Savannah morning news. [volume] (Savannah) 1868-1887, 1883-07-05
THE TRADE DOLLAR.
Ignorance of the Law the Cause of the
Past Circulation.

"dSHtHgtOn Special, %d.
The Post will publish tomorrow an in
teryiew with Mr.. r. Z. Preston, acting
Director of the mint, in which that gen.
tleman gives the history of the coinage of
the trade dollar and of the circumstances
which have combined to make it obiee-
tionable as part of the currency. He is
quoted as saying:
The trade dollar was authorized to be
coined by the act of February II, 1873. 1t
was not intended for circulation in the
1, United states, but for export to China.
IhaI empire possesses no mint for the
coinage Of gold or silver, and depends
upon foreign coins for its domestic circu-
latlon, and until the institution of the
trade dollar the principal shipments of
com TO China were in the form of Mexican
dollars. 1t was designed to compete with
the Mexican dollar and for that purpose
was made tritle more valuable, about
TWO mills per piece. 1t. therefore. not
only afforded a market for the surplus
silver of the mines ON the Pacific coast.
put FURNISHED merchants and importers
from China with silver in a convenient
form Tor payment for commodities instead
OF being obliged to purchase Mexican dol
lars for that purpose"
VI the fluctuations in value of the
trade dollar, Mr.. Preston is quoted as saw
ing:
At the time the coinage of this piece
was authorized silver bullion was worth
IN London about 80 1916 pence per ounce.
BRITISH standard, at which rate the in
trInslc value of trade dollar was 1O3
4'-l0O cents in gold. Its average value
during that year 1879 was 103 3-1O cents
IN gold. In July, 1876, silver had fallen to
the lowest price onFecOrd, and the bullion
value OF trade dollar was only so 40
cents in gold. In December of the same
year 1t was 10l cents, and since that date
IL has nuctuated within range of thir-
teen cents to the dollar. until at to-dav's
London quotation for silver bullion. il is
worth only 81 49-100 cents.
Mr.. Preston is reported as saving of the
legal tender quality of the dollar that it
was legal tender until July %, 1876,
When Congress, by joint resolution, alb
fOgated the legal tender quality. This
resolution also restricted further coinage
TO the actual export demand. 1t was
found, however, that the law was eyaded
by persons who made affidavit that the
com was needed for export and shipped it
10 emma and back to the United States,
where 1t was put in circulation. Mr..
Preston is also quoted as saying
ut is mistake to suppose that the
trade dollar is government coin. Under
the act which authorizes the coinage of
trade dollars, these pieces were coined for
deposltors of silver bullion at the mints
and charge imposed for coinage at a
rate not to exceed the actual cost to the
government of manufacture. By this act
any owner of silver bullion could have
the same converted into trade dollars.
Ihey therefore were not issued or paid out
by the government in payment of
Obligations or exchange for other money.
The standard silver dollar and
silver fractional coins are coined from
silver bullion purchased by the govern
ment for that purpose and on its own
account, and are not coined for depositors.
differing in this respect from the trade
dollar which was coined. The truth is
that the government has endeavored to
keep the trade dollar in its lawful and
proper channel, and that from ignorance
Of the law relating to this coin parties
have taken them in ordinary business
transactions when they could have been
lawfully refused.7
When asked what remedy he would
propose, Mr.. Preston replied:
''There is none, unless Congress takes !
up the matter and legislates against it.
My idea would be to call all the CONS in
and redeem them. Congress would have
to settle the rate at which they should be
redeemed"