Port Tobacco times, and Charles County advertiser. (Port Tobacco, Md.) 1845-1898, 1883-07-06
The "TradeH Dollar.

The opposition to the trade dollar,
which has been recently renewed, seems
to be steadily gaining ground, aud it is
probable that, in the near future, that coin
will be entirely driven from circulation.
The history of this coin which herhaps is
not generally understood Is as follows:
In November, 1872, Mr.. H. R. Under
man, director of the mint, in view of the
demonstration of $350,000,0O0 worth OF
silver by the German empire, its demone-
tization also by Japan, and its entire OF
partial expulsion from circulation in
other countries by paper money, urged
that "the true policy of this country was
to seek market in China for its silver
bullion and in order to do this proposed
that our bullion should be put into the
shape of coin slightly more valuable
than the Mexican dollar already in circu,
'ation in that country. The idea was that
the new coin, for which Linderman pro-
posed the name 'silver union,' weighing
400 grains and containing 37S grains OF
pure silver, having its weight and fineness
guaranteed by the stamp of our mint,
would "be accepted as medium of ex-
change in our trade with China and very
soon supercede the Mexican dollar" The
American dollar contains but 371t grains
Of pure silver; the japanese yen 374 4,1O
grains; the Mexican dollar, 18Th grains
while the proposed "silver union" now
known as the trade" dollar, was to con-
tain, as said before, S7S grains. Hence ii
was claimed that the intrinsic value OF
the new coin would enable it in the trade
between San Francisco and China to drive
out all competitors. Its coinage com
menced in July, 1878, and up to the close
of the last fiscal 45,959,360 pieces were
struck.
The act of Congress of 1873, authorizing
the coming OF the Band silver dollar
weighing 4124 grains and making it a
legal tender, did not extend to the 'trade
dollars" yet those coins came into circu-
lation in this country about the same time,
and have been generally received without
objection, so that at present they enter
quite largely into the circulating medium
in this country. The Bland dollar weighs
4I24 grains and contains 9Th grains OF
pure silver, while the trade dollar weighs
42O grains and contains 37s grains of pure
silver. Taking the gold dollar as stand
ard, the former coin is worth S4.93 cents
and the latter Sc So cents still the former
having been made legal tender by Con-
gress, cannot he refused in payment of
debts and must be received as a dollar.
while, the fat of Congress not extending
to the latter coin, it is optional with the
trades and others to receive or reject it.
Being intrinsically worth Is per cent less
than the gold dollar, it is, of course. in
conformity with plain law of trade that
the ''trade" dollar should be taken sab
ject to that discount, and not otherwise /;
but the adoption of the rule will work
considerable inconvenience until those
coins shall be totally expelled from circu.
lation.
The silver bill of 1878, by which less
than IS cents worth of silver was made a
legal tender for dollar. was q piece OF
bad financial and political economy. 1t
was an outgrowth Of the fat money craze
which swept over the country about that
time, and which seemed to disturb the
of some usually well balanced
minds. To the extent of over Is per cent
of its value. the Bland dollar is purely fiat
money. 1t is probable that the same spirit
of popular discomfort which is operating
to drive the "tradc" dollar from circula-
ton, will also serve to effect the repeal by
Congress of the act of 1873 and the de-
of the legal tender dollar; or
else will result in the "trade" dollars be-
ing also made legal tenders. 1t is not i'm
probable that the latter course will be
adopted, and therefore it
would be prudent fer persons holding the
trade dollare to hold them rather than to
submit to discount.
The regulation of bi-metallic currency
has been found difficult problem in the
history of government, and it is probable
that the United States will have to follow
the example of other governments and a.
dept single metal as a circu' ating me-
dunn.