CHAPTER XXVIII.

TAXATION BY BAD MONEY.

SINCE the two foregoing chapters on our monetary system were completed I have received John Henry Norman's book upon The World's Exchanges, published by Sampson Low, Marston, & Co., London.

In this work simple rules are given for computing the relative value of all the coins of the world by the relative weight in grains of pure gold or pure silver in each coin. That is manifestly the only true method of determining their value, as the proportion of alloy in each coin varies in different countries.

For instance, the gold dollar of the United States, which is the lawful unit of value, weighs twenty-five and eight-tenths grains (25), but it consists of nine parts of pure gold and one part of alloy; the coin is nine-tenths fine, it therefore contains twenty-three and twenty-twohundredths grains (23) of pure gold.

The English pound sterling is a name or definition of the weight of one hundred and thirteen grains and a very small fraction (113.0016) of pure gold. The coin named sovereign, which is the equivalent of the pound when of full weight, consists of 916.667 parts of gold and 83.333 parts of alloy, the coin being seven-eighths fine.

The alloy in the coinage of other countries varies in some cases from either standard, therefore in order to ascertain the relative value of any coin the computation of the value for such comparison must be made by the relative weight of pure metal.

The elements of weight and valuation are inseparable; there is no method of comparing value except by weight,

and no act of any country can change or alter the value of a coin except by adding to or taking off a part of the pure metal.

This computation I have tabulated from Norman's work, and the tables below have been carefully corrected by him. It would be well that the following tables should be officially verified by the officers of the United States Mint, or that corresponding tables should be given if the computations have already been made. I am not aware that any such tables exist."

Gold coins named in Norman's work, with weight of pure gold in each stated in troy grains, and relative value as compared to the gold dollar of the United States:

1 See tables compiled by Mr. E. O. Leech, Director of the Mint, on pages 236 and 237, which have been recently added.

Silver coins named in Norman's work, with weight of pure silver in each stated in troy grains, and relative value as compared to the silver dollar of the United States of 412 grains nine-tenths fine, 371.2514 pure; also their relative value in gold at the present price of silver bullion.

"The above silver equivalents are found by dividing the grams of pure silver in each money of current in the large table of the Guide by 24.0567 grams."-J. H. N.

In making these tables through the aid of Mr. Norman I was not aware that a similar valuation had been made by Mr. Edward O. Leech, Director of the Mint, which is to be found in Johnson's Encyclopædia, edition of 1888, Vol. II., pages 144-146, under the

article “Coinage." From this table compiled by Mr. Leech, condensed tables have been prepared, which are given below, giving the value, as estimated by him, of the principal coins mentioned by Mr. Norman, in which some slight variations may be found from the previous tables, and some further valuations are added. TABLE OF FOREIGN COINS.