Annual Report

of the

Director of the Mint,

for the

Fiscal Year Ending, June 30th, 1868.

Philadelphia:
Chase & Town, Printers, 142 South Fourth Street.
1868.

Mint of the United States,
Philadelphia, October 31, 1868.

Sir:
I have the honor to submit the following report of the operations of the Mint and Branches for the fiscal year ending June 30, 1868.

The deposits of bullion at the Mint and Branches during the fiscal year were as follows: Gold, $25,472,894.82; Silver, $1,693,423.88. Total deposits, $27,166,318.70. Deducting from this total the redeposits of bullion or bars made at one Branch of the Mint, and deposited at another for coinage, the amount will be $24,591,325.84.

The coinage for the same period was as follows: Gold coin pieces, 976,539; value, $18,114,425.00; unparted and fine gold bars, $6,026,810.06; Silver coin pieccs, 3,321,067; value, $1,136,750.00; Silver bars, $456,236.48; nickel-copper and bronze coinage pieces, 45,438,000; value, $1,713,385.00. Total number of pieces struck, 49,735,840. Total value of coinage, $27,447,606.54.

The distribution of the bullion received at the Mint and Branches was as follows: At Philadelphia, gold deposited, $4,043,018.63; Gold coined, $3,864,425.00; fine gold bars, $98,848.03; Silver deposits and purchases, $342,635.72; Silver coined, $314,750.00; Silver bars, $6,729.94; nickel-copper and bronze coinage – value, $1,713,385.00 Total deposits of gold and silver, $4,385,684.35. Total coinage, $5,892,560.00. It is proper to remark, that coinage operations were suspended at the mint during the first three months of the fiscal year, for the purpose of making extensive repairs of the machinery, furnaces and fixtures, which had become absolutely necessary. The coinage therefore of nickel-copper and bronze represents in point of fact only nine months’ operations.

At the Branch Mint, San Francisco, the gold deposits were $14,979,558.52; Gold coined, $14,250,000.00; Silver deposits and purchases, $713,867.66; Silver coined, $822,000.00. Total deposits and purchases, $15,693,426.18. Total coinage, $15,072,000.00.

The Assay office in New York, received during the year in gold bullion, $6,092,352.56; Silver bullion, including purchases, $631,837.83; number of fine gold bars stamped, 4,084 – value, $5,567,082.77 – Silver bars, 3,992; value, $449,506.54. Total – $6,016,589.31.

At the Branch Mint, Denver, Colorado, the deposits for unparted bars were gold, $357,935.11; Silver, $5,082.67. Total $363,017.78. The deposits at this institution during the preceding fiscal year amounted to $130,559,70.

The Branch Mint at Charlotte, North Carolina, has been in operation for several months as an Assay office; deposits being received, assayed and returned to depositors in the form of unparted bars. The business at this institution is quite limited, requiring the services only of the Assayer and one Assistant.

The repairs referred to in my last annual report have since been thoroughly made, and the opportunity was embraced to introduce some new and modern machinery. The mint is now in the most efficient condition in all its departments, and is capable of meeting any probable demand for coinage that may be called for.

Experience proves that coinage can be executed at the principal mint at less expense than at any other point in the country, and as the means of safely transporting coin and bullion from and to every part of the Union, have greatly multiplied during the last twenty-five years, there would appear to be no reason for reviving coinage operations at either of the three branch mints formerly in operation in the Southern States. They could only be put in condition for coinage at a heavy expense, and to carry them on afterwards, would require an annual outlay out of proportion to any accommodation that would be conferred on the people of the States in which they are respectively located. I therefore recommend that those establishments be disposed of to the best advantage.

The machinery and fixtures for the new Branch Mint at Carson City, Nevada, has nearly all been shipped, and will be put up during the coming winter.

A new Branch Mint edifice is about to be erected at San Francisco, on a scale commensurate with the demand of the important Bullion interests of the Pacific States. As the mint at that point will be called on to execute a large coinage in the future, I recommend that it be fitted up with new and improved machinery. When this institution shall have been completod, it will, with the mint at Philadelphia, be sufficient for the prompt execution of the coinage of our country, and no other mints for coinage will therefore bo necessarv. The public interests may occasionally require the establishment of assay offices at other points. They should be on a scale sufficient for the receipts — refining, but not parting — assay, and return to depositors of the identical bullion deposited by the owners respectively. For these purposes an edifice need not be more than one-third the size and cost of a Branch Mint, and an Assayer and a few assistants would be all the force required.

