The herald., 1897-12-24
A Bit Of silver Historv

A Bit Of Silver History
To the Editor of the Los Angeles Her.
aid: In your editorial Of last Saturday
in commenting on Secretary Cages ex-
PLANTATION of his currency reform, you
speak of the national banking interest
securing control of the currency, and
further debasing silver as a debt-paying
metal; and from this I am led to ask
few questions for information:
First-When was silver debt-paying
metal?
Seconds 1t not fact that from 1850
to December, 1861, no one paid his debts
in silver. but paid them in gold?
Thirds it not fact that the amount
Of pure silver in silver dollars, BIN
grains, was worth in gold from $1.O1S IN
1850 to $1.O52 In 1859 and $1.039 in 1861?
Fourth--Why was it the secretary of
the treasury in 1861 (see page 81 ct all
was called to make the following state
ment in relation to the silver dollar, the
only silver legal tender at that time
extant: The reasons which seem to
have influenced congress in retaining the
silver dollar at it's present anomalous
term is that it preserves to us the old
dollar known from the beginning OF our
currency, and often stipulated for in
deeds Of rent charge, mortgages ana
other money securities. This may be
successfully replied to, that such pay
ments are now always made in gold be-
cause 1t is the legal and usual tender for
all sums exceeding five dollars and be-
cause silver dollars are no longer to be
had or are very scarce. The silver dollar
as it now is has three values:
First-It is by law dollar, simply of
100 units or cents.
Secondly the mint price Of silver it
Is $1.0398, which is the commercial
value compared with gold.
Third-It has an intrinsic or mint
value which is determined by it's rela-
ton to the silver contained in the half
dollar, which makes it SLOT 27-64, for
which reason single pieces are paid out
at the mint at the even price Of $1.OS.
Two half dollars contained 345.6 grains
pure silver-$1.00.
One silver dollar contained 371.25 grains
pure silver-$1.07 27-64.
1 have confined my questions to the
llIilC WIlCu SPCSiC PoyhiC NSAS AiAoNS
all over the land because from Decem-
ber, 1861, to 1878, outside of California,
no one thought Of paying his debts in
either gold or silver. INQUIRER.
Los Angeles, Dec. 21.
q. When was silver debt-paying metal?
From the enactment of the law of
1892 up to the enactment of the law of
1873, section 9 of the first-named law
provided for the minting of gold, silver
and copper coins; it stipulated the eagle,
half eagle, quarter eagle, the dollar or
unit" and the subsidiary coins. The
act of 1873 provided:
That the gold coins of the United States
shall be a one dollar piece, which, at the
standard weight of 25.S grains. shall be the
unit of value.
Silver dollars were therefore a legal
tender for all debts, public and private,
for eighty-one years.
q Is it not a fact that from 1850 to 1861
no one paid his debts in silver, but paid
them in gold?
1t is probably true, as stated, that be-
tween the periods named the silver dol
lar, being undervalued in the coinage,
was not in general circulation. The
coinage value was approximately 16 Of
silver to of gold, whereas the CONNER
cia1 ratio of silver to gold was as here
stated: 1850, 1870; 1860, 1929; 1861, 1880.
The statistics covering a period of 500
years show that gold t1uctuated in value
more frequently and widely than silver,
and twice at least since the adoption of
the act of 1892 it became necessary to
correct the weight of the coined money,
the change in both instances being made
in the gold dollar.
The above as well answers the fourth
interrogatory Of our correspondent.
The reasons which animated Secretary
Gage in making the statement credited
to him by our correspondent would
seem to be abundantly answered in the
text Of his remarks. If we mistake not,
the question of changing our coinage
laws was then under consideration. Sill
yer, in it's s.relation to gold, had appreci-
ated to about $1.03. For the whole Pc
riod stated, If not for longer time,
the silver dollar sole unit of value, dis
appeared from circulation, for the rea-
son stated. Has our correspondent re-
Gently seen any considerable numbers Of
the gold dollars, the present unit Of
value, in circulation ?-Ed.)