Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1886-08-16
LIGHT GOLD COIN.

Under an old law, that for long period
has Iain dormant, abraded gold coin is
now being stamped light" weight VIXEN
ever the citizen has transactions that
brings his gold to any Of the Sub-Treas-
uries. The coin might readily enough
pass for a long time in business, and buy
its face value of goods, but the stamp of
the Treasury, eight" reduces its purchas-
ing capacity at once. The result is that
every one looks sharply at all gold coin
paid him, and refuses worn pieces. These
are thus driven to the Treasury and Mint
but in the meantime some one loses the
worn off" value This some one en-
braces all the people who handle coin.
That it is an act of injustice most of US be-
lieve Why is not worn greenback
stamped to indicate depreciation? If its
identity can be established it is redeemed.
II may be that the Administration is
working ruse to drive gold to corner,
but whatever the purpose, this stamping
light" is simply plucking from the
pockets of the people an immense sum of
money. What justification can the Gov
ernment have for the act !? 1t issues a
coin representing a given value; the peo-
pie use it as a medium for the exchange of
products. BY such use it wears to greater
or less extent. Thereupon the Govern
ment steps in and declares that portion
of its value has departed, and it shall no
more buy for its owner what it once would
purchase, and the " last man holding it
must lose to the extent of the depreciation
as tested by weight. The effect of the order is
to depreciate every worn gold coin in what
ever hands it is, because of the knowledge
that when it reaches the Treasury it Will
be stamped light"
Now, what may be said on the other
side? All governments aim to keep their
coin standards good, If they redeem
worn coin with full-weight ISSUE they en-
courage the "sweater" and "clipper" of
coin. More than that, they encourage
bullion speculation in new coins-the buy
ing Of new coin for expectation, leaving
the worn coin for home circulation. But
if they put all users upon notice that
abraded coin will not be fully redeemed,
the occupation of those who file and rub
and clip coins is gone. But our Govern
ment cannot afford to treat every last
holder" as a thief, and it therefore allows
half of one per cent. of natural wear and
tear Nevertheless it remains that the in
nocent must suffer, and the vast majority
are innocent holders. We all remember
what loss was occasioned when the Govern
ment "docked" worn silver coin 1t
stopped fling" certainly, but it also
taxed millions of people unjustly. So we
see that it is a question with two sides. 1t
is suggested that the Government should
be the loser, and thus the loss will be
evenly apportioned among all the people,
and to the extent of the percentage named
it does this But still it remains that the
light" weight stamp IS an unequal and
harsh tax, and that financial science,
while protecting the integrity of the stand
ard Of coinage, must prove itself equal to
the task of devising means to avoid the
punishment Of the innocent last holder,
who, We have shown, is every man who
receives coin for his products