Evening star., 1916-06-04

er time in exchanging his silver GER
ttfcate for a legal tender note for IS,
and, although such notes are protected
by gold reserve equal to only about
A third of the issue, the department
without hesitation gave him the gold
coin.
The narrator of the tale could not re-
member whether the gold piece ever
reached the mother, or was spent to
celebrate the modern method of the
transmutat tion Of metals.
This sad. sad story. absurd in itself,
was suggestive enough to induce some
Investigations of the nature Of the
moneys which the treasurer handles.
The Constitution imposes upon the fed
eral government the duty OF coming the
money and regulating the national cur
rency.
Gold is the real basis and standard
Of the system. although the Treasury
Department is required by Congress to
speculate in silver TO some extent.
The general monetary plan or scheme
is that all gold offered to the depart
rnent must he coined into money for
the person Offering il upon the pay
ment of a small rnintage charge Zone
fifth Of l per cent?. The practical
working Of this scheme is for the
Treasury to pay cash for the pure gold
at the rate Of $40 67ls3 an ounce upon
its acceptance; but it is the right of
the person to receive the gold coin.
Congress authorizes the treasurer
from time to time TO issue government
bonds, which II has done UP TO the ex-
tent of nearly s970,600.000. Thus, the
gold rninted for individuals is in pay
rnent of the bonds passed back to the
treasurer who, upon the warrant of
proper officials, pays 1t out 10 meet
federal obligations. thus putting the
gold again into general circulation
The amount Of money thus obtained
is not thought large enough for con-
venience In business transactions. and
10 increase its value other forms of
money. such as silver, Treasury notes.
legal tender notes tgreenbacksJ, ma
tional bank notes and federal bank
notes have been authorized
The gold dollar, which contains 2322
grains Of fine goIn. and its multiples.
eagles. etc, are made of the same met
al IN proper proportion. Gold coin is
legal tender at its face value, when IL
is not below the standard Of weight
and tolerance. II worn below xhe
weight by abrasion or otherwise, the
loss is borne by the last individual
tion. and any one to whom 1T is Of
f"red may insist upon weighing the
coin before acceptance.
These coins have been issued TO the
V
is nowhere near that amount in circu-
lation.
The coming value of gold is about
$50 AN ounce; so that. when the ardent
youth breathes to his fair one that shs
Is worth her weight in pure gold he is
telling her that her cash value is about
$32.0OD, with variations in favor of the
Junoesque over the languid lily type.
Since gold is heavy-weiRhing about
twice much as lead--it is inconyen-
lent TO carry in ones pocket or purse
and in making the large payments nee
essary in banking and mercantile
transactions. has been found very in
convenient Hence expedtency has
led. instead of coming the gold. to de-
post II in the Treasury and issue
against il certificates in various de-
nominations. These are merely re-
ceipts for actual gold deposited, and
are redeema BILE in gold con by the
treasurer and all assistant treasurers
They are not legal tender, but are
receivable for all public dues. They