Annual Report

of the

Director of the Mint,

for the

Fiscal Year Ending June 30, 1866.

Philadelphia:
Jas. B. Rodgers, Printer, 52 & 54 North Sixth Street.
1866.

Mint of the United States,
Philadelphia, September 18th, 1866.

Sir:
I have the honor to submit the following report of operations of the Mint and Branches for the fiscal year ending June 30th, 1866.

The deposits of bullion and coinage during the late fiscal year, exhibit a satisfactory increase over those of the previous year.

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

Gold, $37,223,640 17; silver, $1,723,516 71; total deposits, $38,947,156 88. 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 $31,911,719 24.

The coinage for the same period was as follows: — Gold coin, $28,313,944 90; unparted and fine gold bars, $9,115,485 46; silver coin, $680,264 50; silver bars, $916,382 08; cents coined, one, two, three and five cent pieces, $646,570 00; total coinage, $29,640,779 40; number of pieces of all denominations coined, 38,427,923.

The distribution of the bullion received at the Mint and Branches, was as follows: at Philadelphia, gold deposited, $10,349,903 19; gold coined, $10,096,645 00; fine gold bars, $93,116 70; silver deposits and purchases, $340,672 26; silver coined, $399,314 50; silver bars, $14,445 44; cents coined, bronze, and nickel and copper, $646,570 00; total coinage, $11,142,529 50; number of pieces, 36,498,042; total deposits of gold and silver, $10,690,575 45.

At the Branch Mint, San Francisco, the gold deposits were $17,636,332 04; gold coined, $18,217,300 00; silver deposits and purchases, $710,588 45; silver coined, $280,950 00; silver bars, $442,342 64; total coinage of gold and silver, $18,498,250 00; number of pieces, 1,929,881.

The Assay Office in New York received during the year in gold bullion, $9,076,422 00; and in silver, $672,256 00; number of fine gold bars stamped at that office, 3,760; value, $8,862,451; silver bars, 4,397; value, $459,594 00; total value of gold and silver bullion, $9,748,678 00.

The Branch Mint at Denver, Colorado Territory, has been engaged in melting, 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 262; value, $159,917 76. The business of this Branch has not increased, nor the production of gold in the Territory of Colorado, during the fiscal year. Various causes were in operation during this period to produce these results, and lessen the efficiency and usefulness of this Branch. It is confidently expected that these will be removed as soon as the Government assumes the risk of transporting bullion from Denver to the place of coinage, and paying for the bullion deposited, by specie draft on the U. S. Treasurers in the Atlantic States. Arrangements for this purpose are now in progress, and will be successfully completed before the close of the current year. My views on this system of payment, as applicable to all Assay Offices distant from our great commercial centres, have been fully stated in my previous Annual Reports.

I cannot too earnestly urge upon the Government the importance of erecting a new Mint building at San Francisco. The present building is not only wholly unfitted for the large and increasing business of that Branch Mint, but unsafe, and unworthy the great mineral wealth of the Pacific States. The appropriation made by Congress should be applied at once to the erection of a building which in architecture, size, capacity, machinery and every useful modern appliance, should be equal to the present and future of California. The management of this Branch during the past year has been efficient, and its operations, under the direction of the Superintendent, well and carefully performed.

As the Branch Mints at New Orleans, La., Charlotte, N.C., and Dahlonega, Ga., have not been re-opened since the termination of the rebellion, we have no report to make concerning them.

My views on the subject of Assay Offices, and the impolicy of multiplying Branch Mints, have been often expressed in previous reports, and to these you are respectfully referred.

It gives me pleasure to refer to certain important improvements in the mode of parting gold and silver, made and introduced by Andrew Mason, Esq., Melter and Refiner in the New York Assay Office. These consist, first, in so adjusting melts for granulation, that the pure gold, instead of gold bullion, shall constitute one-third of the mixed metal; and, secondly, in boiling the gold in strong sulphuric acid after one treatment in nitric acid. The one charge of nitric acid is made larger than the first in the old process, but 20 per cent. less than the amount in both; while the consumption of fuel is greatly reduced, and much disagreeable labor avoided. These improvements have been tested successfully at the Parent Mint, and will be introduced into all our Branch Mints. Prof. Booth, Melter and Refiner in this Institution, agrees with me in approval of the energy, intelligence and success of Mr. Mason, in his investigations and experiments in this matter. Mr. Mason estimates “the saving in one year’s business of all the Government Institutions would amount to about seventy-five thousand dollars, rating the cost of refining in California at 50 per cent. greater than in New York.” Whatever may be true of the figures, there is certainly economy in the proposed method, and therefore it is deserving of commendation.

Development of the Precious Metals.

During the past fiscal year, many specimens of ores of gold and silver from all the mining regions of our land, have been brought to the Mint for examination. The facilities thus afforded for an official report or certificate, have, no doubt, exerted a good influence, both in stimulating enterprise, and in repressing wild and ruinous speculation. Our Assayer uses every endeavor to give a fair and reliable report, and has every facility for making a correct analysis, and a thorough experience in that critical work. At the same time, similar examinations are constantly being made by officers of the New York Assay Office, and by skilful chemists in various parts of the country. The amount of work performed in this line shows how largely the public mind is turned to the discovery and working of mines of the precious metals; and how extensively this has become, and is to be, one of the leading branches of enterprise and industry in the United States.

