Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-06-20
Govt. Mint Again
Turning Out
Silver "CartWheels"

Washington, June 19-Coinage of
silver dollars has been resumed by the
mint after a lapse of seven years and
the work of replacing 1919 100000 STAN
dard silver dollars taken from the
treasury during the war to sell to
Great Britain has begun.
Since late in March, treasury off,
Gals said tonight, approximately TO-
100000 silver dollars have ben coined.
In the same period corresponding
amounts of silver certificates were is
sued and federal reserve notes and
treasury certificates securing them
retired. This process. officials said,
would probably continue for the next
five years until the treasury's re
serve of silver ollars is back to its
pre-war basis.
The mint, director of the mint Ba-
ker explained, ceased coming silver
dollars in 1914 when the supply of
metal purchased under the coinage
act was exhausted. Further author
ity to make the dollars was not forth
coming until 1918 when congress pass
ed the Pitman Act to enable the sale
of melted dollars to England for the
relief of the silver famine in India.
The work of refilling the hole left
in the treasury's vaults, Baker said
was now we'll under way. the mint
striking off silver dollars at the rate
of about 100000 to 10. DOC, 600 a month.
Since May, 1920, the mint has bought
about 100000 ounces of American
oil OF
tinue to make its purchase at this
price until the treasury's stock is re-
plenished.
Despite the fact that the Pitman
Act requires the mint TO pay 81 an
ounce for it's silver, Mr.. Baker de-
clared queries are constantly received
demanding why the government pays
so much more for it's silver than the
market price. The price was fixed by
the act, he stated. to stabilize the
price of silver when there were indi-
cations of it's reaching unheard of
heights during the war. AS a result
of the governments action in con-
fining the treasury's purchases to sill
yer both produced and reduced in this
country. the American silver mining
industry was protected from over
whelming foreign competition, Mr..
Baker said. Because of the price at
which the silver was sold to England
the government is breaking a little
better than even on the transaction,
he said.
The inside history Of the Pitman
Act sales, treasury officials recalled,
was what former Sec. Glass described
as one of the romantic incidents of
the war"
In 1918, officials said. Great Britain's
Mesopotamian campaign was threat
.ened by the silver famine in India,
silver. India's monetary standard,
was boarded and hidden by the ma
tives.i in the hills. The British govern
ment, nuder war conditions, could not
get the metal to keep up it's silver
reserve. German propaganda, seek
ing to drive a wedge between India
and the empire and block England's
plans in Mesopotamia. was spreading
the report that the government could
not redeem it's paper currency.
The British ambassador laid his
country's plight before this govern
ment. Director of the Mint Baker
suggested that the standard silver
dollars lying idle in the treasury
could be used to meet the situation
and the certificates outstanding
against them replaced by federal re-
serve notes. Prompt action was
needed. The Pitman Act was passed
in six days. Silver began to move
from the SUBJ treasury at once. The
first shipments were not even nodded
The dollars were rolled into little dia-
mond shaped plates and solid silver
trains, guarded by secret service
agents with sawed off shot guns were
rushed to the ships waiting to take
the metal to India