Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1919-12-02
MELTING MONEY.
Silver Coins are Being Bolee Down to
Bullion.

Bullion.
Because silver is worth more in bull
lion form than it is in coins thousands
of silver dollars are being converted
into bullion in this country, says well
sew p. Chesseri, secretary Of the Silver
smiths Guild Of America. He asserts
that silver dollars are being melted
down ty those who see profit IN re-
selling the metal they contain and by
silversmiths who are in need of silver
In the case OF the 26O,OOO,OOO odd
silver dollars melted by the United
States treasury and sold as bullion
10 Great Britain it was easy for the
government to keep a record OF the
dollars reduced but where silver dollars
are melted by outside parties the gov
ernment has no way Of knowing 10
what extent the stock Of silver dollars
Is beingsdepleted. Coin silver stamped
on an article may be taken to mean
that it is produced from silver dollars
saws Mr. Chesseri, but dealers in bull
ion who melt silver dollars can add
small part of gold to the molten metal
before casting bars for sale ana the
origin Of the silver could be covered
up.
In banking circles it is reported that
the shortage in small bills, ones tWos'
fiyes and tens, was never so acute as
Ar present. 1t is believed that this is due
to two reasons-to the great ACTIVITY
in retail trade and to the Withdrawal
of silver certificates by persons "ho
anticipate redeeming them in silver
dollars. The shortage is being parity
met by a steady increase in federal
Reserve bank notes increased from
s22Sl69 900 on Sept. II to S251'0SV'ooo
on November q.
The factors in the present silver sit-
nation are analyzed by George f. Rod
erts. vice-president of the Natlonal
CITY Bank, in the November issue OF
Americas. He says that the mainte-
nance of the value Of silver puiiioh
above the coinage rate is certain 10
rasuIt in silver dollars being melted
Mr. Roberts cites the treasury esti-
mate of Nov. that there were Slooo.-
900 silver dollars outside of the treas
ury. 15G,135,714 in the treasury as trust
funds against silver certificates ana
6S Ale, 900 in the general treasury cash.
Mr. Roberts notes that there is no law
against melting silver dollars.
"Whcther silver will go higher says
Mr.. Roberts, depends upon the gen.
oral trade situation between the rest
of the world and Asia, and particularly
anon the prices of exports from CHINA
Irdia and other cities using silver as
money
Discussing the operations under the
Putmar act. Mr.. Roberts says: lhlS
unused authority is something 10 pe
considered in calculating the probable
course of the market. If the treasury
should decide to release these 9V'ooV'-
OOO dollars or any considerable part Vi
,bAm the action would give chech
20 the inward movement Of silver. IL
has. been understood, however, tlaI
the intention was to hold these pieces
TO supply bullion for our own suDSiu-
iary coinage, which is very heavy vi
course this policy has the effect Oh
kecping the government out OF the
market as a buyer, but its purchases
of that amount would be spread over
several years. No little embarrassment
will result from having our supslold'S
coins melted. 1t would probably force
an issue of subsidiary paper currehc!
The present seems to be an opPoi 'o'''
time t. dispose of all the leina'i'i''e
silver collars, and congress might wen
enlarge the authority of the secretary
If the treasury to enable him to do
this"