The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-05-23
Frederick Haskin's Letter
THE COMING OF MONEY


! which coins pass into circulation is
that constituted by the federal
reserve banks. These have taken
over the duties and functions Of
the sub-tTeasuTies. All silver coin
age 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 10 tIa
treasurer. He will direct the near
est subtreasury to meet the demand
and the coin will be furnished in
exchange for such lawful money in
other form as the customer nra-
sents. Banks and large CONNER
cial establishments get their sill
yer coinage from the federal re-
serve banks in this way.
Once in circulation the coinage
turns over and over, being adde's
| to for the most part, but subject 10
comparatively slight occasional
contraction. Theoretically every
man, woman and child in the Unit
Slightly more than $50 in CURRENCY
and coin. From month to month
this amount f1uctuates. It is less
now than in the years of business
boom-1919 and 1920-but greafe~
than before the war and very nach
greater than 90 or 80 years ago.
The government payrolls then
selves put much coin into cirIu-
lation. In the aggregate hundreds
of thousands of silver COINS ale
Eaid out in monthly government
salaries.
AS coins become abraded banks
return them to the treasury. In
the case of gold coin. worn piece
is redeemed only in the amount of
actual weight, but a silver coin can
be worn so badly that the inscrip-
ton is scarcely deCipherabIe, and
still be redeemed for its full de-
nominational 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 al
ways had been sold for even
amounts such as so or 20 cents,
sell for or cents or % cents, or
such odd amounts, because of the
addition 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 copners by the millions
Nickels and pennies get into cir
culation through the subtreasuTies
and banks in the same manner as
the silver coinage.
The United States minis are mod
ern plants of the finest sort. An
interesting fact not generally
known TO the public is that they
do job work and turn in a revenue
to the government Many small for
eign nations do not have their own
minis, but do have their own coin
age An arrangement is made by
some of them whereby they award
a contract to the United States
mint to manufacture coin for them.
A charge is made for this ser
vice by the American government,
and this charge shows sufficient
profit to turn a revenue into the
federal treasury. Coins are being
made for many governments. par
ticularly Latin American republics.
The minis also strike congression-
al medals and and such special
work of an official nature In 1921,
462, 420,00 domestic coins were
produced, and 91,448,00O coins were
made for foreign governments
The director of the mint has his
office at Washington. in the treas
ury building, but the actual minis
are at Philadelphia, Denver and
San Francisco. Formerly there
were minis at New Orleans and
Carson City, but these are now
assay offices. Other assay
offices are at New York. Seattle,
Boise. Helena, Salt Lake CITY and
Deadwood. and there are refneries
at New York and San Francisco