New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-07-24
TUE OUTCAsT TRADE DOLLAR
,~rccr,vE ACTION ASKED FOR.

vxrcrrIvE ACTION ASKED FOR.
nrsmySr CAN DO NoTHING-RErfEF TO COME
Nv FROM CoNGREss-vARYLNG foRfoN%'
OF TUE COIN.
uJ.su,xcroN. July 23-The Secretary OF
'..nrv has addressed letter to DR.. James =.
tne r. Of BROOKLYN IN regard to the trade Dollar, Oh
Ia ,be sojlcwng is copy: have TO ackno"iooeo
~. ,.es,ut by reference from the PRESIDENT u ~
,..,or Of the 1Ith inst. concerning the .rsuo
80 30, nj newspaper slip Enclosed therein ny ~,
a.. as the Executive branch Of the Gcvernnons a.
.a "a contained in this sentence: fres'uo -,
,sur has ample authority to order theI leoef' Tn
sasury the sane rs standard silver ooii 80, o,ts
SIN. think that YOU lack the support OF iawi
.oin ,,at ron lack that of legislative in'en" a. y,
-. -. ,,ysn 10 the coin by the ConSso A0'
1871; the actual nse TO when !. wac ,rho nassed
, With the anticipation of the ls"-niaAe 80 -,
The act of what the of II woud pe' 'ie aot.d.
s,sanss,on and comment upon it when IL was ,a
discussion an~ :, 10 take away its lega-'ender
,,, wbep n was seen that 1t was put 10 uino'e'
80 and the usage OF the Government through W. ~ :.
"a % ats existenee-au tend strongly 10 sno" '1@
- o, pou by mere Executive oruer' NC e""o"0 W.
shc nreropatiyes which ycu attribute 10 IL n. On!
o e. view Of these acts, should hesitate 10 au'i'e
ra'e, :" a. oxarcse the power you assert for him.
'"e -, ., await the reassemblng OF Congress ana
snch action us IL may choose 10 taAc' . ,, -,
Won are already aware that JON. i -,
|-o,cro.s approved July %, 1876, pro''ues "s io"o
That the trade dollar shall NOT "eiea,' " " - -
..nasr, which is very significant As this resolution
ten"e', n..oindeJ or modified the Department has
..,.a that II has no authority TO order sub-Ireas-
s.a,s 10 receive trade dollars as indicated IN your
letter" .-,,,oo Inv
SECRETARY sherman regard to the issue OF the t"e
aousr and the depreciation In its value secretary
Tho taNfo of
20 ,o7a authorizing the coinage of the trade dollar says
IFS name indicates the purpose of this coin was Tor
trade not for circulation though by classifying II with
other silver coins the Law made 1t legal tender 10 the
amount of five dollars in any one payment At the Iine
Of the massage Of the act the actual value OF TINS doa
including the charge of III cents for coinage was Ie
more than 81 Oh in gold. Under such circumstances
there eond be no object the TO put the COINS
into circulation aud consequently they were exported
mostly to China, where from lack OF crcuihtihs
medu No. these pieces convenient in size ana bearing INC
guarantee of a great Government TO ther weight anu
6neness obtained extensive circulation anu eieaeu
market for the silver of the Pacific States as intended
by the act After few months, however, an unfore-
seen depreciation in the value of silver bullion occurred
and In the early part 1876 this depreciation reached
such point that one dollar IN goa wo9u putn"SSe
more than the necessary amount oil SILVER ior ]u0
dollar and pay for its coinage. ,,,,. ,, .
Under such conditions. dealers in bullion lonnu
profit In putting trade dollars into circulation a. par ~
Inc Pacic States where the currency was upon sOu
basis, but coin being legal tender l9r ohy nve
dollars it circulation necessarily limited III anioun
as we'll as restricted in locality. The people OF the
Pacific States however objected TO It's use az an Ior CIR
called matter, the sth OF May 1oI3 samuel o.
Randall of Pennsylvania. introduced INTO lne h1Ss
bill the third section OF which repealed the legs enGer
quality these coins. On the 10Th OF June ioo"ng
Cox, of New-York. reported the measure 10 tae
House. urging its adoption No objection was raised,
and it becaue law July %. 1876, without modlhcatlon
or an opposing voice or vote III egr a Sereser
legal TENDER and the secretary OF the treasury is hereby
authorized to limit from time 10 time the coinage there
OF to such an amount he may deem sufficient to meet
the export deinanl for the SANE -, 80,
Up to that time Excepting q few days., and for
sew eral months thereafter the trade dollar cost more
than paper currency dollar and consequently none or
states Owing TO the appreciation OF the paper cur
rency however in the fall OF 1870 the trade dollar De
eember of that year a large number of them put
into circulation at their face value at proht TO the
The coins on the 18th Of october in nat year. ordered
the discontinuance of their coinage at the mint at
Meanw nile the Department, in reply TO numerous in
ques had uniformly stated that the trade dollar pos
price of silver bullion. 1t will be seen that the COINS
pat into circulation months after the Sass OF
and mainly after their coinage had ceased. |
But in their use as money the department nr1 never
pense Oh their coinage the owner OF the bullion REIN
Iursed the ana tins enGsa Inc e
account have they ever been received or paid
Sy the bdad have seeepd them at their
value thus enabling their owners 10 put them INTO
circulation al a considerable profit Under date OF July
2 1875 the Director OF the Mint published tables from
which tie value of these coins can pe ascerlaIed ana
the which they received at the minis lie
advise any 10 dispose OF them at such rates
The law under which the Department buys bullion with
which coin the standard silver dollar requires the
10 be bought at the market price, ana IL can puT
chase trade dollars only brlliOD. Possibly IN time
these viii find ready market In china at nearly
quite their value circulation coin. In this
connection permit to correct any misrepresentation as
The purpose and effect of the Directors circular AS
early August "a 1876, the Department informed an
inquirer that tiade dollar had only bullion value,
and this information has been repeated scores OF times
and published by the press throughout the country 10
az Did the labor Of preparing manuscript letters the
Director embodied the information III circular, adding
thereto tables for the computation oil such value There
was decision involved III the circular, though
possibly Its publication may have hastened the depre-
citation of the coins their true value-aI event which
was Inevitable and could not have been much longer
delayed.n