SILVER COINS.

February 22, 1831.

Mr. White, of New York, from the select committee to whom the subject had been referred, made the following

REPORT:

The select committee to whom was referred a resolution of this House of the 23d December, 1830, directing them “to inquire into the expediency of providing by law, that dollars of the new American Governments, and five franc pieces, shall be a legal tender in the payment of all debts and demands; and, also, whether any additional regulations are necessary relative to the recoinage of foreign silver coin at the Mint,” respectfully report:

That the authority “to coin money, regulate the value thereof, and of foreign coin,” is one of the powers specially and exclusively granted to Congress by the Constitution of the United States; and in the exercise of this appendage of sovereignty, various regulations have been enacted in regard to foreign coins and coinage.

The constitutional expression clearly justifies the inference that foreign coins were current money, and that their adjustment and retention in circulation were desired by the people of the United States. A brief consideration of the usages of other States, and a minute inquiry into our own practice, and present circumstances, will be useful guides in the progress towards just conclusions.

Although national coins are usually and appropriately the metallic currency of the commercial world, yet some States have risen to the highest rank in commerce and general prosperity without adopting the principle of a standard of value exclusively in their own coins. England and France have maintained the exclusive system, but Holland, Hamburgh, Genoa, China, and the United States, have more or less freely received the coins of well known mints at their intrinsic value. Peculiarity of circumstances, may have induced or recommended this diversity of regulations, but there is not any evidence in the historical result that the exclusive system was particularly beneficial, or that the free reception of foreign coins was inconvenient in practice, or prejudicial in its effects. Our own experience corroborates the latter view.

France is an imposing instance of great national prosperity under a rigid and perservering adherence to its own coins; still it is not perceived that the reception of foreign coins at their intrinsic value, with their use restricted to large commercial transactions, could have operated otherwise than beneficially. The profit upon money transactions depends materially upon its prompt and easy disbursement; and its being undervalued at the Mint, as is the case in France, amounts to a tax and restraint upon its importation, and to that extent it diminishes or prejudices exchanges.

During the progress of Holland to pre-eminence in trade and wealth, (and until very recently,) the introduction of foreign coins was uniformly encouraged. Money was coined for small domestic purposes, but every description of gold and silver coins was received at the bank according to its real value, and there assimilated to the commercial currency, under the general title of “Banco.” Genoa at an early period, and Hamburgh to this day, have, with great advantage, practised a similar system of mercantile accommodation, except that the deposits in the bank of the latter city have always been restricted to silver. It is alleged that the money of commerce in China is foreign coins converted into gold and silver ingots of certain fineness.

The monetary system of England is comparatively modern, and it is peculiar to that nation. Except the late period of war, their regulations for more than a century established in practice, the principle, now in legal operation, of a single standard in gold, but a mixed currency. Bank notes, at one time not less than £20 sterling, afterwards £10, and now £5, redeemable on demand in gold, are issued and used as the chief circulating medium for discharging commercial or other large obligations. But it is contemplated that all minor transactions, retail business, wages of labor, &c., should be paid in gold, unless under the value of forty-two shillings, when it is optional to use silver coins. Under this arrangement, it is computed that the currency of England is composed of thirty millions of pounds sterling in paper, twenty-two millions of gold, and eight millions of silver; one half of the entire circulation being metallic. Foreign coins are not a legal tender, but gold in every shape is current at a trivial discount, (⅙ of a per cent. at present,) or occasionally at the mint value, coinage being free. Silver is there a commodity, varying in price with the foreign exchanges; a seignorage of six per cent. being exacted at the Mint, its coinage becomes a Government business, and the supply is regulated by the amount of effective demand.

This limited use of silver rather tends to depress its market value, the more especially as this metal, which England rejects, is, generally speaking, the practical currency and money of the commercial world. The British nation, nevertheless, contend, that this inconvenience is amply compensated, by the steady preservation of the value of the money unit, and the retention of the customary coins permanently in circulation.

Our own practice, in regard to gold and silver money has differed materially from the usage of any of the nations adverted to; and, as custom has an important influence in establishing predilections, a minute and accurate inquiry on this head, may prove advantageous and instructive.

Foreign gold and silver coins were the only description of metallic currency that circulated in these States anterior to 1792. In that year Congress authorized the erection of a mint, regulated the proportions of gold to silver, and established a relative value in all foreign coins then current, according to their intrinsic worth — rendering them concurrent tenders in payments, in conformity with the language ol the Constitution, which distinctly intimated the necessity and utility of their circulation.

Although gold and silver have both been used and regulated by law, yet it is believed that silver coins alone were legally recognised during our colonial history. Whatever may have been the case in this respect, there can be no doubt but a “Spanish dollar” was originally the practical money unit; and if obligations have been discharged with gold, and with paper, as well as silver, a certain number of Spanish dollars have, at all times, constituted, specially, or by implication, the basis of exchange, and the measure of the contract.

Our money of account was, originally, an ideal unit, called a pound; but it is very evident that the Spanish dollar was universally current, from the fact, that, although its value varied in the colonies from 4s. 8d. to 8s. currency each, it was uniformly estimated, in computations of exchange with England, at 4s. 6d. sterling. The universality of that estimate is presumptive evidence, that the Spanish dollar was the practical currency of the colonies; and our adherence to a mode of calculation so obviously erroneous, exhibits such pertinacity as will only attach to old and well founded habits; but the nature of the estimate proves, incontrovertibly, the antiquity of its practice. Spanish dollars of that value ceased to circulate by tale, in 1728. From the reign of Philip III. of Spain, until that time, the standard fineness of silver was 11⅙ dinhieros fine; therefore, the marc of Castile, 3,557 grains, must have yielded 8½ dollars, containing 3894⁄10 grains; but the remedy then being (two grains fine,) nearly 3 grains each, the value of dollars, antecedent to that period, was, likely, from 386½ to 387½ grains of fine silver. According to the British standard, established in 1601, 444 grains of fine silver being rated at 5s. 2d. sterling, 4s. 6d. were represented by 3867⁄10 grains, equivalent to the average value of the Spanish dollar, as above stated, in circulation previous to 1728.

Sir Isaac Newton’s return of assays, made by order of the British Government earlier than 1717, contains this statement:

And Ricard, in his “Traité General du Commerce,” asserts that it was rare to see in the British American provinces any English coins, but that the following foreign silver coins were made legal tenders in payment, by an act of Parliament, passed during the reign of Queen Anne, in 1706, viz: German rix dollars, Flemish ducatoons, French crowns, Portuguese crusadoes, and Dutch three guilder pieces, at specified rates: and the variety of the Spanish dollars is designated thus:

Which several circumstances fully establish the fact, that the Spanish dollar has been, throughout the entire period of our commercial history, the practical or legal money unit, and the chief instrument of exchange.

In 1728, the standard purity of silver in the Spanish dollar was reduced to 11 dinhieros, equal to 383.2 grains, being a reduction in value of 1½ per cent.; and a royal edict, issued in 1772, established the regulation which yet prevails, of 10¾ dinhieros fine, equivalent to 374⅞ grains to each dollar, with but one grain fine for remedy.

