Evening star., 1937-09-12
Capital Sidelights
BY WILL P. KENNEDY.

The development of the United States
monetary system during the past 161
years and the banking system during
l46 years is interestingly and instruc-
lively told in valuable public document
prepared, after exhaustive research, by
Representative Harry r. Sheppard of
California, in collaboration with South
Trimble, clerk of the House This shows
that within go days after the Declaration
of Independence, September z, 176, the
Continental Congress enacted a law
making silver the unit of value and de-
claring both silver and gold basic money
at the ratio Of 1411 to /. The Congress
of the Confederation, which succeeded
the Continental Congress, changed the
ratio to 15k to l and recognized all for
eign coins of gold and silver as legal
tender money. After we had won the
Revolution and adopted the Constitu-
tion, the Second Congress requested
Alexander Hamilton, then Secretary Of
the Treasury, to draft . financial bill
which would include = provision for
establishment of q mint, Thomas Jeffer-
son concurred with Hamilton that the
unit must stand on both metals" Our
first financial law, passed by the Second
Congress in 1892, made the silver dollar
OF 371A grains the unit OF value and
provided that gold should be coined at
the rate of is to l, which was 24A grains
to the dollar. In the House and Senate
at that time were Z men who signed
the Declaration of Independence. is who
had served in the Continental Congress,
80 who had been members Of the Consti-
tutional Convention. In 1884 and 1887
the ratio was slightly changed, bringing
1t to what is known as 16 to l, the pres
ent ratio OF the relative weights of the
two metals. Then came what is called
"the crime of 1873"-passage OF the bill
sponsored by Pig Iron" Kelley of Penn
sylvania. which demonitized silver, de-
stroying it as primary or basic money.
James G.. Blaine OF Maine was Speaker
and signed the bill, subsequently in the
Senate he engaged in debate on the
measure. In 1879 the Bland-A1lison act
was passed for limited remonitiAng of
silver, which was succeeded by the Sher-
man bill for larger purchase OF silver
4,50O,OOO ounces per month. Then from
1893 to 1884 silver had no further recog-
milton, until President Roosevelt by
proclamation fixed the price of II cents
per ounce for newly minted silver and
purchase OF silver on the open market
The first banking law was passed by
Congress February IS. 1871, and estab-
nshed what was known as the first
United States bank. Five years later
Congress renewed the charter and Presi-
dent Andrew jackson vetoed it. Then
from 1886 until the beginning OF the
Civil War no trace Of bank to usurp
the powers OF Congress could be found"
President Lincoln suspended specie pay
ment, and Congress granted his request
Tor authority to issue Government PROM
1se to pay-currency. So the first paper
money issued by the United States was
authorized July II, 1861-to a total of
10000, 900. By act of February, 1852.
the despised greenbacks were substituted
for the demand notes. A national bank
charter was granted by Congress Febru-
ary IS. 1863. This was superseded by an
act OF June 3, 1854, under which thou
sands Of banks were organized and oper-
ated until In December, 1918, the Fed
eral Reserve banking law was enacted.
y \
Born in q log house on q farm In
Amity Township, Pa, Representative Guy
L. Moser Is direct lineal descendant, in
the eighth generation, of Isaac De Turk,
emigrant pioneer coming to America
with Rev. Joshua Won Kocherthal, first
German Lutheran clergyman emigrating
from the Palatinate in 1700, and taking
title to land on . patent issued by VIII
liam Penn, within miles OF his ances-
tral homestead. He also claims IL an
cestors In the Revolutionary War. Moser
has been farm labOrer painter. paper
hanger, public school teacher, Federal
employee, investment banker, farmer
and Congressman. He spent ~ years
In the classified civil service-l0 as .
railway postal clerk and IL as 4 post
office inspector. with personal knowl-
edge engendered over these years of ex-
perience." Mr.. Moser Is strongly support
ing reorganization OF Government agen-
cies, but he serves notice "of stalwart
opposition to one proposed change rs
recommended improvidently by the preju-
dicially advised and counseled Brownlow
committee"