and neither of them should be, more than the other, a subject of traffic. No legal advantage should be given to either metal, in the relative valuation of the two metals in the coins: and our legal proportion should be the true relative value of gold and silver in the United States. The relative value of gold and silver is found in the prices which these metals bear when they purchase each other; and an average of a great number of prices, during a considerable period, is regarded as the relative value of the two metals, for the purpose of adjusting the proportional value of the two species of coins. Statements of the prices of gold in this country are annexed to Mr. Ingham's report; and many others have been obtained. A mere average of all the prices which appear in the statements, would not deserve reliance as a true expression of the relative value of the two metals, for the purpose of an adjustment: and all such statements must be examined with great circumspection and attention to many circumstances, in order to deduce from them satisfactory evidence of the relative value of the two metals in the United States. States. When gold is not wanted for exportation to England, all other demand for it is so small, that it falls in price considerably below the general average of its value; and, excepting the ordinary demand for manufactures, little is bought or sold, until the course of commerce again produces a demand for gold for exportation. The prices of gold are, therefore, governed, to a great extent, by the current rates of exchange on England; gold rising in price as these rates of exchange rise, and falling as they fall. When exchange on England is low, gold is so little in demand, that it evidently falls much below the general relative value which gold bears to silver, either in this country or in Europe. When the rates of exchange on England are low, the prices of gold follow the prices of bills, and not the price of silver: and when the remittances are made partly in bills and partly in gold, the price of gold is still determined by the rates of exchange. When exchange and gold both rise to such rates, that silver is exported to England, the two metals are placed against each other in active use, and gold receives its valuation in respect to silver from the two demands for manufactures and exportation. We have thus different states of prices of gold; one when neither of the precious metals is exported; another when gold is exported, and silver is not exported; and another when both the metals are exported. Our gold coins, the gold coins of other countries, and gold in bullion, are all sold and bought as bullion. The prices paid for our gold coins are expressed very simply, by the premiums on the nominal value of those coins. Gold bullion and foreign gold coins fluctuate somewhat more than our own gold coins; but the prices of all of The relative valuation of the two metals in the coins them are in general nearly the same: and the prices of should be such that neither species of coins will be exgold in all its forms may be considered as expressed by ported in preference to the other. If the two metals are the rates of premium on our gold coins. An examination valued in the coins at such a rate, in comparison with each of these premiums will, therefore, sufficiently compre-other, that one species of coins is exported while the other hend the prices of all gold in this country. remains, the object of an adjustment is not attained. The existing evil for which we seek a remedy, is, that our gold coins being underrated in respect to our silver coins, do not circulate, and are exported. The lower prices of our gold when it is used only in manufactures, do not express the relative value of gold and silver, which will render the coins of both metals equally subject to exportation. An Our gold coins are considered to be one-half of one per average of all the premiums on our gold taken, without centum defective in weight and standard; and this allow-discrimination, is three and seven-eighths per centum: and ance is made in connexion with the premiums, in the calculations which follow. The premiums paid for our gold coins have varied much at different times; the lowest premium having been one per centum, and the highest six and three-fourths per centum. These are the limits of fluctuation, according to the statements; but it is ascertained that in some few instances the premium paid has been seven per centum. we know with certainty that gold is exported to England in preference to silver, and with more profit, until the prices of gold rise to a much higher premium. Our supply of gold from foreign countries is constant; and the domestic supply from the Southern States is now We cannot have the use of gold coins while it is more considerable. The demand for gold in this country is for profitable to export them than to export silver: and it is manufactures and for exportation. A very considerable impossible to retain gold coins in the country, unless their quantity is used in manufactures, and the demand for gold legal value in relation to silver is such, that when one mefor this purpose is very steady; but the quantity used in tal or the other, or both, must be exported, there shall be manufactures is far less than the quantity exported. The no profit in exporting gold rather than silver. chief demand for gold is for exportation; and this demand Our coins of both metals are intended for domestic ciris