Annual Report

of the

Director of the Mint,

for the

Fiscal Year Ending June 30, 1864.

Philadelphia:
Bryson & Son, Printers and Stationers
1865.

Mint of the United States,
Philadelphia, October 3d, 1864.

Sir:—I have the honor to present the following report of operations of the Mint and its Branches, for the fiscal year ending June 30th, 1864.

The coinage of the late fiscal year although not so large as in some former years, exhibits, notwithstanding the disturbed condition of the country, a Satisfactory increase over the coinage of 1863.

The amount of bullion in value, received at the Mint and Branches, during the fiscal year, was as follows:—

Gold, $23,986,989 92; silver, $933,818 65; total deposits, $24,920,808 47. From this total a deduction must be made for the bullion re-deposited; or bars made at one Branch of the Mint, and deposited at another for coinage. Deducting the re-deposits the amount will be $24,012,741 49.

The coinage for the same period was as follows:— Gold coin, $21,649,345 00; unparted and fine gold bars, $2,333,403 31; silver coin, $548,214 10; silver bars, $301,872 89; cents coined, $463,800; total coinage, $25,296,635 30; number of pieces of all denominations coined, 46,983,396.

The distribution of the bullion received at the Mint and Branches was as follows:— at Philadelphia, gold deposited, $3,002,287 19; gold coined, $2,580,945 00; fine gold bars, $307,322 07; silver deposits and purchases, $223,695 77; silver coined, $200,714 10; silver bars, $7,665 23; cents coined $463,800 00; total coinage, $3,560,436 40; number of pieces, 45,114,276; total deposits of gold and silver, $3,225,982 96.

At the Branch Mint, San Francisco, the gold deposits were $18,913,547 70; gold coined, $19,068,400 00; silver deposits and purchases, $418,570 80; silver coined, $347,500 00; silver bars, $120,909 02; total coinage of gold and silver $19,536,809 02; number of pieces, 1,869,120.

The Assay Office in New York received during the year, in gold bullion, $1,584,825 06; and in silver, $291,551 98. Number of fine gold bars stamped at that office, 1,812:— value, $1,539,751 27; silver bars 1,947:— value, $173,308 64; total value of gold and silver bullion, $1,876,377 04.

The Branch Mint at Denver, Colorado Territory, during the past year, has been successfully engaged in melting, refining, assaying, and stamping gold bullion, returning the same to the depositor in the form of unparted bars, bearing the Government stamp of weight and fineness. The number of bars stamped was, 532;— value, $486,329 97.

The efficiency and usefulness of this Branch would be greatly increased, if a safe and expeditious mode of transportation could be secured. An over-land route of six hundred miles is a formidable obstacle in the way of commercial intercourse with our eastern cities and markets. In addition, the hostility of the Indian tribes along the route, doubtless instigated by rebel emissaries, and bad white men, has increased the difficulty and dangers of inter-communication, and the transportation of bullion to the Atlantic markets. These difficulties will probably be obviated in due time, and that institution will then assume her proper position as a Branch Mint.

Efforts have been made to introduce a system of purchases and exchanges, by which the Government will assume the risk of transporting bullion from Denver, to places where it may be needed for coinage, or purchase. The Government by purchasing the bullion at Denver and paying therefor by draft in specie on the Treasurers in the Atlantic States, would relieve the owners of all responsibility, and enable them to convert their bullion into eastern funds, with but little expense. The Act of Congress, establishing a Branch Mint at Denver, provides, “that the Superintendent of said Branch Mint be authorized, under the direction of the Secretary of the Treasury, and on terms to be prescribed by him, to issue in payment of the gold dust and bullion deposited for assay and coinage or bars, drafts or certificates of deposit payable at the Treasury, or any Sub-Treasury of the United States, to any depositor electiug to receive payment in that form.” This provision embodies the true policy of the Government, in relation to the deposits of bullion in Branch Mints, or Assaying Offices distant from our great commercial centers. Its accomplishment would not only benefit the hardy miner, and the gold regions of Colorado, but also the general commercial interests of the country and Government. Renewed efforts ought to be made to introduce this system, and when the difficulties now in the way are removed, and the over-land stage route to Denver is in full and successful operation, satisfactory arrangements can be made with that company and others, by which the bullion purchased by the Government, will be safely brought to the eastern cities and depositories.

Gold-Mining Regions.

