Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1889-04-18
About Small Coinage.
The Governments Immense Profits in
the Manufacture of Pennies and
Nickels.
The Percentage of Profit in Silver Dol
lars Is Even Larger Figures
From the Mint.

coins TO the United States, and how it is
that they can afford to ship them at par
value, paying express charges on them.
A CORES pondent called upon an employe
of the Mint Bureau 1T the Treasury De-
partment and asked him about it.
"Oh!" he said, with a laugh, "8e have
always paid the express charges on nick
els and pennies, and can very well afford
to do so. We make lots of money on
them as it is"
"WAat do the nickels cost the United
States?"
"About 4Of a cent piece" he said.
"They are now purchased under contract
We used to make the blanks ourselves
and stamp them afterwards at the mint,
but of late years We have been purchasing
the blanks and having them stamped at
the mint. They are bought by the pound,
and cost, | think, about "a of cent
them? 2"
eyes"
''rhe profit on them is pretty large,
then. How about tina penniesY"
"They are bought by the pound, ALSO
| think they cost "A of cent, or perhaps
q of a cent each"
els are issued in year,"
"Nearly $1,000,000 worth. The total
amount of cent pieces issued in g year
usually reaches 100000, and of pennies
nearly 100000. Besides that there few
3-cent nickel pieces, but only few. Last
year the number was extremely small
There is d little demand for them and the
department is discoureging the use of
them as much as possible"
ION this million dollars worth of
minor coins issOed, then, there must be
a profit of considerably over half million
dollars"
eyes, considerably more than that
"The business of issuing coins at four
or five or seven or of eight times their
actual cost is pretty profitable one, isn't
iti"
''Yes, the Mint Bureau is profitable
one to the Government"
Glow about the silver dollars? Isn't
there petty large profit on those, too,
at the low prices silver now obtain?"
Eyes; there is more profit TO the Gov
ernmeAG in the issue of silver dollars than
anything else that We now do-not pro-
portionally, of course, but the number of
dollars issued Is so much greater than the
profit is large. We are required under
the law to buy and coin at least 100000
of silver into dollars every month. This
S2,090,000 worth OF silver makes nearly
$2,25O,000. So that the profit on the
monthly PURCHASES and coinage of silver
dollars is fully three fourths of million
dollars. So the profits on silver dollars
you see is about 100000 year or more,
and adding to il the profit on the pennies
md nickels brings it up TO nearly $40,
100000. OF course, there must be taken
out of that the expenses of the mint, but
they are com parativeiy a small sum-"
"What becomes of the pennies and nick
els that are issued?"
"They are redeemable, of course, in
other money when they are brought
back"
''Do they come back for REDEEM ption in
very great quantities?"
"a good many of them come back when
they are worn and defaced, but large
proportion are sent to the mint and
cleaned up and set into circulation again.
A bronze penny or a nickel Scent piece
DOES not wear out as rapidly as dollar
bill."s
lis there a demand for these minor
coins the year through"
"There Is of course a greater or less
demand for them all the time, but the
"Where do they go mostly?"
"There is a story that pennies are still
little used in the South and some of the
Western parts of the country. The de-
mend for pennies in the South has been
very slight all along, but Is somewhat in
creasing. We sent 70 Louisiana In the
last fiscal year per cent more than in
the former year, and TO North Carolina
100 per cent. more than in the former
year. To South Carolina we sent so per
cent. more than in the preceding twelve
months. Texas has evidently little use
for pennies, for VS. only had orders for
$50 worth from the entire state of Texas
last year. New York State seems to ap-
probate the ''nimbie penny" for we had
orders for $4,000 worth from that
State last year. To Illinois we sent
$4,000 worth. Thhere is a steadily in
creasing demand for Sthese minor coins;
the number of pieces issued by the mint
in the past few years has been unprece-
denied, and for long time the demand
was greater than we could supply. We
have caught up now, however. and have
somewhat a supply on hand, but the de-
mand will undoubtedly resume in the lat
ter part of the season, when the crops are
gathered and there is demand for cir
thbluS VI dIl hluQS.
The token coins of the United States
prior to 1S47 consisted of the l cent and
2-cent copper pieces originally author
lied by the act Of 1892. The weight of
these coins was IL peEnyweights or 264
grains tor the penny or 81 penny weigh
or 1872 grains for the - cent. Ire
weight was again r. duced in 1896 to I6S
grains for tie one cent and 81 for the -
cent, at which rates these prices were
coined until their coinage was disooutinu
ed ia 1857. The coinage of q l cent
piece of she weight of 70 grains, to con-
sist of SO per cent. of copper and II per
cent. of nickel, was then authorized
This coin was to be paid out at the mint
In exchange for previous issues of copper
coins. Tie coinage Of this 1 ceat piece
authorized by the act of Februars
81, 1857, was discontinued by the act
in 1868 authorizing the issue of the
present 1-cent piece of the weight of
As grains and 2-cent piece of SO grains,
composed OF 95 per cent of copper and 5
per cent of tin and zinc. The coinage
of the cent piece was discontinued by
the coinage act of 1873. This coinage of
the silver cent piece was authorized by
Congress in 1856. The coinage OF silver
and cent pieces was discontinued IN
the act of February II, 1873. An act was
passed in 1865 providing for the coinage
of cent piece composed Of rs per
cent. of copper and % per cent of nickel.
On May 6, 1886, an act was approved TO
authorize the coinage of the present
cent piece of the weight of 77.16 grains,
and composed of 70 per cent. of copper
per1t of mir EHt yzQ