Arizona republican., 1922-05-29
BIZ Erederic ]. Haskin

WASHINGTON, ID. C. May 22-
The gold holding of the Federal Re-
serve banks have just passed the
the three billion mark a record for
any bank of issue or for any nation.
Successive importations of gold from
foreign countries arising from the
heavy balances due people in this
country. have piled up this great
store of gold While most of it re-
main in bullion form, large quantities
are coined. OF the gold coin, the
chief quantity remains in banks and
in Government custody, but some of
it passes into circulation along with
the great quantities of silver and
minor coinage. The process is direct
and simple.
The United States mints will re-
ceive and mint into coin. entirely
free OF charge, gold brought to them
from any source, excepting only
Russian gold. Russian gold will not
be received because of the Soviets'
policy of wholesale confiscation.
Some one might later come along
and prove that the mints had re-
ceived what in reality was stolen
gold. in which case the Government
probably would have to restore the
gold to its rightful owner.
But when gold is dug out of the
mines. when treasure chests are dug
up, when gold scraps from jewelers.
shops are TO be salvaged, the precious
metal can be taken to any mint and
turned into gold coin or bullion. free
of any charge TO the owner. It is a
curious fact that periodically dem
lists doing a large gold-tooth busi-
ness will burn the rugs under their
dentist chairs and take the small res
idue of gold filings and clippings
and have them reduce d TO coin or
bullion at a mint.
No Need to Wait
When raw gold or ornaments are
taken to a mint or assay office.
theoretically the owner could wait
and receive the actual gold in the
form of coins. But this is not a
speedy process so the usual course is,
after an assay to ascertain fineness,
to give the owner gold coin already
made, or bullion, or a check on the
nearest government depositary. This
cans be paid in gold or any other
form of coin or currency the owner
elects. Thus the value of the gold
submitted passes very directly into
circulation.
The treasury owns a vast store OF
gold. keeping it apart at the treas
ury in Washington, in part at mlnts
and assay offices, and in part in
Federal Reserve bank vaults. Gold
coins are manufactured only as the
needs of the Government and COM
merce demand.
Under the law the mints must buy
all the silver mined and reduced in
the United States, which is offered.
A fixed price of 81 per ounce is paid.
No foreign silver will be bought.
The open market price of foreign
silver is between so and 20 cents an
ounce, and the exclusion of this from
the naiilts is a discrimination to
maintain the American price and
stimulate the industry. At present
considerable silver is being minted.
Just now there is not much new
silver being offered but the mints
have an ample supply.
Before the price of silver was fixed
the mints bought for coinage needs
in the open market Just before the
war an ounce of silver could be
bought for so cents. With the war ii
speedily rose to $3.50 an ounce. The
Government bought in the open mar
ket until the price of silver as a
commodity passed its value as money
and then the 81 price was set. Since
the war the price has gone down but
the 81 price still stands. Silver pro-
ducers lost a good customer when
the price went above dollar but the
decline has given them a good
guarantee.
The principal channel through
which coins pass into circulation is
that constituted by the Federal Re-
serve banks. These have taken over
the duties and functions of the sub
treasures. All silver coinage is in
the official custody of the treasurer
of the United States. ANY bank or
any individual who desires supply
of silver may apply to the treasurer.
He will direct the nearest subtreas-
ury to meet the demand and the coin
will be furnished in exchange for
such lawful money in other form as
the customer presents. Banks and
large commercial establishments get
this silver coinage from the federal
reserve banks in this way
Once in circulation the coinage
turns over and over, being added TO
for the most part but subject to
comparatively slight occasional con-
traction. Theoretically every man,
woman and child in the United
States has in his possession slightly
more than $50 in currency and coin.
from month to month this amount
fluctuates. 1t less now than in the
years of business boom-f919 and
1920-but greater than before the