The reports from the gold and silver regions of our country are very satisfactory, and indicate an abundant and increasing production. The places whence the deposits were obtained, and the amount from each locality, are set forth in the tabular statements attached to this report. These tables contain nearly all we have to say on the subject of our gold-mining regions. There is occasionally an uncertainty as to the origin of a deposit of gold, and Idaho may have obtained some credits which belong to Colorado. Every precaution, however, is taken to have the deposit credited to its proper locality, and where an uncertainty arises, it is credited to the region which the nature of the bullion indicates it to belong. In relation to Idaho, it may be stated, that the production of the last, largely exceeded that of the previous fiscal year; and the indications of a still larger yield are most encouraging. The statistics found in this report prove the correctness of these remarks. For the fiscal year, ending June 30th, 1863, the amount of gold bullion received from Idaho was, $1,816 97; during the past year the amount reached $2,306,568 10; an increase of more than two millions in one year. Indian hostilities, and the troubled state of the country generally, have affected, to some extent, the operations in our gold-producing localities; still our mining regions are the scenes of activity and excitement, and enterprise and capital are fast taking possession of them. In some places, especially where the mining is superficial, individual enterprise is sufficient, but in others, and especially in Colorado, the force of companies with large resources is necessary. Such organizations, under prudent and proper management, cannot fail to be successful; realizing large profits for themselves, and at the same time developing, by associated capital and labor, the national resources and wealth. Within the past year, large investments in that region have been made by parties in New York, Philadelphia and elsewhere. From Nova Scotia we receive some gold, and occasionally small deposits from Canada. A report from the latter region in pamphlet form, received some months ago, does not afford much encouragement as to paying returns; but more recent discoveries render it not improbable that a new and successful gold region will be there developed. Australia and New Zealand continue to be very productive, and doubtless Siberia also, although we have no direct information from that quarter. The past fifteen years has been an era of wonderful activity in gold mining, and the effects of this addition of gold to the wealth of the world upon industrial pursuits, commerce and civilization, are everywhere manifest. But wealth alone cannot secure the peace and prosperity of a nation. Virtue and truth, more than gold and silver, can make a nation great, and its people prosperous and free.

Silver of Nevada.

The history of the development of any mining region is a romance full of surprising incidents; and none is more so than that of Nevada Territory. From the first discovery of silver, in June, 1859, to the present moment, that country has been a scene of excited search, toil and speculation, of rapid fortunes, severe losses and disappointments. It would be out of place in this report to enter into details which may be found elsewhere, but to inquire what becomes of all this vast yield of silver, and what benefit is to ensue to our country from its production, is certainly alike proper and instructive. In a time of peace, shall we have a share of the gold and silver of our own mines, for our currency and use, or must it be carried off to the plethoric vaults of European banks and capitalists? This latter is precisely the direction all the silver has taken thus far. Among the injuries inflicted upon us by the rebellion, not the least serious is the banishment of silver. None of the Nevada silver is coined here, and but little at San Francisco, where it first goes. Our correspondents at that port inform us that it is all shipped to England, partly in rich ores that can more economically be smelted there, and partly in metallic bars. We have also some information from London as to the receipt of this bullion; but not comprehensive enough to serve as a statistical return. In fact, we do not know how much silver is raised from those mines. They are rich and valuable. We know that some of the best of them sell in the market, at $2,500 to $5,000 specie, for one foot frontage, and have yielded from two to four per cent. monthly, on such prices. These mines are not held by British capitalists, nor worked by British subjects, although many of the miners are from Cornwall and Ireland. They are held and controlled by our own citizens, changing owners frequently, as the stock market is extremely active, and prices very fluctuating. The reasons for the disappearance of this silver are very obvious, particularly in this crisis of our country’s history. The war in which we are now engaged, has compelled a resort to paper currency to meet the increased taxation and expenditures of the nation. This currency supplies the place of specie, which increases in value commercially, in proportion to the increase of the paper circulation. Its commercial value being thus increased, it ceases to be a circulating medium, and is either hoarded at home, or sent abroad in payment of foreign importations.

Again, the diminished export of our leading products, especially cotton, and the continuance of extravagant and unnecessary importations, (often forced upon our market by unfriendly foreign importers) have caused the balance of trade to be largely against us, requiring the export of our precious metals to pay a debt, which ought, from every motive of interest, every consideration of patriotism, to have been avoided. War has affected our currency and commerce, has driven our specie from present circulation, and poured it into the coffers of the foreign merchant and capitalist. Peace will restore what war has destroyed, the untiring energy of the American people will regain what has been lost, and make our commerce and currency rival that of the most favored nations. Our nation lives, and in the exercise of patience, perseverance, patriotism, and a real confidence in the sentiment recently stamped upon some of our coinage, “In Giod we trust,” we may hope for a speedy restoration of peace and union, a higher national life, and a more perfect and enduring nationality.

