ing to Robert Morris, "in Georgia, five shillings; North Carolina and New York, eight shillings; in Virginia and the four Eastern States, six shillings; in all the other States except South Carolina, seven shillings and six pence, and in South Carolina, thirtytwo shillings and six pence."

In computations of exchange with England the Spanish dollar was uniformly estimated at four shillings six pence—or fifty-four pence,—sterling.

The rate of 4s. 6d. sterling was based on assays made at the London mint of pieces in circulation previous to 1717, according to which these dollars contained 386 grains fine silver.

According to the British standard, established in 1601, 444 grains of fine silver were rated at 5s. 2d. sterling, and, therefore, 4s. 6d. was represented by 3861% grains.

In 1728 the fine silver in the Spanish dollar was reduced by law to 383 grains and in 1772 to 3743

grains.

In Congress, July 6, 1785, the dollar was established as the ideal money unit of the United States of America. On the 8th of August, 1786, it was enacted that the standard for coinage of gold and of silver should be II parts fine and one part alloy, and the money unit or dollar should contain 3751% grains fine silver.

The divisions of the money of account were, by the same enactment, denominated dollars, dimes, cents, and mills, and the following coins authorized:

The intention, in fixing the quantity of fine silver in the monetary unit, was to conform to the estimated average content of fine silver in the Spanish dollar then in circulation in this country.

89

The ratio of gold and silver in the coins thus authorized was I to 15.253. The market relation of the two metals was at that time I to 14100. In the ratio prescribed for the coinage, silver was undervalued to the extent of nearly 21⁄2 per cent.

The object of this undervaluation of silver cannot now be ascertained.

Silver, as before stated, was then, as it had been for a long period before, the principal money of commerce, and supplies of that metal were much more likely to be received than gold.

Gold and silver were, at that time, undiscovered in the territory of the United States. The reliance for

the needed supply was upon other countries, in exchange for commodities.

The ratio, or relative valuation, established was not calculated to insure the concurrent circulation of gold and silver coins, yet this, it appears, was contemplated.

Comparatively nothing was accomplished, during the brief life of the Confederation, in carrying into effect the resolutions of Congress in respect to a mint or coinage.

The accounts of Robert Morris, Financier of the Confederation, show that he expended about two thousand dollars for the establishment of "The Mint of North America," and that his efforts ended with the manufacture of three or four dies for the copper

* The origin of the United States Treasury seal is unknown. The translation of the Latin legend is, "Seal of the Treasury of North America."

Robert Morris used the term, "Mint of North America," and the charter of the "Bank of North America" emanated from him.

In the proceedings of public assemblies, as well as in newspapers and letters of the period of the Confederation, the words "Continental Army," ," "Continental Congress,""Continental Money," appear to have been uniformly used in making reference to public affairs. As the words used by Mr. Morris in the charter of the National Bank granted by the Congress of the Confederation, and those designating the mint authorized by the same authority, are identical with those in the legend of the Treasury seal, it is probable that the latter was prepared under his direction whilst occupying the office of Financier of the Confederation.

coinage. While a number of pieces were struck, no regular issue of coin took place.

The Government of the Confederation sought to withdraw the depreciated, almost worthless, paper currency, and establish a metallic money system, but the difficulties in the way, arising from the impoverished condition of the country, and deranged state of its industries, rendered this impossible.

CHAPTER V.

ESTABLISHMENT OF THE MINT, MONEY STANDARD,

NATIONAL COINAGE, MONEY OF ACCOUNT, AND LEGAL TENDER.

THE

'HE Act of April 2, 1792, established the Mint, also the money of account, and authorized a National Coinage.

The ideal unit of the money of account was the Dollar divided into dimes or tenths, cents or hundreths, and mills or thousandths.

The money standard established by this Act was Gold and Silver, in the ratio or relative valuation of I to 15. The gold coins authorized to be struck were the eagle, half-eagle, and quarter-eagle, of the declared value of ten, five, and two and a half dollars, respectively; silver coins, the dollar, half-dollar, quarter-dollar and dime; copper coins, the cent and half-cent.

The gold and silver coins were made legal tender without limit, and the coinage thereof was free to all persons depositing bullion at the mint.