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Editorial
May 27, 1837
Republican Herald
Providence, Providence County, Rhode Island
What is this article about?
Editorial critiques the reversal in currency valuation where banks cannot redeem bills, leading to silver dollars selling at a 10% premium over paper, questioning if paper has become the standard or if silver remains the lawful 100-cent dollar with paper at discount.
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In former times, when a man could not pay his notes, and a bank could not redeem its bills, the notes and bills were sold at a discount;- gold and silver being the standard of value. But the case is reversed. The banks cannot redeem their bills, and because nine silver dollars will purchase ten paper ones, silver is said to sell at a premium of ten per cent. Has bank paper become the standard of value, and a silver dollar worth one hundred and ten cents? Or is a dollar still a lawful standard coin. worth one hundred cents only, while a paper dollar, regulated by that standard, is worth but ninety cents? In other words, is silver at a premium, and bills at a discount? Or, in other words, do you buy silver dollars at one hundred and ten cents apiece, or sell paper dollars at ninety cents apiece ? A correct answer will determine which is the legal, the "better" and the proper currency.
In former times, when a man could not pay his notes, and a bank could not redeem its bills, the notes and bills were sold at a discount;- gold and silver being the standard of value. But the case is reversed. The banks cannot redeem their bills, and because nine silver dollars will purchase ten paper ones, silver is said to sell at a premium of ten per cent. Has bank paper become the standard of value, and a silver dollar worth one hundred and ten cents? Or is a dollar still a lawful standard coin. worth one hundred cents only, while a paper dollar, regulated by that standard, is worth but ninety cents? In other words, is silver at a premium, and bills at a discount? Or, in other words, do you buy silver dollars at one hundred and ten cents apiece, or sell paper dollars at ninety cents apiece ? A correct answer will determine which is the legal, the "better" and the proper currency.
What sub-type of article is it?
Economic Policy
What keywords are associated?
Currency Standards
Bank Paper
Silver Dollars
Premium Discount
Legal Tender
What entities or persons were involved?
Banks
Editorial Details
Primary Topic
Currency Standards: Paper Bills Vs Silver Dollars
Stance / Tone
Critical Questioning Of Paper Money Valuation
Key Figures
Banks
Key Arguments
Formerly, Unredeemable Notes Sold At Discount With Gold/Silver As Standard
Now Banks Cannot Redeem Bills, Yet Silver Sells At 10% Premium Over Paper
Questions If Bank Paper Is Now The Standard, Making Silver Worth 110 Cents
Argues Silver Dollar Is Lawful Standard Worth 100 Cents, Paper Worth 90
Correct Valuation Determines Legal And Proper Currency