Report

of the

Secretary of the Treasury,

on the

State of the Finances,

for

The Year Ending June 30th, 1861.

WASHINGTON:
Government Printing Office.
1861

[[The source original disbound report was presented on pages 58-96 of Report on the Finances, in which it was identified as “No. 9.” This was followed by the two-page report on gold and silver coinage, presented on pages 219-220, and identified as “No. 14.”]]

No. 9.

Mint of the United States,
Philadelphia, October 10, 1861.

Sir: I have the honor to present the following report of the operations of the mint and its branches for the fiscal year ending June 30, 1861.

The amount of bullion received and coined at tbe mint and branches during that period has largely exceeded that of any former year. In addition to the gold and silver received from tbe mines of tbe United States, the importation of foreign coin and bullion has been unprecedentedly large.

Tbe amount of bullion received at the mint and its branches during tbe year was as follows: Gold, $116,970,002 66; silver, $4,624,961 57; total deposits, $121,594,964 23. From this total must be deducted the re-deposits of bullion or bars made at one institution and deposited at another for coinage. This deduction being made, tbe amount will be $72,146,571 01.

Tbe coinage for tbe same period was as follows: Gold coins, $60,693,237; fine gold bars, $20,015,163 64; silver coins, $2,605,700; silver bars, $278,006 94; cent coins, $101,660; total coinage, $83,693,767 58; number of pieces of all denominations of coin, 23,724,913.

The distribution of the bullion received and coined at the mint and branches was as follows: At Philadelphia, gold deposits, $51,890,763 56; gold coined, $47,896,711; fine gold bars, $66,434 76; silver deposits and purchases, $1,726,309 07; silver coined, $1,598,700; silver bars, $2,624 37; cents coined, $101,660; total deposits of gold and silver, $53,617,072 63; total coinage, $49,666,130 13; number of pieces 21,315,255.

At tbe branch mint at San Francisco, the gold deposits were $12,258,981 84; gold coined, $12,421,000; silver deposits and purchases, $197,844 08; silver coined, $198,000; silver bars, $71,485 71; total coinage of gold and silver, $12,690,485 61; number of pieces 1,144,300.

Tbe assay office in New York received during tbe year $52,358,095 14 in gold bullion, and $1,791,770 18 in silver. Fine gold bars stamped at that office, 4,816; value, $19,948,728 88; silver bars, 1,089; value, $187,078 63; total gold and silver bullion received, $54,149,865 32.

At the branch mint at New Orleans, the amount of deposits received up to the 31st day of January, A.D. 1861, was $1,243,449 01; of which the sum of $334,410 77 was in gold, and $909,038 24 in silver; coined during the same period, $244,000 in gold, and $809,000 in silver; silver bars stamped, value, $16,818 33; total coinage, $1,069,818 33; number of pieces, 1,237,800. Since the 31st day of January, A.D. 1861, no report has been received from this branch.

At the branch mint at Dahlonega, the deposits received, up to the 28th day of February, A.D. 1861, were $62,193 05; the coinage, $60,946; and the number of pieces, 13,442. No report has been received from this branch since the day last named.

The deposits at the branch mint at Charlotte, up to the 31st day of March, A.D. 1861, were $65,558 30; coinage, $70,580; and number of pieces 14,116. The deposits at this branch and Dahlonega are exclusively of gold. No report has been received from this institution since the day last named.

Notwithstanding the defection of the branches at New Orleans, Dahlonega, and Charlotte, by reason of the disloyalty and treachery of the States in which they are respectively located, the coinage of the past is greater than that of any former year since the organization of the government. Whether the coinage at these branches continues to conform to the laws and standard of the United States mint cannot now be ascertained. Efforts have been made to procure specimens of the gold and silver coins of the branch at New Orleans, since its defection, for the purpose of determining whether any adulteration or reduction in value of the issues of that branch had been attempted; but thus far no such specimens could be obtained. The treason that can refuse to recognize the lawful authority of a just government, would not hesitate to adulterate the coin made in an institution wrested from that government by lawless violence; nor would it blush to conceal the wrong under the emblems and devices of an honored national coinage.

