The Russellville Democrat., 1883-07-19
THE TRADE DOLLAR.
HOW AN OBNOXIOUS COIN
CAME TO BE MADE AND
CIRCULATED.


With the Acting Uirec-
tor of the Mint.
washington Post.
On the 26th OF June, one week
ago to day, the trade dollar was
quoted at the assay Office in New
York at 80 la cents. Yesterday it
was quoted at 81 cents, its nominal
value as bullion, and it would not
pass as current money. This sud-
den decline was primarily due to the
action OF the New York s15xenssnge IN
declaring against die coin. Similar
action was al once taken by all the
banks and commercial houses, and
to-day there is a movement against
the trade dollar all over the country.
In Washington there are very fes IN
circulation, the constant refusal OF
the Treasury TO take them having
taught people here not to accept
them as legal tender. None of the
railroad Or express companies here
will receive them.
In view of the fact that the histo
ny of the trade dollar has not been
definitely published, Post reporter
yesterday called upon Mr.. R. E.
Preston. acting director of the mint,
and inquired how the obnoxious
dollar came to be coined.
"The trade dollar" replied Mr..
Preston, twas authorized to be coin
ed by the act of February IL, 1873.
1t was not intended for circulation
in the United States, but for export
to China. The empire possesses no
mint for the coinage of gold or silver
and depends upon foreign coins for
It's domestic circulation, and until
the institution of the trade dollar
the principal shipments of cola to
China were in the form of Mexican
dollars
"Was the trade dollar, then, de-
signed to compete with the Mexican
dollar?"
Eyes, and for that purpose was
made trlfle more valuable, about
two mills per piece. 1t, therefore,
not only afforded a market for the
surplus silYer of the mines on the
Pacific coast, but furnished mer-
chants and importers from China
with silver In convenient form Tor
payment for commodities, instead o.
their being obliged TO purchase Mex
lean dollars for that purpose"
''How much were the trade dollars
worth when first coined!'
AT the time the passage Of the
act authorizing the coinage Of the
trade dollar silver button was worth
in London about 50 1916 pence pei
ounce, British standard, at which
rate the bullion or intrinsic value o.
trade dollar was 103 47-100 cent:
in gold. Fluctuations IN the value
of silver were not so wide at that
time as in subsequent years, making
the average value for the year 1878
the trade dollar was intrinsically
worth 1o2 $40 cents in gold. This
fact alone was sufficient to keer
these coins effectually out of circu
latiou, and insured their use for the
purpose for winch they were intend
ed"
$50 there was time when the
trade dollar was worth over dollar
Yes, It's actual value then was
four cents over our standard dollar.
''It was then legal tender?"
Eyes, sir. The act / have men
toned made trade dollars legal
tender, but in sums not exceeding
SIS in any one payment, which limit
ed their use in circulation after the
fall in the price of silver reduced
their bullion value below their NOM
inal value"
why was it not continued legal
tenderl"
'As the price of silver continued
to fail rapidly and trade dollars were
being circulated to considerable
extent in the Pacific States, Con
gross, by joint resolution of July
%, 1876, abrogated the legal tender
quality of the trade dollar. At this
time, July, 1876, silver hadfallen to
the lowest price on record, and the
bullion value of trade dollar was
only eighty and seven-tenths cents
in gold. 1t afterwards rose rapidly,
and in December of the same year
the bullion value OF that piece was
10l cents gold Since that date the
fluctuations in the value of silver
bullion, have not been so great and
have been comprised within range
OF thirteen cents to the dollar"
"There is an impression that the
trade dollar is a government coin!'
"That is a mistake. Under the
coinage act which authorized the
coinage OF trade dollars, these pieces
were coined for depositors of SILVER
bullion at the mints, and a charge
imposed for coinage at rate not To
exceed the actual cost to the Govern
mcnt Of manufacture. BY this act
any owner Of silver bullion could
have the same coined into trade
dollars. They, therefore, we're no,
issued or paid out by the Govern
mens in payment of obligations OF
exchanged for other money. The
standard silver doilar and silver
fractional coins are coined from sill
yer bullion, purchased by the Gov
eminent for that purpose, and on It's
nosn acaonpt and ora mt nniuad In,