sometimes great, and at other times it entirely ceases.culation; and the relative valuation of gold and silver Hence result great fluctuations in the prices of gold in which will ensure this object, cannot be found either in the this country. prices of gold, which occur when neither of the two meOne principal reason of these great fluctuations in the tals is exported, or in the prices which prevail when gold prices of gold, is, that we do not use gold as money. Bul- is exported and silver is not exported. The relative lion fluctuates more than coins; but where either of the valuation which will ensure the concurrent circulation of precious metals is used as money, the demand for coins the two species of coins, must be found in the prices which tends strongly to give stability to the value of that metal, the two metals bear when both are exported: and our both in coins and in bullion. If there were a steady inter- average for the purpose of an adjustment must be drawn nal demand for gold coins as money, in addition to the from the prices which prevail when both metals are exdemands for manufactures and for exportation, there would ported, or are in demand for exportation. be far more stability in the prices of gold in this country. The prices of gold exhibited in the statements of current Another cause of these fluctuations exists in fluctua- prices, are prices actually paid when there are sales, and tions of the medium by which gold is purchased. Our estimated rates when there is no sale. These statements money in use is silver and bank notes; far the greater part do not show the number of sales, or the quantity sold at in bank notes; and the amount of bank notes in circula- any time; nor do they discriminate between actual prices tion is sometimes greatly increased, and at other times and estimated values. If the different sales of gold, and greatly reduced. These fluctuations of the amount of the quantities sold at different times, were stated, and if circulating money raise or reduce the prices of gold as they affect all other prices. The great demand for gold is for exportation to Europe, and especially to England; and this demand, much more than any other, governs the prices of gold in the United actual prices were distinguished from estimated values, it would appear that when the premium on our gold is high, large quantities of this metal are sold and purchased; and when the premium is low, the quantity bought and sold is small; and that when there is no sale, the prices stated are estimates founded in most cases upon the lower prices of per centum. The relative value of gold and silver resultgold. When these facts are disregarded, and an equation ing from this rate of premium is 15.912 to 1. is drawn from all the rates of premium stated for a long When all these facts and circumstances are duly estimatperiod, it produces too low a valuation of gold: and reli-ed, the conclusion is, that, for the purpose of an adjustment ance for a just average must be placed upon those prices which shall place the coins of the two metals in such relafor which the greater part of this merchandise is bought tion to each other, that both may circulate in the United and sold, rather than upon those lower prices which are States, our average must be drawn from the premiums on either nominal, or real only when gold is not exported our gold, higher than about four and a half or four and from the United States. three-fourths per centum; and that the average of this At this time, the premium on our gold coins does not higher class of premiums is about five and a half per cenexceed two per centum: and, according to this premium, tum. This is the lowest average which can be deduced the value of gold in respect to silver would be 15.375 to from those prices of gold which prevail in this country, 1. Yet the relative value of gold is now unquestionably when both gold and silver receive their valuations from much higher than this ratio, both in America and Europe. demand for internal use and demand for exportation to Exchange on England is now low: the only demand for Europe. According to this average price of gold, the relagold is for manufactures; and the supply much exceeds the tive value of gold and silver in our coins should be 15.9 to 1. demand for this object. This very low premium, result- In France, the relative value of gold to silver is about ing from low rates of exchange on England, is for the 12,82 to 1. time a real price of gold; but it is certainly not that price which will place the two metals in such relative valuation, that when a demand for exportation shall arrive, either gold or silver may be exported with equal profit. In Great Britain, gold is in value to silver about as 15.86 to 1. The relative value of gold and silver in Spain has been 16 to 1 during the last fifty or sixty years; and, according to recent information, the value of gold in Spain is now little higher than this proportion. a In Portugal, the rise of gold and the decline of silver in relative value were slower and later than in Spain: but the relative value of the two metals in Portugal is now about 16 to 1, and this proportion appears to have prevailed there for many years. Silver is not exported to Europe, until exchange on England rises to about nine and a half per centum of nominal premium: and when exchange on England is at this rate, the premiums on our gold appear to be very seldom less than five per centum, and generally at