Annual Report

of the

Director of the Mint,

for the

Fiscal Year Ending June 30, 1865.

Philadelphia:
Bryson & Son, Printers and Stationers.
1865.

Mint of the United States,
Philadelphia, September 28th, 1865.

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 30th, 1865.

The deposits and coinage of the fiscal year just closed, exhibit a very satisfactory increase over those of the previous year, and every thing thus far indicates that the present year will be largely in excess of the past.

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

Gold, $31,065,349 74; silver, $1,183,405 23; total deposits, $32,248,754 97. From this sum a deduction must be made for re-deposits, or bars made at one Branch of the Mint, and deposited at another for coinage. Making this reduction, the amount will be $27,982,849 09. The coinage for the same period was as follows: — Gold coin, $25,107,217 50; unparted and fine gold bars, $5,578,482 45; silver coin, $636,308 00; silver bars, $313,910 69; cents coined, including the two and three-cent pieces, bronze and nickel, $1,183,330 00; total coinage, $32,819,248 64; number of pieces of all denominations coined, 87,323,851.

The distribution of the bullion received at the Mint and Branches was as follows: at Philadelphia, gold deposited, $6,465,212 17; gold coined, $6,436,377 50; fine gold bars, $85,310 24; silver deposited and purchases, $315,943 99; silver coined, $307,508 00; silver bars, $3,671 66; cents coined, one, two and three-cent pieces, $1,183,330 00. Total deposits of gold and silver, $6,781,156 16; total coinage, $8,016,197 40; number of pieces, 85,548,735.

At the Branch Mint, San Francisco, the gold deposits were $18,808,318 49; gold coined, $18,670,840 00; silver deposited and purchases, $540,299 20 ; silver coined, $328,800 00; silver bars, $145,235 58. Total coinage of gold and silver, $19,144,875 58 ; number of pieces, 1,775,116.

The Assay Office in New York, received during the year, in gold bullion, $5,250,260 04; in silver, $320,111 23. The number of fine gold bars stamped at that office is 2,175; value, $4,947,809 21; silver bars, 1,859; value, $165,003 45; total value of gold and silver bullion, $5,570,371 27.

The report of the Superintendent of the Branch Mint at Denver, Colorado Territory, represents its operations as successful and encouraging. The gold deposits amounted to $541,559 04; silver, $7,050 81; total deposits, $548,609 85. The number of gold bars stamped were 469 — value $545,363 00. This branch is engaged in melting, refining, assaying and stamping gold bullion, returning the same to the depositors in the form of unparted bars, bearing the Government stamp of weight and fineness.

In my last annual report, in reference to this Branch Mint, I remarked that “the efficiency and usefulness of this Branch would be greatly increased, if a safe and expeditious mode of transportation could be secured. An overland route of six hundred miles is a formidable obstacle in the way of commercial intercourse with our eastern cities and markets. In addition, the hostilities 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 electing 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 overland 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.”

The Superintendent at Denver earnestly urges the necessity of a prompt introduction of the system of purchase and exchange, as contemplated in the Act of Congress, to which reference has been made; and concurring fully in the necessity of such action, I most respectfully ask the early and favorable consideration of this subject by your department.

Under the efficient management of the Superintendent of the Branch Mint at San Francisco, its operations have been well and successfully performed. The coinage of the past year has been very large, and the monthly deposits of bullion are increasing; it is confidently predicted that the yield of the mines for the current year will largely exceed that of any former period. The past has been a success — the future is full of encouragement.

In this connection it is gratifying to know that Congress, appreciating the importance and magnitude of the mineral wealth of the United States, has made an appropriation for the erection of a new Mint Building at San Francisco. The present building is not only unsafe, but unfitted for the increasing business of that Branch Mint. The new one should be in every particular, in architecture, size, capacity and machinery, adapted to the present and future of California and the Pacific States.

Branch Mints.

The suppression of the rebellion, and the anticipated early return of the recusant States to their allegiance, present the question, what shall be done with the Branch Mints at New Orleans, Louisiana, Charlotte, North Carolina, Dahlonega, Georgia? In my annual report of 1862, it was suggested that the Branch Mint at New Orleans, after the re-establishment of law and order in Louisiana, might be successfully operated; and that the Branch Mints at Charlotte and Dahlonega, ought not to be employed again for minting purposes. My opinions on this subject are unchanged.

The commercial importance of New Orleans, and the relations of that city to every portion of our country, justified the establishment there of a Branch Mint; and the amount coined in that institution from its organization in 1838 to January 1861, confirmed the propriety of its location at that place. During the period of its active operations the total coinage was over seventy millions of dollars, as follows: $40,318,615 00 in gold, and $29,890,037 00 in silver. The deposits of silver at this Branch have always been large; and it is worthy of consideration whether the coinage there should not, for the present at least, be confined to silver.

