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318 THE CREATURE FROM JEKYLL ISLAND
specifically defined as the only kind of money to be allowed, there
can be no doubt of what was meant by the first half of that power.
To coin money meant to mint precious-metal coins. Period.
The second half is equally clear. Both in the Constitution and in
the discussions among the delegates, the power to regulate the
value of gold and silver coin was closely tied to the power to
determine weights and measures. They are, in fact, one and the
same. To regulate the value of coin is exactly the same as to set the
nationally accepted value of a mile or a pound or a quart. It is to
create a standard against which a thing may be measured. The
wording of this section of the Constitution can be traced to the
original Articles of Confederation which further clarifies the meaning
that was generally understood at that time:
The United States in congress assembled shall . . . have the sole and
exclusive right and power of regulating the alloy and value of coin
struck by their own authority, or by that of the respective
states—fixing the Standard of Weights and Measures throughout the
United States.
The intent, therefore, was simply for Congress to determine the
exact weight of a precious metal that would constitute the national
monetary unit.
THE ORIGIN OF THE DOLLAR
At the time of these deliberations, Spanish silver coins, called
pieces of eight, had already become the de facto monetary unit. An
official commission had been established by the Continental Congress
to sample the circulating coins in the country and determine
their average value by weight and purity. Charts were published,
and all
coins of various origin were listed by comparative value.
Congress was already "regulating the value of" the nation's money
by the time the Constitution was drafted. How these coins became
dollars is an interesting story. Edwin Vieira tells us:
Monetary historians generally first associate the dollar with one
Count Schlick, who began striking such silver coins in 1519 in
Joachim's Thai, Bavaria. Then called " Schlicktenthalers" or
"joachimsthalers," the coins became known simply as "thalers," which
transliterated into "dollars." Interestingly, the American colonies did
not adopt the dollar from England, but from Spain. Under that
country's monetary reform of 1497, the silver real became the Spanish
money -unit, or unit of account. A new coin consisting of eight teaks
also appeared. Variously known as pesos, duros, piezas de ocho ("pieces
THE LOST TREASURE MAP 319
of eight"), or Spanish dollars (because of their similarity in weight and
fineness to the thaler), the coins quickly achieved predominance in
financial markets of the New World because of Spain's then-important
commercial and political position.
In 1785, Thomas Jefferson urged the adoption of the Spanish
silver dollar as the nation's official monetary unit. In a pamphlet
submitted to the delegates of the Continental Congress, he said:
Taking into our view all money transactions, great and small, I
question if a common measure, of more convenient size than the
dollar, could be proposed.... The unit or dollar is a known coin, and
the most familiar of all to the minds of people. It is already adopted
from south to north; has identified our currency, and therefore happily
offers itself as an unit already introduced.
On July 6, 1785, Congress unanimously voted to adopt the
Spanish dollar as the official monetary unit of the United States.
Jefferson realized, however, that this was not sufficient. Although
the coin had been one of the most dependable in terms of weight
and quality, it still varied in content between issues, and a way had
to be found to rate one coin in value against another. That was,
after all, the service that Congress was required to render when it
was given the power to "regulate the value" of money. Jefferson
came directly to the point when he said: "If we determine that a
dollar shall be our unit, we must then say with precision what a
dollar is. This coin as struck at different times, of different weight
and fineness, is of different values."
The logic voiced by Jefferson could not be ignored. Two years
later, after carefully examining the actual weight and fineness of
the Spanish dollars currently in circulation, Congress defined the
dollar. After ratification of the Constitution, a dollar would contain
371.25 grains of fine silver, and all items in commerce, including
other coins, were to be measured in value against that standard.
As the Spaniards continued to reduce the silver content of their
coins, the pressure for the minting of an American dollar of
predictable value began to mount. Secretary of the Treasury,
Alexander Hamilton, in his 1791 report to Congress, urged the
1- Vieira, p. 66.
2. Propositions Respecting the Coinage of Gold, Silver, and Copper (printed pamphlet
Presented to the Continental Congress on May 13, 1785), pp. 9-10. Cited by Vieira,
P- 68.
3 - Ihid., p. 11.