The silver standard is a monetary system in which the standard economic unit of account is a fixed weight of silver. A monetary system secures the proper functioning of Money by regulating economic agents transaction types and Money supply. Economics is the social science that studies the production distribution, and consumption of goods and services. A unit of account is a standard monetary unit of measurement of the market value/cost of goods services or assets Silver (ˈsɪlvɚ is a Chemical element with the symbol " Ag " (argentum from the Ancient Greek: ἀργήντος - argēntos gen The silver standard was widespread until the 19th century, when it was replaced in most countries by the gold standard. The gold standard is a monetary system in which a region's common media of exchange are paper notes that are normally freely convertible into pre-set fixed quantities of Gold

Ancient Greece

The first metal used as a currency was silver more than 4,000 years ago, when silver ingots were used in trade. The M acro E xpansion T emplate A ttribute L anguage complements TAL, providing macros which allow the reuse of code across A currency is a unit of exchange, facilitating the transfer of Goods and/or services It is one form of Money, where money is Silver (ˈsɪlvɚ is a Chemical element with the symbol " Ag " (argentum from the Ancient Greek: ἀργήντος - argēntos gen An ingot is a material usually metal that is cast into a shape suitable for further processing Trade is the willing exchange of goods, services, or both Trade is also called Commerce. During the heyday of the Athenian empire, the city's silver tetradrachm was the first coin to achieve "international standard" status in Mediterranean trade. The Delian League was an association of approximately 150 5th-century BC Greek City-states under the leadership of Athens, whose purpose was to continue The tetradrachm (τετράδραχμον was an Ancient Greek silver coin equivalent to four drachms It was in wide circulation from 510 to 38 BCE

Persia

The dirham was a silver coin originally minted by the Persians. Dirham or dirhem (درهم is a unit of currency in several Arab nations and formerly the related unit of mass (the Ottoman dram) in the Ottoman Empire The Caliphates in the Islamic world adopted these coins, starting with Caliph Abd al-Malik (685–705). A caliphate (from the Arabic خلافة or khilāfa) is the political leadership of the Muslim community in classical and medieval Islamic history For other meanings including people named 'Islam' see Islam (disambiguation. Abd al-Malik ibn Marwan (646-705 (عبد الملك بن مروان was the 5th Umayyad Caliph. Silver remained the most common monetary metal used in ordinary transactions until the 20th century.

Bohemia

Beginning in 1515, silver coins were minted at the silver mines at Joachimsthal - Jáchymov (St. For other places called Joachimsthal see Joachimsthal (disambiguation Jáchymov (ˈjaxɪmof in German originally Thal, later Sankt Joachimsthal For other places called Joachimsthal see Joachimsthal (disambiguation Jáchymov (ˈjaxɪmof in German originally Thal, later Sankt Joachimsthal Joachim's Valley) in Bohemia, now part of the Czech Republic). Bohemia (Čechy; Bohemia Czechy is a historical region in central Europe, occupying the western two-thirds of the traditional Czech Lands, currently the The Czech Republic ( ˈt͡ʃɛskaː ˈrɛpuˌblɪka short form in Česko ˈt͡ʃɛskɔ also called Czechia, Although formally called Guldengroschen, they became known as Joachimsthalers, then shortened to thaler. The Guldengroschen was a large Silver Coin originally minted in Tirol in 1486. The Thaler (or Taler or Tolar) was a Silver Coin used throughout Europe for almost four hundred Years Its name lives on ^[1] The coins were widely circulated, and became the model for silver thalers issued by other European countries. The word thaler became dollar in the English language.

