Year: 1878

trade dollar by Treasurer GiIfil!an


Washington, and at the Office Of


the director Of he mint, increases


daily. The following letter from


the Treasurer TO the Cashier of


the First National Bank, at Mil


ton, Pennsylvania, is one among


many, and similar replies that be


is obliged to send:


Il am in receipt of your com


munication of the 18th inst, in


quiring relative as to the value Of
the trade dollar. and in reply


thereto have TO Inform you that
the coin named is not legal ten
der, its legal tender qualities hav,
ing been abolished by the second
section Of the joint resolution of
Congress Of July 22d. 1876"


The joint resolution quoted is


THAT the trade dollar shall
not hereafter be a legal tender,
and the Secretary Of the Treasu-


ty is hereby authorized to limit,


from time 10 time, the coinage


thereof 10 such an amount as be
may deem sufficient to meet the
export demand for the same"


Since the passage of this reso-
luton comparatively few trade
dollars bave been coined. The
only coinage of any considerable
amount was from November last
to February last. This was at the
instance Of merchants in San
Francisco, who represented to The
department that it would be a
great convenience to them If the
mint would receive bullion depos-
its for coming the dollar to meet
the Chinese new year settlements
The mints at San Francisco aud
Carson City were put to work and
a quantity coined. Instead, how.
ever, of going to China most of it
was shipped east, and has with
what was previously held in this
country become source of great
annoyance, aud has been attended
with considerable loss to the per
sons holding them. A large num-
Der of eastern manufacturers pur
chased them at discount and
paid it out to their employees as
worth a dollar. There is now q
float throughout the country,
through similar sources, about
three millions and a half trade
dollars, which came into circula
ton at face value but which, not
being legal tenders, are worth on
ly their value as bullion. At this
rate the government purchases it,
and according to the London
quotations of silver, it is worth
D2 7 cents. Merchants aud banks
no where in the country pay more
than ninety cents for it. Thus it
will be seen that large amount
Of money has been lost on account
Of the presence of the coin.


Inquiries about the Mexican
dollar continue to come In also
some curious ones aDd several
newspapers out west contending
that au old statute unrepealed
makes il a legal tender. This is
Incorrect as section 1854 of the
revised statutes says "No foreign
gold or silver coin shall be q le-
gal tender in the payment of
debts" How many Mexican dol.
lars there are in circulation it is
to tell. The only out.
let for the trade dollar at it's full
value is in China. Buteven here
the demand is very small, and the
cost Of transportation would by
far exceed its value. The cost
Of transportation is also in the
way of sending the Mexican dol.
lar to Mexico. Once there, it
would be a long time before it
could be disposed of.


There is great feeling through |
out the country against the gov
on account of issuing the
trade dollar, and Its constant De
The coin was only in
tended Tor foreign trade. Its de-
probation is owing to its legal ten
der character being done away
with by Congress and to the fall
Of gold and the consequent appre
citation OF greenbacks 10 the detri
meni of silver.


A number of members Of Con-
gress have expressed the determi-
nation to secure some legislation
at tie next session in favor of the
holders of the trade dollar. In
expectation of this. banks and
hr,,irars ara huxino larOt. nttanfi-