A large amount of the gold deposited at the mint and its branches was the product of the mines of the United States. The sum of $34,216,889 52 in gold, and $610,011 29 in silver, was received from this source. Much of the domestic silver received was obtained by parting or separating it from the gold deposits in which it was found. The mines of the Washoe region continue to yield an increasing quantity; and the gold mines of Kansas amply repay the miner for his toil. The places whence the deposits of gold and silver were obtained, and the amount from each locality, are fully stated in the tabular statements attached to this report.

The domestic supply of silver not only continues, but new and valuable mines have been discovered and opened which promise a rich yield. These mines are situated in the Territory of Arizona, near the town of Tubac, in latitude 31° 22' N., longitude 110° 57' W. They are about one hundred and sixty miles from the Gulf of California, and only a few miles from the proposed line of the Southern Pacific railroad. Many of the mines yield silver and lead; and others silver, lead, and copper. Judging of the ore and its product in silver, as exhibited at the mint, this region will soon rival, in the extent and value of its mineral productions, the rich mines of Mexico, or the other silver-producing sections of our own country. Arizona is too new a country, and its mines have been too little worked, to furnish all the data necessary to the formation of such rules as will determine the nature of any vein at a considerable depth. The different “lodes,” however, present a remarkable uniformity of character, have nearly all the same direction, and possess generally the same combination of minerals. Many of them have been prospected by small shafts, but many more, equally good in appearance, remain unexamined. The efficient protection of the government against Indian and Mexican depredations will be necessary to secure the full development of the mineral wealth of that interesting portion of our country.

The new cents still continue to be issued in exchange for the old copper cents. These are, however, rapidly disappearing from circulation, and will soon be entirely superseded by the nickel cent. The profits of the cent coinage have heretofore been fully adequate to meet all the expenses of their production and transmission to the different parts of the country.

The coinage of the past year consisted principally of double eagles. This was in consequence of the unusually large amount of gold deposits, the demand by depositors for that denomination of coin, and to prevent the delay inseparably incident to the conversion of the bullion received into the smaller denominations.

The gold dollar requires the same time and number of manipulations in the process of coining as the double eagle; consequently, whilst the mint can coin $20,000,000 in value of double eagles, it can coin only one million in gold dollars. The same ratio obtains in the other fractional parts of the gold coin. Hence the delay when the deposits of bullion are large and the returns are to be made in the smaller coins. If any system could be devised or rule established by which the necessity of adjusting each individual gold coin of the lesser denomination could be obviated, the delay in making returns to depositors would not occur, and the production of small gold coin be facilitated to an almost indefinite extent. An increase in the deviation from the standard weight of the quarter eagle and gold dollar would, with proper caution, the perfection of the mint machinery, and the skill of the workmen, render the adjustment of each piece, as now practiced, unnecessary. By the act of Congress of March 3, 1849, the deviatlon from the standard weight allowed for the quarter eagle and gold dollar is one-fourth of a grain in a single piece; and in one thousand quarter eagles one pennyweight; and in one thousand gold dollars one half pennyweight. The deviation allowed for the half eagle by the same act, in a single piece, is one half grain, and in one thousand pieces one and a half pennyweight.

Now, it is believed that if the deviation allowed for the half eagle was extended by law to the quarter eagle and gold dollar, these coins could be produced rapidly and accurately within that limit, and thus the present tedious mode of adjustment and consequent delay be avoided. The experience of the past in silver coinage proves the practicability of these suggestions. The loss, however, in any event would be more than compensated by the increased production of the smaller coins, and the decrease of expenditures consequent on a reduction of the force necessarily employed in the adjusting department of the mint.

If authority could he given by law to the director of the mint, under the direction of the Secretary of the Treasury, to test by experiment the practicaility of these suggestions, this question would soon receive a speedy, and, it is not doubted, a favorable solution. The subject is worthy of consideration.

The capacity of the mint for coinage is fully equal to the wants of the government and people; and with a sufficient bullion fund no delay in making returns to depositors would be experienced. Neither the mint nor its officers should be made answerable for delay arising from the want of this fund, particularly when the necessities of the government require it to be withdrawn. In suqh case patriotism will excuse delay, and capital must yield to governmental necessity.