Assay Offices.

The rapid development of our gold-mining regions, and the discovery of new and rich deposits of the precious metals, render it incumbent upon the Government to provide facilities for the melting, assaying and stamping of bullion, in those territories in which the mines are located. These mines afford a wide field for well-directed enterprise, and profitable investment of capital. Already large and well-conducted private refining and assaying establishments have been put in successful operation. They will doubtless be increased in number and capacity, when demanded by an increased production of the precious metals; and whilst the business of refining and parting by private enterprise should be encouraged, the true national policy is to provide Government Assay Offices, which will afford the mining and commercial interests of those regions every practicable facility that can be desired. Neither public nor private interests, national or local considerations, require the multiplication of Branch Mints for coinage. When located far from our great commercial centres, the difficulties and expense necessarily attending their operations, greatly outweigh every advantage that can be derived from their establishment. The Mints now in operation are sufficient for the coinage of all the gold and silver that can be produced in the United States. San Francisco is the commercial and economical point for the coinage of the precious metals produced from the mines of the states and territories, west of the Rocky Mountains. The parent Mint in Philadelphia occupies the same position in reference to the Atlantic States. These two great central institutions, in their capacity for coinage, can abundantly meet any governmental or commercial demand. These for coinage, and the establishment of Assay Offices by the Government in our mining regions, for melting, refining, assaying and stamping bullion, will secure to the mining interests of the country, every facility that can be desired, and every encouragement that can, with propriety, be expected.

Bronze Coinage.

The substitution of the bronze alloy for the nickel mixture, as authorized by Congress, has been highly successful. The demand for the one and two-cent pieces has been unprecedented, and every effort has been made to meet it. The demand still continues, although the number daily issued largely exceeds that of any former period. Large quantities are hoarded, and thus kept from circulation. They have also been bought and sold by small brokers at a premium; this has induced individuals to collect them for the purpose of sale, thus producing a scarcity and inconvenience to the public that ought not to exist. The proportion of the three metals in the bronze alloy has been steadily maintained, as shown by the constant trials in the assay department, and regularly, as required by law, reported to me. The two-cent piece is a most convenient and popular coin. Its size and weight contribute to its usefulness. The motto, “In God we trust,” stamped upon this coin, has been highly approved by the public, not only as improving the artistic beauty of the piece, but also as expressive of our nation’s reliance upon the “God of Nations” in this hour of peril and danger. Why should this distinct and unequivocal recognition of the sovereignty of God, of Him who is “the King of kings, and Lord of lords” be confined to our bronze coinage? The silver and the gold are His, and upon it should be impressed by national authority, the declaration of our nation’s trust in Him, “who maketh war to cease unto the ends of the earth, who stilleth the raging of the sea, and the tumult of the people.” Let our nation, in its coinage, honor Him, in whom is our strength and salvation.

Aluminum Bronze.

