In the late 1800s, an ongoing battle between silver and gold for Legal Tender supremacy was being played out to conclusion. By this time, all other forms of money had been subdued to commodity status. In the bimetallic world, the value ratio between silver and gold was a moving target determined by the Market. Law continuously tried to legislate and fix the value, but since the Market ratio value was always in flux, arbitragers could, and did, make plays that allowed debtors to pay off debts at the expense of the lender. Lenders were gold based, and debtors were silver based. Both forms of money could not coexist as Legal Tender, one had to go.
The Crime of 1873 has been poorly explained, and the esteemed economists Friedman and Galbraith make scant mention of it. Alexander del Mar (1836-1926) - a political economist, historian and author - fully explains the Crime. He was born in New York City, 1836. He was educated as a Civil and Mining Engineer at the Polytechnic. He became the Director of the Bureau of Statistics of the United States and Mining Commissioner to the United States Monetary Commission of 1876. He was nominated for Secretary of Treasury.
In his book, History of Monetary Systems 1895, Alexander del Mar lists Laws that were passed to undermine the Legal Tender status of silver in the United States, Europe, Russia, Japan, India, and South America concurrently. This is the Crime of 1873. Gold and Law combined to undermine Silver, and gold became the singular form of Legal Tender throughout the world. Debt and taxes had to be paid in the form of Legal Tender, i.e.. gold only and no more arbitrage games. The Lords of Gold and Law now controlled Legal Tender in its entirety using Law as the vehicle of enforcement in all nations. Silver took on a commodity status and was greatly devalued, no longer directly accepted for debt and taxes. The Lords of Gold and Law pulled off a truly spectacular collaborative conspiring effort. But alas, eventually, even gold had to drop out the Legal Tender race, not able to keep up with the exponential growth demands of Legal Tender, now a fiat form of money heading exponentially towards an eventual conclusion.
History of Monetary Systems by Alexander Del Mar, 1895, Excerpts
Crime of 1873
There is no mistaking the identity of that golden thread which runs through the Latin Union Codes of 1867, the British Mint Code of 1870, the German Mint Code of 1871, the New Mint Code of the United States of 1873, and the Codes of numerous other countries. It is of precisely the same issue in all of them.
France and the Latin Union - A conference between "the four states whose monetary system rests on a numeration by francs,": viz., France, Belgium, Switzerland and Italy, resulted in the Latin Monetary union of December 23rd, 1865. Accordingly, when the international delegates met again (June 17th, 1867), it discussed the entire monetary question, and carried a resolution in favor of what is called gold monometallism. This resolution was soon afterwards engrafted upon the legislation of the States which agreed to the Latin Union, in the shape of a New Mint Code. In 1873, France and the Latin Union limited the coinage of silver.
Great Britain - By the Act of 1816, the mints were closed to the private coinage of silver, and all silver coins, whether light of heavy, were limited in tender. In 1870, a New Mint Code was enacted.
Germany - On December 4th, 1871, an Act stopped the further Private Coinage of full legal-tender silver and ordered a new coinage of gold pieces of full legal-tender. The German Act of 1873 suspended the Private Coinage of silver. All new silver coins were limited in tender.
Portugal and Brazil - Portugal in 1854 copied the British System of 1816, suspended the Private Coinage of silver, limited the legal-tender of silver.
Scandinavia - On September 20th, 1872, a monetary union was adopted by Sweden, Norway and Denmark, which was followed by a New Mint Code. Under this code the private coinage of silver was suspended, and the legal-tender of silver coins limited.
Japan - In 1872 this state adopted a New Mint Code, forbade the Private Coinage of silver, limited the legal-tender of silver and adopted what is known as "the gold standard." In 1878 after "the gold standard" had duly departed from the country, the full legal-tender of silver coins was restored and Private Coinage again permitted. In 1894 the Private Coinage of silver was again suspended.
Holland - The laws of May 21st, 1873, limited the legal-tender of silver coins.
Italy - Under a renewal of the Latin Monetary Union dated January 31st, 1874, and the law of July 17th, 1875, the Crown limited the legal-tender of silver coins.
Spain - The law of August 20th, 1876, suspended the Private Coinage of silver, except as to metal produced by the mines of Spain.
Russia - The law of November 13-15, 1876, adopted gold coins as sole full legal-tenders, and reduced the legal-tender of silver coins.
Austro-Hungary - The decree of March, 1879, suspended the Private Coinage of silver, but did not limit the legal-tender of silver coins.
Turkey - In 1882 full legal-tender was limited to gold coins.
British India - An order Council, dated 23rd June, 1893, suspended the Private Coinage of silver.
Argentine Republic
