Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-09-08
MUTILATED COINS.
Redeemed by the Government at AZ
Cents on the Dollar.
From the Kansas City Journal.

From the Kansas City Journal.
What becomes of the mut1lated coin Is
a question which has probably forced II
self upon the consideration of every one
particularly when a plugged quarter or 81
with some ones Initials scratched on 1t has
been thrown back on his hands. There
ia of course g. federal statute with appro-
priate penalties against the mutilat1on OF
coin. but the average American sovereign
seems to think when he gets coin 1t IS
his own personal property instead or a
measure of values and a portable repre-
sentative Of tangible holdings. Time was
when nearly every child wore about It's
neck suspended by a string or chaln' some
silver coin from half-dime up to 81. Inat
practice has fallen into desuetude, put
the coins themselves are still in circula-
Mutilated silver, and by mutilation is
meant any perforation of the coin or
scratch or DETACHMENT upon it, is redeemed
by the government at 40 per cent Of its
face value. This is a little less than the
market price of the silver Of which 1t IS
composed, and purposely So for 1t IS the
federal policy to discourage tampeIlns OF OF
any kind with the coin of the realm. 1t
Is no crime to pass a mutilated coin ana
1t is a case Of let the receiver beware,
for he Is the man to be stuck. Probably
every merchant in the course or ms pusl-
amount Of mutilated coin. Unless he
works it off on his customers it must be
turned In at the bank, and this Is the usual
disposition made Of it by reputable houses.
It is taken by the bank all right, but at Its
market, and not it's face value.
"Mutilated silver is deposited every day"
said Albert Witzleben, who, among other
things, has charge Of that branch or the
business of the National Bank of Com
MERGE 1--WE credit our customers with the
40 per cent Of the face value we can re-
alize from the government ana FORWARD
the coin as fast accumulated to the
Urea sury Department in Washington The
government is very strict about mutilating
coin, and rightfully so. For example, sup
pose out Of a hundred silver dollars only
so much silver is taken as might be ex-
tracted from a hole but little larger tnan
the point Of pencil. If the mutilated coin
was allowed to pass current at Its face
value the business would be a profitable
one. The government pays less than the
value of the silver In the coin because that
is the best way to discourage this method
of stealing. There Is a firm In Chicago
which pays 30 cents and in some cases as
much as IS cents on the dollar for mutilat-
ed silver. 1t cannot be stated certainly
what it's game Is, but possibly it has
agents to shove the coin at its face value
and so make enormous profit.
"Mutilated bills are also redeemed by the
government, the rule being that when
three-fifths of bill is sent in for redemp-
ton the face value will be paid for IT..
Every day bills are taken in at the banks
which have outlived their usefulness. These
are either so badly worn and much
patched that they will not hold together or
have been torn, cut. burned or otherwise
mutilated. So long as three-f1fths of them
is in existence they will be taken up. In
connection with this practice Of the Treas
ury Department clerk in one Of the large
Chicago banks got himself into serious
trouble only last week. He was in charge
of the mutilated coin and bill business of
his institution, and conceived the idea of
making little private profit. SO he clipped
artistically and soon ran his shipments up
SO high that the department became sus-
picious and sent special agents to investi-
gate. 1t was found that he had been sys-
tematically clipping and FASTING and had
made quite a large sum off the government.
When arrested he had about $500 in mutt
lated bills in his possession. He Is to be
tried for this offense, and If found guilty
will be sent to the penitentiary for fifteen
years. There has been very little inten-
tional swindling in Kansas City in connec-
ton with either mutilated coin or currency,
and most of both that comes our way is
legitimate"