During the past year some interesting experiments were made with aluminum as an alloy for coins; not with a view to displace the bronze coinage, but to propose a system of tokens for five and ten cents. More than two years ago experiments were made in aluminum alloys, to try their fitness for medals. Information was received from Paris, that the introduction of only one per cent. of aluminum, into fine silver, would resist the sulphuretted tarnish, which is so apt to attack that metal in certain exposures. The experiments made here did not confirm that statement; on the contrary, a slip of this alloy (99 silver, 1 aluminum) suffered more discoloration from the vapor of sulphuretted hydrogen, than a slip of fine silver. The alloy was also much harder. An alloy of thirteen parts copper with one of aluminum was then tried, and another of nineteen parts copper to one of aluminum. The former gave a pale gold color, the latter the color of standard gold coin, both beautiful, but too nearly resembling the precious metal. Under the press, however, they were both found to be so hard and stubborn in spite of repeated blows, as to be quite impracticable. The question, however, was still open, whether a different proportion, and the low relief used for coin, would not give a satisfactory result. In fact, we had specimens of aluminum bronze coinage, effected by European manufacturers of aluminum, which proved that the striking was at least practicable, if not easy. A further series of experiments was therefore undertaken here, at the desire of the Secretary of the Treasury and a committee of scientific gentlemen. The latter forwarded to the Mint a bar for this purpose, which, by assay, was found to contain the proportion of nine parts copper to one of aluminum. Their directions were closely follqwed, and the principal results may be briefly stated as follows:— The aluminum bronze, in the proportion just stated, is very rigid under the rolls, requiring many annealings, and liable to crack and break into plates of oblique fracture. It may, however, be gradually brought down to the gauge of our one-cent coin; but in the coining press it is so hard that it will not take a perfect impression, at least not such as can be given to the present legal alloy. The comparative ductility of the aluminum bronze and of pure copper, will be shown by the following result: to draw a wire from the former from 1⁄10 inch diameter down to 1⁄20 inch, required twenty-one draughts and four annealings, while the latter required seven draughts, and no annealings after the initial one. This hardness gives it a great advantage in wear. Coins of the cent size were made of this alloy, of legal bronze, and of pure copper. The three varieties placed in boxes and rapidly shaken for a long time, treated equally in all respects, lost by attrition in the following ratio: assuming the aluminum bronze as the standard of comparison, the legal bronze lost about three times, and the copper about six times as much. This property, however, is of no great consequence in coins of little value. A point of much greater consideration, is the avoidance or mitigation of the tendency to change color and become foul from the usual causes, viz:— the action of oily and saline excretions of the hand, the chemical agencies which are met with in market stalls, and the slops of drinking saloons, and the mere exposure to the air and moisture. If any metal, or alloy, could be found that would look well and keep clean with the usage to which our small coins are generally subjected, it would be deservedly popular. This can scarcely be expected. A silver coin can be deprived of its original beauty, and become of such a hue, as to have its genuineness called into question. Pure aluminum, white at first, assumes a bluish tint by atmospheric action; and aluminum bronze, although closely resembling gold at first, was found, after being held in the sweaty hand for a few hours, to have received an ugly tarnish, which destroyed the last argument for employing it in currency. After these experiments were concluded, others were started, in hopes of finding a binary or ternary alloy, which would answer the required conditions, especially as to ductility and keeping color, for coins of a grade a little above the cent and two-cent pieces. After some progress had been made, it became evident, from the fact that cents were hoarded to such an extent as to keep them out of circulation, that in the present state of the currency, it would be futile to attempt to carry out the project. More than this, we believe that the end of our nation’s troubles is nigh, and that peace will soon bless our country. With peace we may confidently expect an influx of silver, always more acceptable than any substitute, which will supply every want, and furnish a currency of “small coins” equal to any demand. Our country is full of the precious metals, — the supply inexhaustible. Peace will restore prosperity, and gold and silver will soon resume their proper channels in the currency of the country.

The Silver Dollar.

Permit me again to refer to the anomalous character of the silver dollar of the United States, and to the observations on this subject in former reports. The whole dollar should be made, in weight and value, the exact multiple of our fractional silver currency, and the gold dollar should be, by law, declared the unit of value of our money.

Statement of Foreign Coins.

The statement of foreign coins, as required by law, will be found appended to this report.

We have no change to make in these tables, except in the single item of the average fineness and value of the British sovereign. Heretofore we have reported new coins at 916½ thousandths fine; the weight 256-7 thousandths of an ounce, and the value before deduction, $4.86.34. Their standard of fineness is 916⅔; but our mode of reporting is to the half thousandth, and the above is the nearest statement we can make, of the American value of a pound sterling in perfect condition. At the same time, in consequence of the usual admixture of old coins in any lot, we have been reporting the average of weight, fineness and value, at lower figures, making about two cents less per sovereign or pound. The skillful and exact methods of assaying and alloying which have been pursued in the British Mint, have brought up the average fineness to such a measure, that we might report them as of full standard, if it were not that there are still a good many old pieces to be met with, whose fineness is not over 915½. We might call the average, even with these, 916¼, but in accordance with our method, we cannot put them down higher than 916. The corrected statement will be found in the table of gold coins.

It is necessary to add, that the “value after deduction” means simply, after deducting the Mint charge of one-half per cent. If brought to the Mint for recoinage, a Government tax of one-half per cent. will further be deducted; which holds true of all coins except old gold coins of the United States, prior to the change of standard in 1834.

The Medal Department of the Mint, is in successful operation, and its productions duly appreciated by the Government and the public.

