The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-05-25
TOPEKA STATE JOURNAL
Information Bureau
FREDERIC J. HASKIN. Director,
Washington. ID. g.
THE COMING OF MONEY.

Z
portations of gold from foreign coun-
tries, arising from the heavy balances
due people in this country, have piled
, up this great store of gold While
most of it remains 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 c1rculaLlon
along with the great quantities OF Sill
yer and minor coinage The process
IS direct and simple.
The UnitedsStates minis will receive
and mint into coin. entirely free OF
charge, gold brought to them from
any source, excepting only RUSSIAN
gold. Russian gold will not be re-
ceived because of the Sovlets' pohcy
of wholesale ConfiscatiOn- Some one
might later come along and prove that
the minis had received what in reality
was stolen gold, in which case the
government probably would nave 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 ornaments are desired
to be reduced to coinage or bullion,
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 1t is curious
fact that periodically dentists doing a
the rugs under their dentist chairs
and take the small residue of gold
Filings and clippings and have them
reduced to coin or bullion at mint.
No Need to Wait.
When raw gold or ornaments are
taken to a mint or assay office, the
oretically the owner could wait and
receive the actual gold in the form of
coins. But this is not a, speedy proc
ess so the usual course is, after an as
say to ascertain fineness, to give the
owner gold coin already made, or bull
lion, or q check on the nearest gov
eminent depositary. This can be paid
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 in part at the treas
ury in Washington, in part at minis
and assay offices, and in part in Fed
eral Reserve bank vaults. Gold eli rs
are manufactured only as the needs
of the government and commerce de-
mand.
Under the law the minis 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
minis is a discrimination to maintain
the American price and stimulate the
industry. At present considerable sill
YER is being minted. Just now there
is not much new silver being offered
but the minis 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 it speedily
rose to $3.50 an ounce. The govern
ment bought in the open market 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 producers
lost a good customer when the price
went above a dollar but the decline
has given them a good guarantee.
The principal channel thru which
coins pass into circulation is that con-
stituted by the federal reserve banks
Ihese have taken over the duties and
functions of the subtreasuries All
silver coinage is in the official custody
OF the treasurer of the United States.
Any bank or any individual who de-
s1res a supply of silver may apply to
the treasurer. He will direct the near
est subtreasury to meet the demand
and the coin will be furnished in ex-
change for such lawful money in other
form as the customer presents. Banks
and large commercial establishments
fed
eral reserve banks in this way.
Once in circulation the coinage turns
over and over, being added to for the
most part, but subject to compare
lively slight occasional contraction
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 is
less now than in the years of business
hnO y
than before the war and very much
greater than twenty or thirty years
ago.
The government payrolIs them
selves put much coin into circulation.
In the aggregate hundreds of thou
sands of silver coins are paid out in
monthly government salaries.
AS coins become abraded banks re-
turn them to the treasury. In the case
or gold coin, worn piece is redeemed
only in the amount of actual weight.
but a silver coin can be worn so badly
that the inscription is scarcely de-
cipherable, and still be redeemed for
its full UNCONVENTIONAL value.
During the war there was a great
demand for pennies. This was due
largely to the war taxes. Excise taxes
OF various sorts. such as the soda tax
made things which always had sold
Tor even amounts such as cents to 20
cents, sell for or cents or 23 cents,
or such odd amounts. because of the
of the fractional tax
Pennies by the Million.
This created a vast overnight de-
mand for pennies TO take care of this
increased penny circulation. The
minis worked night and day turning
OUT coppers by the millions. Nickels
and pennies get into circulation thru
the subtreasuries and banks in the
same manner as the silver coinage
The United States minis are modern
plants of the finest sort. An inter-
esting fact not generally known TO the
public is that they do job work and
turn in a revenue to the government. !
Many small foreign nations do not
have their own minis, but do have