The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1883-07-07
The Trade Dollar.

The movement against the trade dol
in fact, in all places, towns as well as
cities, it is now refused except for its real
value, Sc cents. A great many persons
| think that this coin is issued by the gov
eminent entirely. This is not the case,
under the act Of 1878, individuals own
ing silver bullion may have them coined
at the government minis, by paying the
cost of coinage. So that for long time
these silver millionaire have been making
profit of fourteen cents upon each coin
by issuing them to the people as dollars.
Upon the subject the Baltimore San
speaks as follows:
There is a popular impression that the
movment against the trade dollar is got
ten up for the purpose of speculation, so
that the coins can be brought up at a
discount and a profit turned by putting
them out again at par when the excite
ment is over. Well-informed tinanciers,
however, say that the depreciation of the
trade dollar was bound to occur when
ever more of them got afoat than could
be kept steadily in circulation. When
they began to accumulate in the banks
to greater extent than could be dispos-
ell of over the counter the only recourse
was to reject them, as they are not legal
tender and really worth only their bull
lion value. The fact that the standard
silver dollar, with less silver in it than
the trade dollar, is every where current
would not confuse the popular under
standing of the matter if it were borne
i'll mind that the standard dollar
owes It's position to its legal tender
character. 1t is by law made receivable
for all public and private duties, and
whenever it accumulates in the banks or
in the hands Of any holder in trouble
some quantities, it can be returned to the
government treasury. Intrinsic value has
nothing to do with its legal value, and it
would pass at par under such circum-
stances if it had no intrinsic value, just
as the government keeps paper currency
of no intrinsic value afoat by standing
ready to redeem it on presentation and
accepting it for all purposes just as if it
were SO much gold. So far from the re-
lection of the trade dollar being in the
interest of spectators It breaks the mar
ket of the spectators. The law allows
owners Of silver bullion to have it minted
into trade dollars at a charge designed
simply to cover the cost of the process,
SO that it is evident that some specula-
tors have been making money for years
past in having Sc cents worth of silver
a dollars worth. Only the lack of mint
trade dollars into the currency, although
tho nernnSi b1n VIII; ob J,o
of February, 1878, authorizing the trade
dollar was passed was to obtain coin
for export uses solely. The little items
that have from time to time appeared of
the excessive demand in the San Francis
co mint for the coinage of trade dollars
are now very Ineligible. 1t has been
suggested that the government should re-
deem the trade dollars, and some people
have gotten the idea that government
could do this without expense, and even
profit, inasmuch as the intrinsic value of
the trade dollar is greater than that of
the standard dollar. But it must be
borne in mind that the government main
tains the standard dollar at par with gold
SO that in effect the redemption of the
trade dollar in silver dollars would be
the giving of dollar for Sc cents worth.
The standard dollar which the govern
ment would give in exchange Tor a trade
dollar might cost no more to coin than
the trade dollar, or not so much, but
when that trade dollar should be present
ed in payment of any tax or duty it
would discharge the same amount of in
debtedness as gold dollar would, while
the trade dollar would have only dis
charged Sc cents worth. So in the
transaction the government would have
lost IA cents. There were 80, 9G9, $50
trade dollars coined up to the last of the
fiscal year, and at the present rates the
government could buy the bullion in
them in open market for less than $751;
OOO,0O The difference represents the
governments loss if the trade dollar
should be redeemed at par.