Gilpin observer., 1905-12-14
UNCLE SAM RICH
REPORT OF SECRETARY OF THE
TREASURY SHAW.
IMMENSE WEALTH on HAND
Treasury Holds Largest Sum Ever
Owned by Any Government
Would Recoin Silver Dollars Into
Suhsidiarv Currencv

Would RECON- Silver Dollars Into
Subsidiary Currency.
Washington.-Secr Shaw's re-
port in part follows:
"The gold in the treasury, including
the reserve and trust funds, October
9, 1905, amounted to $739 1898, ,60O.36, a
sum never equaled in our annals; nor
has any other government ever held SO
much of the precious metal.
In several previous reports atten-
tion has been called to the necessity
for additional subsidiary coinage. The
time has arrived when it must be de-
termined whether the government will
again become a purchaser OF silver or
will use for this purpose, as the de-
mands of the country require, the 500
carloads of silver dollars now in the
vaults OF the treasury, the metallic
value of which is approximately fifty
per cent. of their circulating value.
Since their recoinage into smaller de-
nominations will in nowise contract
the volume of currency, every princi-
pie of prudence points to their gradual
use rather than to the purchase OF
more silver. In any event, think the
abraded and uncurrent silver dollars,
which cannot be recoined into dollars
without loss, should be converted into
subsidiary coinage at not to exceed
$5,000,OOO per annum.s
The silver dollars in circulation
June 80, 1898, were $5S,4S2,966. The
amount Of this coin distributed at gov
ernment expense for transportation
from July /, 1898 to June 80, 1905, was
3275, 5,536,512, but the amount in circu-
lation on the latter date was only $73,-
5S4,336.
Subsidiary silver coin to the
amount of $27,606,1S5 was distributed
to depositors during the last fiscal
year. The average rate for transporta-
tion on shipments of silver coin during
the year was $1.90 per $1,000.
THE production of gold in the
United States for the calendar year
1904 is estimated at $50 0,464, 200. and
the industrial consumption at $2S,-
655, ,963, of which $22,930,036 was OF
new material. The original deposits
OF gold at the several mints and assay
Offices aggregate $14S.37S, ,969.SG.
THE domestic coinage of the mints
during the fiscal year amounted to 1872,
422,302 pieces, OF the value Of $9l.-
72.729.S3. OF this $79,9S3.96l.50 was
gold coin. The coinage of the standard
silver dollars was $310; of subsidiary
silver, $9.123 ,660.60, and Of minor coins,
$2,065, ,O67.73. The silver dollars were
coined from bullion purchased under
the act of July IA, 1890. OF the sub
sidiary silver, s7,752,131.75 was like
wise coined from this bullion.
THE stock of bullion purchased un-
der the act of July IA, 1890. became
wholly exhausted during the past year.
The coinage of silver dollars is neces-
sarily discontinued, and so subsidiary
silver coins are being made except by
the recoinage of the abraded and un-
current coins of the same denomina-
tions as they accumulate in the treas
ury. II probably will be necessary dur
ing the coming year to draw on some
other supply of silver to meet the con-
stant demand for these coins. and l
recommend that the secretary Of The
treasury be authorized TO cause the
recoinage OF abraded and uncurrent
silver dollars in amounts not exceed
ing S5.000,000 per year, into the sew
eral denominations of subsidiary coins
as they are required.
The annual cost of maintenance of
the paper currency issued by the gov
ernment averages about two-tenths Of
one per cent. OF the amount outstand-
ing.
4>atbOnal Ddnk nOteS 10 tne dInOuul
of $30a, 29S. .1G0 We're presented for re-
demption during the year. This was
65.s4 per cent. of the average amount
of notes outstanding"
Secretary Shaw recommends a de-
partment savings bank for government
clerks. Very few of them have saved
money.
The ordinary revenue for 1905, as
compared with 1904. show an increase
of $3,642 .935.45. while the expenditures
were less by SIS. .l23. .407.S6. The net
result for the fiscal year was an ex-
cess OF expenditures over revenues OF
$23. .004, ,22S.6O.
For the past two years the expendi-
lures of the government have been in
excess OF the revenues to the aggre.
gate amount Of more than $64 900, 900.
This. however. included the extraordi-
nary expenditures in 1904 Of $50 0000.-
600 on account OF the Panama canal.