy grains.
~ tho 0nenoss 81 .9i5. T. O.. eleven parts
~ .,od 20 one part ~ alloy. An ounce
Of gold will produce m mis- rate. pounds
rs f0f2d. This was an existing fact at
the time when The bank act Of lNl' was
naeecd. That IS 10 say. the mound sier-
ing was given weight Of gold that hlN
boon fixed long before and that nobody
thought Of changing. Tho bank act did
nothing but prescribe n little machinery
nv which n holder ~ gold could get tho
use of his money without waiting Tor
n 10 be coined The way provided was
TIM, tho bank should issue its notes 10
him AZ little less than tho mint price
of.2 mounds rs 10 1-2f 70 cover the loss
~ interest during the tsne required 20
produce tho coirT This IS the whole
mystery m fixing the price If gold In
england for all the world-New York
Evening Post.