The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-04-26
THE WEAR OF COINS.
How Congress Provides for the Abrasion of
Gold and Silver.

Philadelphia Record.
1t is estimated by the Treasury officials that
if coin is in active circulation. or is frequently
transferred in Treasury and customs transac-
tons, $40 gold piece should continue current
for fifty years, an eagle for thr. y-ve years, a
half eagle for twenty years, and 50 and 81 II
pieces each fifteen'years.
Inasmuch as coin cannot continue in circula-
ton even for a short period without some loss of
weight by natural wear. Congress has eStab-
lished margin Of loss within which coins viii
be received at the Treasury at their nominal
value. Section l of the act of 1873 provides:
That gold coins which have become re-
duced in weight by natural abrasion not
more than - of one per centum below
standard weight after period of circulation of
twenty years. and proportionate rate for a less
period. shall be received at their nominal value
at the Treasury and its Offices" The standard
weight of the double eagle is 5l6 grains, and the
amount of abrasion allowed by law is , $500
grains, thus leaving the least current weight
5l3 100 grains. The legal standard Of the gold
dollar is % grains. The legal deviation from
standard weight of the dollar is IA of grain;
hence it will continue current until reduced be
low % 53-l00 grains. This margin allowed by
law in the of the gold dollar exceeds the le-
gal limit of wear as applied to other coins by
nearly is of grain. All gold dollars coined
since 1871 are within the legal tolerance if not
fraudulently reduced in weight. All double ca
giles, if not artificialiy reduced, will be found
within the limit of natural abrasion allowed by
1896, half eagles coined since 1866 and quarter
eagles or 81. 80 pieces, if coined since 1871.
The law provides no way by which uncurrent
coins, either of gold or silver, may be redeemed
at their real value The only means at the dis
posal of the holder of these coins is to deposit the
gold at the mint where it will be received at its
bullion value and recoined into standard coins,
the government charging him the actual ccsts of
coinage or if he has mutilated silver coins he
must sell them to the government for what they
are worth as bullion
Since the government reaps an enormous
profit from the coinage of silver, especially Of the
fractional currency, by reason Of the great dis
parity between the actual and the nominG
value it is held to be unjust that the unfOrtJr
nate possessor of mutilated coins should lose all
the difference between the nominal and the
bullion value 1t is urged that this double profit
should not be eXacted by the government
As rejecting this view of the matter, petitions
prepared by Mr. B. G. Underwood, of New York
and signed by a large number of bankers in diff
ferent parts of the country, has been presented
to Secretary Folger, asking that Congress be
urged to provide by law for the redemption Of
uncurrent coins by the Treasury officials 1t is
proposed that all coins be received at their nom
inal value less reduction of five cents per grain
in the case of gold and of FIVE cents per penny
weight in the case of silver for the amount Of
deviation from legal weight This plan. although
petitioned for by formidable array of bankers
and advocated by Treasurer Wyman, does not
meet the approval OF Secretary Folger, and it is
not likely that any immediate action will be
taken with reference to it,