St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1896-09-25
Written for the CALIFORNIAN

At the close of the revolutionary war,
1888, there was afloat in the country all
sorts of money; notes issued by the
several states and colonies and by the
confederation itself. The first under the
authority of the state or colonial legisla-
tive bodies, and the last by authority Of
the continental congress. All this money
was of uncertain value. The credit of
some states ranked much higher than
that OF Others. Massachusetts as usual
lead and her money was eagerly sought
after by merchants, bankers @and BUSH
ness men. Some notes were worth very
little. Very little silver or gold was seen.
That had long before disappeared from
circulation.
So, too each state had it's own laws
as to what was legal tender for debt.
When the great constitutional conven-
ton met in 1887, one of the greatest
problems that confronted it was this
subject of money. Each state was jeal-
Gus of its rights, and so the convention
was compelled to so frame the money
section that no injustice would be done
the several states. Accordingly, author
ity was given to congress, Art. |, Sect. 8,
"To coin money, regulate the values
thereof and of foreign coins,' etc. Art.
1, Sect. 10, provided that "No state \ n
shall make anything but gold and silver
coin a tender in payment of debts"
Under these provisions of the constitu-
ton no state had authority to "coin
money" for that power was expressly
delegated in congress; nor could any
state make anything but gold or silver a
tender for debt. Congress alone could
fix the value of the coins issued. The
fathers plainly intended that the gold
and silver money of the Union should be OF
uniform value; that the vicious system
of permitting each state to make any
kind of money legal tender for debt, or
to coin any gold or silver, should cease
The constitution did not prohibit any
state from establishing banks within its
borders, nor from issuing paper money
through it's banks. Some of the great
leaders for years maintained and still
urge that it was never the purpose of the
general government to issue paper
money. But of this we shall speak wher
we reach the "greenback."
One of the first acts of congress was
to pass the mint laws, so-calleci, il
April, 1892 The first mint was erected
in Philadelphia, and the first silver money
coined in it was July, 1894. This siIvel
was sent by the bank OF Maryland
$50, us in amount.
To show how the standards hav,
changed we refer to the several laws o
congress.
The gold was to be coined into eagles
$40; half eagles, So, and quarter eagles
$3.50. The eagle under this law OF 179:
was to contain 247 4-5 grains of fin,
gold and the other coins in proportion
The eagle with alloy was to weigh 27(
grains. Coinage was to be free and al
: gold coins were to be legal tender TO
debts public or private. The ratio be
tween gold and silver was fixed at Is tt
l. This ratio was established after ;
, very careful examination of the who'll
subject by Alexander Hamilton ant
: Thomas Jefferson. The law was changed
in 1884 when congress reduced the guam
tity of fine gold in the eagle to %.
! grains, but did not change the quantt
: in the silver dollar. Ratio, 16 to 1. i
1887 slight change was made in tn
law, and the eagle was to contain 232
grains. After gold was discovered i
California, the law added to the forme
4 coins 500 and 81 pieces. In 1878 til
coming of the So pieces was added an
u one-htth of one per cent was charged fo
= coinage. In 1875, July IA, this last COZ
r. dition was repealed, since which the coli
, age of gold at all our mints has bee
i free.
l. In Sept. 1890 congress directed tina
no more So and 81 pieces be coineC
. Now such coins are rarely seen except
collections Today all American gol
7 coins unless reduced below the weigl
fixed by the treasury department are
l. full legal tender.
SILVER.
J. The same act of 1892 authorized Il
Z silver dollar. 1t was to contain 81 Al
:. grains Of fine silver and the ratio to go
! was Is to 1. The weight, with allo
l. was 416 grains. Coinage was to be fir