The Detroit times., 1912-03-08
IN CLOSING REF|NERIES
GOVERNMENT WOULD PAVE
WAY FOR TRUST ENTORT|ON
How Smelter Combine Would
Read Millions By Added
Gold and Silver
VALUE PUT AT SITS, 100000
Man Conversant With Affairs
Says Congress Should Block
Economy Plan"
VALUE PUT AT $175,oOO,OOO

Ihts Il the nra OF several articles prepared
exclusively for this neWSpapsr on Harold
French. former chemist ia the San francisco
mint, 0ivfn0 the details Of 1Jormdtion supplied
bD him upon Uhfch Victor Berger has demanded
congregational fnvesti0ation Of the charge that
the Tan standardization is y lannin0 to turn oUsr
70 the sDsetter trust The governments business Of
refining metals for coinage
BY HAROLD FRENCH.
II. as the Taft administration is
declaring, the best interests Of The
nation can be served by shutting
down government plants for the re-.
fining OF the money metals, why did
Uncle Sam ever go itno the business?
There was very good reason and
one which. by the way, has not
changed In It's importance with tie
passing years.
The United States government has
been a refner first of all to stimu-
late mining and to protect the miner.
And right here is a good place to go
back-all the way back.
Primitive people OF all lands and
ages long ago learned the vafue of
a comparatively stable medium OF
tANhdh6Cs ANli NOihIlOh hCGh5 anu
the necessity OF trading them among
themselves forced them TO adopt GER
tain articles in general use as units
of vHfue. Oxen, measures of grain,
tobacco. furs and other commodities
have all been currency In their day
Gradually il came about that Jumps
OF metal were found more handy and
, of less variable value. These Jumps
gradually developed into mlnted
coins.
During the middle ages the barons
and bishops maintained the exclusive
right of coinage. Miners brought
their treasure TO the seignior, who ex-
acted his ;,seigniorage" or tribute
from the miners for minting their met
ais. AS the prototypes OF the mod
ern smelter trust, the robber barons
exacted all the profit the traffic would
tolerate, both by extortionste refining
rates and by debasing the currency
until insurgents" called halt.
Well Uncle Sam decided early that
he was going to be the "seignor' IN
this country and that he was going 10
be fair about IL, to boot. Through the
efforts OF Alexander Hamilton, the
first United States mint was started
N Philadelphia In 1892. Demands OF
the western mining districts forced
the establishment of minis AT New
Orleans, Denver, Carson City, while
assay Offices were opened AT Boise,
Helena, ST. Louis. Deadwood, salt
Lake and Seattle.
Their most important function was
4, TO develop the mining districts ana
the welfare of the independent miner
by affording reasonable competition
i'm the purchase of bullion. Millions
of dollars or extortionate profits
swelled the Golfers OF private bullion
brokers during the early mining days
IN California until Uncle Sam, in 1894,
started business on his own account
> with the San Francisco mint.
Miners. with government refineiies
in operation, can bring their bullion
10 the mint and receive its full value,
less a nominal deduction for refining.
This charge Tor many yeHrs nas aver
aged from one-sixth to one-ffth OF
cent on the dollar.
During the past few years brisk
competition had been stimulated be-
tween the federal refineries with the
result that the cost Of purifying bull
lion has been reduced TO a minimum.
Modern equipment at Phlladelphla,
Denver and San Francisco has enabled
those minis TO treble their produc'
ton and lower their operating cost.
Now the mint officials of the TAFT
administration admit that all the re
u~aeries have been closed with the
of the one az San Frali'
cisco as a measure OF economy,
expect TO prove that this action
is not economy
expect to prove that this action
"a taken at the behest and for the
benefit OF the Morgan-Guggenheiln
money trust,
Whatever may be the final decision
OF congress these facts stand by them
selves:
II the government does not do its
own refining. IL mugt-buy it's bullion
from private smeters. as Assistdnt
secretary OF the Treasury Andrew
suggests.
The smelter trust controls the re.
hning business In America not car
ried on BY the government.
With government reiineries sha'
down. the smelter trust can, at us
will. therefore, fix its own tolls Tor
refining. and exact them.
The Independent miner VIII asain
be at the mercv of the bullion buyers.
The trust will be in a position 70
reap millions. adding 10 its presen,
control. the control Of the smelling
and refining OF the sl75.00O,OoO rdr-
chased by the government yearly
Bt,.,ne..-Iike Pr,-t,rz. M fus. ana