Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-09-08

and pay taxes himself. That commit
tee did not want to put the thought"
on the Treasury by authorizing coins
adapted to o sales tax.
Secretary Morganthau reiterated his
request for the passage of this bill,
and the House Coinage Committee re-
sponded by voting to table the legis-
lation, pointing out that the sales
taxes were a State matter and should
be solved by the States.
Held Unconstitutional.
But in the meanwhile, the experts
of Treasury and Justice have made
some discoveries. They have discov-
cred that under the Constitution no
State can issue tokens" to pass as
money. They also have discovered that
square coins and doughnut coins had
best be dropped because it would take
long time to make them. As for the
first Of these discoveries, the Consti-
tuition has specifically prohibited State
coinage since 1889. In fact the pro-
miscuous coinage Of copper pennies by
New Jersey and many other States be-
fore 1889 was one Of the reasons for
the Constitution. AS for the other dis
covery, no new coinage Of any kind can
be instituted Immediately. The only
quick method of making tokens is to
farm out the production to private
metal working companies. As for
square coins. both the white race and
the Chinese discovered more than 1000
years ago that the only practicable
coin Is round and fat. The Chinese
have had coins with center holes for
centuries, and the French have had
them in our day. But they serve no
special use. Congress way back In
1883 rejected proposal to coin Scent
pieces with holes, for "stringing on an
upright stake or file"
But the larger economic aspects Of
this midget tempest appear to have
been completely overlooked by all par
ties. A l-mill or h-cent coin is an
economic afi1iction. It does injury to
the people. Jefferson knew that a
century and a half ago. He opposed
u cent piece, but Hamilton insisted
ON it, on the grounds that very small
coins enable the poor to buy cheaply
and therefore to labor for less" Ig-
more the medieval social philosophy
Of that reference to wages and con-
slider only Hamilton's economic error.
In small sales the chief cost Is han
ding. boxing, transporting and general
overhead" When the poor buy tiny
values, they get chiefly overhead. The
larger the amount bought the less the
cost for overhead. Very small coins
raise the cost of living for the very
poor and create q very real social
waste in change-making, loss Of time
and retail expenses. In the pauper
countries Of South Europe the petty
coins in circulation are q real detri-
ment to the poor.
Half Cent Recalled.
From 1892 to 1857 there was
q h-cent coin in this country.
Throughout its history 1t was q
nuisance to the mint officials and an
object Of scorn by the people. And
this was when q half-cent would buy
much more than now. The useless
piece was withdrawn. At different
times an unwise Treasury has forced
on the people Of this country "a
cent coin, = 2-cent coin, Scent
nickel piece, a Scent silver piece, s.
cent silver coin, q 20-cent coin and
Scent, Scent. 10-cent, 15-cent, IS
cent and 50-cent paper shin plasters.
And In every case the people refused
them and forced their discontinuance.
In every generation some temporary
condition leads to ill-considered prof.
ects for new and undesirable coins.
During the World War the sales taxes
led to q veritable bombardment Of
Congress. Bills were introduced TO
make Scent, 7-cent and Scent coins.
as well as az cent pieces. Even 30
able Q mint director as George z.
Roberts, now one Of the most distin-
glished banker economists In the
world, was persuaded In 1912 to rec
ommend the coinage Of 2-cent and
Scent nickel coins with "scalloped
edges" Fortunately none Of these
proposals achieved passage.
This is not the place to discuss the
wisdom of a general sales tax. 1t is
a very large question. But any sales
tax that calls for payments Of less
than I cent Is a self-evident atrocity,
serving no good purpose and making
for loss and Inconvenience. Any law
that puts q tax on q little child's
10-cent toy is a bad law. Any pro-
posal to facilitate such taxes by intro
ducing into our disordered currency
q 1-mill or 2-mill or az cent coin
Is foolish. The currency of such trash
is wholly undesirable. 1t would dis
organize bookkeeping and accounting,
embarrass banks and antiquate mil
lions Of cash registers. The proper
solution lies in the amendment Of
the State tax laws.