between the United States and Great Britain, has not been attended by any difficulty, nor has there been a single case of litigation in connection with the

same.

The valuation of foreign coins under former laws was based upon the assay of actual pieces, many of which were more or less reduced in weight from the attrition of circulation, and therefore were not standard coins.

Under the new Act the value of foreign moneys, expressed in our money of account, is determined by comparing the pure gold which the law of any country declares to represent its money unit, with the pure gold contained in the standard gold dollar of the United States; in other words, we have an exact comparison of money standards instead of individual coins in circulation.

The value in our money terms of the money units of the various nations of the world, determined under the requirements of the new law, are as follows:

4

22

In the foregoing table gold is valued and computed at the rate of 231% grains of fine gold to the dollar. The silver units are calculated according to the United States trade dollar valuation, or 378 grains of fine silver to the dollar.

CHAPTER XV.

PAPER CURRENCY SINCE 1862.

Issue of Legal-Tender notes on the credit of the United

actment of the law of February 25, 1862, authorizing the issue of United States notes on the credit of the Government, and making the same a legal tender without limit, in the payment of debts, public and private, except duties on imports and interest on United States bonds.

This was peculiarly and exclusively a war measure, and should never be regarded as a precedent to be followed under any circumstances in time of peace, or even of ordinary war.

These notes, in consequence of the large sums from time to time issued, and the increasing magnitude of the civil war then prevailing, began speedily to de

preciate in value as compared with gold and silver. They soon became, and have since continued to be, practically, the actual money of the country. When their issue commenced the metallic money standard was as follows:

All gold coins of the United States were a legal tender at their nominal value and without limit.

Silver dollars coined by the same authority were in like manner a legal tender, and the Mints were open for such coinage to any one who might choose to deposit bullion for the same.

The silver coins of less denomination than the dollar piece (except the three-cent pieces) were a legal tender in any sum not exceeding five dollars.

When the issue of legal-tender notes commenced, all private money obligations became dischargeable in such notes, except those which, by their terms, were payable in coin only.

The term "coin" in the Act authorizing the issue of these notes, referred to United States coin of full legal-tender quality, i. e., gold coins and the silver dollar. It also embraced silver coins of less denomination than the dollar, except the three-cent piece coined prior to 1853.

It was of course well known at the time of the enactment of the law, that the silver coins of less denomination than the dollar, coined prior to the year