A few months since a contract for separating and refining bullion was entered into by the Superintendent of the Branch Mint at San Francisco, with a private refining company in that city, under the terms of which the cost of those operations would have been reduced about three cents per ounce, but being found to conflict with a recent act of Congress on the subject, it was by your direction cancelled. I respectfully recommend the repeal of the law referred to, and that such contracts be authorized to be made with the approval of the Secretary of the Treasury, whenever required by the public interests.

In my last report I recommended, for reasons therein stated, that provision should be made for the reduction and redemption of the inferior coins, by creating a fund for redemption out of the profits of such coinage. I beg to again call your attention to the subject, and recommend that a section something like the following may be submitted to the committees on coinage and finance.

Be it enacted; That the Secretary of the Treasury is hereby required to ascertain the amount which has been paid into the Treasury by the Mint of the United States, beginning with the year 1857, as profits accruing from the coinage of nickel-copper and bronze pieces, which amount is hereby set apart and appropriated as a fund for the purpose hereinafter mentioned, and to this fund shall be added all similar profits, accruing from and after the passage of this Act. And it shall be the duty of the Treasurer of the Mint under regulations made by the Director of the Mint, and approved by the Secretary of the Treasury, to receive any such coins that may be offered in sums not less than ______ dollars, and to pay for the same out of the fund herein created. And the metal thus received may be worked into new coin, or otherwise disposed of to the best advantage; and any gain or loss thereby is to be set to the account of said fund.

If it should be thought best to avoid retroaction, and begin with the present time, then the section may read thus:—

That the amount of profits accruing from the coinage of Nickel-Copper and Bronze pieces, from and after the passage of this Act, is hereby set apart and appropriated as a fund for the redemption of such coins; and it shall be the duty of the Treasurer of the Mint, under regulations made by the Director of the Mint, and approved by the Secretary of the Treasury, to receive any such coins that may be offered in sums not less than ______ dollars, and to pay for the same out of the fund herein created, as soon as such fund shall have sufficiently accumulated. And the metal thus received, &c., (as before.)

The inferior coinage consists of two different alloys, namely, a one and two cent piece of Bronze, (95 per cent. Copper, 3 per cent. Tin, 2 per cent. Zinc,) and a three and five cent piece of Nickel and Copper, (25 per cent. Nickel and 75 per cent. Copper.) There is no reason for continuing the coinage of the two cent piece, and the law authorizing its issue should be repealed.

The net profits arising from the minor coinage and paid into the Treasury of the United States during the fiscal year, amounts to $1,300,000.

The purchase of the Nickel-Copper cents, composed of 88 per cent. Copper and 12 per cent. Nickel, still continues, payment being made in the three and five cent Nickel coins. The amount purchased to the close of the fiscal year was $260,482.04. This operation results in a small profit to the United States, and serves to reduce the redundancy of Cent coins.

Charges for Coinage.

Whether it is according to propriety or good policy to make a charge for the coinage of bullion, and so far to make a difference of value between coin and bullion, has often been a matter of debate, and it has been variously decided in different countries; and in our own at different times.

It is not necessary here to enter into the discussion, but it may be well, as it is certainly interesting to take note of an argument which so far as I know has never been used before, going to sustain the rule upon which our laws of minting have settled. It is to be found in the report addressed to the Lords Commissioners of the Treasury, (British,) by the Master of the Mint, (Professor Thomas Graham,) and Mr. C. R. Wilson, delegate from England to the Monetary Conference at Paris. The paragraph reads as follows:

