This undoubtedly

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This undoubtedly

Post by hunsssalin on Thu Mar 17, 2011 2:16 pm

This undoubtedly

This undoubtedly caused tory burch shoes the numerous alterations that took place, each nation increasing the legal value of gold so as to retain it in circulation. But every increase in the relative value of gold still left this metal at a premium. The partisans of the theory that the two metals could not be used simultaneously as legal standards, saw in this constant premium on gold notwithstanding governmental action, proof positive that governments could not regulate their tory burch sale relative value ; whereas the fact is that increasing the value of gold only augments the inducement to pay a premium for it, since it increasesthe principal advantage gold offers over silvergreater lightness for equal value. Were gold and silver coined at to , the premium on the former, as long as the quantity in existence was insufficient for all transactions, would be greater than when coined at to , because half the weight of gold would then perform the same service as twice the amount did before, in comparison with silver. As soon as tory burch outlet the large production of gold in California and Australia rendered this metal abundant, the premium on it disappeared.Here, again, the theorists claimed a proof of the correctness of their theory ; gold was evidently falling in proportion to silver, as they had predicted ; whereas the disappearance of the premium only indicated that gold had become sufficiently abundant to supply the demand, which was clearly not the case before. In the United States there has tory burch flats been a recent striking example of a similar premium being paid for coin on account of its convenience, irrespective of its intrinsic value. After the exportation of silver had drained that country of its small silver coins, four per cent, premium was paid for the old Spanish rials and halfrials (J and Jcent pieces), although the United States mint had ascertained and announced that they were not, on an average, worth within ten per cent, of their nominal value, in consequence of their loss of weight by wear and tear. And Exactly as in Europe with gold, the moment United States silver coins became sufficiently abundant to supply all the wants of the community, the premium on the small Spanish coins entirely disappeared.Sir Isaac Newton had recommended that the guinea,which passed current at . c?., should be reduced lOrf. or d. which would have made the relative value of gold and silver the same in England as it was on the continent of Europe. His advice was but partiallyadopted, the guinea being only reduced to twentyone shillings, which was still too high, and silver consequently continued to be exported in preference to gold.

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