In 1786, the Congress of the confederation adopted a dollar as the money unit, and fixed its value at 37564⁄100 grains of fine silver, the coins to contain one-twelfth part of alloy.

General Hamilton, in his celebrated report upon the establishment of the Mint in 1791, recognised the Spanish dollar as the practical standard of the United States; but, from some cause not now susceptible of satisfactory explanation, he does not appear to have ascertained correctly the precise value of that coin, which he evidently desired to adopt as the unit and basis of our monetary system. The art of assay must have been then very imperfectly understood in the United States, as he notes a difference of twenty-four grains in the result of various experiments — an incredible disproportion in coins of established and universally good reputation.

The European assays, which returned the quantity of fine silver at 368 to 374 grains, were probably a correct record of every variety in circulation; but, as the regulation of all mints are dictated with fractional precision, it ought to have been inferred that a discrepance of six grains was attributable to wear, and not to irregularity in the fabrication of such a valuable commodity. General Hamilton assumed the average, instead of the highest assay, as the groundwork of his system; and having added thereto one-fourth of a grain, in order to attain numerical exactness in the relative value of gold, our dollar or money unit was finally regulated in 1792 by a law of Congress, which altered the value of the unit adopted in 1786, in the following terms: “there shall be, from time to time, struck and coined at the said Mint, dollars or units, each to be of the value of a Spanish milled dollar, as the same is now current, and to contain 371¼ grains of pure, or 416 grains of standard silver.”

The early operations of the Mint do not appear to have conformed to this legal regulation. Amongst various assays made in London by eminent artists, as furnished by Dr. Kelly, American dollars are stated as follows:

Whatever may have been the rate or regularity of the mint operations, the quantity of dollars coined in twenty-three years, ending with 1816, (1,400,000,) was too trivial to create any distinction in value in internal circulation: our customary standard, the Spanish dollar, constituted then, and at all times, the chief portion of the metallic currency, as well as of the specie held by the banks. It continued to be the practical tender and measure of contracts; and the concurrent circulation of so small a portion of our own coins occasioned no inconvenient discrimination. Congress ceased to regulate the value of one description of foreign coins after another, until, finally, in 1827, none were recognised as legal tenders, except our ancient money, the “Spanish milled dollar.” If plurality rightfully confers denomination, these dollars should always have been designated as “Spanish American dollars;” they were coined by the mints of this continent, and the dollars of Spain were rarely seen in circulation.

Political events have given new and more respectable titles to the countries from whence these coins have always issued, and a change of name alone, has withdrawn the privilege of presenting these dollars as a legal tender in payments.

Very recently, a demand for specie, upon one of the most respectable banks in our commercial metropolis, was met by a tender of dollars coined by the mints of America, formerly Spanish, and refused: the friendly aid of another institution furnished the required amount in United States’ coin, and relieved the bank from the mortifying and painful alternative, of acknowledging its inability to redeem its notes with lawful money; thereby hazarding the enforcement of the penal article of its charter, which inflicts twelve per cent. per annum interest until the demand is legally discharged. The money tendered was well known to be of the same standard as the “Spanish milled dollars,” and about one half per cent. more valuable than our coin; fulfilling, in every essential quality, the spirit and object of the law, yet liable on any occasion to be refused, from a nominal discrepance with the legal requisition.

The various laws of Congress in respect to foreign coins having obviously contemplated their rejection from general circulation so soon as circumstances might conveniently authorize that measure, and as the “Spanish milled dollar” will ere long disappear in foreign trade, the present occasion appears favorable to an expanded consideration of this subject.

In countries where gold and silver compose exclusively or chiefly the currency, it is a general and very convenient practice to use national coins. The public seal is a satisfactory evidence of their value, and the money unit and its parts, being uniformly exhibited, facilitates computation. This usual practice did not, however, obtain, when our circulation was principally metallic; and the motives of convenience, which recommend an extensive issue of standard coins, cease to have influence in our present circumstances. Our currency is bank notes, to the exclusion of the precious metals, except as change. The money unit of the United States, or its concurrent tender, “Spanish milled dollars,” is rarely, if ever, seen in circulation. The currency differs from that of all other nations extensively commercial, in being truly and effectively paper, secured by a specie fund, held by its issuers, the banks.

The public are deeply interested in the amount of this safety fund; but it does not appear to be of any importance to their convenience or security, whether it consists of gold, or of silver, of coins, or bullion.

Its peculiar character cannot be of any consequence to the banks, as their interest merely requires a supply, sufficient for every exigency, of whatever may be designated lawful money.

Gold and silver, whether coined or not, are viewed in the commercial world as bullion, and valued according to their quantity of fine metal. The stamp of the United States adds nothing to the value of the precious metals abroad, and, as it is a costly impression, it should only be applied when necessary to the general convenience of the community. It is not perceived in what respect the public convenience is promoted by the coinage of silver, which passes temporarily into the vaults of the banks, and is soon afterwards again melted, by refiners in foreign nations.

That such is the course and effect of commercial enterprise, will be evident upon reference to the mint operations, and to our trade in the precious metals.

The Director of the Mint states that the American coin possessed by the Bank of the United States, and its branches, is less than two millions of dollars, or about one-sixth part of its specie; assuming a similar ratio for the State banks, (which is a liberal estimate, considering the advantageous position of the former institution,) the entire amount of American coin held by the banks does not, likely, much exceed four millions of dollars. Taking the issues of one, two, and three dollar notes, in the eastern States, as a guide, it does not seem probable that there is a greater amount of silver in general circulation, of all denominations, than five millions of dollars, of which, perhaps, three to four millions are American coin.

According to this estimate, the national coins do not, likely, exceed seven to eight millions of dollars in silver. The Mint has fabricated thirty seven millions, of which nine millions were of gold. Considering that twenty millions of silver coins have been issued since 1817, and about eleven millions within the last five years, the inutility and inexpediency of extensive operations at the Mint are manifest. Our coins being less valuable than Spanish dollars, or those of the new American States, would have the effect to maintain them exclusively in domestic circulation, if the currency was metallic; but the same cause, that of being overrated, induces the banks to tender them on all occasions when specie is demanded for exportation, unless they can obtain an acceptable profit on their foreign dollars. The difference of intrinsic value is about four to five mills each, but foreign dollars have commanded from one-half, to one and one-fourth per cent. premium; hence the inferiority in value of our coins tends to hasten their exportation.

The amount of foreign gold and silver coins exported annually, during five years ending with September, 1829, appears to be about six and one-third millions of dollars.

The average yearly amount of American coins for three years (which are the only distinct returns) is about eight hundred thousand dollars.

From which it appears that there are, in all, upwards of seven millions of dollars annually exported.

The imports of gold and silver during the same time average seven and one fifth millions.

During the same period, the exports to Mexico and S. America averaged, yearly, domestic produce, about four and a half millions; foreign produce, six millions, viz:

Imports from these countries, nearly six millions of dollars of merchandise, and nearly five millions of gold and silver.

These various details appear to authorize the following conclusions:

First. That it is of no importance to the public, or to the banks, the description of the silver money, that constitutes the specie fund, provided a sufficiency of American coin for change can be obtained, and that Congress give a legal character, as was the practice formerly, to the foreign coins which usually circulate in general commerce.

