Perth Amboy evening news., 1922-05-25
THE COMING OF MONEY
TOLD OF BY HASKIN
Daily Letter by Frederic j. Haskin

WASHINGTON, May 22.-The
gold holdings of the Federal Reserve
banks just passed the three billion
mark. a record for any bank OF is-
sue for any nation. Successive i'm
| portations of gold from foreign
countries, arising from the heavy
balances due people in this coun-
try, have piled up this great store
of gold. While most of 1t remains
in bullion form, large quantities
are coined. or the gold coin, the
chief quantity remains in banks and
in government custody. but some OF
1t passes into circulation along with
the great quantities of silver and
minor coinage. The process is d.
rect and simple.
The United States minis will re-
ceive and mint into coin, entirely
free of charge, gold brought to them
from m source, excepting only
Russian gold. Russian gold will not
be received because of the Soviet's
policy of wholesale ~contiscation.
Some one might later come along
and prove that the minis had re-
ceived what in reality was allen
gold, in which case the government
probably would have to restore the
gold TO ltS rlgnt1ul OWners
But when gold is dug out or 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 pre-
cious metal can be taken to any mint
and turned into gold coin or bullion
free of any charge to the owner 1t
Is a curious fact that periodically
dentists doing a large gold-tooth
business will burn the rugs under
their dentist chairs and take the
small residue of gold filling and
clippings and have them reduced to
coin or bullion at a 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
C 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
can be paid in gold or any other
form of coin or currency the owner
elects. Thus the value Of the gold
submitted passes directly into cir
culation.
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
Federal Reserve bank vaults. Gold
coins r manufactured only as the
needs OF the government and COM
merce demand.
TTn1a. Fha lour thn mfnfG must
buy all the silver mined and re-
duced 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 sixty and
seventy cents an ounce, and the eX-
clusion of this from the minis 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 minis have an ample
supply. !.
Before the price of silver was fixed
the minis bought for coinage needs
in the open market. Just before
the war an OF silver could
be bought for fifty cents. With the
war 1t speedily rose 10 Sl-oO an
The government 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
a good customer when the price
above a dollar but the decline
has given them a good guarantee.
The principal channel through
coins pass into circulation is
that constituted by the Federal Re-
serve banks. These have taken over
the duties and functions of the sub
All silver coinage is in
the official custody Of the treasurer
of the United States. Any bank or
any individual who desires a 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
the customer presents. Banks
and large commercial establishments
get this silver coinage from the 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
comparatively slight occasional con-