The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-11-01
TRAFFIC IN pEFACED COINS.
What Becomes of MutiIate6 Gold and
silver Coins-SoId to Junk Dealers.

Pittsburg Chronicle Telegraph.
What becomes OF the mutilated coins that
must go out of circulation is a mystery to
the casual investigator unless the life of a
coin is followed to the end. So many articles
have been written about the manner in
which paper money IS redeemed for new
money in the United States minis, and so
many tourists have been TO Washington, ID.
c., to see the old paper money ground into
pulp from which souvenirs are made, that
many are under the impression that metal
coins are redeemed in the same manner.
The fact that the government takes no more
cognizance OF metal coins after they have
been issued than the ore-laden rocks on the
Pacific slope will tend to deepen the mys-
terry.
Pittsburg bankers all said they have been
too busy to study this phase of the money
they handle. and none of the cashiers of the
banks visited by reporter had any idea of
what becomes of the mutilated coins. eve
do not accept mutilated coins under any cir
cumstances." said the cashier of one of the
largest and richest institutions of the city.
IF coin has a hole in it or is Clipped we
call it mutilated and it is not accepted. If
such a coin should be deposited in a package
VI AltHcy VIC NOulu IcluIu IL W tuSlOultT
as soon as the fact is d scovered. Paper
money, OF course is redeemed at the Treas
ury Department: in Washington because the
government can issue another bill for each
one taken out OF circulation, but / don't
know whether coins are swallowed up by the
earth where they can't be spent any more,
or what really does become of them" Other
bankers had the same TO say. They said the
government would not redeem coins on face
value, and for that reason mutilated ones
could not be accepted without loss, which
would be hard TO account for in the records
OF the bank.
Cashiers say that comparatively few coins
are mutilated beyond acceptance. and al
though millions may go out of circulation
every year their loss is not noticed in the
transaction OF business. A silver coin will
not wear out for fifty years with ordinary
usage, and the nickels Will last even longer.
Copper coins seem TO never wear out, and
gold is in circulation little, a rule that
IL lasts practically forever unless 1t is mu-
tilated in being manufactured into articles
OF jewelry to be worn as keepsake, or
token. Cashiers say that the number of gold
coins that go out OF circulation Is hardly
worth mentioning. however, that even
very small per cent. OF them would be
great many In round numbers, and the dis
appearance Of these is what needs 10 be
solved.
Some OF the smaller jewelry stores exhibit
signs In the display windows "Old gold and
silver bought and exchanged" 1t is here
that one gets the first clew to what be-
comes of the coins that are refused as cur
rency. One cannot ride a crowded street
car at any hour OF the day without hearing
the conductor in an alteration with pas
senger about accepting a worn or ruined
coin OF some denomina ton. The cashiers of
the street car companies know that the
banks will not take any but good coins and
they, in turn. must refuse to accept useless
money from the conductors, and they, in
turn. have 10 refuse il from passengers or
try TO give it out In change IL they accident
ally accept mutilated coin I'm a hurried
trip through the car The old gold and silver
dealers say they do quite extensive bust
ness In buying mutilated money. one dealer
I'm Smithheld street collecting q good-sized
envelope full of sterling silver in this way
every week He buys il, like the others, for
It's value as silver, and not as coin, with
holding enough of the value for a small
profit These coins melted into bars and
are sold 20 precious metal junk dealers, OF
which there are many In New York and Chi
cago and other large cities where articles OF
5ewelry are manufactured. The coin silver
has TO be refined again by the junk dealers
and Is sold I'm bars of pure silver 10 the man.
ufacturers, who alloy IL TO suit the require
ments OF their goods. The precious metal
junk dealers do an extensive business with
coins. and some of them have travelling buy
ers. who visit all the large cities OF the
country 10 collect the metal from jewelers.
who deal I'm gold and silver The teilers Of
banks frequently accept coins that are con-
sidered mutilated. despite their precautions
and these are disposed OF at a loss to the
junk dealers. One downtown jeweler says
most OF the banks dispose OF their multi
sted coins to him and he has consignment
every week for the buyer OF precious met
ais. IL a junk dealer does not call when a
consignment OF silver coins is ready IL Is
sent TO the Treasury Department at Wash
tngton. Coins are not considered bullion
by the department and are bought as
metal They are paid for at the market
FOR recoInage. Most OF the coins. however
are said TO find their way into silver plate
ard articles OF Jewelry through the hands
or junk dealers who dispose OF their ware
"a