It might be interesting to furnish some examples of what we have found, as to the various productiveness of such ores; not of course in the large way, but by chemical analysis. But on searching through our records, so great a diversity appears, that it is impossible to give any statement that would serve a useful purpose. Many “prospecters” bring ores, which, to their eye, are as promising as any others; but upon trial, prove to contain only a few dollars of gold or silver to the ton, and practically worthless. In other cases, where the specimens, even to a practised eye, would seem to be hardly worth examining, large returns are the product of the assay. We might mention one notable case of a lode in Colorado, where the specimen was by no means striking in its external aspect, and yet yielded nearly eighteen thousand dollars gold and silver per ton. But the majority of specimens, whether from that territory or the regions farther west, north-west and south-west, from Montana to New Mexico and Arizona, give results from 200 dollars to 600 dollars per ton. The foregoing valuations are in specie, – not currency.

What proportion can be extracted at a profit, is the great problem now exercising inventors and speculators, east and west. Many of the ores are so mixed with base and refractory metals, and minerals, that a great improvement on the old methods of reduction seems to be imperatively called for, to make even rich ores worth working. But the most formidable difficulty perhaps is that which is gradually to be obviated by the introduction of rail-road travel and transportation. The present enormous prices of labor, subsistence and materials, are such as to render good for nothing, many mines that are good by the assay.

Bronze and Nickel Coinage.

The demand for the small coin, both bronze and nickel, was very great during the year, and the coinage was regulated to meet the demand. They were distributed to all parts of the United States, but principally to the Western and Southern States.

The coinage of the five cent piece nickel and copper alloy has been commenced, as authorized by the Act of Congress. The withdrawal of the five cent note has created a great demand for the new coin, and every effort has been made to meet it. The substitution of this coin for the paper currency of same denomination is generally approved, and well received by the people.

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. From the profits of the bronze and nickel coinage, we have transferred to the Treasury of the United States, during the fiscal year, six hundred and fifty thousand dollars ($650,000,) and a few weeks after the expiration of the year, the further sum of ($300,000) three hundred thousand dollars, in all, $950,000. During the past three years, the profits from this coinage have been fully one and a half million dollars. The profits of this institution during the past five years, from all sources, have not only paid the expenses connected with its management, officers and operatives, but a surplus of more than one million of dollars has been paid into the treasury of the United States.

Motto Coins.

The motto “In God we Trust,” authorized by the Act of Congress of March 3d, 1865, has been placed upon all the gold and silver coin of the United States, susceptible of such addition, since the commencement of the current year. “Happy is that Nation, whose God is the Lord.”

Statement of Foreign Coins.

The statement of foreign coins required by law to be made annually, will be found appended to this report. The only additions we have to make to our annual tables, are two.

1. The gold piece of twenty soles of Peru, (which has supplanted the Peruvian doubloon,) is found to weigh on an average, 1.03½ ounces, troy, and to be 898 fine, although professedly 900. The value is therefore $19.22. The piece of (10) ten soles is in proportion.

2. The gold piece of four reals (or half a dollar) of Guatemala, in Central America, (President Carrera) weighs 13 grains, and is 875 thousandths fine; making the value nearly 50 cents.

The foregoing values are without deduction or tax.

Medal Department.

This department is in successful operation, and its productions duly appreciated by the Government and the public generally. During the year a large number of National and other medals have been manufactured in this department.

The Cabinet of Coins and Medals, continues to be very attractive, and large numbers of our citizens from every state in the Union, are among its visitors. During the year, not less than 40,000 persons visited the cabinet, a fact that attests the value and interest of the collection. Valuable additions have been made to the cabinet by the gift or purchase of rare coins and medals. It is gratifying to know that Congress, during the past session, increased the appropriation for the purchase of coins, &c., to six hundred dollars. A larger sum could be judiciously expended in improving the cabinet and increasing the 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, 1866.

B.— Statement of the Coinage at the Mint of the United States and Branches, during the fiscal year, ending June 30th, 1866.

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 30th, 1866.

D.— Coinage of the Mint and Branches, from their organization to close of fiscal year, ending June 30th, 1866.

E.— Gold of domestic production, deposited at the Mint of the United States and Branches, to June 30th, 1866.

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, 1866.

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 Silver Coin.

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

Very respectfully, your obedient servant,

JAMES POLLOCK,
Director of the Mint.

Hon. Hugh McCulloch,
   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 Denver, during the fiscal year, ending June 30th, 1866.

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, 1866.

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 30, 1866.

D.— Coinage of the Mint and Branches. From their organization to the Close of the Fiscal Year, ending June 30, 1866.

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 31, 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, 1866.

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, 1866.

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 30th, 1866.

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 30, 1866.

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 names 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 express the valuation of gold. In the fifth, is shown the value as compared with the legal contents, 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.

SILVER COINS.

J.

GOLD 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.