Richmond daily palladium. [volume] (Richmond, Ind.) 1876-1904, 1899-12-14

ara waS IN 1856. when the Congress OF
the confederation chose as the unit OF
value the Spanish milied dollar con
tsining 1864 grains OF pure silver.
There was then no mint in the United
States and b 'miiled dollar was
never coined In America.
The first coinage law under the Re
public Was enacted April 2. 17S2. and
sought TO establish a double standard
Of gold and silver at a ratio of l 10
Is. Whatever the result of the opera
ton OF the law and the failure Of the
two metals TO maintain the relative
values fixed by statute. nevertheless II
is quite clear that II was the intent and
purpose Of the law-making power TO
provide and legalize a double stand
ard OF value. The subsequent act of
Tune 2s. 1884. changing the ratio from
l 10 Is TO l TO 16 by reducing the
weight Of the eagle from go grains
TO 26S grains WAS In the hope OF main
tanning the double standard by regu-
laring the ratio to conform to the ON
mercial values Of the metals.
Less than three years thereafter.
by the act of January Is 1887. which
changed the ratio from ! TO late l
to 1888 by again modifying the
of metal in the coins. the
SHD[I 10 DlailldAA Liz dOubAS LII
was apparent. The remarkable dis
covery OF gold in California in 1s47
and 1s4s and in Australia in 1851 had a
material influence upon the relative
value of gold and silver. ard
the bullion in the silver coins
in the United States increased
in value beyond the value noted
by their face. This condition
bore fruit In the act of February 81.
1853. which provided for the reduc-
tion of the mount Of metal in the sill
yer half dollar. quarter and dime aa9
prohibited the further coinage Of the
subsidiary silver coins except upon
government h bullion
value of a silver dollar prior to 1858.
and indeed prior to 1873, was the great
proportion of the time in excess of the
face value. and comparatively few
Were coined.
The difference between the bullion
and face value Of silver DIN accounted
for their withdra wal from the chan
nels Of trade as a medium of exchange
and their conversion into commodities
regulated In value by the laws govern
ing trade and commerce. Irrespective
Of the statute making provision for
their circulation Is MONEY at fixed
valuations. The necessity for small
change created the demand for the
han dollars. quarters and dimes.
which remained In circulation because
the bullion was reduced and circulated
at par because of the guarantee Of the
government. BY the provision of the |
law these subdivisions OF the dollar
were paid out at the mint in exchange
for gold coins at par and there has
never been a doubt but that their re-
demption would be equally at par.
The struggle OF the government to
maintain the double standard by law
for nearly sixty years, The
shifting Of the ratio between the two
metals was net by the change of
statute. The universal experience III
business transactions marked the
withdrawal from circulation of the
u~ndervalued DIN
1.-THE debates in Congress just prior
to the passag e of the act of Feb. 81. |
1853. clearly mark the change of sen
tfment against the further effort To
maintain a double standard. II was
claimed upon the o of tha
House that in practice the gold stand |
ard vas In force. and hat 1t was the
clear urpoS of the government 70 a
cept the single gold standard. Will
statute "A made to. this end. IL
operations of the laws of trade gave
recognition to this basis of values. y
effort was made to chang This sent
ment. and for twenty years the ore
ton OF coina- comma aided but fifth
attention hv the American panDlp. tt,
of the goye-nmcnt tsssasR
se r. ; ,ss,7sr sns fcrsn siIne sThcfe pa.
nelts were suspended aud the govern
nent degenerated to a paper basis.
DAWN OF A NEW DAY
THE act Of March. Is. 1858. I
the public credit pledge
government to the payment of il
notes and obligations in coin
This was the dawn OF a new day l.
American finance. and marked tn
'esurrection of government cred
'ronl the abyss into which it ha
fallen. The only coin in circulation
the time of the passage of the act
# March IS was gold. The sub
SEGMENT provision for the redemptio'
If the demand notes and the universal
,olicv Of the government to make re
lemption In fine best coin known at tn
time Of the redemption. demonstrates
,eycnd doubt. that this pledge of tn
government has been faithfully kept
Z was hut a short step. in principle a
we'll as in time. to the provision in the
let OF Iuly IA 1870. To authorize tht
of the national debt whica
the bonds OF that issue redeem
lille in coin at the present standard %
1.-The steps approaching the adopt'o
Il the cold standard became shot an
For FIVE years prior to 1879 n
treStion OF le@9liZing the gold stand
I'd was under di-crSsion in fiuaucia
~ircles. As early as the winter of 1Se
bill was %p,eDared in the Treasur.
containing provision "a
iiscontipuanee of the coinage of thu
dollar. and the adoption of tn
old dollar piHe, at the standard
Teight Of 25.S grains. as the unit of
alue.
O April %. 1870. this bill. as S
49, n introduced. and on Dec. 10
Glowing. was favorably reported
rom the date Of its preparation. in all
I its forms, q throughout its dis
lssions. covering several sessions
he provisions befoce mentioned re
Iainei intact. Not only that but Ties