Congress set the value.Academic at this point.
Even the old 95% copper penny has more value than the copper clad zinc rounds we have for pennies today.
I used to get a piece of candy for a penny as a kid. Now I get one piece for a nickel.
Could I get a piece of candy for a penny again using an old 95% copper penny? See? The face value set by Congress is a penny. It's metal composition is its real value now. Vendors should set the exchange rate.
(rare coins of high numismatic value exempted)
My concern is a means of using real coins in today's market place, especially pre-1965 coins.
For anyone following the conversation...THE LAW!
Coinage Act of April 2, 1792
SEC. 9. And be it further enacted, That there shall be from time to time struck and coined at the said mint, coins of gold, silver, and copper, of the following denominations, values and descriptions, viz.
Eagles — each to be of the value of ten dollars or units, and to contain two hundred fort-seven grains and four eighths of a grain of pure, or two hundred and seventy grains of standard gold.
Half eagles — each to be of the value of five dollars, and to contain one hundred and twenty three grains and six eights of a grain of pure, or one hundred and thirty five grains of standard gold.
Quarter Eagles — each to be of the value of two dollars and a half dollar, and to contain sixty one grains and seven eights of a grain of pure, or sixty seven grains and four eights of a grain of standard gold.
Dollars or the same is now current, and to contain three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver,
Half Dollars — each to be of half the value of the dollar or unit, and to contain one hundred and eighty-five grains and ten sixteenth parts of a grain of pure, or two hundred and eights of a grain of standard silver.
Quarter Dollars — each to be of one fourth the value of the dollar or unit, and to contain ninety-two grains and thirteen sixteenth parts of a grain of pure, or one hundred and four grains of standard silver.
Dismes — each to be of the value of one tenth of a dollar or unit, and to contain thirty seven grains and two sixteenth parts of a grain of pure, or forty one grains and three fifth parts of a grain of standard silver.
Half Dismes — each to be of the value of one twentieth of a dollar, and to contain eighteen grains and nine sixteenth parts of a grain of pure, or twenty grains and four fifth parts of a grain of standard silver.
Cents — each to be of the value of the one hundredth part of a dollar, and to contain eleven penny-weights of copper.
Half Cents — each to be of the value of half a cent, and to contain five penny-weights and half a penny-weight of copper.
Congress set the value. I was correcting myself after the light went on. You're way ahead of me, and most others, on this. Kudos for posting the law. There is one issue I see. That is trying to use various substances (gold, silver, copper, ...) for the same denominations.
I don't see an issue using various substances as money, just trying to use them for some arbitrary denomination creates a problem with value. The value of multiple elements will vary in a free market environment.
Instead of establishing a national denomination, i.e., the dollar, the yuan, the pound, let us use mass by element. Say 1 ounce or 28.35 grams of gold eagles/silver eagles (in the US), etc. Other countries could call them Maple Leaves, as long as we use common masses and purity - grams probably.
Further, markets must set the value of the elements, not government or the money changers.
Anything other than physical will need a third-party trust arrangement. Governments prove through history to be utterly unreliable after a while. Eventually even hiding what they have on hand from their people.
When you can schedule our first meeting with the world's leaders, let me know so that we may begin to revamp the world's monetary system! :)