The herald., 1896-08-11
QUESTIONS ANSWERED
Judge UtIey Responds to the CatechIsm OF
correspondent

Correspondent
Editor Herald: The following ques-
tions were submitted in yesterdays
Herald, with the request that should
! answer them:
Ques-Is silver limited at all as to its
legal-tender function?
Ans.-The silver dollar Is legal ten
der for any sum whatever, unless otn-
erwise specifically provided in the con-
tract. If the contract provides for the
payment of gold coin, then gold com
must, if insisted on be paid. subsidiary
silver coins, i.e., the half-dollar, quarter
dollar, dime and half-dime, are legal
tender to the amount of 50 only.
Ques.-Are two silver half-dollars or
exactly the same weight as one silver
dollar?
Ans-No A silver dollar contains
412k grains of standard silver (standard
silver is nine-tenths pure silver and one
tenth alloy, and a half-dollar contains
1872 grains of standard silver. TWO silver
half-dollars contain 3S4 grains of stan
dard silver which is 2S5 grains less than
the amount contained in silver dollar.
Ques-Are national bank notes a le-
gal tender?
Ans.-No.
Ques-Are greenbacks legal tender?
Ans.-Yes, except for principal ana IN
terest on outstanding government bonds.
Ques.-What is meant by demand
notes?
Ans.-The treasury notes issued under
the act of July Il, 1861. and the act Of
February II, 1862, We're designated as
demand notes. They were payable on
demand on presentation at the United
States treasury or at the sub-treasuries
in Philadelphia, New York and Boston.
They were not specifically payable in
gold. nor even in coin, but were simply
payable on demand" but as at the time
of their issue gold and silver were the
only legal -tender money in the United
States, they would probably be con-
strued to be payable in coin. They were
made receivable for duties on imports
under the provisions of the acts under
which they were issued, but were not
made legal tender. The banks discrim-
mated against them and they went 10 a
discount On March II, 1862, by an act
of congress. they We're made legal ten
der and lawful money, after which they
Immediately became the equal of gold
and remained a par in gold until they
We're called in and Cancelled by the gov
ernment
Ques.-Is there law of congress Gre
atng the $100. 900 900 gold reserve?
Ans.-No. The resumption act of jan
uary IA, 1875. provides that Ito enable the
secretary of the treasury to prepare and
provide for the redemption in this act
authorized or required, he is authorized
to use any surplus revenues, from time
to time in the treasury not otherwise
appropriated, and to issue, sell and dis
pose of. at not less than par in coin,
either of the descriptions of bonds of the
United States described in the act of
congress of July IA, 1870" The secretary
of the treasury concluded that, in order
to be prepared to redeem the greenbacks
that might be presented for redemption.
it would be necessary to have on hand
S100 900 in gold and he proceeded, un-
der the authority given him by the
above statute to sell 800, 900 of bonds
for 100000, 900 in gold. which has since
been known as the s100, 100000 gold re-
serve.
Ques.-Are any of the United States
| bonds made payable in gold?
Ans.-No. They are payable in coin,
| which includes both gold and silver.
Ques.-Is the interest on such bonds
| payable in gold?
Ans.-No. Principal and interest are
! payable in coin, which Includes both gold
s.nd silver.
Ques.-Is import duty payable in gold
Ans.-No. 1t is payable in gold, silver,
demand notes, and since December 10,
1878, by order of the secretary of the
treasury, import duties may be paid in
greenbacks.
Ques:-What was the weight Of the
trade dollar, and how many were coined,
and why did they not circulate?
Ans.-A trade dollar weighed 42O
grains; 35965,924 of them We're coined.
| They did circulate from 1873 to 1876. In
| 1876 they We're demonetized by act of
congress. i.e., their legal-tender prop
| erty was taken from them, and they
i then Immediately fell to their bullion
| value and passed out of circulation.
Ques.-Has the weight of the gold dol
| lar been changed by law, and at what
date?
Ans.-Yes. The act Of 1892 provided
that the amount of pure gold in a dollar
| should be 24.7 grains; in June, 1894 this
was reduced to 232. One and one-haif
| grains of gold were taken out of the gold
| dollar. In 1887 o-one-hundredths of a
| grain were added to the gold dollar. So
| that now the exact weight of pure gold
In a gold dollar is 90 90 grains.
A. j. UTLEY,