Savannah morning news. [volume] (Savannah) 1868-1887, 1882-02-24

RecOinage of Trade Dollars.
Ever since the passage Of the law pro-
vidiug for the coinage Of the standard
silver dollar. and its investment with
legal tender qualities. the trade dollar,
although containing eight grains more
Of silver than the standard dollar, has
been either refused altogether as a circu-
lating medium, or. if taken at all. re-
ceived at a heavy discount. As there
are about $9,OOO.OOO of these dollars
which have been in circulation, and are
now held IN the country. it may be
imagined what loss and inconvenience
this has Occasioned holders, and in con-
sequence there has been considerable de
mand that Congress should do some
thing for the relief OF such holders.
In obedience to this demand, several
bills have been introduced, snd are now
under consideration by the House Com
mittee on Banking and Currency, look
ing 10 the retirement of trade dollars.
One Of these which has been agreed upon
by the committee provides that until
July l, 1884, trade dollars may be ex-
changed at any Of the United States
minis for standard silver dollars, dollar
for dollar. and trade dollars received in
this way shall be considered a part of the
monthly purchases Of bullion which the
Secretary Of the Treasury is authorized
to make"
This proposed bill is simply an act Of
justice The government issued these
trade dollars in the first place, and as
tdey are intrnsically more valuable than
the standard dollar, it is but fair that
they should be, at least, as valuable to
the public. who hold them. To make
them redeemable in standard dollars for
the purpose Of remelting and recoining
them, will have the desired effect of, at
once, virtually restoring them to circu-
lstion, and of relieving holders from fur
Their loss and inconvenience because Of
their being refused, OF their curl ent value
deprecated.
Several objections have already been
urged against the passage of this mea-
sure. One of these is that as trade
dollars do not circulate at present, if
they are allowed, in this way, to become
indirectly part of the coinage of the
country, silver currency will be unduly
inflated. a glance at the proposed mea-
sure will show, however, that there is
nothing in this objection. AS will
be seen, it is provided in the bill
under consideration that trade dollars be
received at the Treasury in exchange for
standard dollars, aud when so received
shall be considered a part of the monthly
purchases of bullion authorized to be
made by the Secretary Of the Treasury.
This provision means, of course, that
they shall not be exchanged any more
rapidly than the issue of standard dol
lars is required by law, and so it effectu-
ally prevents their Increasing the legal
circulation of the silver dollar. In other
words. the proposed bill simply contem-
plates that they shall be purchased with
standard dollars as bullion, ct the price
Of dollar for dollar, and when purchas-
Cd they shall be used in the coinage of
standard dollars only in accordance with
the present requirements Of law.
Another objection to the proposed bill
is that the government can purchase
bullion at a cheaper rate than those trade
dollars Will cost If 100 cents is allowed
for them. and that this will involve the
government in loss. True, it viii force
the government to pay little more for
bullion to the extent TO which trade dol
lars may be purchased, but still it will
involve no actual loss, for the bullion
value of the trade dollar is about eighty
nine cents at present, while that of
the Bland dollar is only eighty seven
and 3 half. So it will be seen the
government really gains enough by the
exchange not only to pay the cost of re-
coinage, but to leave a margin of profit
besides And when it is remembered
that the government is responsible for
the existence of trade dollars, it must
be acknowledged that it should be will
ing to lose the little additional profit it
would gain by purchasing bullion out
right in place Of such deprecated dol
lars at the price named for them, espe-
cially when the benefit conferred On the
public generally thereby is considered.
In truth trade dollars should have
been exchanged for standard dollars
long ago. It is well said that since Jan
uary 1, 1879, a period of over three
years. they have been the only depre-
ciated money in the country. When
they shall be out of the way there will
be only one standard of American money,
and gold and silver coin, government
aud bank notes will be, without a single
exception, at par 1t may be that the
trade dollars have passed into the hands
of spectators TO some extent, and that
this class viii be largely benefited by the
proposed exchange; but, even if that be
so, it is 10 reason why the government
should refuse to render exact justice.
One or the Other.