Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1878-09-11
TIE TRADE DOLLAR.

The New York Times, in reply to an
inquirer, states how the trade dollar,
worth only 80 cents, is put into circu-
lation. The Acting Director of the
Mint, Mr.. Preston, says that the trade
dollar was never intended for circula.
ton in the United States il was in.
vented to satisfy the clamors of the
Pacific coast financiers, who are always
complaining thai their wants are not
attended to BY the Government Just
as the ridiculous twenty coin was
designed to meet iancied want for
coin which should represent two dimes,
so the trade dollar was ordered. The
object in coming the trade dollar was
to enable California merchants to cx.
port American silver to China, instead
Of Mexican silver, which they were
forced TO buy at disadvantage. OF
course, the trade dollar, being legal
coin, was bound to get into circulation
of the country by some means, though
in the first place only made for export
The depreciation Of silver has affected
this coin, and the joint resolution re.
pealing its legal tender came too late
to change the volume of existing circu.
lation. Therefore, if sundry specula
tors have been surprised with large
stock of trade dollars on hand, they
have suffered for their ignorance of the
law in reference to this much, discussed
variety OF dollar.
A number of persons who, before
tho Treasury Department informed
the public that the trade dollar" was
only worth its bullion value, which is
at present about 80 cents and frac.
ton, were in the habit Of buying trade
dollars at a discount, varying from 5
to per cent, with the idea of specu
latng with them by passing them tff
at par. Now since the public are IN
formed of the right value Of the trade
dollar such speculation is ended. Many
persons arc also innocently in posses
sion Of trade dollars, and they naturally
want to know how 1t is that dollar
which, like the trade dollar, weighs
42O grains, is only worth 90 cents,
while the new silver dollar, which
weighs but 4l2! grains, is valued at
100 cents, and is moreover an unlim.
tied legal tender and is receivable for
Custom dues. But ii must be remem.
bered that the new silver dollar and
the haEdollars, quarters, etc, are
coined from silver bullion purchased
by the Government for that purpose
and on the Governments own account,
whilst the trade dollars were merely
coined for depositors of silver bullion
on their (the depositors) } account they
paying the Government for coming
them. The trade dollar was coined
for shipment to China, that country
having no Mint of its own, and were
never intended for circulation in the
United States.
Congress, by joint resolution of
July %, 1876, abrogated The legal ten.
der quality of the trade dollar. 1t
cannot, therefore, be justly charged
that the Government has perpetrated
a swindle on tho people in putting tho
trade dollar out as dollar, and then
marking it down to 80 cents Tor the
fact is that the Government has en-
deavored to keep the trade dollar in
its lawful and proper channel, and that
from ignorance Of the law relative to
this coin, parties have taken thcm in
ordinary business transactions, when
they could have been lawfully refused.
1t will be noticed that the value there
fore, Of trade dollars varies Just as the
value Of silver bullion fluctuatcs. In
December, 1876, the silverin the trade
dollar was worth lOl cents in gold
since that date the value Of silver has
declined, so that at present the trade
dollar is worth for the silver 1t contains
in the London market about 80 and
4-l0 cents, and if silver should advance
in value in the future the trade dollar
will rgain be worth 100 cents, or, it
may be, even more than that amount.