higher rates. Though, when bills on England are at nine and a half per centum of nominal premium, silver begins to be exported, yet little is then exported; and it appears certain that sil- The relative value of gold and silver in the American ver is not exported equally with gold, until bills on Eng- countries south of the United States is a fact of great imland rise to ten and a half or eleven per centum of nomi-portance in this inquiry. In countries which produce one nal premium. When exchange on England is at ten and a for both of the precious metals in considerable quantities, half per centum of nominal premium, the premiums on the supply from the mines fluctuates; these fluctuations are our gold appear to be very seldom less than five and a half sometimes great; and an extraordinary supply, or an unper centum, and generally at higher rates. An average of the premiums on our gold, of five per centum, and higher rates, not exceeding six and threefourths per centum, is five and seven-eighths per centum. But as the premium has seldom risen to six and threefourths per centum, and most of the sales of gold for exportation have been made for premiums between four and a half and six and a half per centum, the average of the higher premiums may rather be estimated at five and a half per centum. usual failure of either metal, affects the relative value of the two metals. In most of the American countries which contain rich mines of these metals, the values of gold and silver have been, during many years, disturbed by war, civil commotions, and arbitrary regulations, concerning the mines and commerce in these metals. These circumstances render it difficult to obtain exact information concerning the relative value of the two metals in those countries; but though this relative value cannot be ascertained with accuracy, it may still be discovered, so far as to leave little uncertainty. The table E, subjoined to Mr. Gallatin's letter, is a statement of the rates of exchange on England, and the preFrom the information which can be obtained, it appears miums on our gold coins, for each month of a period of that the value of gold in relation to silver is about 16 to 1 four years and a half, commencing with January, 1825, in all the American countries south of the United States. and ending with June, 1829. Mr. Gallatin states that the This relative value seems to have prevailed in those parts average premium on our gold coins for the whole of that period has been about five and one-sixth per centum on their nominal value; and he estimates the ratio of gold to silver, deduced from this rate of premium, to be 15.82 to 1. If we select any particular period for an average of premiums, the period stated in the table E, being recent and of considerable length, is very proper for that purpose; but, during other considerable periods, the premiums on our gold and the rates of exchange on England have been much lower than they were from January, 1825, to June, 1829. Whether we take the premiums of one period or those of another, the relative value of gold and silver which will secure the circulation of both metals in coins, must be found in the premiums which prevail when both silver and gold are exported. of America which were formerly Spanish, and especially in Mexico and Peru, during the last forty or fifty years. In Brazil, gold was, for a long time, somewhat less valuable; but, during the last ten years, the relative value of the two metals in Brazil has also been about 16 to 1. In the West Indies, the two metals fluctuate much, in respect to each other; but the ratio of 16 to 1 seems to be the average of relative value. The relative value of gold and silver in this country must depend principally upon their relative value in the countries from which we receive these metals, and their relative value in the countries to which we send them; and their relative value here must be determined as much by the prices for which we buy gold and silver, as by the prices for which we sell these metals. When we deduce the relative value of gold and silver in this country To avoid the inaccuracy which may exist in compiled from relative values existing in other countries, we must statements and estimated rates, a great number of prices resort as well to the countries from which these metals are on actual sales of gold in the city of New York have been imported, as to the countries to which they are exported; obtained; and many of these sales took place during the and our conclusion must be drawn from both sources. period from the first day of January, 1825, to the last day In the ordinary course of foreign commerce, our supof June, 1829. An average of all the premiums on our gold paid on these actual sales during that period is 5.58 ply of gold and silver is received chiefly from the American countries south of the United States. More than one-third of the whole is now received from Mexico. We export gold and silver to Great Britain, silver to France, some silver to China and the south of Asia, and some gold and silver to other countries. Our exports of silver to China were formerly great, and are now small. During the year ending on the 30th day of September, 1828, the amount of our exports of silver to India and China was less than one million seven hundred thousand dollars; and for the year ending on the 30th day of September, 1829, our exports of silver to the same countries did not amount to one million three hundred and fifty