Second. That American coins being overrated, light in comparison with foreign dollars, does not prevent their free exportation.

Third. That the demand for silver for internal circulation is of very trivial amount.

Fourth. That a large portion of the gold and silver coins imported is purchased with foreign produce, and is in transit, destined, through our agency, for distribution to supply the wants of other nations.

If these opinions are well founded, the gold and silver coins imported are commercial commodities, calculated for foreign consumption, and entitled to every facility and privilege, consistent with sound policy.

An error having been committed in establishing the money unit “of the value of a Spanish dollar” at 371¼ grains of pure silver, there are two modes in which the existing and consequent inconvenience may be remedied.

First. The error may be rectified, without inflicting any injury of consequence, or prejudice to property or contracts, by causing the rate of coinage to conform to the original and clearly expressed intention of the law, that of 374 grains of fine silver to the unit or dollar, being the value of a Spanish dollar in 1792, and limiting the tender of the half dollars now in circulation to payments of ten dollars; or,

Second. The inconvenient effect of the error may be corrected by adhering to the established and existing silver standard, by rejecting the ancient currency and money of contract, a “Spanish milled dollar,” as a tender by tale, and by estimating all foreign coins as bullion, and regulating the measure of its value by its quantity.

The committee are decidedly in favor of this latter course. A new and powerful mint is nearly completed, and American coins ought hereafter to be the only metallic money in domestic circulation. The Spanish dollar will soon be unknown in foreign trade; the dollars of the new American States have not yet been legally recognised; and specie being unusually abundant, the circumstances are propitious to the permanent adoption of a measure, which has been long contemplated.

The silver coins in the banks should be viewed as the money of commerce, the value of which is determined by its quantity of fine metal. This course is in accordance with sound mercantile principles, and with former usage.

Congress has repeatedly sanctioned it by regulating the value of British, Portuguese, French, and Spanish gold; and also of five franc pieces and crowns of France; giving them currency, according to their weight when tendered, at rates calculated to minute fractions, varying with the standards of their respective mints; a course of policy which is equitable to all in its effects, and beneficial as well as accommodating to commercial operations.

Our merchants import these dollars to discharge their debts, or to make purchases from foreign nations. When the imported dollar of 373½ to 374 grains of fine silver is received on arrival at the value of 371¼ grains, the importing merchant is taxed two-thirds of one per cent. upon his property, which is money. Suppose these dollars are minted into American coins, one hundred dollars and one-half will be furnished to the depositor for every one hundred dollars imported, at the expense to the United States of one and one fourth per cent., according to the statement of the Director of the Mint; and when thus converted, at this heavy expense to the public, the one hundred and one-half dollars of American coin are less valuable abroad than the one hundred dollars imported, as will be perceived by reference to copies of actual sales in France.* [*See Secretary of the Treasury’s report on gold coins.]

If these coins were a legal tender on the principle of regulation, applied to other coins noted, being current by weight, at the correct value ascertained by mint experiments, that of 1161⁄10, cents per ounce, justice would be rendered to the importing merchant; a heavy annual expense would be saved to the United States; and banking and commercial transactions would be greatly facilitated. If our currency was metallic, public convenience might reasonably demand, and properly discharge, the expense of coining all silver previous to its being tendered in payments.

The foreign dollars being imported for no other object than exportation, it appears to be a departure from sound policy, to countenance regulations that cause a deduction tantamount to the imposition of a tax of one-half per cent. on a commodity, as it were, but temporarily in entrepot.

It is yet more injudicious to incur a heavy annual expense at the Mint, in giving these coins a new character (that of United States’ dollars) less known in commerce, and, consequently, rather a disadvantageous alteration.

The chances of profit to the merchant are greater when an export of the precious metals is made in foreign coins. They may be returned to the countries from whence they issued, or where they are current, and be used on arrival as effective money; or some of them may be received in particular States with partiality, as is the case in France with Spanish dollars, or those of the new States, which appear to command six centimes each, or about 11⁄7 per cent. more than our coins, although the difference, according to the mint test, is but one-half per cent.

It has been suggested by the Secretary of the Treasury and the Director of the Mint, whose opinions are justly entitled to great respect, that the existing inconveniences would be removed, by regulating the Mexican dollar alone as a legal tender, by tale, in all payments.

The committee are inclined to view this recommendation as not sufficiently efficacious. Our uniform appellation of “Spanish milled dollars” embraced the coins of Spain, and of its various mints in America. The discrimination suggested might not be viewed agreeably; and there is no evidence that any of the South American dollars (except those of Colombia) differ in any degree as to standard fineness, nor is the least valuable of them inferior to our dollar.

The measure proposed would prevent the recurrence of the difficulty experienced at New York, but it could have no tendency to establish Mexican dollars of 373½ to 374 grains in concurrent and promiscuous circulation with American coin of 371⅓ grains of fine silver. It would not relieve the Mint from its present oppressive duty of coining, uselessly, foreign dollars, at the heavy expense of twenty thousand dollars yearly, nor would it produce the desirable and equitable effect of enabling our enterprising merchants to obtain the just value for their money on its arrival. Formerly, when a merchant imported crowns or five franc pieces, or gold, he was authorized to tender them in all payments at their intrinsic worth in fine metal, as ascertained by the Mint. If this just right be so restricted as to protect the community in their ordinary dealings from inconvenience, the regulation of all such foreign coins as our merchants trade in, as legal tenders, (according to quantity of fine metal,) cannot fail to facilitate and benefit commercial transactions.

In conformity with these views, the committee recommend that the dollars of Mexico, Central America, Peru, Chili, and La Plata, and also the dollars restamped in Brazil, of the denomination of 960 reas, shall be a legal tender in all payments above the sum of one hundred dollars, at the rate of 1161⁄10 cents per ounce troy, provided the aforesaid coins shall be of the usual standard fineness of 10 ounces 15½ pennyweights of fine silver to the pound troy of 12 ounces; and that the five franc pieces of France, of the standard of 10 ounces 16 pennyweights fine to the pound troy, shall likewise be a legal tender in all payments exceeding one hundred dollars, at the rate of 1164⁄10 cents per ounce troy.

The committee beg leave to annex to this report some valuable documents in relation to the Mint, which have been furnished by the Secretary of the Treasury. The communications from the highly respectable Director of that institution will be perused with much interest and satisfaction, as they exhibit great skill and accuracy in the management of a scientific, intricate, and important establishment.

The result of the Mint operations may be stated thus:

From these statements it appears that the Mint has coined, since its establishment in 1794, about thirty-seven millions of dollars, of which amount four-fifths probably have been exported, leaving only seven to eight millions in the United States, after incurring the heavy expenditure of nearly one million of dollars.

The silver coinage of the last five years is nearly eleven millions, or about two-fifths of the entire quantity minted of that metal; of these eleven millions, about eight millions have been coined from foreign dollars, chiefly of that description which is most current in general commerce. The new character will certainly not be advantageous to their final disposal, though it has been effected at an expense to the public of fully one hundred thousand dollars.

The committee have already expressed the opinion that this weighty expenditure of the public money on standard foreign coins, is not recompensed by any sort of public benefit; and the following extract from a letter of the director of the Mint affords strong confirmatory testimony of its correctness.

