82 BULLETIN OP THE 



ties were in common use. The English denominations of pounds, 

 shillings, and pence were everywhere employed, but with widely 

 varying values. There was one coin alone which was everywhere 

 understood, and which meant the same thing "from Maine to 

 Georgia." The Spanish dollar alone fulfilled the requirement of 

 a coin to which all the people of the States were accustomed. 

 There was, however, some difficulty in determining just what 

 amount of silver this coin contained. Careful weighing showed 

 that pieces of the same date and mint varied considerably in 

 value. It was well known that the quantity of silver had been 

 intentionally reduced within half a century, the dollar having 

 contained in ItoS about 38Y grains of fine silver, and subse- 

 quently 3'74, and then 368 grains, as nearly as could be ascer- 

 tained. In fixing the coinage in 1792 it was after long discussion 

 enacted that there should be struck at the mint silver "dollars or 

 units, each to be of the value of a Spanish milled dollar as the 

 same is now current, and to contain 371-1% grains of pure, or 416 

 grains of standard silver." The fractional coins contained silver 

 in the same proportions to their nominal values. By the same 

 act the quantity of gold in the ten dollar piece was fixed at 247-^ 

 grains fine, and 270 grains standard. Hence the ratio of the 

 quantity of gold in a gold dollar to the quantity of silver in a 

 silver dollar, was about as 1 to 15. The coinage commenced in 

 1793 and continued until the close of the year 1803, and the total 

 number of silver dollars struck was less than 1,500,000. From 

 1804 to 1840 no silver dollars were coined, with the exception of 

 a few proof specimens. The coinage of half dollars, however, 

 was much greater; but when their number relatively to popula- 

 tion is considered, it will still appear very small ; and the same 

 is true of the gold coinage of this period. The reason is not far 

 to seek. Both gold and silver were driven out of circulation by 

 paper money. 



It is impossible to gain a correct idea of the financial policy 

 of our government with respect to coinage and of the behavior of 

 our metallic currency without taking into consideration the salient 

 fa'cts of our history relating to paper money. It must be con- 

 fessed that the American people, since early colonial times, have 

 displayed a most remarkable predilection for bad currency. In 

 every other civilized nation the evils of irredeemable and redun- 

 dant paper have for a centuiy and a half been well understood 

 and fully acknowledged. A resort to it has never been justified 

 except by speculators and communists, unless as a forced and de- 

 plorable alternative in time of war. The nations which have 

 adopted it have felt keenly its evils, and, smarting under them, 

 have struggled to emancipate themselves from them. Americans 

 alone have refused to take warning by bitter experience, and 

 have again and again betaken themselves to this device, some- 

 times with an excuse but more frequently without a shadow of 

 a pretext. It has become a firmly settled national habit. Peo- 