Some valuable additions have been made to the Cabinet, by purchase or gift during the past year. This department of our institution is very attractive, and the multitude of visitors attests the value and usefulness of this collection of coins and medals.

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 30th, 1864.

B.— Statement of the Coinage at the Mint of the United States and Branches, during the fiscal year, ending June 30th, 1864.

C.— Statement of Gold and Silver of domestic production, deposited at the Mint of the United States and Branches, during fiscal year, ending June 30th, 1864.

D.— Coinage of the Mint and Branches, from their organization to close of fiscal year, ending June 30th, 1864.

E.— Gold of domestic production, deposited at the Mint of the United States and Branches, to June 30th, 1864.

F.— 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 21st, 1853.

G.— Statement of the amount of Silver of domestic production, deposited at the Mint of the United States and Branches, from January, 1841, to June 30th, 1864.

H.— Cents of old issue deposited at the United States Mint, for exchange for the Nickel Cent, to April 22d, 1864.

I.— Statement of the weight, fineness and value of Foreign Gold Coin.

J.— Statement of the weight, fineness and value of Foreign Silver Coin.

Very respectfully, your obedient servant,

JAMES POLLOCK,
Director of the Mint.

Hon. W. P. Fessenden,
   Secretory of the Treasury,
      Washington, D. C..

A.— Statement of Deposits at the Mint of the United States, the Branch Mint San Francisco, Assay Office New York, and Branch Mint at Denver, during the fiscal year ending June 30th, 1864.

B.— Statement of the Coinage at the Mint of the United States, the Branch Mint San Francisco, Assay Office New York, and Branch Mint at Denver, during the fiscal year ending June 30, 1864.

C.— Statement of Gold and Silver of domestic production, deposited at the Mint of the United States, Branch Mint San Francisco, Assay Office New York, and Branch Mint at Denver, during the fiscal year, ending June 30th, 1864.

D.— Coinage of the Mint and Branches. From their organization to the close of the Fiscal year ending June 30th, 1864.

1.— MINT OF THE UNITED STATES AT PHILADELPHIA.

MINT OF THE UNITED STATES, PHILADELPHIA. [Continued.]

MINT OF THE UNITED STATES, PHILADELPHIA, [Continued.]

2.— BRANCH MINT AT SAN FRANCISCO.

2.— BRANCH MINT, SAN FRANCISCO, [Continued.]

3.— BRANCH MINT, NEW ORLEANS. (To January 31st, 1861.)

3.— BRANCH MINT NEW ORLEANS (Continued.)

4.—BRANCH MINT, DAHLONEGA.

5.—BRANCH MINT, CHARLOTTE.

6.— ASSAY OFFICE, NEW YORK.

7.— BRANCH MINT, DENVER.

8.— Summary Exhibit of the Coinage of the Mint and Branches to the Close of the Year Ending June 30, 1864.

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, 1864.

1.— MINT OF THE UNITED STATES, PHILADELPHIA.

2.— BRANCH MINT, SAN FRANCISCO.

3.— BRANCH MINT OF NEW ORLEANS.

4.—BRANCH MINT CHARLOTTE, NORTH CAROLINA.

5.— BRANCH MINT, DAHLONEGA.

6.— ASSAY OFFICE, NEW YORK.

7.— BRANCH MINT, DENVER.

8.— SUMMARY EXHIBIT OF THE ENTIRE DEPOSITS OF DOMESTIC GOLD AT THE MINT OF THE UNITED STATES AND BRANCHES, TO JUNE 30, 1864.

F.— Statement of the amount of Silver coined at the Mint of the United States, and its Branches at San Francisco and New Orleans, under the Act of February 21, 1853.

G.— Statement of the amount of Silver of domestic production deposited at the Mint of the United States and Branches, from January, 1841, to June 30, 1864.

H.— Statement of cents of former issue, deposited at the United States Mint, for exchange for cents of new issue to June 30, 1864.

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 name of the coin, 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, and in a few cases to the ten thousandth of an ounce. The 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. of that half, 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 1000 parts of the coin.

The fifth and sixth columns of the first table expresses 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 1.22½ 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.

I.

GOLD COINS.

J.

SILVER COINS.

Note: In Section H, the entry for 1858 in the table of old cents turned in for new cents is $39,404, as in the report for 1863. In the reports up through 1862, however, the amount was shown as $31,404. I have not found an explanation for the change, and I do not know if the correct value is the prior or present value.