“The specie of the United States’ Bank is now nearly eleven millions, and of this amount they have less than two millions in our coin — a sum which does not exceed the amount delivered that bank from the Mint within the present year. Our coinage for that institution, from 1824 to this time, exceeds eleven millions of dollars.”

This account seems to authorize the impression that our coins go abroad almost as speedily as they are fabricated. Whatever may be truly the case, it is very evident that the minting of foreign coins is a useless expenditure of the public revenue to a large amount annually.

If the total quantity of coins in general circulation be correctly estimated at five millions of dollars, the wear and necessary supply for an increasing population cannot, under our present system of money, create a yearly demand for more than two to three hundred thousand dollars of new coins, in addition to the amount in circulation.

The deposit of silver bullion, for five years past, appears to be increasing; and its annual average being §600,000, there is no reason to doubt but the Mint will be abundantly supplied with silver for every useful and desirable object.

The Director of the Mint is of opinion that certificates of deposits may be issued in one to five days; and the committee recommend to the consideration of the House the expediency of adopting such measures as will authorize the Secretary of the Treasury to pay the amount of all deposits of bullion as speedily as the value can be ascertained, deducting therefrom one half per cent., which the Director states to be the usual discount on these certificates.

The committee are of opinion, from the Mint return, that there must be a scarcity of quarter dollars, and they think the operations of the Mint might be advantageously extended in the fabrication of that coin, and also of dimes and half dimes. Late experiments amongst the scientific artists of France encourage the expectation of improvements in the mode of assay, calculated to establish greater accuracy and uniformity in its results.

The suggestion of the Secretary of the Treasury, in reference to the relative proportion of alloy in coins, is judicious, and its adoption would simplify the process of alloying. The decimal divisions are convenient, and appropriate to our monetary system. One-tenth part of standard coins, whether gold or silver, is recommended by convenience. The existing proportion of 179 to 1664, in silver coins, is very irregular, and without any apparent benefit.

It is to be regretted that any of our silver coins should contain minute fractions of a grain, when an entire grain of silver is only worth about one-fourth of one cent. The singular minuteness of fractions, usual in all mint regulations, is inconvenient in calculation, and unsuitable as a measure, where the value depends exclusively on its quantity. It was wisely and appositely remarked by an eminent philosopher, that the “broken proportion of baser metals to silver, in the standard of the several mints, seems to have been introduced by the skill of men employed in coining, to keep that art (as all trades are called) a mystery, rather than for any use or necessity there was for such broken numbers.”

The committee, in conclusion, beg leave to report the accompanying bill.

A.

House of Representatives,
Select Committee on Coins, January 5, 1831.

Sir: I am instructed by the Select Committee on Coins to enclose for your consideration a copy of the resolution of the House of Representatives of the 23d ultimo, and to ask the favor of your communicating to them information on the following points.

1st. What has been the result of the experience of the Director of the Mint, in regard to a comparative estimate of silver dollars, issued by Spain or its American provinces, and those subsequently coined by the new Governments in those provinces, as to fineness, weight, and workmanship?

2d. Has any thing occurred in the course of his investigations, rendering it necessary to vary the statements which he furnished to the President of the United States, in December, 1826, of the average result of numerous assays of dollars of the new American States, or of five franc pieces of France?

3d. Are Spanish American dollars, or those of the new States, or five franc pieces, frequently deposited, and in considerable amounts for coinage? And does the return in American coin realize the value estimated in the report of assays, yielding to the depositor on the two former a gain, by tale, of four to seven mills each? Or what is the general or average result?

4th. What is found to be the degree of fineness of Plata Pina, and also of other silver bullion, usually imported from Mexico and South America?

5th. What has been the relative proportions of silver bullion, and of coin, (distinguishing old or defaced from new, or coins of full weight) annually received at the Mint from 1815 to 1830, inclusive? And what quantity of silver coin, distinguishing the denominations, has been minted yearly during that period?

6th. What is the average amount of loss in coinage upon the estimated value by assay of silver bullion or coin, to the depositor and to the Mint respecttively?

7th. Is the loss thus accruing upon bullion influenced by the relative fineness of the metal, or is it greater upon old or new coins. And what is the amount per cent. upon each denomination?

8th. What is the average expense (including and distinguishing the amount of loss sustained by the Mint) of coining half dollars? And does the aggregate cost vary, and to what extent, when manufactured from bullion or coin?

9th. What number of half dollars can be coined monthly at the Mint, when at full work?

10th. What quantity of the like work will the new Mint probably execute? And when is it expected to commence operations?

11th. What are the relative quantities of dollars and half dollars that can be coined in an equal period of time? And what is the amount of aggregate expense respectively?

12th. Assuming the experience of recent years as the basis for estimating the probable extent of coinage of all descriptions, within what time, from the receipt of bullion or coin, might the Mint undertake to stipulate with the depositor for the delivery of coin when the new establishment is completed?

13th. How many days usually elapse before a mint certificate is issued? And would it be convenient and practicable to fix a certain and short period for rendering these receipts, without reference to the quantity of bullion or coin deposited?

14th. What is the rate or discount at which the banks in Philadelphia generally cash mint certificates?

15th. Does the assayer melt the entire mass of metal or coin deposited before he puts it to the test, or is the estimate of purity made upon an assay of a small portion of the quantity? And if so, is it found generally, in completing the refining, that the result corresponds or disagrees with the original estimate?

16th. Is the mode of assaying silver at the Mint invariable? And if so, are the results uniform, or are important variations occasionally experienced in testing similar mixtures of metal? What is the mean heat in fusion? What is the proportion of lead to fine metal? Are the cupels of the ordinary shape, or formed with high sides?

17th. Have any experiments been made at the Mint testing the fineness of silver by what is termed the humid mode, precipitating a quantity of silver (previously dissolved in nitric acid) in a preparation of water and marine salt?

18th. The Secretary of the Treasury will oblige the committee by causing assays to be executed with the greatest accuracy, and with all convenient dispatch, of nine whole and nine half dollars, coined at the Mint, and taken indiscriminately from a mass of recent issues, and also of nine dollars lately minted in Mexico, and in Peru, during the same year, and also of nine five franc pieces of full weight, the operation to be performed on one-third part of each denomination of these coins, at the mean or ordinary temperature used, at a low heat, and also at an elevated temperature; and in one of each of these three distinct operations, the quantity of lead used is to be precisely one-third of the weight of fine silver.

The committee request your opinion as to the expediency, in the existing state of our currency, of making the silver dollars of the late Spanish possessions in America, and five franc pieces of France, legal tenders in payments, according to our standard; and they will feel obliged by any suggestions which you may think it advisable to present as to the propriety or utility of additional regulations for the government of the Mint, in respect to minting foreign coins, when of full weight and standard fineness, as well as to the practicability or advantage of the Treasury, assuming the responsibility of disbursing promptly the amount of all deposits of bullion at the Mint, at the average or current rate of discount upon mint certificates.

I have the honor to be, with great respect,
Your obedient servant.

CAMPBELL P. WHITE.

Hon. S. D. Ingham,
Secretary of the Treasury.

B.

Treasury Department, February, 1831.