“It is well known that all gold brought to the Mint is returned in the form of sovereigns without deduction or charge; and there is no doubt that our practice is correct in principle, for the metal which, like gold, is adopted as the measure of value, but it is at the same time undeniable that some additional value is imparted to the metal by the work applied to it in coining, and a small charge to cover or partially cover the Mint expenses is on that account generally imposed upon coin in the countries of the Continent under the name of brassage. In France the charge thus borne by the holders of bullion amounts to 6 francs 70 centimes, on a kilogramme of gold, which is coined into 155 Napoleons, 3100 francs being equivalent to 4.32 centimes on a 20 franc piece. The system of free Mintage has also since 1853 been abandoned in the United States, where in addition to the charge for refining, a charge of ½ per cent. (50 cents on 100 dollars) is now taken upon all Gold brought for conversion into coin. A small Mint charge does not appear to be complained of anywhere. The charge acts usefully for the preservation of the coin by removing any inducement to melt it down for any ordinary technical purpose, or even to supply bullion to Foreign Mints. We have reason to fear from what we learned from professional members of the Monetary Conference, that the British gold coinage is liable to suffer heavily in this way. London is the entrepot for the precious metals, from which other countries draw their supplies. Now Gold may be procured from London either in the form of bars or sovereigns at the same price; while to the foreign purchaser, if a Mint contractor, sovereigns offer the following advantages: the assay may be safely relied upon, the gold is already alloyed with Copper, and more than all, the suitability of the metal for coining is insured. Further, sovereigns are taken by number, and the aggregate weight may be as nearly as possible correct. But that is not true of the weight of individual pieces which, from the unavoidable imperfection of manufacture, are some heavy and some light, within a certain small range recognized as the tolerance in coining. There is reason to believe that large masses of new British sovereigns are occasionally treated so as to separate out the heavy pieces, and these are disposed of as bullion; while the lighter pieces which may still be all of legal weight, are preserved and put into circulation. This fact will not surprise those persons who are aware of the small margin of profit upon which bullion transactions are often conducted.

A small Mint charge on the British sovereign thus appears to be called for as the necessary means of preservation to the coin; while the measure is further recommended as an equitable repayment to the country of the cost of coinage.”

The paragraph just cited affords an excellent and convincing summary of arguments in favor of a coinage charge: not a little strengthened by stating the sordid practice of sorting out the “lights and heavies.”

At the same time it may be acknowledged, and indeed urged, as a matter of reform, that our charge of half per cent, is twice as much as it ought to be. The French charge is rather less than one quarter per cent.; our charge being 2⅓ times as much as theirs. It is therefore recommended to lower the Mint charge by law to one fourth of one per cent. This rate would increase the tendency to turn Gold bars into coin, and so prepare for a gold currency.

Change in the French Coinage.

Although not a matter of prime importance, it should be generally known that the Silver coins of France, as also those of Italy, Switzerland and Belgium, of the size of two francs and less, are no longer issued at the same fineness as the five franc piece. This change took place in I866, in pursuance of a Monetary Convention, between those nations agreeing to reduce the fineness from 900 to 835 thousandths.

This reduction of about seven per cent, was no doubt owing to the advanced value of Silver as against Gold, rendering it impossible to keep up the supply of money “d’appoint,” for which we need a more definite English word than “change.” This reduction brings the Silver coin to a parallel with that of England, which has long been coined at such a rate as to keep it out of the reach of fluctuations in market price, that is, to keep it safe from being melted down or exported, being worth more as a legal currency than it would be if turned into bars. And here it may well be remarked, that, if we had now a Silver currency, or any near prospect of it, it would be a necessary act of legislation to make a reduction in our Silver coins, not merely to correspond with England and France, but to comply with the oscillations of the Silver market, and to prevent the coins from being withdrawn, whether for export or for manufacture of plate. The provision to reduce the half dollar from 192 to 179 grains, in the Bill lately reported by the Finance Committee, was based upon the introduction of a general International Gold Currency, by which our Gold dollar would be lightened, and consequently the Silver must be also even in greater proportion; for although it is but a home currency, there ought to be very nearly a parity in relative valuation. If our Gold coin is not to be changed, then our Silver should not be reduced farther than to 186 grains for the half dollar, to maintain a level with England and France.

But so long as we are debarred the privilege of a Silver currency, it does not seem wise to touch the present law in that respect, as any reduction that could be made would be a dead letter. The only way to arrive quickly at the attainment of so desirable a substitute for bits of soiled paper, would be to introduce a provisional currency of Silver tokens, operating at once as a payment in part and a promise to pay in full. But the discussion of this subject now would be premature.