thousand dollars. Far the greater part of all the gold and silver exported from this country is sent to Europe. be necessary for a remittance to a foreign country, is less in the case of gold than in the case of silver; and where all other circumstances are equal, this reason alone produces the exportation of gold rather than silver. When the relative value of the two species of coins ac cords exactly with the relative market value of the two metals, gold coins are exported in preference to silver coins; the risk and expense of exportation being greater in the case of silver than in the case of gold. When gold and silver sent to Europe, and especially to England, have arrived, gold is in general converted into the money of the country, or available funds, somewhat sooner than silver; and gold is, for this reason, a better re mittance. If we take the relative value of gold and silver in the Gold is rising in value, in relation to silver. During the American countries from which we receive these metals last three hundred years, gold has, with some temporary to be 16 to 1, and the average of the relative value of the exceptions, been gradually advancing in value: during the two metals in all Europe to be 15.85 to 1, the medium be- last twenty years, the enhancement of gold in respect to tween these valuations is 15.925 to 1; and this ratio coin- silver has been quite as great as it had ever before been cides very nearly with the proportion deduced from those during any equal period; and gold still continues to rise. actual prices which prevail in this country, when both sil- The immense power of machinery which has been brought ver and gold are exported to Europe. into use in our own time, is fully applicable, and is now The Government of the Netherlands has recently ad-applied, to mires of silver; and the quantity of silver exjusted the relative value of the two metals in the coins of tracted from the earth has, from this cause, been already that country, and has established the proportion between greatly increased. The quantity of gold obtained from gold and silver at 15.875 to 1; but the details which may the earth has not been much increased by any recent imattend this regulation, in respect to charges for coinage or provement of art. The present progress of change cerother particulars, are not known. tainly is, to raise gold and depreciate silver, in respect to each other; and it is highly probable that gold will conti nue to rise, and silver to fall, in the future course of their relative value. By the regulations of Spain, the proportional value of gold and silver at the mint is 16 to 1, and has been so since the year 1779. There is, probably, a seignorage on the coinage of these metals at the mint: but the Spanish regulations in this respect are not accurately known. It is certain that in Spain the coins of the two metals circulate together; that silver is much more abundant than gold; and that the gold coins usually bear a small premium over the coins of silver. The regulation concerning the relative value of the two metals in the coins, established by Spain in 1779, was at the same time extended to all the mints in Spanish America; and since that time gold and silver have been coined by all the mints under the power of Spain, in conformity to that regulation. Since the American countries, formerly Spanish, and now independent, have established their own mints, they have observed the same regulation; and their coinage of the two metals is according to the value of 16 to 1. The proportion between gold and silver in the Portuguese coins of the two metals is 16 to 1, and has been so since the year 1820. In Portugal, the coins of both metals circulate together; but much the greater part of the circulating coins is silver. In Brazil, the proportional value of gold and silver at the mint is 16 to 1. If our gold coins should circulate to any considerable extent, the demand for gold for coinage would in some de gree enhance the value of that metal in relation to silver in this country. Gold is, more than silver, banished from use by paper money: and our gold coins, in order to circulate, must be able to contend not only with the demand for gold to be sent abroad, but also with the expelling influence of paper money at home. If we should underrate our gold coins, they will have no general circulation. They will be used in manufac tures, or will flow through the established channels of commerce as they now flow, almost directly from the mint in Philadelphia to Europe. If we should slightly overrate gold, we shall secure the use of gold coins; and we may lose some silver, but the loss of our silver coins even then would not follow to an inconvenient extent. Almost all our silver coins are half dollars and the minor parts of the dollar. These coins are indispensable in their proper sphere of circulation: their place cannot be filled either by gold or bank notes; and these coins are not often exported. We have a steady supply of silver in bullion; and the mint is now able to coin any necessary or desirable quantity of either or both of the precious metals. An adjustment of the relative value of the two species of coins with as much accuracy as may be practicable, must bring some gold coins into circulation; and the gold brought into currency may in some degree displace the silver coins; but it will, in a much greater degree, take the place of bank notes. Thus, according to all the information which can