Democratic Sentinel, Volume 1, Number 50, Rensselaer, Jasper County, 25 January 1878 — THE UNIT OF VALUE. [ARTICLE]

THE UNIT OF VALUE.

History of the Legal American Dollar from 1771 to 1878—The Gold Dollar Horn In 1849. [From the Essex County (N. J.) Press.] The following is the history of the “ dollar ” in this country from its establishment by the Colonial Government to the present time: The Congress of the Confederation, by act passed Aug. 8, 1776, and ordinance passed Oct. 16, 1786, authorized and established as “ the unit of account ” a silver dollar, to consist of 375.64 grains of pure silver, but none of these coins were ever made. The constitution of the United States was adopted Sept. 17, 1787. On the subject of money it provides as follows: “Congress shall have power to coin money and regulate the value thereof, and of foreign coin;” also, that “no State shall coin money, emit bills of credit, or make anything but gold and silver coins a tender in payment of debts,” thereby plainly reserving this latter right to Congress. Now commences the history of the dollar under the present Government: The act of April 2, 1792, provides for “dollars, or units,’’ which shall contain 371.25 grains of pure, or 416 grains of standard Bilver. It also declares that every fifteen pounds weight of pure silver shall be of equal value in all payments with one pound weight of pure gold ; that the money of account in tfcs

United States shall be expressed in “dollars, or units” and decimals thereof. It creates gold coins, which are enumerated as follows ; Eagles, half eagles and quarter eagles, the value of which it expresses in “dollars or units.” It does not provide for a gold dollar. The act of Feb. 9, 1793, declares that all foreign coins, except Spanish milled dollars, shall cease to be a legal tender. The act of April 10, 1806, establishes rates at which certain foreign gold and silver coins shall pass current as money and be a legal tender for the payment of debts. The act of June 25, 1834, makes the silver dollar of Mexico, Peru, Ohili and Central America a legal tender when weighing 415 grains each. The act of Jan. 18,1837, provides that “The standard, for both gold and silver coins of the United States shall hereafter be such that of 1,000 parts by weight 900 shall be of pure metal, and 100 of alloy, and the alloy of silver coins shall be of copper, and the alloy of the gold coins shall be of copper and silver; provided that the silver do not exceed one-half the alloy.” It then fixes the weight of the silver dollar at 412} grains 900 fine, and subsidiary silver coins in proportion, to wit, a dime 41} grains. It then declares that all the silver coins, from dollars to half-dimes, shall be legal tenders of payment according to their nominal value for any sums whatever, after which it makes the same provision respecting the gold eagle, half-eagle and quarter-eagle, that they shall be a legal tender for all sums. The act of March 3, 1849, provided for the first coinage of two new coins, the double eagle and the gold dollar, both to be a legal tender for all sums, and to be of the respective value of “twenty dollars, or units,” and “one dollar, or unit.” This is the first gold dollar. The act of March 3, 1851, created a new silver coin, to be of the legal-tender value of 3 cents, and to be a legal tender for all sums of 30 cents and under. The act of Feb. 21, 1853, reduces the weight of the subsidiary silver coins from the half dollars down, and limits their legal-tender function to sums not exceeding $5. It also creates a new gold coin, to be of the value of “three dollars, or units.” The act of Feb. 21, 1857, repeals all former acts which made foreign gold or silver coin a legal tender. The act of April 22, 1864, makes the 1-cent coin a legal tender to the amount of 10 cents, and the 2-cent coin for 20 cents. The act of March 3, 1865, provides for a 3-cent piece oi copper and nickel, which shall be legal tender to the amount of 60 cents, and limits the legal-tender function of the 1 and 2-cent pieces to sums not exceeding 4 cents. The act of May 16, 1866, creates a 5cent coin of nickel and copper, and makes it a legal tender to the amount of SI. The act of March 3, 1871, provides “that the Secretary of the Treasury is required to redeem in lawful money all copper, bronze, copper-nickel, and basemetal coinage, of every kind hitherto authorized by law, when presented in sums of not less than S2O. The act of Feb. 12, 1873 (commonly known as the Demonetizing act), provides that "the gold dollar of the United States of twenty Jive and eight tenths grains shall be the unit of value.” It creates the trade dollars of 420 grains weight, 900 flue; and changes the weight of the half dollar, quarter dollar, and dime, by use of the French word “Gram,” making the half dollar 12} grams, which is said to be about 164 grains (Troy) although according to Webster a gram is one-twenty-fourth of of an ounce, is silent about the 4121grain dollar, and the half dime; and reduces the legal-tender function of all silver coins of the United States to sums not exceeding $5. The act of March 3, 1873, declares the legal value of the English pound sterling shall be deemed equal to $4.8665, and all contracts made after the first day of January, 1874, based on an assumed par of exchange with Great Britain of 54 pence to the dollar, or $4.44 4-9 oents to the sovereign or pound sterling, shall be null and void. The act of March 3, 1875, creates a silver coin of 20 cents, containing 5 “ grams,” and makes it a legal tender to the amount of $5. The act of July 13, 1876, especially demonetizes the trade dollar of 420 grains, 900 fine, in the following words; ‘ * That the trade dollar shall not hereafter be a legal tender, and the Secretary of the Treasury is hereby authorized to limit from time to time the coinage to such an amount as he may deem sufficient to meet the export demand for he same. This brings the question of what is and what was a dollar down to the prestenttime.