Bimetallic Standard

Bimetallic Standard
A monetary system in which a government recognizes coins composed of gold or silver as legal tender. The bimetallic standard (or bimetallism) backs a unit of currency to a fixed ratio of gold and/or silver.


The bimetallic standard was first used in the United States in 1792 as a means of controlling the value of money. For example, during the 18th century in the United States, one ounce of gold was equal to 15 ounces of silver. Therefore, there would be 15 times more Silver (by weight) in $10 worth of silver coins than $10 worth of gold coins. Adequate gold and silver was kept in reserves to back the paper currency. This bimetallic standard was used until the civil war, when the Resumption Act of 1875 stated that paper money could be converted to gold.




Investment dictionary. . 2012.

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  • standard — /ˈstændəd / (say standuhd) noun 1. anything taken by general consent as a basis of comparison; an approved model. 2. the authorised exemplar of a unit of weight or measure. 3. a certain commodity in which the basic monetary unit is stated,… …  

  • Bimetallic — Bi me*tal lic, a. [Pref. bi + metallic: cf. F. bim[ e]tallique.] 1. Of or relating to, or using, a double metallic standard (as gold and silver) for a system of coins or currency. [archaic] [1913 Webster] 2. Composed of two different metals;… …   The Collaborative International Dictionary of English

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  • History of the United States dollar — The history of the United States dollar covers more than 200 years.Early historyThe history of the dollar in North America pre dates US independence. Even before the Declaration of Independence, the Continental Congress had authorized the… …   Wikipedia

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