be obtained, a pound of gold is now worth sixteen pounds of silver in all America south of the United States, and in Spain and Portugal: and, in all these countries, this relative value has been adopted as the proportional value of the two metals in the coins. Though, in some of these countries, this proportion may be varied in effect, by charges on coinage; and, in some of them, the coins deviate from The general course of our exchanges with Europe is this proportion, in the weight or fineness of the coins of against us; and when remittances cannot be advantageousone or the other metal; yet the Governments of all these ly made by bills, gold is sent to Europe, and especially to countries have, evidently, considered the relative value of gold and silver to be 16 to 1: and the concurrent circulation of the coins of the two metals in these countries has well justified that opinion. So far as the relative value of gold and silver in this country is uncertain, there are reasons of great weight, which should induce us to assign a high valuation to gold in relation to silver. The labor of counting or weighing the coins which may Great Britain, so long as gold is not evidently too dear in this country, in comparison with silver. For this purpose, gold, other circumstances being equal, is much preferred to silver; and gold rises to its highest value in relation to silver, before silver is exported. This established current of commerce, in which gold is a customary and favorite remittance, tends to maintain this metal at a high value, in relation to silver. Still, this current is not constant; and when gold is not in demand for exportation, its price in silver falls. But in order that both gold and silver should ing the ratio proper to be established in our coins, should circulate as money, it is necessary that demands for ex-not deter us from an amendment of the existing proporportation should fall upon both metals; that wher. a de- tion. The difficulty of ascertaining the true relation of mand for exportation occurs, it should in general be as value between gold and silver in this country, which now profitable to export one of them as the other; and the re-exists, will continue to exist until we shall use both gold lative valuation which will ensure this object, is that which and silver as money; and if a new adjustment should not exists when both metals are or may be exported with be entirely correct, it will, by its operation, at least, lay a equal profit. foundation for a more accurate valuation. The opinions which have been expressed by others, the opinions now submitted, and the facts and reasons by which all the dif ferent opinions are supported, are now before the Senate; and, from these materials, the proportion which shall be deemed most eligible, may be selected. These considerations are submitted, not to recommend any deviation whatever from the true relative value of the two metals in this country, so far as that value is an ascertained fact; but to show, that so far as the relative value of gold and silver is uncertain, we may safely assign a high valuation to gold, within the limits of that uncertainty. SILVER COINS. A bill is submitted, which, leaving the silver coins unThe ratio of sixteen to one is recommended by some altered, proposes that our gold coins shall contain the quanconsiderations which deserve attention. Though Mr. Ing-tities of metal which result from the relative valuation of ham proposes a lower valuation of gold, he is of opinion 15.9 to 1. The weight of an eagle, according to this relathat the ratio of sixteen to one is necessary to render gold tive valuation, will be 233 26-53 grains of pure gold, and and silver equally attainable in the United States. Mr. 254 38-53 grains of standard gold: and a table is subjoined White is also of opinion that no valuation of gold, less in to this report, by which the weights of an eagle resulting respect to silver than sixteen to one, would effectually re- from various other proportions are exhibited. tain our gold coins in use. Spain, Portugal, and all the American countries which have mints, excepting these United States, have established the proportion of sixteen to one as the basis of their coinage; and if we should adopt the same proportion, one uniform rule would prevail in all the independent countries in America. Much more of the two metals is now coined, upon the basis that gold is in value to silver as sixteen to one, than according to any other proportion. If it is expedient to conform our ratio to the existing proportion of any other country, it must be expedient to adopt that proportion which prevails most widely, and the ratio of sixteen to one is now far the most extensive example. A rule so extensive is entitled to respect; but the practical operation of the rule is much more instructive; since it shows that this relative valuation of the two metals secures their concurrent circulation in coins in a very large part of the world. HOUSE OF REPRESENTATIVES, FEBRUARY 22, 1831. Mr. WHITE, of New York, from the select committee to whom was referred a resolution of this House, of the 23d December, 1830, directing them "to inquire into the expediency of providing by law that dollars of the new American Governments, and five franc pieces, shall be a legal tender in the payment of all debts and demands; and, also, whether any additional regulations are necessary relative to the recoinage of foreign silver coin at the mint," reported: