The Honolulu republican. [volume] (Honolulu, T.H.) 1900-1902, 1900-09-04
nnIcIu HISTORY
F UNITED STATES.
Important Document
Issued by Treasury
Department.
eoiD D0lIil TIE Unit Of VALUE.
so-cALLKD DOUBLE STANDARD
NEVER WAS EFFEcTIvE
N AMERICA.
Paper Currency When First Issued
and Stains Of Each Kind
Monetary Events in coun-.
try's History.
COLD Dollll TIE Unit OF VALUE.

Especial Correspondence
WASHINGTON. Aug. 1s.-The treas
ury department has just issued most
valuable and comprehensive financial
document It Is a 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 Sec
rotary Vanderbilt.
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. il
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 be 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 / was undervalued, and silver
became practically the only metallic
money available for use in the United
States. In 1884 the ratio was ehangad
to 1902 to 1. and in 1887 it was chang
ed to 1888 to 1. That is the presene
/ ratio and is commonly called 16 to u
BY this change silver was undertakes
and gold came into use in its place.
By the Act Of February II. 1873, the
coinage Of the standard silver dollat
was discontinued and the gold dollar 0&
25.S grains of standard gold, 900 tina
was declared to be the unit Of valuH
The subsequent restoration of the coire
age of silver dollars under the Act
February %, 1873. was on governme
account and did not restore the silly
dollar to its former place as stands
OF value.
But while Congress provided for IL
so-called double or bi-metallic stand&k
such double standard has never be-
effective in this country. From 1872 -
1884 silver was the metal by which ~
values were measured, and since 1S14
gold has been and still is the sole actuak
standard. M
Coins and Paper Currency.
There are ten different kinds of
money in circulation in the Units1
States, namely, gold coins. standard
silver dollars, subsidiary silver. gole
certificates, silver certificates. treasury
notes issued under the Act of July IA.
1880, United States notes talso 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.
| 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 stipu-
| lated In the contract.
Subsidiary silver is legal tender for
amounts not exceeding SO in any one
| payment.
L Treasury notes Of the Ac. OF July Il,
1850. are legal tender for all debts. pub
| Ne ana private. except where otherwise
expressly stipulated In the contract
United States notes are legal tender
ar all debts, public and private. ex-
cspt 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
owing By the United States TO individu-
~. corporations and associations with.
IN the United States. except interest ca
the public debt and in redemption Of
the national currency. All national
banks are required by law to receive
the notes q ether national banks n
par.
The minor coins Of nickel and copper
are legal tender to the extent Of q
cents
| Paper Money.
| The Arst paper money ever issued b,
the government Of the United State
was authorised BY the Acts Of July L
and August 5. 1861. The notes issuet
were called demand notes becaus'
| hey we're payable ON demand at Ger
tain dsa1OnAts2 nb-sreasuries Tbs.
Iw96 touofvabae tDr IN public due, an
u&uo1ocn1y vaa authorized to re&ss]
| tAo0 when received; but the tim
within which sncA reissues might b
uAAe vas limited 10 December 81. 1s61
tHAa av>asvnf an4hnriRat1 hv theaA Act