Lexington gazette. [volume] (Lexington, Va.) 1871-1962, 1899-09-27
DEMOCRATIC TICKET.
MONETARY CATECHISM.

t1e clIlZenS ana the SOVe'nmeuI lna'
creates it.
Isnot the dollar money, except in
the United States'
No, unless some other country by an
act Of law-making powers 50 ordains
o.
Has any country ever done this!
Yes, the United States for nearly a
half century made the coirs Of Spain,
and some other countries, money.
Why was this done?
Because when the law creating our
dollar was enacted, we had no gold or
silver bullion, we hal no mint and we
could not coin dollars.
Why did we allow the coins of other
countries 10 circulate so long?
Because the lawmakers of that day
believed that tie volume of money in
active circulation affected price, and as
we had no silver mines and but little
gold We had t have the coins of other
countries come into the Treasury be-
fore we corld coin our dollsrs,
Why do overnments issue money
In order to insure uniformity in
quality and value.
Does the stamp Of the government
On metal do more than certify to its |
fncness and weight?
When the stamp is on bullion it does
not. When the stamp is affixed on
metal with specified fneness and
weight then it transforms the metal
into money and adds or subtracts from
its value as bullion.
Give an instance where law made
money of less value than the bullion it |
contained.
Our ratio Of value between silver
and gold was made by law to be so
nearly 16 pounds of silver to be the
equal or equivalent of l pound OF gold
that our ratio is said to be 16. to |.
This made the silver in the silver dol
lar. of more value than the gold in a
gold dollar, Hence bankers sold our :
silver coins to other nations. In 1862
the silver bullion or metal in silver
dollar would sell for 8 or 81 per cent v
more than the gold in gold dollar.
Hence the law Ct coinnge made the Il
silver in silver dollar Of loss value
than the metal or bullion OF which it Il
was composed. d
Was our money--our coins of silver Il
and gold--eIer bought and sold as o
Ii
Yes, bonkers when they could make II
TWO per cent. on the dollar by shipping "A
our coined dollars to Europe did so. ~
Did this making our coins into mer- IN
,handise ever interfere with our VOL p
line of currency? CT
Yes, and SO greatly, that Jefferson =,
ordered the coinage of liars made of
ilVer discontinued, in order that our -
liver could be coined into fractional :,
halves, etc. This kept -
'ur money in our own country. "
If the law could make money of less g. g.
-alne than the bullion it contained. ~
an it not make more valuable than the W.
commercial value Of the material used? "
Certainly. For many years the law ~
las made the value of silver dollar y. -,
bout double the commercial value of y
he silver it contains. "
Are there any other instances of the
4 W imparting value to metals where -
sed as money? ~
Yes, the copper or nickel in our cents 8
nd fye-cant pieces is but a traction of
leir lawful value as money.
Whofurnishes this alIoy-the silver
nd the copper that is used to harden d.
lie 1goldis - ;
The government that coins the 1
have coined for other
ountries, and one of the profits of 4
oiqage-to the government is this nee {
ssary adulteration. )
Is there then twenty dollars worth
{ gold in twenty-dollar gold coin? !
No. II there were we would mott )
My lose the cost of coinage, but the 1
ost Of the silver and copper used to I
arden.the geld. There is less than
l9'worth OF gold in twenty-dolIar !
Din. =
Does the Government reports showl )
lch profits as a result of colnagep .
Yes; it IS called seignorage. When =
farmer takes his corn to the mill IN )
re it gro1rj, the miller takes his >
oft flom that corn-this is called 2
IN W