large proportion of our coin serves
simply as currency without materially affecting the standard of value.
This is true of all the fractional coins, which are purposely over-valued,
and equally true of the silver dollar under existing circumstances. In
fact, the primary use of coin was simply for the purpose of transferring
property. In the words of Aristotle, 350 B. C., "Men invented among
themselves, by way of exchange, something which they should mutually give
and take, and which, being really valuable in itself, might easily be
passed from hand to hand for purposes of daily life." This coined money
supplies the needed means of exchange most readily because it carries its
value with it. In all civilized communities, and in many only partially
civilized, it is readily exchangeable for any article of commerce. It is
also valued in proportion to its weight, so that any bulk in gold or in
silver may be easily divided by exchange for smaller coins. With a little
painstaking the coins are made identical in value, so that every trader
knows what he gives and receives. They are exceedingly durable, resisting
almost all the forces of nature with little loss. For this reason they are
likely to have an almost universal value, that is to be wanted by
everybody, in any place, at any time, and under any circumstances. These
facts are proved by the tendency to hoard such coins whenever individuals
have a surplus of wealth beyond present wants, or whenever there is risk
in using wealth as capital because of distrust of government, of
individuals or of future enterprise. A buried treasure is almost sure to
be in the form of coins.

Under a system of coinage, inequalities in exchange are easily adjusted,
like "the boot" in a horse trade, or the balance between produce carried
to the store and the articles carried away. Most of all, coin is used
where for any reason there is distrust of the future. Coin, or its
equivalent in bullion, is needed in all transactions where credit is
wanting. This appears prominent in all lawless communities with a
fluctuating population, and may be found in ignorant communities where
methods of credit are not established. It is often essential in the
settlement of claims between hostile countries, and is the final means of
adjusting balances in all foreign trade. Occasionally this need appears in
a universal panic, where each man takes his fellow by the throat, saying,
"Pay me that thou owest."

_Coin a p