Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1852-07-31

segniorage on the coinage Of Uoney' looe Essay = a.
p ~ pos.on io' .se the charges on coinage at
present 81 Mexico and south America but while these
countries were under spanA dominion they were a per
cent on silver and Per cited al ii note to Po
ECONOMY nook i q iii As il is well known that the
change Of sovereignty those countries has not INTRO
duced any essential cAnges IN their nnanciai systems
sss.ly ~ assnYnsd In the absence OF contrary facts
,hs, ths Coinage ~ nose countries is not gratutous
In British India the coinage duty is two per cent on
ro.h' ,ld ana silsr GSee Prinseps Money and MINIS
Of British India printed ey the As.ao society. ioJa
far coinage OF onchalf per cent up to the year 1887
This charge recommended by Alexander Hamilton,
eonzed Ia the act for the establishment Of the mint
enacted in tie gold bill Of 1884 and acted in practice
till 1887 wien by the law of January 18th of that year
the new system introduced. To prove this hsto-
rical xeveri ID necessary.
In his celebrated report the establishment of mint
Hamilton considers among other things the propriety
charge for coinage His review Of the arguments that
subject i exceedingly able and thorough and the
illusions Of his mind stated in the following words:
Under impression that a small difference between the
value o the coin and the mint price of bullion the least
cepon bile expedent for restraining the melting down
poran OF the former and not perceng that If it be
moderate 1t can be hurt in other respects the Secretary
inclined TO experiment Of oneha per cent each Of
the INITIALS The fact which has been mentioned with regard
tsprice Of gold bullion in the English market
demstrate that such difference may safely be made In
this there must be immediate payment for the gold
and ver offered to the mint How far one half per cent
win 90 towards deayng the expense of the coinage cannot
be determined beforehand with accuracy 1t that
economical plan win suffice in relation to gold. But
expected that the rate silver will be sufficient
to defray the attending that metal Some additional
provision may therefore be found if this limit be
adopted" 49
N policy Of Hamilton ws therefore, first charge
for coinage, second provisid ~ Government funds by
which prompt payment depo:es could bemade without
TIE trainers of the original mint bill appear to have
agreed to the policy of evyng depostors charge for
expenses of the mint but in eectng their object they
adopted plan which, while it afforded no relief to the
depositors brought to the Government. Re-
ccgnsng the fact that unless public fund provided at
the mint there must always be delay of one or two
months in securing the manufacture of dpose into CON-
the trainers of the bill assumed that rather than submit
10 that delay depostors would pay oneha per cent for
prompt payment They therefore charged the per
cenage not for coinage such but for payment in adj
vance But in practice the owners of bullion never de-
manded advance payment from the mint, but from the
banks with whom they deposited the mint certificates at
discount of onehaf per cent The banks, their part
submitted to the delay of coinage rather than advance the
per centage See report No. 420, II. R. lst sess. ed
Congress, Letter of Dr. Moore, Director Of the Mint
No revenue was, therefore derived to the mint but it is
evident that the effect charge coinage of one half
per cent. and if the banks anticipated great delay
1T was sometimes Refer to ~ and IA Mint
Law April g. 1890 Also to Report of Hamilton, Amer.
st Papers, vol. vii Finance vol l. PIP. 95, &C. In the
gold bill of 1884, June 20, 90, az, the law
enacted in the following words, viz
afer the 3s of July shall be paid for in con under the
direction of the Secretary Of the Treasury within five days
from the making such depose deductng from the
of said deposite Of gold silver half Of per
Provided that deduction shall be made unless said advance
be required by such dcpostor within forty days"
Depostors STILL however paid the discount to the banks
instead of the mint and this virtual duty coinage
tnued till the law of January 49, 1897 81 under which
the Government provided fund for prompt payment
without any discount since which time with temporary
excepton mint certificates of bullion have been equiva
lent to cash.
Reviewing the foregoing facts appears that charge
for coinage is most probably levied every existing mint
except gold in Great Britain and gold and silver in the
United States that gratuous coinage that is the power
to convert standard bullion into its equivalent of coined
metal without charges discount exists nowhere but in
the United States, and is novel policy with u.s. having
been introduced only since the year 1887 We thus
In direct issue with Mr. b. and leave candor to decide
whether we are not supported by the facts.
But though the practice of all other nations
against charge for coinage trust the United States
Government is guided by sound rather than pre-
cedents and is prepared adopt rational system of
mintage If it act in that in other matters,
pioneer to foreign nations Let pass, therefore, to
consider the subject independent of any reference to the
facts as existing abroad.
Let concede for the sake of argument that it is the
duty Of Government concentrate in the country by
advantages and gratutes great share possible of
bullion and coin and let us inquire how this may be
done Mr. H. entertains the opinion that gratuitous
coinage is highly important TO this end Is this
sol Clearly not Grauitous coinage may increase the
value OF the issues struck the mint but its effect in
tanning those issues in the country is absolutely NULL II
perfectly notorious that with the first adverse of
exchange, and even without it, the coins thus gratuousy
struck go from mint to London the continent Of
Europe without being emptied from the bags They
there at melted and the labor and expense which in
generosity has been devoted to their manufacture
absolutely lost What benefit have thus conferred
the country? We have put mark the bullion ia
trdu but have by that act concentrated it here
contributed in any manner TO do SOY Mr.. B., among
other things cautions against charge silver coinage
tending to deprive Of natural monopoly Of the
silver trade engrossed by Great Britain The refer
ence to this subject truly unfortunate for his object
Is indeed true that the gratutous coinage Of the Unit
ed States and contguity the silver mnes have
effect whatever in tempting that metal hither in
transit But where does il got II seeks gratuitous
mnage, but passes almost exclusively TO London to
counter segniorage Of six per cent if sent 10 the
mint or to Paris where 1t is charged per cent To
superficial observer II would appear be attracted by
the tax but without asserting any such absurdy, what
more clear than that gratutous coinage does not attract
bullionf
1t is indsputabe that coined money is intrinscally
more valuable than Its weight unconed The FORM the
division into pieces, the stamp which Is the Government
certificate Of fneness and weight are advantages worth
paying for and rather than not have such coins charge
equivalent to the cost and manufacture would always be
cheerfuy paid TO the party having authority 10 COIN
whether the Government individual. But where
coinage is gatous this intrinsic advantage of coined
money bullion is taken into the estimate Of the
value Of the pieces Costing nothing to the holder beyond
the bullion they contain he treats them with no more
care or respect than bullion ITSELF He mets them up
sends them abroad to be melted with ruthless disregard
and sacrifice Of the labor and expense bestowed them
But suppose the coinage grautous what would
be the natural effect, or course the coin would be more
valuable than their weight in bullion by their enhanced