The independent., 1903-04-09

only the relative value of say two
commodities, but the value ef every
commodity with respect to money and
the value OF money with respect to
Ieyery commodity. In other words
we get ratio of exchange by means
OF moDey-its quantity.
Elizabeth CA. ID. 1560) raised the
standard" very much, so that the
amount of silver in 20 shillings
tpound-sterling) was equal to s444
IN our old silver dollars of the dad
dles'-l,S4S grains 11-12 fine. Henry
Viii, her father. had lowered the
standard so much that there was
scarcely any silver in the money.
Henrys money therefor was almost
IKE our greenbacks during the civil
war. He never, lowered the weight of
MS coin. because as the silver low.
lered the pewter increased. When he
lcommenced to- debase the currency. as
tLey called it, the coin was 11-12 fine,
out when he got through, it was S-12
pewter and Alp silver. And, yet. we
40 not hear of any extraordinary rise
lof prices, which shows that the value
or money does not always depend up
on its material.
Inc clipped crowns, half-croWns and
shlllings in circulation in the year
1896 were probably the money issued
by Elizabeth in 1860. 1t had, there
lore, been in circulation one hundred
and thlrty-six years; and, consider
ing, that it was hammered money
and not exactly round, it is not sur
prlslng that it had been pared down
70 about half its original weight. 1t
was good money, except that it lacked
the necessary weight. 1t was up to
standard SO far as fineness was con-
Icerned. But 1t was SO much reduced
IN weight, that those who had goods to
sell wanted to know in what money
they were to be paid; and, when told.
that it was in clipped shillings. a
higher price was asked.
With the clipped money in mind
John Locke wrote his treatise, en-
Titled Further Considerations Con.
corning Raising the Value of Money!
tl69o), which was in reply to an
Essay" by William Lowndes, 'for
the amendment of the silver coins"
LoWndes was then secretary of the
treasury, and he wanted to recoir
the clipped money and make a shill-
ing, as they said, out of six pence. In
other words, LoWndes proposed to re-
coin the Old pieces and stamp them as
they had been stamped, without regard
to the amount of silver in them. The
other side, headed by Locke, made all
sorts OF fun out of this They thought |
that the value of money could not be |
raised without putting more silver in |
1t. Locke wanted not only to raise |
the value Of the money, but he wanted |
10 90 1T by increasing the amount of |
silver in it; he could not see, that the
value OF the money could be raised |
by simply diminishing the number of I
the pieces. It is probable that Lown-
des saw it, although he was not able
TO convince the people of his day and
generation. At any rate, Locke was
on the popular side and his views
were adopted; the result of which was
that the government had to buy six
million dollars worth Of silver and
run in debt for it. The government
issued bonds and with them bought
the necessary amount of silver of the
Bank OF England. The bank issued
It's circulating notes for money to the
OF the bonds. In this way
The bank got interest twice, 1) on the !
bonds, (2) on the circulating notes.
fhls is the way the English people
paid for their liberties 1t was, new
great Improvement on
Charles ii.
JNO. S. DE HART.
Jersey City, N. ].