That the authority "to coin money, regulate the value thereof, and of foreign coin," is one of the powers specially and exclusively granted to Congress by the constitution of the United States; and, in the exercise of this But our adjustment must be founded on the relative va-appendage of sovereignty, various regulations have been lue of gold and silver in our own country; and the ratio of enacted in regard to foreign coins and coinage. sixteen to one is a valuation of gold somewhat too high The constitutional expression clearly justifies the inferin the United States. ence that foreign coins were current money, and that their Upon all the facts before us, the ratio of 15.9 to 1 ap-adjustment and retention in circulation were desired by pears the most eligible. This proportion assigns to gold the people of the United States. A brief consideration of the average of value which gold bears to silver, when both the usages of other States, and a minute inquiry into our metals are in demand, for exportation: and it seems more own practice and present circumstances, will be useful likely than any other ratio to attain and reconcile the ob-guides in the progress towards just conclusions. jects of a proportional valuation. It is accordingly recom- Although national coins are usually and appropriately mended as the relative valuation most proper to be esta- the metallic currency of the commercial world, yet some blished in our coins of the two metals. States have risen to the highest rank in commerce and Various other ratios have been suggested; but any pro-general prosperity without adopting the principle of a portion by which gold shall be estimated less in respect to standard of value exclusively in their own coins. England silver than 15.9 to 1, will, it is believed, be altogether insuf- and France have maintained the exclusive system; but Holficient to ensure the circulation of gold coins in this country. land, Hamburg, Genoa, China, and the United States, Still, it will be better to adopt any of the lower valua-have, more or less, freely received the coins of well tions of gold which have been proposed, than to continue known mints at their intrinsic value. Peculiarity of cirour coinage of this metal according to the existing legal cumstances may have induced or recommended this diverproportion. sity of regulations, but there is not any evidence in the The relative value of gold and silver can never be stat-historical result, that the exclusive system was particularly ed with infallible accuracy; but the entire certainty which beneficial, or that the free reception of foreign coins was is unattainable, is not necessary for the purpose of esta- inconvenient in practice, or prejudicial in its effects. Our blishing a proportional value between the coins of the two own experience corroborates the latter view. metals. A near approach to the relative market value of the France is an imposing instance of great national prostwo metals is sufficient for this practical object. When the perity under a rigid and persevering adherence to its own relative value of gold and silver in any country is exam-coins; still, it is not perceived that the reception of foined with the greatest care, different results are obtained reign coins, at their intrinsic value, with their use restrictby different persons; and no adjustment can ever be made, ed to large commercial transactions, could have operated without encountering this apparent difficulty. In our own otherwise than beneficially. The profit upon money transcase, the difficulty of ascertaining the true proportion is actions depends materially upon its prompt and easy disincreased by great fluctuations in the prices of gold; and bursement; and its being undervalued at the mint, as is it was to be expected that various opinions concerning the case in France, amounts to a tax and restraint upon its the relative value of the two metals in this country should importation, and, to that extent, it diminishes or prejudices appear. The variety of opinions and propositions respect-exchanges. VOL. VII.-S During the progress of Holland to pre-eminence in trade was universally current, from the fact, that, although its and wealth, (and until very recently,) the introduction of value varied in the colonies from 4s. 8d. to 8s. currency foreign coins was uniformly encouraged. Money was each, it was uniformly estimated, in computations of excoined for small domestic purposes, but every description change with England, at 4s. 6d. sterling. The univerof gold and silver coins was received at the bank accord- sality of that estimate is presumptive evidence that the ing to its real value, and there assimilated to the commer- Spanish dollar was the practical currency of the colonies; cial currency, under the general title of "Banco." Ge- and our adherence to a mode of calculation so obviously noa at an early period, and Hamburg to this day, have, erroneous exhibits such pertinacity as will only attach to with great advantage, practised a similar system of mer- old and well-founded habits; but the nature of the esti cantile accommodation, except that the deposites in the mate proves, incontrovertibly, the antiquity of its pracbank of the latter city have always been restricted to sil- tice. Spanish dollars of that value ceased to circulate by ver. It is alleged that the money of commerce in China tale in 1728. From the reign of Philip III of Spain,'until is foreign coins converted into gold and silver ingots of that time, the standard fineness of silver was 11 1-6 dinhieros fine; therefore, the marc of Castile, 3,557 grains, The monetary system of England is comparatively mo- must have yielded 8 dollars, containing 389 4-10 grains; dern, and it is peculiar to that nation. Except the late but the remedy then being (two grains fine) nearly three period of war, their regulations, for more than a century, grains each, the value of dollars, antecedent to that peestablished in practice the principle, now in legal opera- riod, was, likely, from 3864 to 387 grains of fine silver. tion, of a single standard in gold, but a mixed currency. According to the British standard, established in 1601, Bank notes, at one time not less than £20 sterling, after- 444 grains of fine silver being rated at 58. 