A

1. Distinguish between the mint ratio and the market ratio.

2. Under what circumstances is gold undervalued?

3. Why is a system of bimetallism difficult to maintain?

4. What is meant by the expression "elasticity of the currency"?

5. Why was the mint ratio changed in 1834 ?

6. Which metal circulated between 1792 and 1834? after 1834?

7. What was the "crime of 73"? Who called it a "crime"? Why?

8. Why were silver dollars not being coined in 1872 ?

9. Who began the agitation to remonetize silver ? Why ?

10. Point out the essential differences between the Bland-Allison Act and the Sherman Silver Purchase Act.

11. Just how does the Federal Reserve Bank Law give elasticity to the currency?

12. Name the various kinds of money in circulation in the United States.

13. Why do all of them pass at their face value ?

B

1. Enumerate the various kinds of metals used in making United States coins.

a. Why are different metals used?

b. Which of these metals does the government coin freely ?

c. How does it get the other metals for coinage?

d. Just exactly what does the expression" monometallism" mean ?

2. What procedure is necessary to exchange each of the various kinds of money for gold?

3. Learn from some banker or newspaper the present market ratio of silver to gold.

a. What changes have occurred in this ratio during the past few years ?

b. How did these changes affect the profits of the government in supplying fractional coins ?

c. What would be the effect if the government should now return to bimetallism with a ratio of 16 to 1 ?

C

1. During the free-silver campaign of 1896 many believed that a change of the mint ratio to equal the market ratio, which was then about 32 to 1, would be desirable.

a. What was the basis of this belief?

6. Would the adoption of the proposed change have solved the problems arising from bimetallism ? Explain.

2. The story is told of a congressman who, when he heard a colleague state that the flow of gold from the United States was due to the action of Gresham's law, suggested that the law be repealed. Comment.

3. The operation of Gresham's law is closely associated with everyday business affairs.

a. Of two dimes which is usually spent first, Canadian or United States ?

b. Of two five-dollar gold pieces, one new and the other worn, which would be melted down for the purpose of making a ring ?

c. Would new or worn gold coins be shipped to England in payment for goods ?

d. Give definite reasons for each of the three answers.

4. How, if at all, would the value of money tend to be affected by: a. The opening of new gold mines?

b. An increase in the production of goods?

c. An increase in population ?

d. An increase in the rapidity of the circulation of money?

e. A greater practice of thrift ?

f. An increase in the volume of banking business ? g. A change in the weight of the gold dollar? h. Increased efficiency in manufacturing ?

Supplementary Reading

Bullock, Introduction to the Study of Economics, 3d ed., pages 294-314.

Ely, Outlines of Economics, 3d ed., pages 248-269.

Fetter, Economics, Vol. II, pages 56-60.

Fisher, Elementary Principles of Economics, pages 223-232.

Seager, Principles of Economics, pages 322-340.

Seligman, Principles of Economics, 5th ed., pages 493-509.

Taussig, Principles of Economics, 2d ed., Vol. I, pages 265-289.