New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-09-01
GOVERNMENTS PROFITS
Statistics Regarding Gold, Sill.
yer and Copper Money Coinage.

yer and Copper Money Coinage.
In its letter of August 81 the National
City Bank says that it is fact, perhaps
not generally known, that the seignior-
age, or profit, which has accrued TO the
government from the coinage Of silver,
nickel and bronze pieces during the last
forty years has amounted 70 sos. 3So. 2I2.
This Is approximately four-ffths OF the
entire cost OF the construction OF the Pan
anna Canal to date.
The profits can best be understood by
the statement that the cost of copper
from which cents are made is now about
eighteen cents a pound and each pound
coins 146 cents. The cost of nickel from
which five-cent pieces arc made is 80 So-lo0
cents per pound, each pound coining nine
ty nickels. That is to say. the govern
ment realizes about 81 20 on the expendi-
ture OF less than 81 cents Fine silver is
now quoted at from 90 to 81 cents an
ounce. which yields 81 IS In coin.
OF course. the cost Of tho minting of the
coins OF the United States must be taken
into consideration when calculating the
net cost and profits of the government,
but as compared with the gross profits
resulting from coinage, the cost OF mint
ing Is inconsiderable.
The net profits on silver from 1873 10 1909
were sl51467 .155. The year following the
profits were 81, 46S. $50 and In 1911 they were
81. 9lO.s7l. and for the year 1912. ended on
July OF this year. the profits were ~
5G7. S23. making the net profits on the coin
axe Of silver for the thirty-four years
Nes,4li,3 1886. The seignorage on minor
coins from 1873 to 1911, inclusive, was '5S,-
970. a36.
| Although the profits accruing TO the
government on the coinage OF silver, nick
ell and bronze pieces since lS12 have been
In excess Of s3O5, coo. 900. the coinage OF gold
has entailed a small loss. The exact hg-
ures Of cost incident TO the coinage OF the
different metals are not available, but the
nroportionate cost OF the coinage OF goid'
as compared with the expense Of the en-
tire mint services, up TO March. 1911 prop
ably had not exceeded $4,000 a year
In that year Congress authorized the
Secretary of the Treasury TO issue Ger
nncate, against bullion and foreign CON-
and since that time the expense has been
reduced to a nominal sum. Because OF the
! action OF the Treasury officials in tempo
rariIv disseminating the coinage oil go'u
the expense ON this account Is no" pi"o
tically limited TO the necessary assay me-
weighing and stamping Of gold bars do
they are purchased.
A gold dollar contains Eos grams OF
standard gold. Of which 10 per cent IL
! connor alloy. To depositors OF gold oul-
lion the government pays $50 81 an
ounce of fine gold. but makes a charge
against the deposition OF 2 cents soIu
ounce for the cost OF the alloy used
The Treasury Department has now IN
its vaults gold coin and bullion to
greater value than ever before IN us his.
tory, and nearly double that OF any OF
the great foreign nations. The total soiu
in the Treasury on August 20 or thie
wear was sl.22l.1e9.327. or which amount
a. COS. 1919 was IN gold coin and near
" $4,000. 900 In bullion. OF the totai
xIb0 .O0O. 900 is held for the redemption
of United States notes and Treasury
notes Of 1890. and tl.oi7,6GS.26s Is held
1 for the redemption Of gold certificates
outstanding.
The Bureau OF the Mint was estab-
lIshed IN Washington In 1873 and tho
record showing the amount OF seignior-
age on minor coinage IL available only
from that year. Prior 10 that time the
records we're kept exclusively at the
Philadelphia Mint
There have been several changes In
the denominations of coins minted by the
United States since 1874. In that year
the coinage Of silver half dimes and sill
yer 3-cent pieces was discontinued. In
u 1879 the coinage OF 20-cent silver pieces
, was discontinued and FIVE years later the
coinage Of trade dollars ceased In 1889
by act of Congress the coinage Of s. md
81 gold pieces was discontinued and in
1904 the coinage OF silver dollars was
brought 10 an end In 1870 the govern
ment stopped the coinage Of the half
cent and three years later the 2-cent
pieces were discontinued In 1889 the
scent pieces were also discontinued
Since 1904 the only coins minted by the
government are: Gold, double eagles
eagles. hslf-eagles and quarter-eagles,
silver, half-dollars, quarters and dimes;
5-cent nickel and bronze cent pieces.
! The amount OF United States money Of
was S3,276.7 1868. which gives accord
ing to the Treasury estimates. circu-
iation per capita OF s3i &c. This is
based on a population OF 95,s56,OOO in
| Continental United States.