Northern tribune. [volume] (Cheboygan, Mich.) 1875-1885, 1878-08-31
The Trade Dollar

There has been considerable talk and
fault finding in regard to the trade dol
lar. and the government has been chargc Il
with swindling combining and putting
them out as dollars and then marking
them down to ninety cents. The acting
Director of the Mint furnishes the fol-
lowing Acts relative to their true status !:
The trade dollar was authorized to be
coined by the act of February II. 1873,
but was not Intended for circulation. in
the United States, but for export to China.
That empire possesses no mint for the
coinage of gold or silver, and depends
upon foreign coins for its domestic cir
culation, &nd, until the institution of the
trade dollar, the principal shipments of
coin to China We're in the form of Mex
lean dollars.
The trade doAar was designed to COM
pete with the Mexican dollar. and there
fore was a trifle more valuable, about
two mills per piece.
The act above mentioned mlde them a
legal tender in sums not exceeding S.
in any one payment. Congress-, by a
joint resolution of July %, 1876, abrO-
gated the legal tender quality of the
trade dollar. At this time, July, 1876,
silver had fallen to the lowest price oil
record, and the bullion value of trade
dollar was only 50 7-l0 cents i'm gold; it
afterward rose rapidly, and i'm December
ot the same year the bullion value of
that piece was l0l cents in gold. Since
that date the fluctuations in the value of
silver bullion, and consequently that of
no in n1fa, hn,-o
and have been comprised within Il
range of eleven cents to the dollar.
Under the coinage act, which author
lied the collage OF trade dollars. these
pieces were coined Tor depositors of sill
yer bullion. They, therefore, We're not
issued or paid out by the government in
payment of obligations or i'm exchange
tor other money.
The standard silver dallar and silver
fractional coins are coined from silver
bullion purchased by the government
for that purpose, and on its own account
and are not coined tor deposilors. differ
ing in this respect from the trade dollar.
which was so coined.
Ut may be readily seen that Whenever
the prize of silver fell to point at which
the bullion value of the trade dollar, adl
ell to the cost OF coinage to the deposit
ter; was not less than'its face or nominal
vaiue, it could be placed in circulation
at a net profit by SPECTATORS, to lie ex-
tent of its legal tender,
The joint resolution repeating the legal
tender of the trade dollar also empowered
the Secretary of the Treasury to limit its
coinage 10 the actual export demand;
but this was not sufficient 10 proven: de-
pOsitors OF silver for returns ina these
coins diverting them from their true OBJ
ject AMI placing them in C retaliation, and
their coinage has been entirely suspend-
ell by order OF the 81 cretary of the Treas.
ury.
Most of the pieces in CIRCULATION east
OF the Rocky mountains have been COIN
ed and placed in circulation since
the passage OF the act repeating the leg Il
tender OF the trade dollar
1t cannot, therefore. be riehtfully
charged THAT the government has e.
petrated swiEdle on the people i'm put
ting the trade dollar out as dollar. and
then maj king it down to ninety cents
TOR the fact is that the government his
endeavOred to keep The trade dollar in
its lawful and proper channel, ami that
from ignorance OF the law relative to this
coin. parties have taken them in ordinary
business transactions, when they cOul
have been lawfully refu ell.
AS tO-days London quotation for silver
bullion is 90 3-S pence per ounce. British
standard. the lowest &c for he ,rly two
years, the trade dollar is Work. as bullion
80 10 cents per piece.
Very respectfully. II. E. PRESTON,
Acting Dirccto"