The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-12-05

weight and not by cou mt, save in q few porte,
where Mexican dollars and a few other coins are
taken by tale. IL Is the practice OF Chinese
bankers, so 1t is reported, to stamp wlCh their
own mark the corn which they take and nay out.
The coin thus defaced soon comes to the state
and repute of bullion, and the presumption is
that our trade dollars have, many Of them, been
80 treated and so suffered. Bear in mind, too.
that from time to time for years past, unit til
OF comparatively Late date, there has been IN
ducemenJ to reship this coin from China hither,
because it has been free in circulation in most
parts of the land, and for most of the time al a
par with gold and silver money. There is rea-
son to believe, then, that besides the sum oft in
the hands of our own people, embarrassing
amount Will not come upon us from abroad.
OBJECTIONS TO REDEMPTION.
The agitation OF this matter has led out some
objections to the redemption above suggested.
AS the standard silver dollar. because of its IN
limited legal tender quality, is equal III it's fac
ulty of domestic purchase to the gold dollar, and
to the treasury note with Its like attributed
legal-tender quality, it is said that thus to ena-
Bile the holders Of the trade dollars to get for
them standard dollars, would be to raise the
trade dollar in popular esteem and in practical
value TO par with standard dollars and thus to
keep them ahoat rather than to bring them in,
and Thus, also, to swell the volume OF legal ten
der silver money in circulation by SO much as is
the sum of the trade dollars in the hands of the
people. This effect may be prevented by setting
bound to the time during which the exchange
may be made. II law authorizing the eXehang e
should run but for a twevemonth, holders
of the coin would make haste to rid themselves
of it, and at the end OF the time little of it would
be found mt large, and that little would fall back
to it's bullion value, and cease to disturb in the
way apprehended, 1t is not proposed teinerease
by this means the coinage of the standard sill yer
dollar, but as the trade dollars are taken in to
count them go much silver bullion. and make
them meet by so much the direction to buy sill
yer bullion for dollar coinage.
Nor is the fear well grounded that there would
be caused large influx of trade dollars from
abroad. government
demption of more than the value OF them as bull
lion. 1t has been stated above that there is
cause for belief that much which has gone abrO ad
has put off its character of coin OF the United
States, and so In that guiSe is not able to come
hension is felt that it will return in embarrass-
ing volume, the time for the exchange mi ght
have narrower limit, and instead of twelve
month, a quarter of year be the period fixed.
dollars that are adoat anywhere, brought
in and made bullion OF. even at
may be rid Of q discredited and debased
coin; but if this may not be, it still will wish
that those in the hands of our people be redeemed
in the mode recommended, with safeguards
against foreign holders. II II be urged that,
whatever be the sum redeemed, there will be a
loss to the Treasury in reeoinng the trade dol
lars as bullion into standard dollars, rather than
in purchasing bullion in the market at ruling
rates and coming it under existing law, it may
be answered that the excess of silver in the one
over that in the other will he nearly If not fully
enough to pay the cost of the manipulation; and
again, that the seigniornge or profit now got
from bnying bullion at, for example, 90 $40 per
standard ounce, and Issuing the same in nomi-
nal doilars the rate of, saw 116 Ali per stand
ard ounce, is only a seeming total profit of the
difference; for in the redemption of the ooin,
which must be looked for and provided for as TO
sooner or later come, the government mnst, as a
rule, take it back at the same nominal value at
which it pat forth.
If it be unprecedented that by the proposed ~ex-
change the sum Of the standard dollars will be
enlarged, and more of them will be forced into
circulation to the initiation of the currency, the
disturbance of the relative bearing of executory
contracts and the iosthng OF values it Is to be
said that a desirable part of the plan suggested
guards from an increase of the monthly pur-
chase OF silver bullion and of the coinage of the
standard dollar. That part is, that as the trade
dollar is taken in for the standard dollar paid
out, the former be counted as so much silver
bullion, and by SO much abate from the purchase
in the market under the act OF 1873. And if the
receipt of the trade dollars by the exchange in
any month shall be, when treated as bullion,
more in sum than would be purchase of two
millions worth OF bullion, then the excess there
on can be carried forward from month to month,
so far as need be TO keep within the direction of
the act OF 1878 for monthly purchases. And this
would be more or less likely to come into play
as the limit of time for redemption is shorter or
longer. If, indeed, no limit Of time was fixed, or
it was made as long as twelvemontB, this de-
partment could be empowered to refuse re-
demption in one month of a sum more than
enough to meet the requirement. of that act, and
still make fun redemption OF all that is likely to
be brought in therefor.
If it be said that much of this coin, tiscredited
and practically debased is in the hands of specu-
lators who have taken it at q discount, and that
they would profit by legislation which would in
crease the actual value of il; while 1t may not be
denied that lainentably this is too Tar the
case, still it is to be answered that such Is the
luck brought by all debased coin when at lastit ls
fairly redeemed. Spectators will make by o
depreciation and following approximation. A
law for fair redemption mnst have,
with 1ts good the evil of helping some to
gain who i'll deserve 1t. The fault is nos much
more with the speculative trader than with the
OH
noble gain. His profit is light incident. calm &
slightly for attention, because of the great gem
erai good to come from calling in a discredited
coinage. Besides, leave this coin unredeemed,
and by and by, when public attention is at q luii
agaiD it will be once more set afioat at nom nal
value, to be in fullness of time once more dis
harm of good people: Moreover, the informa-
tiou which l have from practical and reliable
men, who are at the sources of knowledge on
this head, is that those known as tradesfolk. and
most of the working people not in straits, un-
compelled by necessity to part with the trade
dollar at loss have held it during panics, look
ing ana waiting for action by the government,
and that the amount stored by brokers is a small
part of what is in domestic ownership, the larger
part being held by those who took them at full
face for labor and in tratfcin legitimate and
honorable dealing. 1t is best. once for all, to
call it in and put it out or possible use. T.
A thorough and effective redemption OF
1t can be brought about in this way Let
authority be given by Congress to the Treas
ury Department to barter for trade dollars at
their nominal value, standard dollars at their
nominal value. and melting the trade dollars to
recon them into standard silver dollars, count
ing the trade dollars got in this way as part OF
the silver bullion which the act of 1878 empow-
ets and directs TO be bought and coined
monthly. Should the trade dollars have
been so abraded muse as to have lost a material
part of their original weight, which is not mach
to be apprehended, n deduction might be made
from The price, and fractional payments made in
subsidiary and minor silver coin. r This
department does not recommend that a legal
tender quality be again given to the trade dol
lar, TO the sudden increase of the legitimate sill
yer m oney of the country, with the inconveni-
ence and ineongruity Of two dollars circulating
together, of the same metal, of unequal real
value and OF different devices, yet OF equal value
In pay meut of debts and of purchase OF properly
Ii recommends that authority be given for the
redemption of the trade-dolar in the standard
silver dollar, dollar for dollar of nominal value
for the recoinage of the metal so received into a
standard silver dollar toaccord with the law for
that coin, and for reduction of the amount OF
silver bullion resulting from the exchange from