Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-11-25
GOLD AND sIL YER
Difference. in tia Mannerof
Coin Redemption.
YELLOW METAL BESf
ARE ALWAYS TAKEN BACK AT
BULLION VALUE.
Regulations Of Treasury Department
Governing Circulation of the Cur
rency-Country's Reserve Stock.

permit the redemption of a silver piece so
long as the face shows what its face value
is. When it has become SO worn out that
it's country is unknown the government
would pay nothing for If not even the
price of silver bullion, unless Congress
happened to have made an appropriation
to purchase silver bullion. Right now it
would not bring a penny from the treas
ury. AS to gold piece, Uncle Sam will
give you new one for it just so long as
1t Is not below the weight prescribed by
law. When it gets down below that, no
matter whether it's face is completely
worn away by usage, the government will
pay you its bullion value.
This is one of the differences In treat
ing the two kinds of money, and it is only
one of many. There is widespread gem
eral impression that a silver piece passes
current at its face value just because no.
body bothers to send it back to the treas
ury, and that when it does go back the
1T then contains and no more. Mat isn't
so. Any unpunctured or uncut silver
piece. dollar, half-dollar or quarter, is good
for brand new piece just SO long as
government official can detect that the
coin has been minted by the government
of the United States. When it's usage has
passed beyond the stage when 1T is impos-
sible to tell whether it has borne the en-
blem of the United States of Mexico, OF
Canada, of or some other country, then 1t Is.
not redeemable at any price at the treas
ury or any of the subtreasuries. The only
way to get rid of 1T is to pass 1t off on the
first street car conductor who isn't watch
ing his business and let him work 1t off
on some other man. How far it will go
before it cannot be passed upon any one is
hard to determine.
Just SO long, therefore as there is any
thing on either face of a silver piece 10
show that 1T is coin of the United States
you can handle it without loss to yourself.
But this is not so with a gold piece. Its
face may tell what 1t is and how much the
government made 1t to pass for, but If 1t
Is below the weight you must stand the
loss when some bank or concern refuses to
accept it at face value National banks
lose considerable money this way. Nnen
= silver piece as done for, however, 1t is
'fall in" to use,a vernacular, while the
gold piece will bring all the gold in It is
worth.
The government endeavors to keep light
gold pieces from circulation, and when
once in possession does not let them go
out any more. They go to some OF the
minis, where they are melted and made
into new money. It is frequently that ma
tional banks send into the treasury or some
of Its branches gold pieces too light for
continuation in circulation. The treasury
discounts the light coins and the BANK
must stand the loss. Few individuals lose
anything this way. Few banks are the real
losers, and they make their customers pay
the difference. But many banks accept the
light pieces without saying anything, as
a customer would be likely to complain II
,ffered below face value for a gold piece.
Weight Of Gold Pieces
The government is, fair In its discounts
of light gold pieces. 1t does not under
take to place entire shipment of gold
pieces in the scales and make a discount
ON all. The law says that each individual
piece must weigh so much to be worth the
amount stamped upon 1t. $40 gold piece
must weigh 513.42 grains to be worth it's
face value. The standard weight when
turned out is GIG grains. The abrasion.
then, must be one-haf of l per cent to
affect the value of the coin. If bank
sends in 100 $40 gold pieces and asks for
gold certificates in their place the treas
ury officials do not weigh all the coins at
once and make a discount on their COM
bined loss Each piece must be weighed
separately, if they are considered to be bad
Iy worm
It is estimated that the life Of gold
COIN before 1t has begun to wear to q los
ing extent, is twenty years. If put away
in a stocking and left undisturbed, 1t is
good for many years. After twenty years
constant contact with business 1t ought
to be retired and a new one put out in it's
place. The coinage laws distinctly state
that a gold coin shall be received at its
nominal value by the United States for
twenty years after its issue, provided it is
A so gold piece weighs 25s grains when
turned out. It mus. weigh 25671 grains
to come within the law. The S. pieces. So.
$3.50 and 81 pieces wear faster than the
larger pieces. Every piece of money minted
by the United States, whether gold or sill
yer, contains one-tenth alloy. The same
alloy Is used in both gold and silver, but
treasury officials think that silver dollar
will wear longer than $40 gold piece, when
each has been put through about the same
usage.
The United States stopped the coinage of
50 and 81 gold pieces in 1890 and those
coins have almost disappeared, command
ing a good premium. It has been many
years since any Of these pieces made their
way back to the treasury. Regardless of
whether they are below the limit of toler-
ance they are put away for q further rise
in price. The weight of a single gold dollar
worth its face value should not be below
25.55 grains.
Stock of Gold in the Country.
The stock Of gold in the United States,
bullion, coin and in the arts, has decreased
greatly in the last nine years. When w. j.
Bryan made his first 16 to 1 campaign the
total gold coin In possession of the gov
eminent was not a fourth as much as
at present. Just before the election in that
memorable year or, to be precise October
I'll, 1895. the treasury held In gold in all
It's various accounts S155, 323 S33 At the
present time the total holdings are $780,
100000. an increase OF nearly $685., 500, 600
The volume of gold certificates has in
creased at nearly the same rate. The out
put of gold certificates at that time, there
being less than 81, 000. 600 in the treasury
proper, was $395ss. 139. The total today
Is $525. ia, $780, an increase of S4S6, 125. $50
The total stock of gold throughout the
United States at the time fixed in 1896 was
estimated at 5000 100000. Today it is esti-
mated in round numbers at 81, 800, GOO. COO
tremendous increase. The estimate is made
each month at the treasury by experts
there and Is arrived at from month to
month and from year to year by taking the
output Of the mints and adding the imports
of goid-that is. the gold sent to the United
States to pay the balances of trade in favor
in favor of this country. From these addi-
lions are deducted the gold that is exported
to pay what we owe abroad and about
S., 100000 each year for melting by jewelers.
A Jeweler who has not piece of gold bull
lion handy will melt up gold coin of the
United States. 1t makes no difference to
him In a commercial way.
The enormous increase In the stock of
gold has come about through the gold pro-
duction of this country In its mines and In
Its imports, or foreign payments made for
American goods. The director of the mint
estimates that this country produced in the
year 1904 total of $50. T23 200 In gold.