New-York tribune., 1907-11-25
OUR GOLD CURRENCY.
A Correspondent Suggests How to Increase
It's Elasticity.

To the Editor of The Tribune.
Sir have before me bar of gold 99S fine. or
within two one-thousandths Of absolute purity.
it is about the size of common brick-approxi-
mately inches Ions Pa inches wide and ia inches
thick. 1t weighs 274.7S Troy ounces and would
make when alloyed with copper 1882 96 grains of
the alloy commonly known as standard gold. the
alloy from which all of gold coinage is cut.
This number Of grains, when divided by -5.S grains,
which is the number of standard grains contained
in gold dollar. gives 5667.S2 and this sum Is
the value stamped upon the bar. In addition TO
the weight. fineness and value. each gCld bar
manufactured at our mints and assay offices has
also stamped upon It the American eagle. These
gold bars. together with similar bars manufactured
at foreign places constitute by custom and use
tho international currency of the world. Coins,
under exceptional conditions, not in de-
mand outside OF the territorial area of ths country
making them
At the present time our mint employees are work
ing overtime TO alloy. TO roll and to cut into coins
bars of gold similar to the that 1 have de-
scribed; for bars of gold. although often freely
taken by brokers and banks at the value stamped
upon their face. are not domestic currency. and
TO make them domestic currency they must be
alloyed TO standard ineness. rolled and cut into
coins. This is what our mints now doing.
The point to which I would briefly draw atten-
tion is this: Instead of alloyinE pure gold bars
with copper and then rolling and cutting these
aIloyed gold bars into coin. would 1t not answer
every purpose and be much more expeditions for
the government to receive tho pure gold bars on
deposit and issue against them many paper
dollars. certificates OF gold deposits. the bar
bars would coin into when actually alIOyed? :?
These paper bills. secured by the bullion deposit
and continuously held for their redemption. would
certainly do the work of currency in the easiest
and most convenient manner. and when no longer.
wanted for currency they could be handed back
to the Treasury and the bar bars redeemed.
In panics many men might still prefer to handle
coin. but most men. even in such times, would
be satisfied with gold certificates Of deposit the
gold equivalent of which they knew 10 be actually
and continuously held by the government for re-
payment the depositors whenever the certificates
might be presented for cancellation.
Much OF the gold now being coined is likely when
times are be remelted into bars at foreign
centres when trade conditions make its export de-
sirable.
So far. then. issue of gold certificates of I
denominations against deposit of these fine bars
proved acceptable not only much expense but
also much time would be saved our mpOrtations
of gold would almost Immediately be made effective
in the form of the best kind of paper money.
Gold is the best currency in the world, and II Is
and can be made the most elastic. l doubt if any
perfectly sound currency be made more elas-
tic or can be made to respond to demands with
any less degree of cost. if all the items of cost
are enumerated. !. w. SYLVESTER.
New York. Nov. 10. 1907.