Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-05-06
OUR SILVER COINAGE
= 10
Why Bullion is Purchased by
the Treasury.
MONEY
ACCOUNTS KEPT SEPARATE FROM
THOSE OF THE UNITED STATES.
Explanations Made by Department Of
hcials-Subsidiary Silver Consum-
ing the Stock of Bullion ON Hand.

Treasury officials and The Star have re-
ceived inquiries as to why the Treasury
Department is buying silver bullion at ad-
vancing prices for the coinage of Philip
pine silver. when there is good supply Of
silver bullion in the vaults of the treasury.
Inquiries have also been made as to why
more subsidiary silver is not coined for this
country, in view of the demand for change.
At the Treasury Department today it was
pointed out by both Treasurer Roberts
and Mr.. Roberts, director of the mint, that
the silver bullion in the Treasury Depart
ment was bought for specific purpose and
could not be used for any other purpose,
except by special act Of Congress Further
more, the Philippine accounts are entirely
separate from those of the United States
as distinct as the financial systems of the
two countries. There Is no reason, 1t Is
pointed out why the United States should
part with its silver bullion to the Philip
pine government and probably have to buy
silver before great while for its own &C
count
May Soon Be Purchase.
AS a matter of fact the outlook is that
the United States will again be purchas-
er Of silver on its own account within
eighteen months, If not in less time than
that. 1t will probably not purchase silver
for silver dollars for Its own use for many
years to come. as the coinage Of these dol
lars Is to cease after the silver bullion of
1890 Is exhausted. The supply Of silver bull
lion for subsidiary silver Is not large, and
the coinage Is fairly rapid. How soon the
supply Of silver bullion now in the treasury
will last depends on the coinage from now
on.
The daily statement Of the treasury shows
that yesterday there was in the redemp-
ton fund OF the department $19, 1S1, go OF
silver bullion. which is used for the redemp-
ton of treasury notes outstanding. The
total amount Of treasury notes outstand-
ing is $50. 600. For the redemption of
this, as stated, there is $40, 1S1 ,230 Of silver
bullion in addition to 81, 45S,77O in silver
dollars. AS fast as the treasury notes
come in they are retired and replaced by
silver certificates, which are redeemable in
silver dollars.
The $40, 1S1, go of silver bullion represents
the cost price of the bullion in 1880. In
ounces this would be about 26,OOO,0OO. For
some time the coinage of silver dollars has
been at the rate of $1,5O0,0O0 a month, or
about 1,16O.256 ounces. This would consume
the 26.OOO.OOO ounces in about two years
But considerable amount of this bullion
is likely to be used for subsidiary coinage
before great while. In the general fund
Of the Treasury Department there is ST.
2OO,849 Of silver bullion, representing the
cost price Of the metal
Coinage Of Subsidiary Silver.
The coinage of subsidiary silver has been
recently proceeding. at the rate of about
100000 a year. or 700 ounces each
month. This consumption will, within less
than year. exhaust the silver bullion held
In the general fund for the purpose, and
the mint bureau will have to fall back upon
the silver bullion of 1880. So there is much
less than a two years supply of silver In
the treasury vaults at the present rate OF
coinage. There is not likely to be any de-
crease in the coinage of subsidiary silver
as the demand for small coin grows with
the business and population of the country
Until the last session of Congress there was
limit of $1OO,OO0,OCO in subsidiary silver
but this limit was removed.
When the limit existed the coinage couId
only be kept up to that amount. Since the
removal of the limit by Congress there has
been an increase in the subsidiary coinage
May /. 1903. there was a total stock Of
SOL. 141 .553 Of subsidiary silver in the coun-
try. showing that the 800. 600 900 limit had
been passed. OF this amount S, 1871. 0S7 was
held In the Treasury Department as assets
of the government, the remainder being in
circulation.
Not Likely to Melt Silver Dollars.
Financial propositions have been adj
vanced at different times for conversion of
the silver dollar into subsidiary silver. but
this proposition has never met with favor
by Congress or the people, and there is no
likelihood that Congress will authorize the
melting of silver dollars for subsidiary pur-
poses when the comparatively scanty stock
of silver bullion Is exhausted. For SUBJ
sidiary account only the government would
should become buyer. From 100000 to
100000 ounces each year would be about
the figure necessary for subsidiary coinage
at the rate now being minted.