Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-08-02
QUERIES & ANSWERS.
WHAT THE TRADE DOLLAR IS AND
OTHER COINAGE MATTERS.
American Children Born Abrond-Legal
Hoiidsys-Ths Jeff. Davis jury
et. Patrick's Cathedral, Etc
To ne Editor of the Dispatch

To ne Editor of the Dispatch
II agreeable. please answer the following
questions =.
What were the leading provisions Of the
act of Congress passed in 1873 demone-
thing silver. and also of the act OF 1878
partially remonetizing silver!
What were the exigencies ont OF when
the trade dollar arose and the cause OF its
depreciation? Respectfully,
SUBSCRIBER.
At tho beginning of the Government it
was enacted April 2. 1912, that the
money Of the United States shall be e1-
pressed in dollars and units" the dollar
Ito be of the value of the Spanish-milied
dollar as the Same is now current" and to
contain SIX grains of pure silver. Since
then the amount of alloy directed to be
used in the coinage has been fixed at one
tenth, so that the dollar in standard silver
weighs 1921 grains. This standard dollar
was declared to be the unit of value Tor
the United States and it remained our ma
tional unit OF value until February. 1873.
BY various laws gold was directed TO be
coined having different ratios OF weight
with silver at different times. Finally, I'VE
condense from Judge II. w. Hughes's
weight of pure gold in the dollar
was fixed at 1926 grains, making. the ratio
of weight between the silver and gold dol
lar about 10 to /, or exactly l5.gsS to l.
Though the gold dollar was made legal
tender it was never before 1873 made tho
unit Of value Of the United States. Under
the legislation of the country antecedent
TO 1873 the standard silver dollar was legal.
tender for all accounts and the unit Oh
value" OF the United States.
in 1878, February 18th. an act or Con-
gress was passed reducing into one all pre-
vious acts relating to the mints and coinage
of the United States. Section Is OF this
act was in the following words: ne
silver CONS Of tie United States snail De
trade dollar, a half dollar, q quarter doi-
lar. and dime or 10-cent piece, ana the
weigh. of the trade dollar shall be four
hundred and twenty grains" &c. &C.,
This act. il will be observed, omitted the
standard silver dollar from the CONS re-
cocnized as the money of the United states,
and authorized to be coined at the mints.
By the srme section of this law ~ was
enacted that the silver COINS OF tne
United States shall be legal tender at their
nominal value for any amount not exceed
ing five dollars in any one payment"
Thus this section prescribed what should
he the silver coins of the United States, the
old silver dollar, or dollar Of the fathers,
being ignored; and demonetized them all
as TO all payments exceeding five dollars IN
value.
The same act contained two important
provisions IN Juxtapostion; Inc l,,i nrs' was
this: ANY owner of gold bullion may
deposit the same ut any mint, TO be formed
| into coin bars for his benefit
The other clause was this Any owner
Of silver bullion may deposit the same at
any mint, to be formed into bars, or into
dollars Of the weight of 400 grams troy
designated in this act as trade dollars,
and no deposit Of silcer for other coinage S'd"
| be recared."
In fact. the act prohibited the free coin
age of silver except into the trade dollar for
use III Asia. ,.r 49,,
The President who signed this bill did
not know that the standard dollar was
| omitted and demonetized by It,. nor did
| nine-tentbs of the members OF the Con-
gress who voted for the bill know THESE
| facts Specie payment was then ana I'M
| til 1879 suspended, and no specie was N
use by the people. =,
On the 2sth of February, 1878. the Bland
net was passed. 1t formally remonetized
the standard silver dollar. Its first sec
| ton provides:
"There shall be coined at the minis of
the United States silver dollars of the
weight of 4l215 grains troy standard silver,
as provided in the act OF January the 18Th:
! 1897. on which shall be tho devices ana
SUBSCRIPTIONS provided by, said act,
which coins, together with all silver dol:
| lars heretofore coined by tho United
States of like weight and fneness. shall be
| legal tender at their nominal value for all
debts and dues, public and private. except
where otherwise expressly stipulated IN
the contract"
But the act of 1873 having given no au;
IS Sfn NJ
silver dollar by the mints, neither did the
Bland act give it except as about 20 be
stated. and the free coinage OF the silver OF
| the people at the minis is still unau-
thorized. The Bland act and no subsequent
act has yet done this.
The second section of the Bland act
provided az follows.
THE Secretary Of the Treasury is au-
| thorized and directed to purchase. from
| time to time. silver bullion at the market
price thereof, not less than S2000,00O
worth per month, nor more than 81 900 600
| worth per month, and cause the same to
| be coined monthly, as fast as 50 pur-
| chased. into such dollars" The silver
| metal of the people at large cannot be
taken to the mint for coinage. None is
coined except what Is purchased by the
Government.
Nothing has been done by Congress on
|
| its last session. to direct that tour and a
half millions OF ounces of silver Cat present
market prices equivalent to about 4.25O,-
OOO) shall be purchased by the Govern
ment; but no authority or power to coin
this amount per month is given except so
| far as the Bland act authorizes and directs
the coinage of silver.
The TRADE DOLLAR.
This coin was authorized thirty or forty
years ago, 1t was never intended for cir
culation in the United States. 1t suited
some conditions Of our trade with China
Japan, and other countries of Eastern Asia
and was authorized solely with that view.
| The trade dollar contains ~ grains more
| Of standard silver than the American dol
lar. and for that reason could not obtain OF
retain currency in this country. II is
coined for shipment, and very little OF thi;
money remains at homo. Practically none
| of it circulates.