The same reasons for re-opening the Branches at Charlotte and Dahlonega do not exist. They are away from the commercial centers — inland, and of little commercial importance in themselves. The existence of gold mines in their respective localities, may be a reason for re-opening them as Assay Offices, but not for minting purposes. The results of their operations from their commencement in 1838 to February 1861, do not sustain the policy of their original establishment. The coinage of both these Branches is limited by Act of Congress, to gold. At Charlotte the total coinage during the twenty-three years of the existence of this Branch was only $5,048,641 50; at Dahlonega for the same period $6,121,919 00; an average annual coinage of abont $250,000; declining at Dahlonega from 1857 to 1861, to an annual coinage of about $70,000, and at Charlotte, for the same period, of less than $150,000. These facts seem to be conclusive on the question of re-opening these Branches for minting purposes; and particularly when there is no great probability of large increase in the gold production of those localities.

To meet every commercial want of those places, and also the interests of the miners of gold, the re-opening of these Branches for melting, refining, assaying, and stamping gold bullion, would be amply sufficient; giving to the Superintendent or Treasurer of each Branch, authority to issue in payment for gold dust, bullion or bars deposited for assay, drafts or certificates of deposits payable in specie at the Treasury or any Sub-Treasury of the United States, to any depositor electing to receive payment in that form. This provision would wholly supercede the necessity of coining at these Branches, or any imaginary benefits resulting therefrom.

The able and interesting report of Professor James C. Booth, appointed at the suggestion of your Department, to examine the condition, &c., of these Branch Mints, and which has been submitted to you, confirms the views now expressed.

On the subject of Assay Offices, for our gold-mining regions, and the impolicy of multiplying Branch Mints, my sentiments were fully expressed in my last annual report, to which you are respectfully referred.

Gold Mining Regions.

The reports from the gold and silver mining portions of the United States are of the most encouraging character. The developments of the past year prove the supply of those minerals to be inexhaustable. With the restoration of the peace and unity of our country, and the suppression of the Indian hostilities, the production of the precious metals will be greatly increased. The recent discoveries of rich gold deposits have stimulated emigration — capital is hourly seeking investment — the energy of our people has been aroused, and every indication, individual and national, foretells a successful future to this most interesting portion of the United States.

It is not easy to obtain any other reliable statistics than those appended to the official reports of the Director of the Mint; but these do not assume to give the amount of the entire production of the precious metals. The shipments to other countries must be large. We are vaguely assured, for example, that the silver mines of Nevada average a shipment of “one ton daily,” which would equal twelve millions of dollars annually. If so, we see but little of this. A small part goes into California circulation; and a large part to China, where it makes one purchase, and does no further good to the world — being practically withdrawn from circulation.

We have frequent opportunities for conversation with persons who travel or reside in the various mining regions of the United States, and of contiguous provinces; and it is interesting to hear their accounts of the vast developments of wealth, and prospects of profitable industry. Thousands of square miles made up of snowy mountains, deep canyons, and sterile plains, long supposed to be worthless, and really so for agricultural purposes, are now found to compete in value with the rich garden lands of the cultivated East. Where food cannot be produced, ores and minerals may be dug up to pay for it; if the search disappoints some, it rewards others; and the whole land, tied together politically and socially, feels, or will feel, the beneficent effects of these grand discoveries.

Yet it will be well to guard against exaggerations. It must be remembered that it is not enough to find gold and silver, even in considerable quantities: there must be conveniences for living, for mining, and extracting; especially there must be a good supply of wood and water. So important is this, miners tell us, that where ore prospects, say two hundred dollars to the ton, while wood and water can scarcely be had, the mine is really of no value; or of less value than an ore of twenty dollars to the ton, with these adjuvants at hand. On this account, it is said, the silver mines of the famous Humboldt region are at present of little practical value.

Some of the mining regions will be benefitted by the approach of rail road facilities; others, perhaps, must remain forever shut out from the line of profitable labor. But we will not limit the energy or enterprise of the American people.

It is, also, interesting to observe the incessant efforts to improve the methods of extraction. It is one thing to find where the metals lie, another to bring them to the surface, and still another to get out a paying result, and not leave too large a share lying inextricably in the heap of tailings. Great progress has been made in mining economy, within the last fifteen years, judging from the repeated assurance that an ore of gold or silver yielding only fifteen or twenty dollars to the ton, in a good locality, is worth working. In fact the poor ores are deemed more desirable, all things considered, than the rich ones, which are apt to prove mere pockets.

The advance of the mining art will give new life to ore mines at the East and South, where the advantages are so great. Indeed, an experienced capitalist in mines from Nevada, on hearing our report upon a sample of gold ore, from a new mine not far from the seat of government, declared he would rather work it, than his mines in the West.

We have, also, an interesting statement, — and one particularly so, at this juncture of our national affairs, — from a proprietor in the gold region of North Carolina, that the system of paid labor is likely to show its just and natural effects, in the increased returns of gold. There is a published statement that gold mining has been actively recommenced in several counties of Virginia, on both sides of the James River, west of Kichmond, and with encouraging success. Gold has also recently been found in Maryland, at various points near the Potomac and Susquehanna.

As regards the mines further south, the report of Professor Booth furnishes the latest and best information.

Outside of our lines, in Canada and Nova Scotia, there are gold workings, and prospects of most important and satisfactory character. Occasional deposits from those localities are made here and in New York.

