The clarion. [volume] (Jackson, Miss.) 1883-1888, 1883-03-28
Government Profit on Coinage.

Some curious facts relating to unre-
deemed obligations of the Government
have been coilated by the New York Sun.
which show considerable source Of
profit to the United States Government,
The amount of paper money and coin
which IS never presented for REDEMPTION
comprises large sum. Much Of this
Is destroyed by fire. Some of it is bur-
led or hid in places known to no person
alive. A large quantity of the coin is
melted to make sterling silyerware.
Considerable amounts of both paper
money and coin are exported never to
return. Not long ago a United States
bond, issued about 1919, was presented
at the Sub-Treasury in this city. The
interest on it had ceased over fifty years.
1t had come back from Europe through
Barring Brothers. The outstanding prin-
cipal of the public debt of the United
States last year was nearly two billions
of dollars, chiefly represented by bonds
and treasury notes.
1t would be, of course, impossible to
say how much of this will never be pre-
scented for redemption, but some idea
may be formed from the fact that $57,-
665 of it was issued SO long ago that the
date is not recorded 1t appears in the
report as cold debt" that may safely be
put down as profit. There is an item of
49,, 525 of treasury notes issued prior to
1916. Some of them were issued nearly
fifty years ago, and will not, in all prob
ability, ever be presented for redemp-
ton. One thousand one hundred and
four dollars of the Mexican indemnity
of 1916 has never been claimed. The
last of the fractional currency was issued
under the act Of June 6, 1864, vet, al
though nearly twenty years have clap
sed, S7,077,24 has not been presented
for redemption. Some of this is held as
a curiosity. Some of it is still used by
banks and merchants for transmitting
small sums by mail. Several New York
banks have considerable sums of new
fractional currency, which they destrib-
ute for the accommodation of their custo-
mers.
As to the coin, the Government de-
riyes considerable profit from it. The
silver in one thousand silver dollars
costs, on an average, about $S03.S5. The
coinage of silver dollar costs about Ii
cents. The total cost of one thousand
silver dollars to the Government is there
fore $Sl6,25. Since the organization of
the mint, in 1898, 127, 1868 silver dol
lars have been coined, on which the
Government has received profit of over
twenty-three millions of dollars.
In the same period $123,75S,5 $40 was
coined into half dollars. At the same
rate of cost for coinage the Government
profted $l9,395.769 on these. The
total silver coinage Of the Government
since 1898 is $347, 766,792. Estimating
the profit on the halves, quarters, and
subsidiary coins at the same rate as on
the dollars, the total profit received by
the Government on its silver coinage
has been about sixty-four million Of dol
lars.
In the coinage of the five cent nickels
the Government reserved to itself the
liberal pToftof nearly so per cent. This
gave to the Government last wear the
handsome revenue of over 100000 from
nickels alone. The wide margin be-
tween the intrinsic value Of the five
cent nickel and its face value led to ex-
IRENE counterfeiting. Several years ago
an assay was made Of some Of the coun-
terfeit nickels, and it was discovered
that the counterfeiters had put into
their coins more valuable metal than the
Government uses in making the genuine
coins. Scientific American.