With a full force and working the regular hours, the capacity of the mint, in

Coining an equal number of pieces of all denominations of gold coin, its capacity would be equal to $51,875,000. This is exclusive of silver coinage. Its capacity for silver coinage of all denominations, in addition, to the gold coinage, as represented, is equal to $15,000,000 annually; making the capacity of the mint in gold and silver, with an equal number of pieces of all denominations, $66,875,000; an amount much beyond the coinage of any year since the establishment of the mint. This calculation of capacity relates to the mint at Philadelphia, and is exclusive of the branches. By changing the proportion of pieces, and coining more of the larger denomination, the annual production would be greatly enlarged, and by employing a double force and working double time, the coinage before stated could be doubled without additional machinery or impairing the efficiency of that now in use. The capacity of the mint and its branches is therefore clearly equal to any demand that may be made upon them for coinage, and this, too, without any delay, if the condition of the national treasury will permit the use of a sufficient bullion fund – a fund authorized by law, and out of which depositors were promptly paid the ascertained value of their deposits – the treasury being reimbursed by the coin produced from the bullion deposited.

The coinage of the mint and its branches, from their respective organizations to June 30, 1861, has been as follows:

Of this coinage about $520,000,000 was from bullion derived from tbe mines of the United States.

The amount of coinage executed is very large for a government that is not yet a century old, and is an evidence not only of the great mineral wealth of the country, but the wonderful activity and extent of our commercial enterprise. It would be interesting to know what portion of this coinage still remains in the country. We have no means, however, of determining this point with accuracy. It can only be arrived at by estimation. From the most reliable data attainable, I estimate the amount of specie in the United States, at the date of this report, October, 1861, at from two hundred and seventy-five to three hundred million of dollars. Of this amount all but about twenty millions, it is safe to assume, is held within the loyal States of the Union. The recent estimates of the amount of coin in the country have been too high. Due allowance does not appear to have been made for the large exportation of specie which, commencing in the year 1855, continued with but little interruption until the latter part of the year I860. During this period the exports of specie exceeded the imports and bullion derived from domestic sources nearly one hundred millions of dollars. This heavy drain on our specie ceased in October of the year last named, and soon thereafter the flow of specie to the United States commenced and continued until a few weeks since. The bullion and coin imported during this period, together with the bullion derived from domestic sources, has added about ninety millions to our stock of coin. The importance, in a financial point of view, of this large addition to our specie during a period characterized by the most extraordinary interruptions to trade and commerce ever witnessed in this country, cannot well be overestimated.

In pursuance of instructions received from the Treasury Department, and as required by the act of Congress of February 22, 1857, an assay of all the foreign gold and silver coins heretofore known and received at the mint was directed to be made to determine tlieir average weight, fineness, and value – the gold dollar of tbe United States being the standard. The result of the assay, and the determination of value, are given in table – of the appendix to this report. A comparison of the present with former assays of many of the same or similar coins exhibits but little change in value – the standard value and the character and denomination of the coins of most foreign nations being unaltered.

The tables heretofore annexed to the annual report of the director, and the present table, were constructed upon the basis, not of the alleged standards, but of our own assay, and of the actual weight of foreign coin at the mint, which often shows a material loss by wear and a want of exact conformity in fineness to the alleged standards. The average weight, fineness, and value of foreign coins received since the last report will be found in the table to which we have referred.

The gold dollar of the United States, conforming in standard value and decimal character to all the gold and silver coinage of the country, except the silver dollar, has been properly selected, and should be retained, as the standard of value for all foreign coins used or employed in commercial or governmental transactions with other nations. The silver dollar of the United States, differing as it does in commercial and decimal value from the other silver coins of our country, cannot, without disturbing our decimal system and producing confusion in the relative value of our gold and silver coinage, be used as a standard.

The legal weight of the silver dollar is 41250⁄100 grains; of two half dollars, or other component fractions of the dollar, 384 grains – a difference of 2550⁄100 grains.

The silver dollar, as it now is, has actually three values: 1. It is, by law, a dollar simply, or 100 units or cents. 2. By the mint price of silver it is 10398⁄100 cents, which is its true commercial value as compared with gold. 3. It has an interior or mint value, which is determined by its relation to the silver contained in the half dollar, which makes it 10727⁄64 cents; for which reason single pieces are paid out at the mint at the even price of 108 cents.

As the dollar, which is the unit of our money, is represented in gold coin, it would seem desirable not to have another dollar in another metal; but if this is inadmissible, and the silver dollar should be retained, then it should be reduced to eight-tenths of an ounce to be in true relation to our other silver coins.

