The Honolulu republican. [volume] (Honolulu, T.H.) 1900-1902, 1900-09-04
nnItIu HISTORY
q UNITED STATES.
Important Document
Issued by Treasury
Department.
COLD DOLLAR TIE INIT Of VALUE.
so-cALLED DOUBLE STANDARD
NEVER WAS EFFEcTIvE
N AMERICA.
Paper Currency When First Issued
and Stains Of Each Kind
Monetary Events in coun-.
try's History.
rc--:-,

try's History.
Especial Correspondence
WASHINGTON. Aug. I6.-The treas
ury department has just issued most
valuable and comprehensive financial
document It is pamphlet that gives
in detail the financial history Of the
government from its foundation. 1t is
similar To the circulars issued in 1896
and 1897, but the present document
presents many facts not heretofore
printed. The pamphlet was prepared
by A. T. Huntington. chief of the divis-
ion of loans and currency of the treas
ury, at the suggestion of Assistant See
Rotary vanderlip.
In this political year the facts con-
tanned will be of widespread interest
and use This treasury document says
that while the law provided for a
double standard for over 100 years. it
has never been effective
Standard of Value
In providing for the coinage of the
precious metals Congress established,
by the Act of April 2. 1892, the standard
of value, consisting of certain gold and
silver coins, at ratio of 10 to that
is to say, the value of an ounce of fine
gold was in effect declared to De equal
to the value Of fifteen ounces Of fine
silver Both gold and silver coins were
declared to be standard.
The ratio Of Is to l was adopted in
pursuance Of Investigations conducted
by Alexander Hamilton, secretary Of
the treasury, who, in his report upon
the subject, said that Is to / was near
approximation to the commercial value
of the two metals. 1t was soon dis
covered, however. that gold at the ratio
of Is to l was undervalued, and silver
became practically the only metallic
money available for use in the United
States. In 1884 the ratio was changed
to 16. 002 to 1. and in 1887 it was chang-
ed to 1888 to 1. That is the present
ratio and is commonly called 16 to 4.
BY this change silver was undervalued
and gold came into use in its place.
By the Act Of February II, 1873, the
coinage of the standard silver dollar
was discontinued and the gold dollar q
25.S grains of standard gold. 900 fine,E
was declared to be the unit Of values
The subsequent restoration Of the coin
age Of silver dollars under the Act a
February %, 1878. was on governmeu3
account and did not restore the silvG
dollar to its former place as standard
OF value.
But while Congress provided for thu
so-called double or bi-metallic standard
such double standard has never been
effective in this country. From 1892 TO
1884 silver was the metal by which all
values were measured, and since 1894
gold has been and still is the sole actual
standard.
Coins and Paper Currency.
There are ten different kinds of
money in circulation in the United
States. namely. gold coins. standard
silver dollars, subsidiary silver. gold
certificates, silver certificates. treasury
notes issued under the Act of July IA,
1880, United States notes (also called
greenbacks and legal tenders). national
bank notes, and nickel and bronze
coins. These forms Of money are all
available as circulation. While they
do not all possess the full legal tender
quality, each kind has such attributes
a. to give 1t currency. The status of
each kind is as follows:
Gold coin is legal tender at its nomi-
nal or face value for all debts, pubic
and private. when not below the stand
ard weight and limit of tolerance pre-
scribed by law, and when below such
standard and limit Of tolerance it is
legal tender in proportion to its weight
I Standard silver dollars are legal ten
der at their nominal or face value in
payment of all debts. public and pri-
vate, without regard to the amount,
except where otherwise expressly stipn-
lated In the contract
/ Subsidiary silver is legal tender for
amounts not exceeding SO in any one
payment
/ Treasury notes Of the Ac. of July Ii.
1880. are legal tender for all debts. pub
he and private. except where otherwise
expressly stipulated in the contract
United States notes are legal tender
eor all debfs. public and private. ex-
capt duties ON imports and interest on
the public debt
Gold certificates, silver certificates
and national bank notes are not legal
tender. but both classes of certificates
are receivable for all public dues ex-
cept duties on imports, and may be
paid out By the government for all SAL
aries and other debts and demands
oviag By the United States to individu-
a1e corporations and associations with
in the United States. except interest On
the public debt and in redemption OF
the national currency. All national
banks are required by Law to receive
the notes II other national hanks at
par.
The minor coins Of nickel and copper
are legal tender to the extent Of Is
cents.
Paper Money.
The flrst paper money ever issued by
the government Of the United States
vas authorised BY the Acts Of July IL
and August 5, 1861. The notes issued
we're called demand notes.. because
they we're payable ON demand at ce--
tain deaiGnats1 sab-treasuries- TAsy
vu6 teu5yo1ae mr. a public dues. and
cAe6cRoenIy va authorised TO refsspe
0on when received: bat the time
within which sncA reissues might be
nAde vas limited 10 December 81. 1854.
The ameunt snthori3ed by these Acts
1 49, "a - - A. Additional insue AZ