New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-04-13
VOLUME X.--NO. 3
The .eilver Qaessien and the Trade
Dollar.

Dollar.
As anticipated for some time, the prepa-
rstions for replacing the present small cur
reney with the subsidi ary silver coin are
about completed. All sub treasury Offices
have been supplied with portion each of
the $l2 ,OOO, 900 silver in the control of the
Secretary of the Treasury. No order for
it's distribution has been received, but it is
daily expected.
1t is generally supposed that as silver is
quoted as below par compared with green
backs. its circulation will be retarded by
the difficulty of exchanging it for green
backs il amounts greater than IS. There
is no foundation tor such belief. All the
silver in the country can be readily ex-
changed fol. .greenbacks at par. BY issuing
greenbacks at the breaking out of the war
silver was driven out OF circulation. and,
until fractianal currency was issued, sub
s.isutes of various kinds were circulated
till they became an enormous and intol-
erable nuisance. For twelve years this
currency has held it's place; but it has done
it's work and is no longer needed.
1t is said that if 10000, 900 is spent by
the United S stes for silver, it will demone-
tie gold and drive it from the country
This is an error. for the bonds the govern
ment would Issue for the bullion would be
fully equal to silver in all exchange opera
tons. There will always be found suffici-
ent gold for the purpose when the country
is ready to resume specie payments. Even
Mr.. Holman, of Indiana, whose resolution
against the fixing of time for the resump.
ton Of specie payments was voted down by
I5S to ll2, is in favor of this issue of SUBJ
sidiary coin, stating the expense of reprint
ing fractional notes to replace worn out
and useless ones would be saved, and that
the government would gain in addition the
difference of value.
Mr.. Sherman, as chairman of the Senate
Finance Committee, has at different times
entertained different views on this and
other financial matters. At the previous
session his bill was compromise, by fixing
q remote date, between those who demand
ed resumption and the iIfiationists. In
November, 1875, he was in favor of author
iz:ng "all holders of bonds of the United
States to duplicate them in currency to the
amount Of ninety per cent Of their value.'
He new considers resumption. economically
speaking, would be easy enough, although
. year ago he considered it a complicated
question to be met at later time.
Another, and perhaps and unexpected
obstacle, came up in the Senate March 81.
1t was the trade dollar This coin was es-
tablished principally for trade with China,
intended to supersede the Mexican dollar,
than ten millions of them have been coined
and nearly all have gone out of the coun.
try. When it was determined to change
silver for fractional currency it
was found the Revised Statutes, section
1886, contained q provision which would |
embarrass the operation because 1T provid. |
ed that silver coin should be legal tender |
to the amount OF S. The difficulty is best
stated in the language Of Senator Sherman,
who desired to except the trade dollar:
!. CO0CalnS
420 grains of standard silver The dollar |
Of the law contains 4l2le grains of silver. |
The subsidiary coinage contains 3S5 grains |
IN two half-dOllars. The trade dollar was a |
dollar coiaed simply for the benefit of mer-
chants in the foreign trade, to compete with |
Lac Mexican dollar, which was more valu- |
able dollar than our legal tender dollar 1t |
was never intended to make it legal ten
der. Now the result is, as silver has declined |
below the standard of gold, far below it's
former value, that private persons carry /
their silver bullion to the mints, and under
the law as it now stands require it to be
,oined into trade dollars, and then use them
's legal tender, silver being now depre-
'.ated below its legal standard.
M. Sherman alse said:
will say further that the trade dollar is
ssued at the request of private persons.
When any holder of silver bullion dasires
% exchange it fer trade dollars, he can take
{ to the mints and ask that it be coined
INTO trade dollars; and then he sells them
u uses them in the foreign trade, while the
,ther silver coins of the Cnitad States are
,oined at the pleasure of the United States,
md only for their benefit, and whatever
,rofit is derived from the other cOinsge is
derived by the United States, and not by
private individuals But the trade dollar
9 mere article of merchandise. The
committee on Finance have considered the
ubject fully.
will read the section under which the
rade dollar is issued. I will read, first,
ection 35l3. In regard to the silver coins OF
he United States:
''The silver coins of the United States
hall be q trade dollar. half dollar, or
fifty cent piece, quarter dollar, or twenty
i've cent piece, o dime. Or ten cent piece;
md the weight of the trade dollar shall be
20 grains troy; the weight of the half dol
Or shall be twelve grains and one-half of a
rain; the quarter dollar and the dime shall
'e, respectively, One-half and oae-fifth of
he weight of said half dollar.
Or, reduced to grains, two half dollars of
he ordinary coinage contain 1856 grains.
he trade dollar is issued only under the
stated in section $500, which
will now read:
''Any owner of silver bullion may deposit
be same at any mint to be formed into
ars or into dollars of the weight of 400
rains troy, DESIGNATED in this title as trade
ollars, and no deposit of silver for other
oinage shall be received. Silver bullion
ontained in gold deposits and separated
herefrom may, however, be paid for in sill
or coin, at such valuation as may be. from
me to time, established by the director of
,e mint"
The subsidiary coin il coined only by the
'nited States in such quantities as are de.
landed for money. The trade dollar is is
ned only a. an article of merchandise, as
,rm OF silver bullion, and therefore it
ught not to be made legal tender. There
aould be no question about that.
The profit of converting silver into coin
aould 20 to the United States. That of
he trade dollar goes to private persons.
icing put he'd by them, the United States
deprived of control over it's coinage.
Mr.. Cockrell wished to see silver legal