Describe the hierachies in monetary value of various monies that existed in the US in 1816. Which monies were most favored and why?
To describe the hierarchies in the monetary value of various currencies in the US in 1816, we need to understand the monetary system that was in place during that time.
In 1816, the United States was transitioning from a bimetallic standard, where both gold and silver were considered legal tender, to a monometallic standard based on gold. This transition was a result of the Coinage Act of 1792, which established a fixed ratio for the value of gold and silver.
The main unit of currency in 1816 was the US dollar, which was divided into smaller units such as cents and mills. However, the actual value of these units varied based on the type of currency being used.
There were several types of currency circulating in the US in 1816:
1. Gold coins: Gold coins were the most valuable and favored form of currency during this period. The US Mint produced gold coins in denominations such as the Eagle ($10), Half Eagle ($5), and Quarter Eagle ($2.50). These coins were widely accepted and were considered the most reliable and stable form of money.
2. Silver coins: Silver coins were also in circulation, but their value was not as high as gold coins. The most common silver coins in use were the Dollar, Half Dollar, Quarter, Dime, and Half Dime. These coins were less favored than gold coins due to the fluctuating market value of silver.
3. Banknotes: Banknotes issued by individual banks were widely used as a medium of exchange. These banknotes were backed by the assets of the issuing bank, and their value depended on the reputation and stability of the bank. The most favored banknotes were those issued by reputable and well-established banks, as they were considered more reliable and easier to use for everyday transactions.
Favored monies in 1816 were primarily gold coins and banknotes issued by reliable banks. Today, we can study historical records, such as newspapers, books, and financial records from that era, to determine which monies were most favored and why. Researching primary sources from that time can provide insights into public perception, acceptance, and usage of different currencies.
In conclusion, the hierarchies in monetary value in the US in 1816 were based on the type of currency being used, with gold coins being highly valued and favored, followed by silver coins and banknotes issued by reputable banks.