8. Financial panics. F. W. Taussig, Principles of Economics, Vol. I, pp. 400-426.
9. The high cost of living. J. H. Hammond and J. W. Jenks, Great American Issues, pp. 143-159.
10. Economic crises. T. N. Carver, Principles of National Economy, pp. 427-442.
Questions
1. Are the qualities of money given in this book in the order of their importance? If not, rearrange them so. Can you think of any other essential qualities? What objections would there be to the use of platinum as money? Pearls? Porcelain?
2. Gold dollars are not coined in the United States at all. How is it, then, that the gold dollar can be the legal standard of value?
3. Name all the different kinds of money that are circulated in the United States (including paper money) and tell when the issue of each kind was first authorized. Examine the money you have with you. Tell where each coin was minted. In the case of bills what is the security behind each? Can you detect counterfeit bills? How?
4. Why was the action of Congress in demonetizing silver called “the crime of 1873”?
5. At the Democratic National Convention of 1890 Mr. Bryan said: “You shall not crucify mankind upon a cross of gold.” Explain in full what he meant. Was there any good reason for believing that the free coinage of silver at a ratio of sixteen to one would (a) increase prices; (b) give relief to the debtor class; (c) benefit the wage earner?
6. Explain the process by which, under a dual system of coinage, the metal which is over-valued at the mint will drive the other out of circulation. Is it correct to say that “cheap money drives out dear money”?