Sir: I have the honor to enclose you two letters from the Director of the Mint, in answer to the inquiries propounded in your letters of the 5th and 14th of January. The considerations, which seem entitled to weight in determining the propriety of making Mexican dollars and five franc pieces a legal tender, are so fully presented by the Director of the Mint, that there appears to be but little to add. I do not perceive any injury that can arise from admitting both these coins as a tender for a limited time, provided it be done at such weight as will clearly make it the interest of all who hold them to cause them to be coined. The Director of the Mint has estimated the cost of coinage to the holder of bullion at about 1 per cent. The foreign coins intended to be made a tender, should of course contain an excess of mefal over the legal value, which would somewhat more than remunerate for this loss, as an inducement to send them to the Mint.

I beg leave to observe, in connexion with the various matters referred to your committee, that, in the report made to the Senate in 1830, on the relative value of gold and silver, the ratio of 1 to 15⅝ was recommended as the most suitable to be established in the coin. It has since been suggested from a highly respectable source, that the ratio of 1 to 15.5769 might be preferable, on account of its rendering the ratio in the standard metal 1 to 16, whereby the coins could be used as weights for each other, one silver dollar being made thereby equal to 16 gold dollars. At the first view, this effect appeared so desirable as to justify a corresponding modification in the ratio to secure it; but, upon further reflection, it appears to me, that coined pieces, subject to continual change by attrition, cannot be depended upon as standards of weight, and more especially as the small silver pieces upon this plan must be chiefly used to weigh gold coins. The former, of course soon becoming light, will be bad standards to weigh gold with, and, so far as they might be relied upon for that purpose, would tend to encourage the circulation of light gold coins.

Another modification has occurred to me, which is not liable to these objections, and has all the simplicity which could be desired. If the standard for gold and silver coins be established at 9⁄10 fine, 1⁄10 alloy, and the ratio of 1 to 15⅝ in the pure metals be adopted, the eagle will weigh 237½ grains pure, and 264 grains standard, and the silver dollar will weigh 371½ grains pure, and 412½ standard, which will render the weight of the eagle and its parts in whole grains, and also that of the dollar and its parts in grains and binal divisions thereof.

The adoption of 9⁄10 fine for the standard will also be attended with some advantages, whenever it may be necessary to ascertain the value of the coins by weight. The more simple this intricate subject can be made, the greater number of persons will be protected from the skill of the few. The present standard for our silver coins of 1485⁄1664 is peculiarly exceptionable on this account; and as there is, I believe, no doubt but the mixture of 9⁄10 fine, and 1⁄10 alloy, will make as durable a coin as any other, there seems to be really no objection whatever to such a modification. I need scarcely add, that, in all the changes I have suggested in the report on the relative values of the metal, or elsewhere, the present weight of the fine silver in the dollar is not intended to be changed, or its intrinsic value affected in the slightest degree. When the weight of the dollar was fixed at 416 grains standard, it was probably intended to correspond as nearly as possible with the Spanish dollar, then almost the only coin in circulation. That reason is not now entitled to much, if any, weight, as the proportion of Spanish dollars to United States’ is small, and, when the increased power of the Mint takes effect, must daily diminish.

I take the occasion further to remark, that the ratio of 1 to 15⅝ renders the pound sterling $4 75½; but as the intrinsic value of the pound sterling in silver dollars must depend on the market value of the fine silver contained in a dollar, it is not important that the legal par of exchange should conform to the regulation of the relative value of the metals in the coins. It would in fact be more convenient to make the legal par conform to the market value of the metal in which the standard of value in the United States is determined; because, in that case, there would be no difference between the nominal and the real par. The relative values of gold and silver in the market, as heretofore ascertained, is very near 1 to 15.8. The pound sterling will, therefore, at real par, be worth $4 80; and if the legal par were to be changed, the pound sterling should be estimated at that sum, which is in fact its present true value, as estimated in all operations of exchange with England. And if it were so fixed by law, it would simplify these operations materially, besides furnishing a most convenient mode for computing exchanges with Britain: 240 pence (pound sterling) being equal to 480 cents, 1 penny sterling is equal to 2 cents.

But to alter the legal par from $4 44 to $ 4 80 for the pound sterling, would increase the invoice value of importation from England about 8 per cent. The change ought not, therefore, to be made, without full consideration of its effect in this particular. In the mean time, however, there is no objection to changing the ratio of the pure metal in the coins. There can be little doubt but that the present ratio of 1 to 15 fixes gold altogether too low; and unless the United States’ mines should furnish it in such abundance as to reduce the price throughout the world, it will not be possible to maintain gold to any extent in circulation, without raising its value in the coins. The ratio of 1 to 15⅝, and standard 9⁄10 fine, are recommended by so many considerations, as to require some special reason for adopting any other; but if that be deemed proper, I should strongly incline to prefer a lower rather than a higher valuation of the gold, for the reasons stated in the report before referred to. But on this point I can only observe that there is no reasonable ground now visible for apprehending an injurious exportation of the silver coin under the ratio proposed; and we may be the more encouraged in adopting it, by the decision of the Senate in favor of a considerably higher value for gold, viz. 15.9 to 1.

I have the honor to be,
With great respect,
Your obedient servant,

S. D. INGIIAM.

Hon. C. P. White.

C.

Mint of the United States,
Philadelphia, 22d January, 1831.

Sir: In compliance with your request, under date of the 7th, accompanying a copy of the letter therein referred to, addressed to the Department by a select committee of the House of Representatives, I have now the honor to submit the information in my possession, on the several points presented by the committee, which I beg leave to refer to, numerically, in their order, without reciting them.

1st. The dollars issued by the new States of Mexico, Central America, and Peru, are equal in fineness and weight to those issued under the dominion of Spain. The Bolivian dollar, and that of La Plata, are probably equal to the foregoing, but are rare and little known at the Mint. The Chilian dollar is of the same fineness as the above, but inferior thereto in weight, usually, by one grain each. All those coins exhibit, in general, a less careful workmanship than the ordinary Spanish dollar. The Columbian coin, improperly called a dollar, is far inferior to its denomination, both in fineness and weight.

2d. The statements communicated to the President, December 27, 1826, are not impaired by the results of subsequent assays, in regard to the fineness of the coins issued by the new American States. They are, however, found to weigh slightly less in recent deposits than those statements exhibit. This results partly from the increasing proportion of coins, somewhat diminished by wear, which enter now into all deposits of that description, and partly from the fact that our weights have been adjusted since that day by the standard troy pound designated in the act of Congress of May 19th, 1828, and have thereby become a little heavier. We have had so little experience in regard to the five franc pieces since 1826, that nothing can be usefully added, respecting coins, to the statements then made, except in regard to their weight, which will be affected in some degree by the considerations just mentioned. A few specimens of the issues of 1829 were tried in that year at your request, and their value found to be 93 cents 4 mills, as mentioned in my letter of the 30th September, annexed to your report on the value of gold and silver.

3d. Spanish dollars, and those of the new Mexican States, especially Mexico, form a very considerable proportion of the deposits at the Mint, as will appear by referring to table A, hereto annexed. The considerations mentioned under No. 2 tend to render the result less favorable to the depositors than the statements before alluded to would indicate. The average gain on Mexican dollars, as now received, may he estimated at from 4 to 5 mills each.