Two reasons seem to have influenced Congress in retaining the silver dollar at its present anomalous terms : First, that it preserves the old dollar, known from the beginning of our coinage, and often exactly stipulated for in deeds of rent-charge, mortgages, and other moneyed securities. To this it may be successfully replied that such payments are now always made in gold, because it is the legal and usual tender for all sums exceeding five dollars, and because silver dollars are no longer to be had, or are very rare.

In the second place, it was supposed to be needed for our China and East India trade; but our consular advices are to the effect that our silver dollars are very reluctantly taken at the ports, and not at all in the interior of China. They are believed by the Chinese to be of less value than they really are.

The reasons for its retention having ceased, either we should cease to coin the silver dollar, or it should be made to conform in weight and value to our lesser silver coins.

The reduction of the standard value of all American coins, except the silver dollar, was made to check the export of specie from the United States; but the commercial character of specie, and the facility with which the coins of one nation can be converted into the peculiar and distinctive denominations of another, have prevented the realization of that expectation. The relative and commercial value of the peculiar coinage of any country must and will be determined by the standard of the nation to which it may be sent, and the laws of trade also will control values despite all legislative enactments. Legislation, whilst it properly may regulate the currency and control the coinage of a nation, cannot control its value as a medium of exchange or as an article of commerce with other nations. I would, in this connexion, respectfully suggest that the limit of legal tender for silver should be increased. It is how five dollars; it should not be so low. This limitation unnecessarily discredits the currency, and is productive of much inconvenience to individuals and banking institutions. The limit might with great propriety and advantage to public and private interests be extended to fifty or one hundred dollars.

National Medals.

The national and other American medals of historic interest, now in progress of preparation at the mint, will be ready for sale and delivery about the 20th of October. The medals have been prepared, with great care and skill, from the original dies in the mint, and are exact fac similes of the original medals. The medals are of copper, bronzed, and will be furnished at prices that will enable all who feel an interest in numismatics to obtain them. The medal department of the mint has assumed the position and importance in this institution to which, by every consideration of a just national pride, it is fully entitled. Medals in the highest style of art can be furnished with great facility, and those soon to be issued are highly creditable to the artists and workmen by whom they have been prepared.

The cabinet of the mint is increasing in interest and value by the frequent addition of rare and valuable coins and medals. As a numismatic collection it is deserving the attention and encouragement of the friends of that science.

List of Tables in Appendix.

A.— Statement of bullion deposited at the mint of the United States and branches during the fiscal year ending June 30, 1861.

B.— Statement of the coinage at the mint of the United States and branches during the fiscal year ending June 30, 1861.

C.— Statement of gold and silver of domestic production deposited at the mint of the United States and branches during the fiscal year ending June 30, 1861.

D.— Coinage of the mint and branches from their organization to the close of the fiscal year ending June 30, 1861, (eleven tables.)

E.— Gold of domestic production deposited at the mint of the United States and branches to June 30, 1861, (seven tables.)

F.— Silver of domestic production deposited at the mint of the United States and its branches from January, 1841, to June 30, 1861.

G.— Silver coined at the mint of the United States and the branches at San Francisco and New Orleans, under the act of February 21, 1853.

H.— Amount and denomination of fractions of the Spanish and Mexican dollar deposited at the mint of the United States, for exchange for the new cent, to June 30, 1860.

I.— Amount of fractions of the. Spanish and Mexican dollar purchased at the mint of the United States, the branch mint at New Orleans, and the assay office, New York, and paid for in silver coins, to June 30, 1861.

J.— Cents of former issue deposited at the mint of the United States for exchange for cents of the new issue.

K.— Statement of the weight, fineness, and value of foreign gold coins.

L.— Statement of the weight, fineness, and value of foreign silver coins.

Very respectfully, your obedient servant,

JAMES POLLOCK,
Director of the Mint.

Hon. S. P. Chase,
Secretory of the Treasury, Washington City.

A.

Statement of bullion deposited at the mint of the United States and branches during the fiscal year ending June 30, 1861.

B.

Statement of the coinage at the mint of the United States and branches during the fiscal year ending June 30, 1861.

C.

