The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-05-25

WASHINGTON, D. c.. May %. =
The gold holdings of the Federal Re-
serve banks have just passed the
three billion mark, record for any
bank of issue or for any nation. Sue
cessive importations of gold from for
eign countries, arising from the heay1
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. or
the gold coin, the chief quantity re-
mains in banks and in Government
custody, but some of it passes into
circulation along with the great guam
titles of silver and minor coinage. The
process is direct and simple.
The United States minis 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 re-
ceived because of the Soviets policy
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 have
| to restore the gold to its rightful own
| er.
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 bulllon
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 .
large gold-tooth business will burr
the rugs under their dentist chair;
and take the small residue of golc
filings and clippings and have then
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, theo
retically the owner could wait and re
ceive the actual gold in the form o
coins. But this is not a speedy pro
: cess so the usual course is, after al
assay to ascertain fineness, to CIV
the owner gold coin already made, o
| bullion, or a check on the neares
government depository. This can b.
paid In gold or any other form o
, coin or currency the owner elects
Thus the value Of the gold submitte'
passes very directly into circulation
The Treasury owns vast store o
; gold, keeping 1t in part at the Treas
ury in Washington, in part at mint
and assay offices, and in part in Fec
eral Reserve bank vaults. Gold coin
are manufactured only as the needs @
the Government and commerce de-
mand.
Under the law the minis must bu
all the silver mined and reduce i
the United States, which is Offered
A fixed price of 81 per ounce is pait
No foreign silver will be bought. Tn
open market price of foreign sllve
is between so and 20 cents an ounce
and the exclusion of this from tn
minis is discrimination to maintat
the American price and stimulate tn
industry AT present considerabl
silver is being minted. Just now ther
is not much new silver being offere
but the minis have an ample supply
Before the price of silver was fl
ed the minis bought for coinage need
in the open market Just before tn
war an ounce of silver could
bought for so cents. With the war
speedily rose to $1.30 an ounce. TIL
; Government bought in the open ma
ket until the price of silver as con
) modify passed it's value as money an
then the 81 price was set. Since til
war the price has gone down but I'll
/ | 81 price still stands. Silver producer
] lost a good customer when the priC
, went above a dollar but the declir
has given them a good guarantee.
y The principal channel throug