In regard to the Spanish dollar, our experience within the past year, and especially in recent deposits, has been conspicuously at variance with the statements of 1826. Several deposits of large sums have been found to afford a very trivial gain on recoinage. This is due wholly to a deficit in weight not exhibited at the Mint in any former year, and indicating that a considerable proportion of the Spanish dollars remaining in the United States are the residue of parcels from which the most perfect coins have been selected. The effect of this, added to the suspension of new emissions, by which their average weight could be partially sustained, must render such results in relation to deposits of the Spanish dollar frequent hereafter. A deposit of these coins, amounting to $170,000, weighed on the 13th instant, is a further illustration of this fact — the gain being only nine-tenths of a mill per dollar.

Five franc pieces are not deposited in such quantities as to afford data for an average in regard to them. No deposit of this coin, meriting notice, has been made in recent years.

4th. Of the amount of bullion received within the period embraced by table A, and exhibited in the first column, about one-tenth part consisted of Plata Pina. This term is applied to silver collected by the aid of mercury, and brought to the Mint without having been melted. The average value of this form of bullion, when reduced to a condition suitable for assaying, may be stated at $1 25 per ounce troy, being about 8⅓ per cent. above the standard value of our silver coins. It is to be noted, however, that Plata Pina is subjected to melting before it is assayed, and in this process is diminished, on an average, about 3 per cent. in weight, by the dissipation of some remains of mercury and of humidity absorbed by the porous quality of this form of bullion, as also the separation of other extraneous matters occasionally found therein; so that, in this condition of its ordinary delivery at the Mint, its value may be estimated at about 5⅓ per cent. above its weight in silver coins. Bullion of other descriptions, on an average of the whole amount embraced in the table, is found to be worth about $1 21 cents per ounce, being about 5 per cent. above the value of standard silver. It is proper to state, that all silver, not in the form of coin, is in this arrangement denominated bullion, which thus includes a proportion of plate. The great mass of it, however, consists of silver which has been melted only, but not wrought in any manner.

5th. Table A exhibits the proportions of silver bullion and coin received at the Mint, and also the amount of the several denominations of silver coins issued annually, from 1815 to 1830 inclusive. No separation is made of old and defaced from new and perfect coins. They are all received by weight as bullion. In the column of various coins, a large amount of irregular coins of Spanish America is embraced, called hammered and cast dollars, also all the European coins, of which, except the five franc pieces, the amount is inconsiderable, and of these less than $200,000 are to be found separately deposited, within the period assumed. The column denominated Mexican dollars embraces also that of Central America, Peru, and Chili, which are generally deposited with the Mexican, but constitute an inconsiderable proportion of the amount under this head.

6th. The average loss by wastage on silver coinage may be stated at the fourth of one per cent. on the amount coined. The last four years give a small fraction less. This is borne by the United States; the depositer receiving in coins, agreeably to law, all the fine metal he brings, and without charge if the bullion be of standard quality. If it be above standard, the depositer is charged for the requisite alloy, and, if below standard, he is charged with the expense of the materials required for refining.

7th. The wastage is not influenced by the character of the bullion as to fineness, unless it be such as to require refining. In this operation there must be some loss, and all the processes by which other bullion is exposed to loss are subsequently to be passed through. The waste on refining will be in some proportion to the degree of baseness, but the ratio has not been determined. The wastage is ascertained only at the end of the year. Very few deposits of coins require to be refined. They are among the deposits, therefore, liable to the least wastage, and there is no appreciable difference, in this respect, between new and old coins.

8th. The expense of the coinage of silver is necessarily combined with that of gold. On an average, however, of the years 1826 and 1828 inclusive, in which the coinage of gold was inconsiderable, and may, therefore, in a general estimate, be disregarded, the expense, excluding wastage, it appears, may be stated at one per cent., with a very near approximation to exactness — the wastage, as before mentioned, being the fourth of one per cent., and making the whole expense for that period about 1¼ per cent., which may be considered as the average for a silver coinage of about $2,300,000 yearly. This per centage of expenditure will diminish with the amount of issues, a portion of the annual charges of the Mint being fixed. The gradations of reduction cannot, however, be now determined; but it is believed that the expense on a coinage of four millions of dollars may be effected at something less than one per cent., including wastage.

There is no apparent difference in expense between deposits of the ordinary character of bullion, and those of foreign coins usually received at the Mint. Both unwrought bullion and coins, which require to be melted before assaying, are to that extent more expensive to the United States than deposits in which this may be dispensed with, the materials and labor thus required being a part of the general expenses of the Mint; but the difference eludes notice by its minuteness, when singly designated.

9th. Our present force is adequate to the coinage of 600,000 half dollars monthly. This result will be in some measure affected by the attention given to the smaller denominations, but so that the amount of the years’ coinage will accord nearly with the above. This is exclusive of gold, the amount of which, if unusually large, will somewhat impede the silver coinage.

10th. The new mint will be competent, no doubt, to the coinage of ten millions, in due proportions, of the different denominations of our coins, if bullion be regularly supplied. Its utmost power I would not now venture to indicate. The coinage will, it is hoped, commence as early as August next. The fourth of July was designated as the time, when the corner stone was laid; but this, I apprehend, cannot be accomplished. The establishment will not probably be in readiness for vigorous operation till near the close of the present year. It is not relied on to promote the issues of this year more than will be equivalent to the retardation of a removal.

11th. Three thousand dollars, in dollars, most probably more, may be coined in the same time as two thousand in half dollars, with an equal number of presses; and the annual expense, wastage excepted, would be about the same. The wastage per cent. on dollars would be less than on the lower denominations, but the difference would be unimportant between dollars and half dollars.

12th. It is anticipated that the demand for coinage may be met by the new Mint, with a delay rarely exceeding twenty days. Prompt payment, as soon as the value shall have been ascertained, will, it is supposed, be practicable for all deposits of moderate amount.

13th The value of a deposit requiring only a single assay is generally ascertained, and a certificate issued, in twenty-four hours. If there are several parcels, and especially if they require previous melting, the time is extended to two or three days, and if the number be large, and also require melting, the delay will occasionally extend to four or five days.

14th. The banks generally cash Mint certificates at a deduction of the half of one per cent., if the coinage is not apprehended to be very remote: the Bank of the United States, without regard to the interval to elapse before coinage, receives Mint certificates at that deduction.

15th. The assayer takes a small piece from each bar or separate mass of bullion, and estimates the whole value from the assay of that piece. The result, in regard to the mass generally, confirms the correctness ot the estimate deduced from the assay thus made. In a given instance this will be, occasionally, incorrect; on an average, however, it will be found liable to no important failure. In the process, now frequent at the Mint, of parting gold and silver, the small assay is tested by an actual analysis of the whole mass; permitting the two metals to be separately weighed. This is a happy experiment of the correctness of the assay, and the accordance with it is generally satisfactory. It may be remarked that the purity of our coins is not dependent wholly on the assay of bullion or foreign coins when deposited; all ingots prepared therefrom for coinage are, before delivery to the chief coiner, assayed again, and returned to the melting pot when found to require it.

