The times. [volume] (Richmond, Va.) 1890-1903, 1896-10-24
THE"HIN PEfcE OF GOLD"
Another Explanation of the Way In Which
the Price IL Fixed.

the ITitc ~
Editor Of The Times:
Sir-ln the letter when you lately
printed in explanation OF the way ia
which what is called the mine price OF
gold is fixed there appears 10 be still
a little obscurity in the minds OF some
of your readers. IL is in part my fault
/ will therefore try again.
The bank OF England is bound to taks
all gold that is offered at the price Oh
three pounds. seventeen shillings and nin-
pense when coin Is TO be paid on the spot
(f3. Il. % or at three POUNDS, seventec-
shillings and ten and half pence (E3. l.
10 & l-2) when the owner OF the bullion j.
willing TO wait for it to be coined into
sovereigns.
The mints OF the United States take al
gold bullion brought 10 be coined ane
pay eighteen dollars and sixty cent
OS.cW an ounce for it as soon as it hae
been tested. An ounce IS four hundred
and eighty grains.
In common speech these EXCHANGES OF
gold bullion for coin hX the price OF the
bullion. France and Germany fix tho
price in the same way IN francs and
marks.
Judge Reagan and other advocates of
the free coinage of silver say that By
this course preference Is given TO gold
and they demand equal rights or prlvii-
eyes for silver. Why not? There can be
no objection to the free coinage Of silver
in the same way. If such coinage act j.
not coupled with legal tender act OF
force bill which will compel people to
take cheap silver dollars.
Now comes the need Of definite use
OF words.
ounce is weight standard. An ounce
weight Is divided into four hundred and
eighty grains.
Pound sterling is n weight standard. 4
pound sterling is divided into one hun
bred and thirteen co.'s 10000 grains.
\ shilling is the twentieth part of a
pound and a penny Is the two hundred
and fortieth part OF a pound.
There is no coin named pound sterling
in law. but when the term is used rs
money term it stands for the coin lawful
Unnamed sovereign when that coin is %
full weight.
4 dollar is the name OF a coin anG
is also a weight standard: 1t contains
twenty-five and eight-tenths grains When
this weight is made Of gold nine-tent~.
fine.
In making sovereisns one hundred and
thirteen grains o0l6 1000 OF gold are
'NliAtti4'A Win fll AMY va "tAf'A fhAt' ''f
per so that a sovereign is elcven-twelfths
gold.
In making gold dollars twenty-threc
and twenty-five hundredths (2322) grains
of gold are combined with silver and cop
per so that our gold coins are nine-tenths
fine. Uncoined bullion IS usually embodied
in what are called ingots.
The Transactions which take place a.
the bank OF England therefore consist ia
an exchange OF ingOts Of bullion. each
containing one hundred and thirteen
grains 00l6 10000 OF pure gold or multi
pies thereof by the weight standard Of
a pound sterling for an equal weight OF
pure gold with an alloy added 10 harder
II, embodied in a round disc OF stamped
metal named a sovereign.
The transaction which takes place ~
the United States mint consists in an
exchange Of incots Of pure gold. eace
containing twenty-three and twenty-five
hundrcdths ,23.22l grains Of pure gold o.
multiples thereof for an equal weight o.
pure gold with an alloy added TO harden
n. embodied I'm round discs Of metal by
the weight measure of 4 dollar which arc
named eagles. each Of which weighs tex
dollars and in half eagles and doubl.
eagles.
The weight measures pound sterling
and dollar being also used as monetary
terms. by which prices are defined. great
confusion has arisen so that the idea pre-
walls that in an exchange OF metal b.
weight the price Of the metal Is alse
fixed.
When this IS AMAZED the fallacy be-
comes apparent the definite expression
Of this idea would be i'm this form-'hl
price OF n gold dollar is fixed at a gold
dollar the price of a pound sterling l.
fixed at pound storlng.
The distinction becomes plain when TIA
exchange OF dollars for pounds sterling
IS undertaken. The relative value of each
is determined by the great prOporti0-
Of pure gold embodied in each. The
relative value Is determined by the sim
PIE rule OF three-as tw uty-threc % Joe
grains OF gold are ~ one hundred and
thirteen O0lG 1000 grains OF gold so Is
one dollar 10 four dollars and cighty-siN
cents and a very small fraction usually
disrocarded. Thus the par OF exchange.
so-called. is defined b. rating pound
sterling rs the equivalent Of four dollars
and eight-six cents $3.50.
When the metric system IS adopted th-
greater part of the confusion OF min.
on money questions will be removed. TIL
original conception OF money will then
be restored. namely that the weight Of
uure metal in each coin IS what impart-
IT'S value 10 il and that the only true
function Of legal tender acts is 10 assure
the redemption OF subsidiary coins OF sill
vor. copper. and nickel In the worlds unit
Of value. coin made OF gold.
EDWARD ATKINSON.
Boston. Oct 18th 1896