[CHAPTER VII.]
MONEY IN THE UNITED STATES.
Turning from the consideration of money systems in general to the particular case presented in our own country, we find a most curious system—if, indeed, anything bearing so little evidence of rational adaptation to its purpose is entitled to that name.
The unit of the system is the gold dollar, containing 25.8 grains of standard gold, nine-tenths fine, coined in five, ten, and twenty dollar pieces. There is also a silver dollar, containing 412½ grains of standard silver, nine-tenths fine, the ratio between the two being 15.988 grains of silver to one of gold.
The gold is coined free, in any amount presented. The silver coinage has been restricted for many years, and is now entirely stopped. The silver dollar, however, circulates at par with gold, though its bullion value is only about fifty cents measured in gold, which is the real basis of the system.
In addition to the coin, and circulating on a par with it, are a number and variety of issues of paper money.
(1) United States notes (or greenbacks),—secured only by the credit of the government, except that there is held in the Treasury about 30 per cent. of the amount of these notes in gold as a redemption fund.
(2) National bank-notes,—issued nominally by the various national banks of the country, but practically issued by the government; since they are secured by a deposit of government bonds, are guaranteed by the government, and rest as completely on the credit of the government as the greenbacks do, though in a different way.
(3) Silver certificates,—secured by a deposit of silver bullion.
(4) Gold certificates,—secured by a like deposit of gold.
(5) Treasury notes,—secured by deposits of silver.