If the Government should pass a law refusing to redeem our silver dollars with gold dollars, our silver dollar would then pass for just what the silver it contains would be worth from day to day. It is now worth 47 cents. In 1902 it was worth 40 cents. In other words, our silver dollar is not its own redeemer at 100 cents any more than the United States Notes or the National Bank Notes are their own redeemers. A silver dollar is a demand or a check calling for a gold dollar. The silver dollar, the United States Note, the National Bank Note all pass at their face value because they are convertible into gold, and are temporarily redeemed by Uncle Sam in gold, while gold is its own redeemer, and a ten dollar gold piece, or any other gold coin, is worth just as much, if hammered into a spike, or melted into a slug, as when it bears the stamp of Uncle Sam, certifying its quality and its quantity.
Mr. Lawyer: Mr. Banker, what are subsidiary coins?
Mr. Banker: All these token coins are properly called subsidiary coins. Let me read to you what Horace White says on that point:
"The word 'subsidiary' is usually applied to coins which constitute the small change of a country, and which are legal tender only for limited amounts. In the United States the silver dollar must be classed as subsidiary also; for, although it is full legal tender, the Government does not coin it for private individuals as it coins gold. It is subsidiary or subordinate to gold coin."
Mr. Laboringman: Uncle Sam, why do you make these token or subsidiary coins?
Uncle Sam: I make token or subsidiary coins out of silver, nickel, and copper just as a matter of convenience to the people, and as a result of custom also.
Mr. Lawyer: I think what Horace White says upon that point is particularly good, and answers your question, Mr. Laboringman, completely. White says:
"If subsidiary silver coins circulate at a value which is largely imaginary, the question may be asked, why not make them of some other metal, or even of paper? There are no reasons except custom and convenience. A coin, not heavier than a half dollar, is more convenient than a piece of paper; it is cleaner, and in the long run is probably cheaper, as it does not require frequent renewal. A cheaper coin might be made out of some other metal, but it is generally best to conform to the habits of the people. Having been always accustomed to a silver subsidiary coinage no good reason is apparent why we should depart from it."
Mr. Merchant: Of course, you must use something besides gold to make the 50, 25, 10 and 1 cent pieces out of, because even a gold dollar would be found to be impracticable on account of its size. It would take a microscope to find a piece of gold worth only 5 cents.
Mr. Laboringman: And it would take a telescope to find a piece of gold worth only 1 cent.