New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-07-28
THE sMALL.CHAyGE FTN4NCIERs

THE SMALL-CHANGE FTN4NCIERS
It Is strange that those journalists. as well as
those bankers who talk lightly of the advantage to
tue Government to be gained by putting into circu-
lation the $50 100000 OF fractional silver coin In
the treasury do not stop to think where 1t came
from. Even the bankers, aud. strange to say.
officials of the Treasury, appear to have entirely
forgotten that these coins have accumulated In
Treasury vaults because use was found Tor them
in actual circulation brief recapitulaton OF the
history of these fractional silver coins will clearly
show that the expectation which seems to be enter
tanned by so many bankers and journalists, and
upon which the Treasury Department appears to
rest much hope. has but little reasonable founda-
ton.
After President Grant had been elected, and had
signed as his first act the formal pledge of tue Gov
ernment to redeem It's paper currency In coin nj the
earliest possible date, the first step taken was To
prepare fractional silver coin and substitute u Tor
the fractional paper currency then in circuation
During the fiscal years 1s70-lS7S inclusive. there
were coined in all about $Jl. 100000 of fractional
silver of which about $2S, 100000 was III hall
dollars S16. 100000 in quarters. $S.5O0OoO IN
dimes and the balance in 2ocent and o-cent pieces.
10 was never found possible to get the whols OF this
new silver into circulation. AS soon as 1T became
known that United States silver coins were in
'"Si''''~
changed ut par for other or for goods. the old
silver coin, which had long been III hiding places or
odt of the country, came buck into use in large
amounts 80 that the quantity of new coins required
for the circulation proved less than had been
anticipated. Presently 1t was found that tho
accumulation Of the fractional silver COINS was
causing great disturbance IN some parts OF the
country. They received with much reluctance
by bankers and business mn, and in some sections
were rated at a discount. on tho Pacific coast per
cent below the lezal-ten lers. Hence i'll 1878 the
Secretary of TITO Treasury recommended provision
for the free exchange of silver fractional coin for
legal tenders. and by. act of june -. 1879. the
subsidiary coins were made interchangeable with
legll-tenders. III sums OF not less thln So 50
.reat nad been the OF tbess coins in crcula-
ton prior TO TINS act that from June y to Novem-
Der l. 1879 no less than 5l2.l72.6Dl 20 OF these
fractional silver coins presented and cxchan sed
for other money. The statement OF June l, 1879,
shows that the Treasury then had on hand
So 1859 of these coins. having been unable to
put out that part of the new coinage. On the hrst
oil July 1850. tho amount held by the Treasury had
suddenly riscn to S2i.3JO.is2. 10 that by tue
voluntary retirement of tho fractional silver IN
order 20 yet other kinds OF money. not less than
81 30 900 had been emptied into the Treasury In
thirteen months BY the LIST of July. 1881 the
Ist of July, 1882 to S2S0is.6ji. The amount
which had been coined during these years was
indgn iiicant not exceeding $4,000 in either year.
Thus II appears that with the business oil tne
country at its maximum. and consequently with
greater demand for all sorts OF money than ever
before the amount coined IN excess OF the needs oil
business was proved to be sometnns oVer
s2s.0O000o.
In the fiscal year ending July |, 1888, on account
OF the need OF kind, Of fractional coin In soIue
sections. about 5T3i3jt was coined. and Ia the
next year 1919, i5s, ali about 81. 100000. But
meanwhile the amount Of fractional silver coin Ia
the Treasury rose to SIS. iS6.Oj0 July l, 1883.
aud ~ 600. 100 July /, 1881 Thus 1t appears
that tho amount III tho Treasury Increased tribe
more than the amount coined during the two years
These f. cts furnish the strongest possible evidence
that even with business far moro active than III Is
no. tho country hal no use whatever Tor ABOUT
KS OJO 300 Of the fractional silver coin existing
During the last year with greater inactivity IN
business the accumulation in tho Treasury has
lncrea ,ed 10 s3l. 80 i.365 Jnly |, 1883.
Yet the Secretary of the Treasury. and some
very WI $50 advisers in journalism. conceive that IL
would be easy thing to put out the S3l.ooo.ooo
of fractional sill or which the Treasury finds useless
asln asset in exchange for gold or some other scot
of good money OF t is possible TO force this
kind of coin into crculaton-iust as 1t is possible
TO repudiate obligations Of the Government by
forcing creditors to accept other stan winch they DO
not want aud which is not a legal tcnder. But 1t
il well to remainder that. In all probability. these
coins II again forced into circulation. Will drlit
back into the Treasury just ss they did before
faster than it Is possible to put them out.