Spain

Rich deposits of silver in the Spanish colonies of the New World allowed Spain to mint great quanities of silver coins. The Spanish dollar was a Spanish coin, the "real de a ocho" and later peso, worth eight reals (hence the nickname "pieces of eight"), which was widely circulated during the 18th century. History Spain Following the introduction of the Guldengroschen in Austria in 1486 the concept of a large silver coin with high purity (sometimes known as "specie" The word peso (meaning weight in Spanish was the name of a coin that originated in Spain and became of immense importance internationally A nickname is a Name of an entity or thing that is not its Proper name. The 18th century lasted from 1701 to 1800 in the Gregorian calendar, in accordance with the Anno Domini / Common Era numbering system

By the American Revolution in 1775, Spanish dollars were backed by paper money authorized by the individual colonies and the Continental Congress. In this article the inhabitants of the thirteen colonies that supported the American Revolution are primarily referred to as "Americans" with occasional references to "Patriots" The Continental Congress was a convention of delegates from the Thirteen Colonies that became the governing body of the United States during the ^[2] In addition to the American dollar, the 8-real coin became the basis for the Chinese yuan.

India

The Indian rupee is derived from the Rūpaya, a silver coin introduced by Sher Shah Suri during his reign from 1540 to 1545. Sher Shah Suri (1486 Sasaram &ndash May 22, 1545 Kalinjar) ( - Šīr Šāh Sūrī) also known as Farid Khan or Valuation of the rupee based on its silver content had severe consequences in the nineteenth century, when the strongest economies in the world were on the gold standard. The discovery of vast silver deposits in the New World resulted in a decline in the value of silver relative to gold. The result was "the fall of the Rupee. India has been one of the earliest issuers of coins in the world (circa 6th Century BC along with the Chinese wen and Lydian Staters The origin of the word "

Great Britain

Great Britain's early use of the silver standard is still reflected in the name of its currency, the pound sterling, which traces its origins to before the Middle Ages (see Anglo-Saxon pound), when King Offa of Mercia introduced the silver penny, which copied the denarius of Charlemagne's Frankish Empire. The Pound Sterling ( symbol £; ISO code: GBP) subdivided into 100 pence (singular penny) is the Currency The pound was a unit of account in Anglo-Saxon England, equal to 240 silver pennies and equivalent to one pound weight of silver Offa was the King of Mercia from 757 until his death in July 796 After Rome prelude to the Anglo-Saxon coinage At the end of the fourth century the Roman provinces of Britain were still part of a vibrant and quite efficient economic Charlemagne (ˈʃɑrlɨmeɪn Carolus Magnus or Karolus Magnus meaning Charles the Great) (747 – 28 January 814 was King of the Franks from 768 to his Francia or Frankia, later also called the Frankish Empire (imperium Francorum Frankish Kingdom (Latin regnum Francorum, "Kingdom of the

The early silver pennies were struck from fine silver (as pure as was available). However, in 1158, King Henry II introduced Tealby penny. English currency was almost exclusively silver until 1344, when the gold noble was put into circulation. The Noble was the first English Gold coin produced in quantity having been preceded by the Gold penny and the Florin earlier in the reigns of However, silver remained the legal basis for sterling until 1816.

In 1663, a new gold coinage was introduced based on the 22 carat fine guinea. The guinea coin of 1663 was the first English machine-struck Gold coin. Fixed in weight at 44½ to the troy pound from 1670, this coin's value varied considerably until 1717, when it was fixed at 21 shillings (21/-, 1. Troy weight is a system of units of Mass customarily used for Precious metals Black powder, and Gemstones Named after Troyes 05 pounds). However, this valuation overvalued gold relative to silver compared to other European countries. British merchants sent silver abroad in payments while exports were paid for with gold. As a consequence, silver flowed out of the country and gold flowed in, leading to a situation where Great Britain was effectively on a gold standard. The gold standard is a monetary system in which a region's common media of exchange are paper notes that are normally freely convertible into pre-set fixed quantities of Gold In 1816, the gold standard was adopted officially, with the silver standard reduced to 66 shillings (66/-, 2. 3 pounds), rendering silver coins a "token" issue (i. e. , not containing their value in precious metal).