Foreign coins of well established character, when deposited, are estimated on their known fineness, the assay being from time to time employed to ascertain their uniformity in this respect. This is particularly convenient and almost indispensable in our present establishment: the delay of melting large deposits of coins would be sensibly felt in the business of the year. In the new Mint this difficulty will be removed, and, without retarding the ordinary operations, coins can be very generally melted before assaying.

16th. The mode of assaying hitherto pursued for silver has been that of cupellation. It is not perfectly constant in its results. A liability to errors amounting to the half of one per cent. is well known to be involved in the process, if the ordinary directions for conducting it are relied on, without any corrective of its irregularities. This liability is, however, very much restricted by introducing into the muffle, along with the assays in question, another piece of determinate standard, and near the fineness of the metal tried. The causes which operate to render the assay incorrect extend their influence to the proof piece, and afford the measure of the corrections to be applied in the case — not a perfect, but a valuable correction.

The assayer of the Mint has acquired, by long experience, a facility in judging of the condition of his muffle, which, frequently confirmed by the employment of the proof piece, renders his results more constant and exact than are usually obtained, I apprehend, from this process.

The heat employed is not determined by any form of pyrometer. It is during the early part of the process, insufficient to sustain fine silver in a state of fusion. Towards the close, the heat is excited as the alloy is dissipated, so as to keep the silver fused when it becomes fine, though it would not, during the process, melt fine silver. This appears to be the desirable point of temperature. At a lower heat, the assay would become fixed and constant before it would become fine, and the process thus be defeated. The eye of the assayer judges when the silver has become divested of its alloy. Too high a temperature urges on the process, and wastes a portion of the silver.

The difficulty of measuring high degrees of heat accurately occasions wide discrepancies in the temperature assigned by different authorities as the melting point of silver. It is probable that the final temperature of a successful assay may be about 4000 degrees of Fahrenheit.

The proportion of lead to fine silver, in our ordinary assays, is about 7 grains of lead to one of silver. 1 lie common form of cupel is employed, a shallow cup.

17th. No silver assays have been made here in the humid way. The subject having, however, attracted the attention of foreign assayers and chemists, and the probability being great that they may be led to select this method, under some modification, in preference to cupellation,a series of experiments will be considered worthy of attention with us, though the practice before-mentioned, of recurring frequently to a proof piece, renders us less sensible of the necessity of a change in this regard. A facile process in the humid way would, however, be decidedly preferable.

18th. The assays requested have been completed, and the results thereof will be seen in table B. In regard to a particular experiment, of performing a part of those assays with a portion of lead, exactly one-third of the fine silver, the suggestion has been exactly complied with. This quantity of lead forms, however, no envelope for the metal tried. An assay piece thus exposed was uniformly reduced about five pennyweights below those enveloped in the usual form with lead, and placed in the same muffle. After three trials with similar results, the experiment was discontinued, as it somewhat interfered with the equal arrangement of the other assay pieces.

Nine pieces of each of the coins mentioned by the committee, taken without selection, except as to dates, the latest being sought for, were severally divided into three sections. Assay pieces were made from each section of the same coin, and exposed in the same muffle, successively, to the several grades of temperature. The result given under each degree of temperature in the table, is, therefore, the average of three assays, thus made, of three different specimens of the same coin.

In all cases the same coin was experimented on successively, through the different grades of heat, without interruption, the heat being further raised for each succeeding experiment.

The proof piece, of the fineness stated, was always introduced along with the assay piece. The variable effect on this proof, under a temperature intended to be the same, indicates the difficulty of adjusting this point, and the irregularities of result which this uncertainty of temperature involves. In the low and medium grade of temperature, which may be considered as the extreme limits of our ordinary assay heat, the highest error of the proof piece from its actual fineness, it appears, is 15 grains in excess. This is an error of 15 grains fine silver, in the troy pound of 5760 grains standard, being a fraction over the fourth of one per cent. The assay piece, in this case, without the proof to correct it, would have given an enormous result to that extent.

The average of the low and medium temperatures, it appears, is very nearly true in the proof piece; the greatest deviation from the fineness due to it, combining the two assays, scarcely exceeds two grains. The true state of the coins will, therefore, be but derived from a similar average. If this be applied to the dollar of the United States alone, taking care to correct the assays by the proof, this coin appears 1¼ grains in the pound too fine. Applied in the same manner to the half dollar, this coin appears 56⁄13 grains inferior. The mean is 43⁄13, or the 1⁄14 of one per cent nearly. The same measure being applied to the five franc piece, this coin appears 3⅔ grains in the pound inferior to its standard, which is about the 1⁄15 of one per cent.

The result in regard to the Peruvian and Mexican dollars requires particular explanation. One section of the former of these coins, gave constantly, in all temperatures, a degree of fineness higher, by nearly one and a half pennyweights, than the ordinary grade of that coin. In the Mexican, on the contrary, one section gave constantly a result about one dwt. 18 grains inferior. In both descriptions, the other two sections gave results conformable to our ordinary experience. I have considered it best to report on both precisely as the facts occurred, without resorting to a change of specimens. There is not the smallest ground for supposing that either is any thing but an accidental variety. They exhibit strikingly the irregularities to which the ordinary assay is liable, if not cautiously conducted, and with a frequent reference to a proof standard. All the specimens, both of Peruvian and Mexican dollars, were of 1830, as were also the five franc pieces, except two of 1829, but equally perfect.

The inquiry respecting the expediency of making certain foreign coins a legal tender is not probably intended to be addressed to me. I shall be excused, however, for expressing briefly that the condition of the Spanish dollar current at the present day renders its rejection probable, as a tender, and exposes those institutions which are liable to be called on for large payments to much embarrassment, while they may be well supplied with other dollars, worth more than their nominal value. The extension of the tender beyond the Mexican dollar will not, it is presumed, be necessary. That coin abounds in our country to an extent, probably, twofold the amount of all the other dollars of the new American States. It has become familiar to us, and is decidedly of more intrinsic value than the Spanish dollar has been for the last twenty years. In two or three years, so many of the Mexican dollars, which are profitable for coinage, will reach the Mint, that the issues therefrom will place our currency beyond the reach of further embarrassment.

The amount of our own coins now in the United States cannot much exceed seventeen millions of dollars. This may be expected to be doubled in three years after the completion of the new Mint. It could be much more rapidly done, if bullion should be abundantly and regularly supplied; but time will be required to solicit those coins from their distant position to the Mint, unless the Government should adopt the policy of supplying bullion by a direct operation.

If the Mexican dollar be made a legal tender, it is presumed it will be in the same terms as those used in relation to the Spanish dollar, viz. at 100 cents each, provided the weight thereof be not less than 17 dwts. 7 grains. There will thus be a sufficient inducement of profit on their coinage to compensate the banks for presenting them at the Mint. They will be worth from 4 to 5 mills above their legal valuation.

