New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-08-19
SELECTIONS FROM THE MAIL.
THE PRICE OF GOLD SET BY THE LAW WHICH
DEFINES THE DENOMINATION OF A COIN

THE PRICE OF GOLD SET BY THE LAW WHICH
DEFINES THE DENOMINATION OF COIN.
To the Editor OF The Tribune
Sir: /. Is 1t true that some sixty years ago the
Bank OF England fixed the price OF gold at about bout
$50 b uo shfs ns
q Does the United States Government pay the
price for sold as does !h1 sfx Of
Lewsburg PENN Aug. u. 1895.
l. The Bank of England never did anything Of
the kind When the United States Congress in
1884 enacted that gold dollar should con-
tain 232 grains Of pure gold 1t thereby fixed
the price OF gold in terms Of dollars and cents.
1t is a simple problem in arithmetic: II G2
grains Of gold Is made up into coin called the
dollar, then $50 grains Of gold Zone ounce makes
$50 81. When Congress set this price on gold 1t
did with the deliberate intention Of making
gold the standard by which other values should
be measured. and 1t has remained the standard
ever since except during the years from 1862 to
1878 inclusive when the country was on paper
basis, and the price of gold went as high as
50 So for 23.2 grains. measured by the paper
standard. AS long gold is the standard
measure Of value. an ounce Of gold will sell for
$40 81 The value may change. but the price
cannot, just as the worth Of a yard OF cloth may
change. but Its length cannot. Value. Of course
is purchasing power. and Is measured by the
price Of other commodities. Similarly the Brit
ish Parliament enacted that sovereign should
contain 113 grains Of pure gold II 23.2 grains
Of gold equals 81. then 113 grains Of gold Ia
sovereign equals 81 Sc which is the permanent
price of an English sovereign in terms Of our
money.
II this country should change its standard
measure OF value from gold to silver, which
would be the practical result Of the free coinage
Of silver then. instead Of measuring silver and
all other things in terms OF gold we should
measure gold and all other things In terms Of
silver. measured them in terms of legal
tender notes when were a paper basis.
The silver dollar, which contains 311k grains Of
pure silver. would be the measure. According
to the gold standard. the price of ounce Of
silver is trihe over 81 cents and Of an ounce
Of gold a trlhe over 500 81 According to the
silver standard the price OF an ounce Of silver
would be trife over 81 20 Of 371h grains Of
silver equals 81. then $50 grains-an ounce
equals 81 29) and the price of ounce Of gold
would be nearly $40 A silver dollar Is at pres
ent really worth about 53 cents Under free
silver coinage a gold dollar would be worth
about 81 -. The real value Of neither would
be changed The evils which would result from
a sudden shifting of standards ought to be self
evident
> The Bank Of England does not coin money.
1t receives money deposit, and makes its
profits by lending that money to business men,
just as any other bank does. Money in England
means gold II the Bank finds its funds gold
going out too rapidly in loans it raises its inter-
est charge. If it finds itself accommodating too
much money. it lowers the interest. This is all
that is meant by the Bank Of England regulat-
ing the price of gold. A Bank of England note
is merely a warehouse receipt for gold actually
held in the vaults of the issue department Of
the Bank-(Ed.