2d. sterling, terwards £10, and now £5, redeemable, on demand, in 4s. 6d. were represented by 386 7-10 grains, equivalent to gold, are issued and used as the chief circulating medium the average value of the Spanish dollar, as above stated, for discharging commercial or other large obligations. in circulation previous to 1728. certain fineness. But it is contemplated that all minor transactions, retail Sir Isaac Newton's return of assays, made by order of business, wages of labor, &c. should be paid in gold, un- the British Government earlier than 1717, contains this less under the value of forty-two shillings, when it is optional statement: Dollar of Spain, Eng. standard. Grains Dwts. Grains. Value fine Dwts. Grains. sterling silver. ܐ46 17 12 17 10 1-10 386 3-4 17 10 5-9 17 87-10 45 5-6 355 1-2 385 3-4 to use silver coins. Under this arrangement, it is computed that the currency of England is composed of thirty millions of pounds sterling in paper, twenty-two millions of gold, and eight millions of silver; one-half of the entire circulation being metallic. Foreign coins are not a legal tender, but gold, in every shape, is current, at a trivial| discount, (one-sixth of a per cent. at present,) or occasionally at the mint value, coinage being free. Silver is there a commodity, varying in price with the foreign exchanges; a seignorage of six per cent. being exacted at the mint, its coinage becomes a Government business, and And Ricard, in his “Traité General du Commerce," asthe supply is regulated by the amount of effective demand. serts that it was rare to see in the British American proThis limited use of silver rather tends to depress its mar-vinces any English coins, but that the following foreign ket value, the more especially as this metal, which Eng-silver coins were made legal tenders in payment, by an land rejects, is, generally speaking, the practical currency act of Parliament, passed during the reign of Queen Anne, and money of the commercial world. The British nation, in 1706, viz. German rix dollars, Flemish ducatoons, nevertheless, contend, that this inconvenience is amply French crowns, Portuguese crusadoes, and Dutch three compensated by the steady preservation of the value of the guilder pieces, at specified rates: and the variety of the money unit, and the retention of the customary coins per- Spanish dollars is designated thus: manently in circulation. Foreign gold and silver coins were the only description of metallic currency that circulated in these States ante- Which several circumstances fully establish the fact, rior to 1792. In that year, Congress authorized the erec- that the Spanish dollar has been, throughout the entire tion of a mint, regulated the proportions of gold to silver, period of our commercial history, the practical or legal and established a relative value in all foreign coins then money unit, and the chief instrument of exchange. current, according to their intrinsic worth rendering In 1728, the standard purity of silver in the Spanish dolthem concurrent tenders in payments, in conformity with lar was reduced to eleven dinhieros, equal to 383.2 grains, the language of the constitution, which distinctly intimated being a reduction in value of 1 1-2 per cent.; and a royal the necessity and utility of their circulation. edict, issued in 1772, established the regulation which yet Although gold and silver coins have both been used and prevails, of ten dinhieros and three-fourths fine,'equivalent regulated by law, yet it is believed that silver coins alone to three hundred and seventy-four grains and sevenwere legally recognised during our colonial history. What-eighths to each dollar, with but one grain fine for remedy. ever may have been the case in this respect, there can be In 1786, the Congress of the confederation adopted a no doubt but a " 'Spanish dollar" was originally the prac-dollar as the money unit, and fixed its value at 375 64-100 tical money unit; and if obligations have been discharged grains of fine silver, the coins to contain one-twelfth part with gold and with paper, as well as silver, a certain num-of alloy. ber of Spanish dollars have, at all times, constituted, spe- General Hamilton, in his celebrated report upon the cially, or by implication, the basis of exchange and the establishment of the mint in 1791, recognised the Spanish measure of the contract. dollar as the practical standard of the United States; but, from some cause not now susceptible of satisfactory explanation, he does not appear to have ascertained correct Our money of account was originally an ideal unit, called a pound; but it is very evident that the Spanish dollar |