The Birmingham age-herald., 1912-10-06
UNCLE SAM MAKES PROFIT IN COINAGE Seigni0rage Big Item in Mint's Transactions PROFIT IS $200,O00,000 In Past Forty Years-Metal in Hun dred Pennies Costs Only Cents.
 Silver Coins Yield 100 Per
 Cent Profit

Y ToH the NduOHal Clly Bank Clrculdr
 It is a fact, perhaps not generally known, that the seigniorage or profit which has accrued to the government from the coinage of silver, nickel and bronze pieces during the last 40 years has amounted to 05,3S5,272. This Is approximately four-fifths of the entire cost of the construction of the Panama 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 IS cents a pound, and each pound coins 146 cents. The cost of nickel from which 5-cent pieces are made is 33.S5 cents per pound, each pound coining 90 niekels That is to say. the government realizes about $4.50 on the expenditure of less than 34 cents. Fine silver is now quoted at from 60 to 61 cents an ounce, winch yields s1.29 in coin.
 Of course the cost of the minting of the coins of the United States must be taken into consideration when calculat- ing the net cost and profits of the govern ment, but as compared with the gross profits resulting from coinage, the cost of minting Is considerable.
 The net profits on silver from 1878 to 1912, s4 years, were $664l4,S3e. The seign- forage on minor coins from 1873 to 1911 inclusive. was $3S,97O,936.
 Small Loss on Gold Coinage
 Although the profits aceruing to the government on the coinage of silver nick el and bronze pieces since 1872 have been in excess of s205, ,0o0O00, the coinage of gold has entailed small loss. The ex- act figures of cost incident to the coin age Of the different metals are not avail able, but the proportionate cost of the coinage of gold, as compared with the expense of the entire mint services up to March. 1911, probably had not exceeded S250,0oo a year.
 Tn that year Congress authorized the Secretary of the Treasury to issue cer- tificates against bullion and foreign coin, and since that time the expense has boon reduced to nominal sum. Be- cause of the action of the treasury of- ficials in temporarily diseontinuing the coinage of gold tho expense on this ac count Is now practically limited to the necessary assaying, weighing and stamping of gold bars as they are pur chased.
 A gold dollar contains 25S grains of standard gold, of which 10 per cent is copper alloy. To depositors of gold bullion the government pays $20.67 per ounce of fine gold but makes a charge against the depositor of cents per gold ounce for the cost of the alloy used.
 The Treasury's Hoard of Gold
 The treasury department has now, in it's vaults gold coin and bullion to greater value than ever before in it's history, and nearly doube that of any of the great foreign nations. The total gold in the treasury on August 23 of this year was $1 .221 .169,327, of which amount s1,00S, f97.179 was in gold coin ard nearly 213 million dollars in bullion. One hundred and fifty million dollars of the total is held for the redemption of United States notes and treasury notes of 1890, and $1,0i7 56S ,269 is held for the redemp- ton of gold certificates outstanding.
 The bureau of the mint was established in Washington in 1873 and the record showing the amount of seigniorage on minor coinage is available only rom that year. Prior to that time the records were kept exclusively at the Philadelphia mint.
 Recent Changes in Coins
 There have been several changes in tLe denominations of coins minted by the United States since 1874. In that year the coinage of silver half dimes and silver scent pieces was discontinued In 1879 the coinage of 20-cent silver pieces was discontinued and five years later the coin- age of trade dollars ceased. In 1889. by act of Congress the coinage of s and S1 gold pieces was discontinued, and in 1904 the coinage of silver dollars was brought to an end. In 1870, the government stopped the coinage of the half cent and three years later the two cen. 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, half-eagles and and quarter-eagles: silver half dol lars, quarters and dimes; five cent nickel and bronze cent pieces.
 t The amount of United States money of all kinds in circulation on July 1, 1912. was S3.276 7S6,6l3, which gives, according to the treasury estimates, circulation per capita of S3426. This is based on a popu- lation of 95.6560Oo in continental United States.