With resources illimitable — the precious metals inexhaustable — and our fields rich in the affluence of an abundant production, — with a population energetic and enterprising, bold and brave, — our country’s future is not problematical. National repudiation, even in the presence of a national debt numbered by hundreds of millions, will find no place in the patriotic thought of a re-united and grateful people; and national bankruptcy will only be named in the whisperings of cowardice or the suggestions of treason.

Bronze and Nickel Coinage.

The coinage of the cent and two-cent piece from the bronze alloy has been very large, but not in excess of the demand. They have been distributed to almost every part of the United States, and many into states, west and south, that heretofore refused to use such coin as currency. The total amount issued during the year, will be found in the tables annexed to this report.

As required by law, this bronze and nickel alloy has been regularly assayed and reported by the Assayer of the Mint; and the legal proportion of the constituent metals found to have been steadily maintained.

By the Act of Congress passed March 3d, A.D. 1865, authority was given to coin a three-cent piece of nickel and copper alloy, as a substitute, to some extent, of the fractional paper currency. This coin has been issued and put in circulation. It is neat in appearance — convenient in size, and will become a popular coin. If, in addition to the already prohibited issue of three-cent notes, the five-cent note of the fractional paper currency were withdrawn, or its circulation limited and gradually reduced, the demand for this new coin would be much increased. Its increased production and circulation would not only furnish a more desirable currency than paper, but would become a source of larger revenue to the Government. From the profits of the bronze and nickel coinage we have transferred to the Treasury of the United States, during the fiscal year, four hundred thousand dollars, ($400,000); and a few weeks after the expiration of the year, the further sum of one hundred thousand dollars, ($100,000), was in like manner transferred; the fund remaining being sufficient for all the purposes of this coinage.

From this nickel alloy, a coin of the denomination of five cents, and which would be a popular substitute for the five-cent note, could easily be made. This suggestion, however, is respectfully submitted in view of the probable withdrawal of the smaller denominations of the fractional paper currency, and a preparative and aid to its accomplishment. This to continue only until the resumption of specie payments, or for a fixed and limited period. In a country abounding in the precious metals, and with silver generally in excess, in time of peace, of all demands for coinage or other purposes, tokens, or coins of inferior alloy should not be permitted to take the place permanently of silver in the coinage of pieces above the denomination of three cents. If the nickel alloy coin of five cents shall be adopted, temporarily or otherwise, provision should be made for its redemption in currency in sums not less than one hundred dollars, and in manner to suit the convenience of the Government, and to prevent its becoming troublesome by capricious use. At the proper time, similar provision should be made for the redemption of the three-cent pieces in sums not less than sixty dollars. This would secure confidence and circulation for this coin.

Motto Coins.

By the 5th Section of the Act of Congress of March 3d, 1865, already referred to, the Director of the Mint, with the approval of the Secretary of the Treasury, was authorized to place upon all the gold and silver coins of the United States, susceptible of such addition, thereafter to be issued, the motto, “In God we trust.” The direction was at once given to prepare the necessary dies; and it is confidently expected that before the close of this calendar year, the gold and silver coins of the Mint of the United States will have impressed upon them by national authority, the distinct and unequivocal recognition of the Sovereignty of God, and our Nation’s trust in Him. We have added to our Nation’s honor by honoring Him who is “King of kings and Lord of lords.”

Statement of Foreign Coins.

The statement of foreign coins required by law to be made annually, will be found appended to this report. We have no changes to make in these tables, as no coins differing from those named in the report, were presented during the year for examination or assay.

The medal department of the Mint is in successful operation. A large number of national and other medals have been manufactured during the year. The productions of this Department are duly appreciated by the public, and approved by the Government.

Valuable additions have been made to the Cabinet of Coins and Medals during the year by gift or purchase. It is a place of great resort, and multitudes from every section of our Country are daily visitants. The collection of coins is large and valuable. The annual appropriation for the purchase of coins, &c., should be increased. It is now only three hundred dollars.

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, 1865.

B.— Statement of the Coinage at the Mint of the United States and Branches, during the fiscal year, ending June 30th, 1865.

C.— Statement of Gold and Silver of domestic production deposited at the Mint of United States and Branches, during the fiscal year, ending June 30th, 1865.

D.— Coinage of the Mint and Branches, from their organization to the close of the fiscal year, ending June 30th, 1865.

E.— Gold of domestic production deposited at the Mint of the United States and Branches, to June 30th, 1865.

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, 1865.

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 Coins.

Very respectfully, your obedient servant,

JAMES POLLOCK,
Director of the Mint.

Hon. Hugh McCulloch,
   Secretory of the Treasury,
      Washington City..

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, 1865.

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, 1865.

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, 1865.

D.— Coinage of the Mint and Branches. From their organization to the close of the Fiscal year ending June 30th, 1865.

1.— MINT OF THE UNITED STATES, 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, 1865.

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, 1865.

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, 1865.

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 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, 1865.

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 21st, 1857.

Explanatory Remarks.

The first column embraces the names of the countries where the coins are issued; the second contains the names of 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 122½ 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 reports starting in 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.