622 APPENDIX. 



COMMERCIAL RATIO OF SILVER TO GOLD. (Continued.) 



* Nine months. 



7. DEMONETIZATION OF SILVER. 



Up to the year 1816, both silver and gold were recognized and coined as full 

 legal tender in all civilized countries; and for many years after the two metals 

 circulated freely together at a ratio between fifteen and sixteen to one. At 

 present the only countries nominally upon a bimetallic basis are the United 

 States and Latin Union and certain countries in which neither metal circulates 

 by reason of an inflated paper currency. All other countries are upon either a 

 gold or silver basis. The United States, although nominally on a bimetallic 

 l)asis, is really upon a gold basis, by reason of the pledge of the United States 

 to maintain its silrer coinage on a par with gold, at the ratio of fifteen and 

 ninety-eight one-hundred ths to one. "Demonetization " of a metal consistB in 

 depriving it of its character as legal tender, except for small sums. Partial 

 demonetization occurs when a metal is refused coinage at the mints for private 



