The San Francisco call., 1897-07-24
WEAR AND LOSS OF SILVER.

To the Editor Of the San Francisco CGll-SIR
Before taking up the subject of the wear ana
loss of silver, | wish to remind the reader that
the future of gold as monetary agent is not
bright. In a most notable paper by Professor
Suess of Austria on the future OF the money
metals, on page 423 of the Senate report OF
1894 on Coinage Laws" etc, this informa-
tion may be found: at is certain q time will
come when gold will have become entirely
absor bed by industry" that IS, by other uses
than that OF money. And he adds: "Let US
not forget the conclusion of Soetbeer that the
entire monetary gold stock of the earth is
smaller by almost one-third than the produc-
tion OF The last forty years" No authorities
in the world rank above Soetbeer and Suess on
monetary statistics. Gold is rapidly disappear
ing as a money metal.
There is serious oh lection to the use OF silver
as q money metal because it wears out so fast.
Probably most readers Will smile at this OBJ
lection and look wise. Some will deride It,
When they know more they will neither de-
ride nor smile. N A. Dunning OF Washington,
d. c., author of philosophy of Price," quotes
Senator John sherman in 1891 as saying that
"the entire silver circulation wears out and is
renewed once i'll thirty years That Is. the
entire bulk, not any individual piece-the
number of pounds in use as moneys worn
out in thirty years and is renewed by new
silver from the mines.
have diligently searched the reports of the
Director of the Mint for information on this
point. II is hard to find. II does not suit his
purpose to give 1t. Indeed the whole system
of the Treasury Department is based on ignor-
ing the loss Of gold, silver and paper money
in count ting it all as still in existence.
But let US see what can be ound in refer
ence to this matter in these Mint reports. On
page 90, report for 1896, the silver production
of the United States from 1873 to 1895 is
given 81 PA, ISL 900, and on the next
page, 61 the silver coinage is given for the
same period as 1914, 142, AT, or much less
than half, since $67U, sos, ,523 in bullion was
not coined. What became of it Butwe are
concerned with the amount coined. How has
that Jared? Most of 1t has been locked up in
the vaults and silver certificates issued to
circulate in place of. 1t. What has been the
fate OF that part in actual use as money :? On
page S6 OF the Mint report for 1896 1t is said ::
"There is now on Storage ct the mint in
Philadelphia 81 500, 900 in worn and uncur-
less than dollar pieces-"that are unfit for
circulation and should be recoined." Page
81: cit is greatly to be desired that an appro-
pr ation should be made by Congress to cover
is estimated to be about 81 per cent, or $780,
00O." On page 1877 of the same report the re-
coinage OF the fiscal year 1896 IS given as
50. 633 ,362 face value, and 4,3S3 ,2S9 coined
value, showing loss of $3.50 264, or nearly
81 per cent. In the report for 1895, on page
s, the face value of the worn coin is given as
$4, ,361 ,761 for that year, which was recoined
into $4.161, 800, showing loss of nearly B
per cent. In word. 5 per cent is con-
servatve estimate of the loss by wear as shown
IN the annual Tecolnage. In 1892 The recoin-
age was $40, ,792.478; in 1893 1T was 81 ,3S1,-
2S9, and in 1894 S7,1S4, 472. No tabular
statement of the total recoinage for period
OF years or the average annual recoinage is
given, but 1t is clearly apparent that Sher-
mans estimate IS fully sustained by these re-
ports, that the silver coins in active circula-
tion are worn out once in thirty years.
JOSEPH AsBURY JOHNSON.
IL Essex street, July %. 1897.