The economic power of Great Britain was such that its adoption of a gold standard put pressure on other countries to follow suit.

Germany

After its victory in the Franco-Prussian War (1870-71), Germany extracted a huge indemnity from France of £200,000,000 in gold, and used it to join Britain on a gold standard. The Franco-Prussian War or Franco-German War, often referred to in France as the 1870 War ( 19 July, 1870 — 10 May, 1871 Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. This article is about the country For a topic outline on this subject see List of basic France topics. The United Kingdom of Great Britain and Ireland was the formal name of the United Kingdom from 1 January 1801 until 12 April 1927 Germany's abandonment of the silver standard put further pressure on other countries to move to the gold standard.

United States

The United States adopted a silver standard based on the "Spanish milled dollar" in 1785. The United States of America —commonly referred to as the History Spain Following the introduction of the Guldengroschen in Austria in 1486 the concept of a large silver coin with high purity (sometimes known as "specie" Year 1785 ( MDCCLXXXV) was a Common year starting on Saturday (link will display the full calendar of the Gregorian calendar (or a Common This was codified in the 1792 Mint and Coinage Act, and by the Federal Government's use of the "Bank of the United States" to hold its reserves, as well as establishing a fixed ratio of gold to the US dollar. Year 1792 ( MDCCXCII) was a Leap year starting on Sunday (link will display the full calendar of the Gregorian calendar (or a Leap year The Coinage Act or the Mint Act, passed by the United States Congress on April 2, 1792, established the United States Mint and regulated The federal government of the United States is the central United States Governmental body established by the United States Constitution. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been This was, in effect, a derivative silver standard, since the bank was not required to keep silver to back all of its currency. This began a long series of attempts for America to create a bimetallic standard for the US Dollar, which would continue until the 1920s. In Economics, bimetallism is a Monetary standard in which the value of the Monetary unit can be expressed as a certain amount of gold or as a certain amount The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been The 1920s is sometimes referred to as the " Jazz Age " or the " Roaring Twenties " when speaking about the United States and Canada Gold and silver coins were legal tender, including the Spanish real. The real was a unit of currency in Spain for several centuries Because of the huge debt taken on by the US Federal Government to finance the Revolutionary War, silver coins struck by the government left circulation, and in 1806 President Jefferson suspended the minting of silver coins. Debt is that which is owed usually referencing Assets owed but the term can cover other obligations In this article the inhabitants of the thirteen colonies that supported the American Revolution are primarily referred to as "Americans" with occasional references to "Patriots" Thomas Jefferson (April 13 1743 – July 4 1826 was the third President of the United States (1801–1809 the principal author of the Declaration of Independence

The US Treasury was put on a strict hard money standard, doing business only in gold or silver coin as part of the Independent Treasury Act of 1848, which legally separated the accounts of the Federal Government from the banking system. The United States Department of the Treasury is a Cabinet department and the Treasury of the United States government. A banker or bank is a Financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money However the fixed rate of gold to silver overvalued silver in relation to the demand for gold to trade or borrow from England. Following Gresham's law, silver poured into the US, which traded with other silver nations, and gold moved out. Gresham's law is commonly stated "Bad money drives out good In 1853 the US reduced the silver weight of coins, to keep them in circulation, and in 1857 removed legal tender status from foreign coinage. Year 1853 ( MDCCCLIII) was a Common year starting on Saturday (link will display the full calendar of the Gregorian Calendar (or a Common Click here for Indian Rebellion of 1857 Year 1857 ( MDCCCLVII) was a Common year starting on Thursday (link will display the

