My favorite coins in my collection are those with some sort of historical or cultural significance. Early trade in the US existed before the US mint. Trade was conducted using silver by weight and one of the most available silver coin in the late 18th century is the Spanish 8 Reale.
This smaller coin is the 2 Real version, something similar to our modern "quarter".
Transactions were done by hand on scraps of paper. Shorthand was often used to make things easier. One symbol that developed is what we know today as a "dollar" sign.
The Spanish "dollar" came from the Spanish word "talero" which meant any coin at this weight (0.20 ozt). In the US, the soft "t" became a "d" and the "o" was removed, making this coin known as the Spanish "daler" pronounced "Dollar".
The Dollar Symbol
The Spanish "Dollar" became a standard silver weight for trade, often divided like a pizza pie into either eight or sixteen "bits". Either with one center line or two center lines, the "$" became a short-hand symbol for a "dollar", which meant the silver weight of an Eight Reales Coin, which is 1/5th of a Troy Ounce.
"Shave and a haircut... two bits!"
How much does that haircut cost? The plain meaning is $0.25 as "two bits" was slang for a quarter.
But where does this word "bit" come from?
It's fractions of the Spanish Dollar!
1/16th of a silver "Dollar" (half-bit) was the monetary equivalent to a "Half-Dism" or "Half-Dime", similar to our modern "nickel", even though it was $0.0625. Today 1/16th of 0.20 ozt (0.0125 ozt) is worth about $0.30 in silver weight.
1/8th of a silver "Dollar" (1 bit) is what would be similar in value to a "Dism" or "Dime", even though it was more like a "Half-Quarter" worth $0.125. Today 1/8th of 0.20 ozt (0.025 ozt) is worth about $0.60 in silver weight.
1/4th of a silver "Dollar" (2 bits) would be like a silver quarter, or $0.25. Today 1/4th of 0.20 ozt (0.05 ozt) is worth about $1.20 in silver weight.
1/2 of a silver "Dollar" (4 bits) would be like a modern half-dollar or $0.50. Today (0.10 ozt) of silver is worth $2.40
A complete Spanish Silver "Dollar" (8 bits) would be $1.00, today (0.2 ozt) silver value today is $4.80... but had the buying power of about $30 modern US dollars!
That means that if silver were granted it's historical buying power from 1795, we would see silver prices BEGIN at $150/ozt. That means silver is undervalued at least 6X.
That also means in modern terms, "2-bits" would be valued at around $7.50 USD in today's money. That's still an excellent price for a shave and a haircut these days!
Bless the Most High!
Teach Your Children Liberty from Sin
We encourage parents to teach their children principles of Godliness, beginning with the Word and an understanding who God is and what His Son has done to form a relationship with us.
No one can lay a foundation other than the one already laid, which is Jesus Christ. If anyone builds on this foundation using gold, silver, precious stones, wood, hay, or straw, his workmanship will be evident, because the Day will bring it to light. It will be revealed with fire, and the fire will prove the quality of each man’s work. 1 Corinthians 3:11-13
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Second to this is the principle of self-determination and freedom, lest we loose the ability to teach our children the first principle in future generations.
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