Statement of gold and silver of domestic production deposited at the mint of the United States and branches during the fiscal year ending June 30, 1861.

D.

Coinage of the mint and branches from their organization to the close of the fiscal year ending June 30, 1861.

1. MINT OF THE UNITED STATES, PHILADELPHIA.

1. MINT OF THE UNITED STATES, PHILADELPHIA—Continued.

1. MINT OF THE UNITED STATES, PHILADELPHIA—Continued.

2. BRANCH MINT, SAN FRANCISCO.

2. BRANCH MINT, SAN FRANCISCO—Continued.

3. BRANCH MINT, NEW ORLEANS.

3. BRANCH MINT, NEW ORLEANS—Continued.

3. BRANCH MINT, NEW ORLEANS—Continued.

4. BRANCH MINT, DAHLONEGA.

5. BRANCH MINT, CHARLOTTE.

6. ASSAY OFFICE, NEW YORK.

7. Summary Exhibit of the Coinage of the Mint to the Close of the Year Ending June 30, 1861.

E.

Statement of gold of domestic production deposited at the mint of the United States and branches, to the close of the year ending June 30, 1861.

1. MINT OF THE UNITED STATES, PHILADELPHIA.

1. MINT OF THE UNITED STATES, PHILADELPHIA—Continued.

2. BRANCH MINT, SAN FRANCISCO.

3. BRANCH MINT, NEW ORLEANS.

4.—BRANCH MINT, CHARLOTTE, NORTH CAROLINA.

5. BRANCH MINT, DAHLONEGA.

5. BRANCH MINT, DAHLONEGA—Continued.

6. ASSAY OFFICE, NEW YORK.

6. ASSAY OFFICE, NEW YORK—Continued.

7. SUMMARY EXHIBIT OF THE ENTIRE DEPOSITS OF DOMESTIC GOLD AT THE UNITED STATES MINT AND BRANCHES TO JUNE 30, 1861.

F.

Statement of the amount of silver of domestic production deposited at the mint of the United States and its branches, from January, 1841, to June 30, 1861.

G.

Statement of the amount of silver coined at the mint of the United States, and branches at San Francisco and New Orleans, under the act of February 21, 1853.

H.

Statement of the amount and denomination of fractions of the Spanish and Mexican dollar deposited at the mint of the United States for exchange for the new cent to June 30, 1860.

I.

Statement of the amount of fractions of the Spanish and Mexican dollar purchased at the mint of the United States, the branch mint, New Orleans, and the assay office, New York, and paid for in silver coins, to June 30, 1861.

J.

Statement of cents of former issue deposited at the mint of the United States for exchange for cents of the new issue to June 30, 1861.

A statement of foreign gold and silver coins, prepared by the director of the mint to accompany his annual report, in pursuance of the act of February 21, 1857.

Explanatory Remarks.

The first column embraces the names of the countries where the coins are issued; the second contains the names of coins, only the principal denominations being given; the other sizes are proportional, and when this is not the case the deviation is stated.

The third column expresses the weight of a single piece in fractions of the Troy ounce, carried to the thousandth. This method is preferable to expressing the weight in grains for commercial purposes, and corresponds better with the terms of the mint. It may be readily transferred to weight in grains by the following rule: Remove the decimal point; from one-half deduct four per cent., and the remainder will be grains.

The fourth column expresses the fineness in thousandths; i.e., the number of parts of pure gold or silver in one thousand parts of the coin.

The fifth and sixth columns of the first table express the valuation of gold. In the fifth is shown the value as compared with the legal content, or amount of fine gold in our coin. In the sixth is shown the value as paid at the mint, after the uniform deduction of one-half of one per cent. The former is the value for any other purposes than recoinage, and especially for the purpose of comparison; the latter is the value in exchange for our coins at the mint.

For the silver there is no fixed legal valuation, the law providing for shifting the price according to the condition of demand and supply. The present price of standard silver is 121 cents per ounce, at which rate the values in the fifth column of the second table are calculated. In a few cases, where the coins could not be procured, the data are assumed from the legal rates, and so stated.

K.

Gold Coins.

L.

Silver Coins.

No. 14.

Gold and silver coinage at the mint of the United States in the several years from its establishment, in 1792, and including the coinage of the branch mints and the assay office, ( New York,) from their organization to June 30, 1861.