Every evening, Wilmington daily commercial. (Wilmington, Del.) 1878-1928, 1922-05-25
THE COMING OF MONEY
BY Frederic J. Haskin


Washington, May 25.--The gold
| holdings OF the Federal Reserve banks
have iust passed the three billion
mark. n record for any bank of issue
or for any nation. Successive I'M
portatlons of gold from foreign coun-
tries. arising from the heavy balances
due people In this country. have piied
up this great store of gold. While
most Of II remains I'm bullion FORM
large quantities are coined. OF the
gold coin, the chief quantity remains
in banks and In Government CUSTODY
but some e IL passes into circulation
along with the great quantities oi
silver and minor coinage. The process
81 direct and simple.
The United States mints will receive
aud mint into coin, entirely free of
charge, gold brought 90 them from any
source, excepting only Russian gold.
Russian gold will not be received he
cause Of the Soviets policy Of whole
, sale connscation. Some one might later
! come along and prove that the mints
had received what In reality was stolen
gold. In which case the Government
, probably would have to restore the
gold to its rlghtful owner.
But when the 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 jewel
ers shops are 10 be salvaged. the prec-
= ious metal can be taken 10 any mint
and turned into gold coin or bullion.
; free Of charge ~ the owner. II is
curious fact that periodically dentists
, doing a large ROld-tOoth business VIII
: burn the rugs under their dentist
. chairs and take the small residue n
I, gold filings and clippings and have
j them reduced TO coin or bullion az a
mint.
No Need 80 Wait.
j. when raw gold ar ornaments are
taken 10 mint or assay Office, theo-
I rcticelly the owner could wait and re-
n ceiva tho actual gold in the form Of
o coins. hut this Is not q speedy process
{ az tho usual course is, after an assay
n 10 ascertain fneness 20 give the owner
e gold coin already made. or bullion ~
IL a check on the nearest government
A depository. This can be paid in gold
n or any other form IF coin or currency
10 tho owner elects. Thus the value ~ thf
10 gold submitted passes very directly
into circulation.
The Treasury owns a vast store q"
!, gold. keeping IL in part 81 tho Treas
T, ury in Washington, in part a. mint
and assny Offices. and in part in Fed
oral Reserve bank vaults. Cold coin
'r arc manufactured only 80 tho nsed
y Of tho government and commerce dc
mand
81 Under the Jaw the mints must IN,
all the silver mined and reduced in IN
n United states, which is offered
J fixed price Of 81 per ounce is paid
al No foreign silver will be bought tn
open market price of foreign silver
~ between so and 20 cents IN ounce
- and the exclusion Of This from tn
/, rnints Is a discrimination 70 maintai
=. the American price and stimulate IN
+, industry. At present considerable sill
: yer is being minted. Just now Their
y. is not much now silver being ofere
y but the mints have an ample supply
Before the price 81 silver was flEe
" the mints bought for coinage nerd
In the open market. Just before tn
nd war an ounce Of silver could he bough
10 for 20 cents. with the war
speedily rose 10 $3.50 an ounce. tn
re government bought in the open mar
D. ket until the price OF silver "a com
90 modify passed its value as money an
~ then the 81 price was set Since tn
g. war the price has gone down but IN
ly 81 price still stands. Silver producer
on lost n good customer when the pric
&C went above dollar. but the declin
has given them good guarantee.
"a, The principal channel throug
NJ which coins pass into circulation
that constituted by the Federal RE
49,, serve banks These have taken owe
the duties and functions Of the sui
49,, treasures. All silver coinage ia in Nh
n official custodSof the treasurer Of tn
United States. Any bank or any IT
de dividual who desires a supply Of 81
D. yer may apply 10 the treasurer. II
OF will direct the nearest sub-treasul
'es TO meet the demand and the coin wi
be be furnished in exchange for sue
re- lawful money in other form as II
customer presents Banks and lars
r. commercial establishments get tn
sty silver coinage from the Federal r
Ike serve banks in this way.
led Once in circulation the coinage turf
I'D over and over being added to for Il
he most part. but subject to comparativ
ID" ~ slight occasional contracuo
mt Theoretically every man. woman al
leo child in the United States has in b
possession slightly more than $50
.ha currency and coin. From month
-, month this amount fiuctuates. II
49, less now than in the years Of bus
r. ness boom-l919 and 192O--but grea
er than before the war and very mu'
80 greater than 20 or 30 years ago.
~: The government payrolls thenselv
put much coin into circulation.
49, the aggregate hundreds OF thousan
Of silver coins are paid out in month
government salaries.
III As coins become abraded banks r
turned them to the Treasury. In {
II case Of gold coin. worn piece is 7
deemed only in the amount OF actu
weight, but a silver coin can be VIC
So badly that the inscription is scare
1ly recipherable. and still beeredeem
for its fun UNCONVENTIONAL value.
III During the war there was a gre
demand for pennies. This was d
largely TO the war taxes. Excise ta2
of various sorts. such as the soda {;
, 1 made things which always had s.
Il for even amounts such as 5 cents
20 cents, sell for or cents or
. cents, or such odd amounts. becal
T Of the addition of the fractional tax
Pennies nv tho Mfltion