The five franc pieces associate so inconveniently with our decimal denominations, that they have never been a popular coin. If, however, it should be deemed necessary to make them a legal tender again for a limited time, it is proper to observe, that the law by which they were formerly made so involves an incongruity. They were made a legal tender at $1 16 per ounce, and also at 93 cents 3 mills each, provided their weight should not be less than 16 dwts. 2 grains. They never weigh this. It is above their weight when issued from the Mint. It would seem judicious to have an inducement for the recoinage of five franc pieces, nearly equivalent to that of the Mexican dollar. The valuation of $1 16 per ounce will have this effect, their value being very nearly $1 16.4 per ounce. If made a tender by tale at 93 cents, provided their weight be not less than 16 dwts. 1 grain, a similar inducement would remain: the five franc piece of 16 dwts. 1 grain is worth 93 cents 3⅓ mills.

I may be permitted to say, in regard to further regulations for the Mint, that it would be desirable to defer the subject until next session. There are various points, which it is wished to submit, at that time, to the consideration of Congress, for the improvement of the institution. The whole system of laws in regard to it, which are now distributed through the various volumes of the acts of Congress, would be advantageous if digested into one act, with emendations in various particulars. In the interim, a series of careful experiments will be made, which is already commenced, on the subject of the humid assay for silver; the result of which can be usefully compared with those obtained by the measures now in train in Europe.

The payment of deposits on behalf of the Treasury at the prevailing deduction, if not left optional with the depositor to accept or decline, would greatly restrict the amount of our deposits of foreign coins. The banks are the chief depositors of these; to them prompt payment is of no great moment, and the gain on coinage a prevailing inducement. The deduction would absorb this gain. A regulation on this point is among the subjects entitled to careful regard, when the whole system is taken up for improvement.

I have the honor to be,
With great respect,
Your obedient servant,

SAMUEL MOORE,

Hon. S. D. Ingham,
Secretary of the Treasury.

TABLE A.

AMOUNT of Silver deposited at the Mint, and Silver Coins emitted, annually, from the year 1815 to 1830, both inclusive.

TABLE B.

SILVER COINS assayed at the annexed grades of temperature.

D.

Mint of the United States, Philadelphia, January 28, 1831.

Sir: The information requested in your letter of the 15th, received on the 20th, in regard to the wastage, deposit, and expenses on the coinage of gold and silver; the charges on each metal separately; excluding, but stating the gain on copper for each year since 1815; and also the expenditure on the new Mint, will be found in the annexed table, except the particular last mentioned.

The aggregate amount of deposits and coinage of gold and silver is given for each year of the period named, with the aggregate expense thereon, excluding wastage; the annual wastage on both metals, jointly, being also given for the whole period.

A specification of the gold and silver coinage, with the wastage on each, severally, is given only for the last seven years, beginning with 1824; the purpose of comparison, it has been believed, would be satisfactorily attained without extending the analysis further. This will be done, however, with as little delay as may be, if desired. Recent years, it may be remarked, being those of the most abundant coinage, offer the most instructive data.

The irregularity of the proportion of expenditure to coinage occasionally observed, is to be explained by the circumstance, that, within certain years, other than the ordinary expenses were incurred, such as the erection or repair of some building, or the construction of new machinery.

The expenses stated are those sustained by the United States; those paid by depositors, for alloy, refining, &c., when required, are not included.

The expenses of the coinage of gold and silver are unavoidably combined in our accounts, so that the proportion due to each cannot be specified. Our gold coinage has generally been too small to be felt very sensibly in the expenses of the year. It is believed that the expenses of a coinage of three millions of dollars in gold, wastage excepted, would not exceed ½ of one per cent., and that the addition of two millions more would not add more than 1⁄10 of one per cent. on the additional coinage, wastage excepted. The coinage of three millions in silver, in due proportions, of the various denominations of our coin, may be estimated to cost, wastage excepted, about ⅚ of one per cent., and an addition of two millions more would not, probably, cost more than ⅓ of one per cent., wastage excepted, on the additional coinage.

There is no charge on the coinage either of gold or silver. Bullion above standard is alloyed, and that below standard is refined, at the expense of the depositor. These preliminary operations place the deposit on a par with one of standard fineness, the coinage of which is free, the depositor receiving in coins the full weight of the standard bullion deposited. This is the inducement by which bullion is solicited to the Mint. The United States provides neither gold nor silver for coinage.

The per centage of expense diminishes as the amount coined becomes greater — certain expenses of the establishment being fixed. The coinage of gold and silver for the whole sixteen years is nearly 24 millions, or about one and a half millions annually; the expense of which, excluding wastage, will be found to be 1½ per cent. very nearly. The coinage of the last seven years is $15,806,270 50, or $2,25S,000, in round numbers, yearly; and the expense thereon, it appears, is one per cent. and a minute fraction. The average coinage of the last two years is $2,714,400, and the expense, excluding wastage, is 89-100 of one per cent.

The aggregate wastage of the whole period of 16 years is 27½-100 of one per cent. The wastage of the last seven years is 24-100 of one per cent., that of the silver being 24½-100, and that of the gold 19½-100 of one per cent.

In regard to wastage, it is further to be observed, that a portion of this is from time to time recovered from the broken crucibles, &c. which are carefully reserved for this purpose to a convenient period. During the suspension of business consequent on the late war, the amount of $2,859 39 was thus recovered, and passed to the credit of the United States. Means will be provided in the new Mint for triturating the fragments of crucibles and other refuse, and making the recoveries alluded to yearly.

The gain on copper, as stated in the table, is subject to a deduction for the expense of distributing copper coins to all parts of the United States. The amount thus to be deducted may be estimated at about 5 per cent. on the profit exhibited, thus reducing the whole gain on copper for the last 16 years to about $86,000. The gain is stated on the books of the Mint when the copper for coinage is received. The coinage and distribution, however, may be partially or wholly in the ensuing year. The expense of coining copper is embraced in that of gold and silver.

The profit on copper, estimating from the increased demand for cents, will, probably, in the present year, and on an average of future years, be not less than $10,000, diminishing to that extent the effective charge of the Mint establishment.

The sum of the expenditure on the new Mint, including the site, is $108,667 64. A few accounts not yet rendered, it is conjectured, may amount to nearly $1,500 in addition to the above.

Very respectfully,
Your obedient servant,

SAMUEL MOORE.

Hon. S. D. Ingham,
Secretary of the Treasury.

TABLE

A bill regulating the value of certain foreign silver coins within the United States.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, from and after the passage of this act, and for three years thereafter, and no longer, the following silver coins shall pass current as money within the United States, and be a legal tender, by weight, for the payment of all debts and demands, at the rates following, that is to say: the dollars of Mexico, Peru, Chili, Central America, and La Plata, and those re-stamped in Brazil, of the value of nine hundred and sixty reas, when of not less fineness than ten ounces fifteen pennyweights and twelve grains of pure silver, in the Troy pound of twelve ounces of standard silver, at one hundred and sixteen cents and one-tenth of a cent per ounce; and the five franc pieces of France, when of not less fineness than ten ounces and sixteen pennyweights, in twelve ounces Troy of standard silver, at one hundred and sixteen cents and four-tenths of a cent per ounce: Provided, and it is hereby declared, That such tender by weight shall not extend to the payment of any debt or demand for a less sum than one hundred dollars.

Sec. 2. And be it further enacted, That it shall be the duty of the Secretary of the Treasury to cause assays of the aforesaid silver coins, made current by this act, to be had at the Mint of the United States, at least once in every year, and to make report of the result thereof to Congress.