In 1857 the final crisis of the free banking era of international finance began, as American banks suspended payment in silver, rippling through the very young international financial system of central banks. A central bank, reserve bank, or monetary authority is the entity responsible for the Monetary policy of a country or of a group of member states In 1861 the US government suspended payment in gold and silver, effectively ending the attempts to form a silver standard basis for the dollar. Year 1861 ( MDCCCLXI) was a Common year starting on Tuesday (link will display the full calendar of the Gregorian calendar (or a Common Through the 1860–1871 period various attempts to resurrect bi-metallic standards were made, including one based on the gold and silver franc, however, with the rapid influx of silver from new deposits, the expectation of scarcity of silver ended. Year 1860 ( MDCCLX) was a Leap year starting on Sunday (link will display the full calendar of the Gregorian Calendar (or a Leap year starting Year 1871 ( MDCCCLXXI) was a Common year starting on Sunday (link will display the full calendar of the Gregorian calendar (or a Common Origins The franc was originally a French Gold coin of 387 g minted in 1360 on the occasion of the release of King John II ("the good", held by the

The combination that produced economic stability was restriction of supply of new notes, a government monopoly on the issuance of notes directly and indirectly, a central bank and a single unit of value. As notes devalued, or silver ceased to circulate as a store of value, or there was a depression as governments, demanding specie as payment, drained the circulating medium out of the economy. Money is anything that is generally accepted as Payment for Goods and services and repayment of Debts. At the same time there was a dramatically expanded need for credit, and large banks were being chartered in various states, including those in Japan by 1872. Credit is the provision of resources (such as granting a Loan) by one party to another party where that second party does not reimburse the first party immediately thereby generating A charter is the grant of authority or rights stating that the granter formally recognizes the prerogative of the recipient to exercise the rights specified For a topic outline on this subject see List of basic Japan topics. Year 1872 ( MDCCCLXXII) was a Leap year starting on Monday (link will display the full calendar of the Gregorian Calendar (or a Leap year The need for stability in monetary affairs would produce a rapid acceptance of the gold standard in the period that followed. The gold standard is a monetary system in which a region's common media of exchange are paper notes that are normally freely convertible into pre-set fixed quantities of Gold

The Fourth Coinage Act enacted by the United States Congress in 1873 embraced the gold standard and de-monetized silver. The Fourth Coinage Act was enacted by the United States Congress in 1873 and embraced the Gold standard and de-monetized Silver. Western mining interests and others who wanted silver in circulation labeled this measure the "Crime of '73". For about five years, gold was the only metallic standard in the United States.

On June 4, 1963, president John F. Kennedy signed Executive Order No. 11110 that gave the Treasury Department the power "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury. " This order has never been acted upon, but has yet to be repealed.

See also

• Digital gold currency
• Full-reserve banking
• Fungibility
• Bimetallism
• Gold standard
• Silverites
• Silver as an investment
• Silver certificate
• Silver coin
• Store of value

References

1. ^ Rhodes, Richard (1986). Digital gold currency (or DGC) is a form of Electronic money based on ounces of Gold. Full-reserve banking is the Banking practice in which the full amount of each depositor's funds are available in reserve at the bank when each depositor Fungibility is the property of a good or a Commodity whose individual units are capable of mutual substitution In Economics, bimetallism is a Monetary standard in which the value of the Monetary unit can be expressed as a certain amount of gold or as a certain amount The gold standard is a monetary system in which a region's common media of exchange are paper notes that are normally freely convertible into pre-set fixed quantities of Gold The Silverites were a political group in the United States in the mid-19th century that advocated that silver should continue to be a monetary standard Silver like other Precious metals may be used as an investment Silver Certificates were printed for a time in the United States as a form of Paper currency. Silver coins are possibly the oldest mass form of Coinage Silver has been used as a coinage Metal since the times of the Greeks Their silver drachmas To act as a store of value, a Commodity, a form of Money, or Financial capital must be able to be reliably saved stored and retrieved - and be predictably Richard Lee Rhodes (b July 4, 1937) is an American journalist historian and author of both fiction and non-fiction (which he prefers to call "verity" The making of the atomic bomb. New York: Simon and Schuster, 118.  
2. ^ Julian, R. W. (2007). "All About the Dollar": 41. Numismatist.