In a recent Commentary by Barron’s Editorial Editor THOMAS G. DONLAN, there was a short addendum added to the end of the article which we felt was worth sharing. Below are Mr. Donlan’s comments

“THOMAS GRESHAM WAS NO FOOL. “Bad money drives out the good,” he said in the reign of Queen Elizabeth I. Canny people have been saying it ever since, and acting accordingly.

In 20th-century America, gold was the first good money to go. First, it was driven out of circulation by a flood of paper; then the government confiscated much of the gold its citizens were hoarding.

Silver dollars were the next driven out, and silver quarters and silver dimes weren’t far behind. In 1965, it cost more than 10 cents worth of silver to make a dime. First, the government made it illegal to melt down coins, then it took the silver out.

Pennies were next. Until 1982, there was enough copper in a penny to pose a temptation to melters and hoarders.

The pennies made after 1982, though intrinsically almost worthless at the time, now contain more than a pennyworth of zinc and copper. And there’s more than five cents worth of copper and nickel in a nickel coin.

Since 2006, it has been illegal to melt down pennies and nickels for their metal; now there are active proposals to substitute baser metals for zinc, copper and nickel.

There is a better alternative: Create good money, and maintain its value.”