Evening star. [volume] (Washington, D.C.) 1854-1972, 1890-06-14

PRESIDENT jefferson in ls05 arbitrarily ordered
tne coinage OF the dollar 90 be discontinued
although there had been coined only l4Ss5l7
OF these pieces. Perhaps the coinage of the
otner pieces would also have been stopped but
the mint at that time. restricted 10 fabricating
tr"etiona! pieces. was not likely to largely af-
lec' tue silver market Even until the discoy-
CRY OF goli IN California in 1919 the power
USED oy that institution Ia rolling the metal and
stamping the coins was a horse. and in summer
even TINS power was turned out TO pasture in
oFuer TO save the appropriation. The coinage
Vi the fractional pieces was. therefore, con-
tihued 10 greater or less extent with but few
visible results
BRINGING GOLD INFO CIRCULATION
In 1887 an attempt was made by Congress to
oting gold into circulation. and it met with
more success than anticipated The weight of
lne pure metal in the dollar was reduced about
SIX grains, thus requiring by law sixteen
pounds OF silver for coinage purposes TO equal
ont pound or gold. At that ratio silver was
uhuervaiued, aud the few remaining silver
CONS. except the most worn of the SPANISH
pIeSes' suddenly disappeared. leaving the field
10 the gold coins, with no silver even fo- max
ing change, result entirely unanti Ipated.
SILVER no longer coming to the rliut for coin
age except for expectation. Congress in 1853
authorized the mint to purchase silver bullion
anu Ia COIN II into halves quarters ana dimes
OF such weight that face for face they wera
ABOUT per cent lighter than those before
p
main unchanged and the new fractional niaces
were to be exchanged at the mint only al mar
LOT gold. In tins way only the experience of
England had demonstrated small silver coins
would circulate along with coins of greater
bullion value without driving the latter from
circulation, they being paid out only az par for
Soid checking their getting into circulation ex-
cept as impcratyely demanded for making
cnahge. The scheme worked well and the new
pieces issued from the mint remained IN circu-
n Fgn Ing IN #ga-ra h..
even the Spanish pieces. which, though badly
worn. were about as heavy as the new pieces
OF corresponding value. -Four wears later
however, Congress took away the legal tender
quailty OF the Spanish coins, authorized
their receipt for public purposes at only four
ffths of their nominal value and directed that
none OF the pieces should thereafter be paid
out by the government but that all received
and on hand should be recoined into halves,
quarters and dimes.
END OF THE SPANISH COIN.
This brought an end to the Spanish pieces
and for n season gold coin and the fractional
silver pieces, purposely made lighter in weight
than their face indicated. furnished the coin
circulation of the country. while bank notes
redeemable at sight in gold. supplemented the
coin circulation. There was still no restriction
to the coinage of the silver dollar. but no bull
hon came to the mint for that purpose
In 1901 the government issue sixty million
VI Tvs own notes, also payable on demand
coin. About the LIST of January. 1862 the banks
declined to redeem their notes in gold and
soon after the government suspended specie
payment, that is. refused to meet the payment
In com of its demand notes Gold Immedi-
ateiy commanded premium and naturally the
paper money of the banks and the government
became the only money IN circulation and this
was followed by an exclusive circulation of
government money, of which the legal-tender
unit was promise to pay to the bearer one
dollar, but at no specified time. All the coin
left the country, 1t being no LONGER required
Tor circulation. except an amount sufficient TO
pay duties Oh imports and interest Oh the pub
he debt, still made by law payable in coin
his much remained. as would all of il if il
had been needed for use.
GOLD AT PREMIUM.
In 1872 gold was worth in paper a premium
of about 20 per cent Still considerable
amounts of both gold and silver bullion
came to the mint for coming, but the new coins
were shipped at once abroad Even deposits
OF silver bullion for coinage into the silver
dollar began to come in, holders of bullion
finding 1t profitable to get the government
stamp on their holdings as guarantee to the
foreign dealer of the weight and fineness of
the bullion, thus avoiding any further expense
in melting and assaying. Even a demand for
half-dimes in exchange for gold coin at par
arose at the San Francisco mint although with
the same gold coin the depositor could have
purchased in the market far greater weight
of silver bullion than the pieces contained. but
theChinese shipped the half-dimes home. added
shanks to them and sold them for buttons at an
enormous profit.
REVISION OF THE LAWS.
About this time carefully planned revision
of the mint and coinage laws was submitted to
Congress by the Secretary of the Treasury As
the coinage of silver for expectation had be-
come quite a feature at the mint the revision
specifically authorized such coinage. The re-
vision bill became law in February, 1873
Thereafter the holder of silver bullion could
have 1t assayed, melted and put into bar or
coins with the weight and fneness stamped
thereon by the United States at the actual cost
to the mint for thus doing. IL put into the
form of coins the law specified that each piece
should contain 42O grains $40 fine (37S pure
metaD and should be known as the trade dollar
The increased weight provided for was thought
to be ample TO prevent the coin from ever COM
ing into circulation as against the gold coin
which had been cheaper for many years dollar
for dollar, than even the standard silver dollar
containing only 4l21 grains $40 fine GIL
pure metal). The trade dollar" being au-
thorized, no authority was given for the fur
Their coinage of the standard silver dollar
Practically, however, the law made no change
IN the coinage of the country. Paper money
at discount furnished the circulation while
gold coin and fractional silver pieces could be
coined at the mint as before, the gold dollar
being represented by 25S grains of gold $40
fine, which the law declared should thereafter
be the legal unit of value in the United States
REsUMING SPECIE PAYMENTS
Not ripple of disturbance arose for some
time from the operations Of this law. But soon
silver as compared with gold became much
cheaper in the markets of the world In 1875
Congress passed an act declaring that the roy-
eminent would resume specie payments. that
is, would on January l, 1879, and thereafter re-
deem its notes In coin. on demand. This act
had tendency to lower the difference be-
tween notes and coin, and in 1876, with the ap-
probation in the value of the notes and the de-
probation in the value of silver. the fractional
silver coins were worth about par in notes
The purchase of silver bullion. the fabrication
of these coins and their issue for the fractional
notes were therefore authorized, the notes to
be destroyed as redeemed. In the course of
another year silver had become SO deprecated
that the standard silver dollar could without
loss be exchanged at par for notes, although
the notes were yet at considerable premium
in gold. Then it was discovered that the silver
dollar could no longer be coined. Great was
the country, the producers OF silver declaring
years. however, there had been coined only
So l21, 23S standard silver dollars none of which
ever went into circulation, while under the
same act which discontinued the coinage of
this dollar there had been coined in six years
about 36, 600, 900 of trade dollars of even greater
weight The demand, however, for the restora-
ton of the silver dollar to its former place in
the circulation became very general especially
IN the western states.