The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1878-08-22

shey draw their salaries regularly on quar-
ter-day.
How Thrifty Persons Have Been PEt-
ting the Trntle.ksolfar 20 Use.
rsncc,aI dispatch to the New York Nmes1
WAsHISGToS., August 1.-THE Treasury
Department has received a number OF COM
from large firms and others re-
snecttno DR.. Llnderman's circular OF July
Ok relative to the value of the trade
dollar.o The writer's, Judging from the
tome OF their letters, belong 10 that class OF
thrifty persons who, before the Department,
informed the public thatthe " trade-doi,ar
was only worth its bullion value, Wnlcn, at
present rates, is but ninety cents ana
fraction, were In the habit OF huyihs !uc
coins in question at discount varying
from five to three per cert, ana then pass
ing them off at par. This was inc Gase
in some large manufacturing es.ac,'sn-
ments, where the employees nave Deen 1--WE Inv,
riably paid partly in "trade-ao,iars. haas
road comnanies have also realized large
eoyino by using "trade- dollars" at Their
.ieket offices, and palming them off on the
public at their par value. 1t was to cheek
this swindle that the director OF the mint
published his circular cautioning the pnolc
against accepting the " trade-doliar iol
ANYTHING more than it was worth. aha
nov. that their harvest is at an emu, tue noiu-
ers Of trade-dollars" are very lndlGnant
at the Government for having lntel1eleu
With their operations., Some want TO kho"
how il is that q dollar which, like the trade
dallar." weighs APO grains, is only worth W
cents. while the new silye;-dollar, Whlco
weighs but 412A, is not only valued at lou
cents. but is maue an unlimited legal tender
and is receivable for customs dues. others
characterize the action OF the Government
in refusing to redeem the {" trade-doilar aI
par as "a swindle."
Strange to say, MANY Of the largest holders
of /" traded dollars y are national banks, VINO
have doubtless been specializing In them:
In view of the Importance OF the sup1ect
the following letter, recently written Dy
MIR. R. e. Preston, acting director OF the
mint in the absence Of DR.. Linderman, VIII
be found interesting:
TREASURY DEPARTMENT,
WAsHINeroN, D. e., August IA, 1875. }
Sir,-I have your letter OF the 14th an
slant relative to the value OF the trade DOL.
lar. and requesting to be informed at what
rate the Government paid these dollars out
and how they got into circulation.
coined by the act Of February II, 1878, and
was not intended for circulation Ill the
United States but for export to China.
That emplre possesses no mint for the
coinage of gold or silver, and depends upon
foreign coins for its domestic circulation,
and until the Institution Of the trade-dollal
tbe principai shipments Of coin to China
were in the form OF Mexican dollars.
The trade-doIlar was designed to compete
with the Mexican dollar, and therefore wa:
made a trifle more Nalnable-aDout two
mills per piece, thus not only affording
market for the surplus silver Of the mines
on the Pacific coast, but furnishing mer
chants and importers from China with sill
yer in convenient form for payment FOL
commodities, instead OF their being obliged
to purchase Mexican dollars for that pur
pose.
At the time Of the passage Of the ac
authorizing the coinage OF the tradc-dollar
silver bullion was worth IN London about
SO 1916 pence per ounce, British standard, a
which rate the bullion or intrinsic value OF
trade-doIlar was 103 47-100 cents in gold
Fluctuations in the value OF silver were moi
so wide at that time as in subsequent years
and taking the average value for the yeal
i 1878 the trade-dollar was intrinsically worti
IO2 $40 cents in gold.
This fact alone was sufficient to keel
THESE coins effectualiy out of circulation
and insured their use for the purpose TO
which they were intended.
T{be act above mentioned made them
how ever, ie legal tender in sums not exceed
ing !S5 in any one payment, Which llmltet
their use in circulation after the fall in tn
price tpf silver reduced their bullion valu
below their nominal value.
AS th(e price of silver continued to fal
rapidlv aNnd trade-dollars were being clrcu
lated to a considerable extent in the Pacific
States, Ctpngress, by joint resolution
July %, 1876, abrogated the leSal-tende
quality of the trade-dollar. At this time
July, 1876, silver had fallen to the loves
price on rec, N,rd, and the bullion value OF
trade-dollar vas only so ITO cents in gold
It afterwards rose rapidly. and in Decembe
of the same Wear the bullion value OF the
niece was 101 vents gold. Since that dat
the fluctuations in the value OF silver bu
lion. and conse. auently of the trade-dolar
have not been SO great, and have been com
nrised within mango OF II cents to tn
dollar.
Under the COMA \,s act when authorize
fine coinage of fri Naas-dollars these piece
were coined for de, Sssitors of silver bullion
at the minis. and ! a charge imposed TO
coinaoe at n rate n u; to exceed the actus
cost TO the Govern uent OF manufacture
Ey This act any ow \uar ,of silver bullion
could have the same ,\nineu into trade-dol
lars. They, therefore, were not Issued
paid out by the Govern Snlent:in payment
obligations or exchange 70 ior other money
The standard silver-do Ssafand silver frac
tional coins are coined I Suam silver bullion
purchased by the Govern! uenttor that pur
pose. and on its own acco \0nt. and are no
coined for depositors- diff, \rapg in this re
spect from the trade-dollar,S which was 81
coined.
1t may be readily seen that whenever thu
price Of silver fell to point ah which tht
bullion value Of the trade-dol t.ts added u
the cost Of coinage to the depos WAS les:
than its face OF nominal value. 'co4'a oe
placed in circulation at profit ny specila
tors to the extent Of its legal ten, tT'
The joint resolution repeating Hhe Issa
tender OF the trade-dollar also en- NNpWsi:.as q.
the Secretary Of the Treasury to MN. ~,
coinage to the actual export dema Wv; ,or
sc 80