Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-09-08


are concerned with standards and
price levels and international ex-
changes and imitation. These are
fundamental, certainly. but there is
deep importance attached to the
small change Of a nation. One of the
worlds tallest buildings was built on
S and 10 cent sales. The worlds
largest corporation rests on a Scent
telephone charge, and the worlds
largest passenger transport enterprise
still operates on a scent fare. Prob
ably five billion 1-cent pieces 60 into
slot machines in this country in q
year. Small change is not only eco
nomically important. 1t has a deep
social significance. 1t goes down to
the very roots Of daily life, and the
people show a stubbornness of habit
and prejudice about their small money
that has defeated kings and congresses
for at least 1000 years.
Curious Case in England.
There was a curious instance In
England in the postwar years. Silver
coins in a gold standard country are
| VOAClio, ICoS
bullion value than their currency
value. They could be made of any
material. silver, nickel, copper or zinc.
Our silver dollar Is Of this type,
useless, unwieldly, dishonored coin,
for so years an instrument of fraud
and trickery by the silver interests
in Congress. AS the British pound
went down in value after the war and
the price Of silver went up, the Eng
fish shillings finally reached a point
where they were worth more melted
as bullion than they we're as money.
England faced o national calamity.
They hastily passed a law cutting the
silver In all their coins from eleven
twelfths to just one-half, adding
copper in its place. But the so per
cent Of copper turned the color of the
coin yellowish. And the sturdy
Britishers simply would not have
them. Speaking practically, the
authorities merely got themselves
large kettle of boiling silver, dipped
the silver-copper coins into the kettle.
and gave them a nice but very thin
coat of silver-plated. British trade
was saved.
The history Of our own silver,
nickel and bronze coins is melan-
choly story. From the first coinage
law in 1893 to the silver subsidies Of
1884 1t Is one long, depressing story
of error, neglect and corrupt interest.
In the handling Of this delicate
economic instrument Congress has
made every blunder known to history
and a few that are unique. Con-
gress passed at least half the meas
ures without the least understanding
of their meaning. Contrary to popu-
lar belief, silver has not been the only
agency of corruption. The funda-
mental law of 1884 was passed to
give a profit to Georgia gold miners.
and in Civil War times interests un-
der the leadership Of Joseph Whar-
ton. whose name Is now borne by o
great school Of commerce. made
nickel the instrument Of shameful
loot and corruption.
Shortage Of Small Coins.
Twice in our history our Govern
ment passed laws that were auto
matically certain to drive out all small
change and then calmly stood by while
it disappeared. In the middle Of 1853
the country found itself with prac-
tically no coins below the dollar. This
sounds like dull and ancient history.
Actually such a situation means social
chaos. When q man with IS gold
piece is thrown of a bus by the
driver and cannot get to work, when
barber shops and restaurants close up,
when retail business collapses. when
railroads offer so per cent reductions
to those who bring exact change,
when saloonists give due-bills in
change until the volume Of outstand-
ing bills represents small fortune
and then skip out, the significance OF
small change becomes very real. The
country was saved In this instance by
an accident. The treasury had
created earlier a tiny little scent
4 token Of silver and copper, to enable
people to buy the new Scent postage
stamps. These were available, and In
1853 the small change Of the country
was a little silver piece about one
third the weight Of our copper cent.
When q purchaser presented a IS
gold piece, the store-keeper scooped
up a ladleful and counted out about
$50 of them.
This was O small affair compared
with the debacle of 1852 Congress
issued greenbacks which promptly
went down in value, and the silver
coins went steadily toward the dis
appearance point, the Government
doing. nothing whatever. In July,
1862, all the silver in the country
simply vanished, and pandemonium
reigned. For a few days the people
used cent pieces, wrapping them up
in rolls of 10 or Is and taking them to
restaurants and theaters and stores.
Lord and Taylor's received so many
that the floor of their storage room
collapsed. And then the cents dis
appeared. Ordinary life went to
pieces. As Horace Greeley expressed
it in the New York Tribune, tens of
thousands during the past week have
been compelled to walk to and from
their places Of business.
Almost at once the country was
flooded with every imaginable sub
stitute. The first was postage stamps.
The people stormed the post offices.
A little later, when this wretched cur
cency was q wad Of sticky paper. they
stormed them again to have them re-
deemed. When the offices refused
there were riots. Then the country
turned to making its own money,
privately. Horace Greeley again
described 1t: 1.-THE saloon-keeper, the
cigar dealer and the barber have
turned banker" Banks, hotels, sa-
looms and stores the country over
began to issue paper notes and later
on private copper cents. The most
common coin in New York City in
1853 was q copper cent bearing the
long whiskered visage Of Bowery sa-
loonist. And finally cities, townships
and counties began to issue their own
currency. Albany. Jersey City and