The daily gazette., 1878-11-13
THIRD EDITION
Ono and Twe-Doliar Notes.

: Secretary Sherman on Their Rumored
Withdra,oal--N Such Order Issued.
WASHINGTON, Nov. a. Secretary
Sherman, referring to the rumorei with
drawal OF the one and two-dollar United
States notes, says: M lg ett4.
Fully year ago the story was started
in some paper, and caused an unnatural
demand for small bills. The sta ement
was unfounded o'her than that, having
3 one years supply oil ones and twos on
hand, the Bureau of Engraving and
Printing stopped printing any more till
that supply could be reduced. No order
was issued to the treasurer to limit the
issue of ones and twos, but they were is
sued to everybody who demanded them.
No order has ever been made for their
withdrawal. They are issued like other
money whenever they are required, and
any holder of demand against the
United States is ordinarily paid in the
denomination of money desired. After
the lst of January no bills of less de-
nomination than s. can be issued by
National banks, and no doubt if the one
and two-dollar United s ates no es were
withdrawn IL would make place for
more silver. The Secretary thinks, how
ever, that the public at large ought to
have the option to axe gold, silver or pa
per Of any denomination coined or print
ed. This is the best wayio secure the
largest circulation. If the chief end of
life was to secure the circulation Of silver
money, it might be forced into circula-
ton by Withdrawing the ones and twos,
but the Secretary does not see why the
people should be denied the use of such
notes if they want them, nor why silver
money should be made unpopular by be-
ing forced into circulation 10 the exclu-
sion Of more convenient money.
THE TRADE DoLLAR-THE DIRECTOR OF
THE MINT ON THE ADVANTAGES
OF THE COIN.
The Director of the Mint devotes a CON
siderable portion of his forthcoming
annual report to the subject of the trade
dollar. He states that wherever they
have been introduced in CHINA they have
met with a favorable RECEPTION and con-
time to grow in estimation. He consi-
ders it satisfactorily established fact
that the trade dollar has proved beneficial
10 the Chinese, to the American merchant
and TO the producer of silver. He says it
has benefited the Chinese by giving
them coin of more uniform tineness
and value and of better execution than
any other current in their country. 1t
has proved advantageous TO the Ameri-
can merchant by furnishing him a coin
more accep able to his foreign customers
and at cheaper rate to himself, and the
producer of silver has not only obtained
a better price for his silver, but an IN
creased demand for the same has been
created. Since their coinage was author
ized $3.50 ,360 trade dollars have been
coined, and % ,703 $50 have been expoi-
ted, leaving balance of 10, ,255, ,410, some
OF which the Chinese have taken home.
1t is estimated that during the past fl We
years 5000, 900 has been thus disposed of.
Five and quarter millions are held by
California banks, or circulated as money,
except about S206, 900 melted at the minis
The principal portion of trade dollars
now in circulation were coined since
they were deprived of their limited legal
tender quality, and they were mauufac.
tured for depositors, with the under
standing that they were TO be exported
and not placed In domestic circulation. 1t
was also understood that they had been
deprived of their limited legal tender
character Ito the extent of So by the act
OF July -, 1873. The government, hav-
ing received nothing whatever for execu-
ting these coins except the actual expense
of coinage, is in no degree respons BILE
for their redemption. TO give them a
legal tender character would result in
bringing back large amounts from other
countries. BY making them a legal ten
der or redeeming them in legal tender
money the purposes of the act authoriz.
ing their coinage would be practically
destroyed.