Gold, by virtue of commercial usage and the laws of the various countries of the world, may be said to be the only international money, and its purchasing power is practically the same all over the civilized world. But it must be remembered that the value of gold coins is not always as expressed on their face. In large international transactions the weight of the mass is regarded, and not the number of pieces, and their value depends upon the weight and fineness. By "fineness" is meant pure metal. Nearly all coins contain alloy, or inferior metal which is added to increase their durability.

The value or price of the gold money of account of commercial countries is determined by the weight and fineness of the metal contained therein, which weight and fineness are established by the mint laws of the country issuing the money. It is therefore essential that the standard of weight by which the various moneys of account are established shall be unvarying and have the highest legal sanction; otherwise there could be no stability of values and no such thing as accurate deductions of pars of exchange. Gold is the only commodity in the world the value of which is established by law.

The price of gold cannot be affected either by an abundance or scarcity of the supply. No matter how large the supply, our mints, or the Bank of England, will buy it at the price established by law; and although there is no international agreement to maintain the price, the fact that gold is accepted by the chief commercial nations as the one universal measure of values, operates to prevent any attempt to change its valuation. The price of diamonds, which are more valuable than gold, is affected by the supply and demand. Silver, used extensively as money, fluctuates in price like any commodity, the supply and demand governing its value.