What is particularly to be noticed in this change of French coinage is, that instead of reducing the weight, they have debased the fineness. This is not an example worthy to be followed. The change ought not to be in the hidden quality, which no one but an assayer can determine, but in that which is tangible, and can be tried in a moment. The common mind understands weight, but is not so well skilled in fineness; yet it is uneasy at debasement, covered up by a good surface. Moreover, it is a departure from simplicity of proportion to put 835 thousandths in the stead of nine-tenths. We are urged to embrace the French metrical system, on account of its easy decimalization; but France does not hesitate to drop the short fraction for a long one.

And in the Gold coinage, which is of much greater importance, no attention is paid to simple numbers, in fact, the exact weight of the Napoleon, or twenty-franc piece, can only be expressed by a difficult vulgar fraction; the line of decimals is endless.

It is still further to be noted that they continue the five franc Silver piece at full weight and fineness, although it can never be kept current at those rates. In this, they repeat the mistake made in coining our Silver dollar at a different rate from the lesser pieces, or rather in having any Silver dollar.

International Coinage.

On this interesting subject, belonging to Mint affairs, a few remarks will be offered. There is a question in it on which men of science and men of business are totally at variance; it is the main question, whether there should be a unification of currency; and there are weighty arguments on each side. But there is one view of the matter which has not been duly considered.

In this proposed unity, every country is called upon to make a concession except France, and those already in conformity with her. If we take part, it must be at the expense of a great recoinage, and so with England; but France is supposed to be right already, because her coin is based upon “the quadrant of the meridian,” but not without an artificial superstructure. How far is this true? Her normal coin, the 20 franc piece, is of such a weight that it cannot be expressed in decimals. It is precisely 614⁄31 grams, a most impracticable and unscientific figure. Nor would the 25 franc piece, the counterpart of the proposed pound sterling, and half eagle, make any better show. It is not fit to be measured, either by grams or grains. The history of this matter, how it came to be so, offers no apology for perpetuating such an awkwardness.

It has therefore been well suggested to take for the proposed 25 franc piece, or half eagle, or pound sterling, the neat and concise standard of 81 decigrams (or 8.1 grams) which has also the merit of being exactly equal to 125 grains. This would make so small a difference from the present French standard, that it would probably avoid the necessity of a recoinage there; and so the difference of value in the British sovereign would be so slight as to obviate a recoinage, were it not that the present standard of fineness, eleven-twelfths, is out of the line of unification.

This small change would not affect the earth’s quadrant, nor any point of science; it would certainly tend to consummate the business; and it is little enough to ask that Erance, Belgium and Italy, should do something towards simplicity and uniformity of standards. Indeed, without a spirit of concession all around, the scheme seems not likely to be carried through.

The British Commission on International Coinage have recently made their report to Parliament, and it is important to note the conclusions at which they arrive after a carefu! and able investigation.

They say “We entertain no doubt, that an uniform system of coins, as well as an uniform system of weights and measures, would be productive of great general advantage.”

And further “We do not consider it necessary that any measures for the assimilation of the currencies should be postponed until steps are also taken for the assimilation of weights and measures.” But upon full view of the circumstances they “do not recommend that this country should merely adopt a gold coin of the value of 25 francs to be substituted for the sovereign.”

In fine they think the whole matter should receive further consideration in a general Monetary conference.

The Report, with testimonies and documents annexed, makes up a large volume, and is a storehouse of valuable information and discussion, chiefly upon this subject, but also upon existing Monetary laws, in other nations. Such a state paper does honor to the country, and to the commission in particular.

Commercial Currency of China.

Our Silver dollar is not received by the Chinese except at a discount. This is owing to the fact that while it is of equal fineness with the Spanish or Mexican dollar, it is about one per cent, less in weight. This rejection seems to take away the least plea for continuing to coin this piece.

We have some interesting details on this subject, from the Master of the British Mint at Hong Kong, established there a few years since for the purpose of furnishing a silver currency with the Mexican dollar as its basis. The Mint has recently been discontinued, but while it lasted its issues were acceptable to the Chinese traders, although the chief part of the coinage found its way to Singapore, and the region thereabouts. Fractional parts of the dollar were also struck, both in Silver and Copper, and it is curious to observe that they followed our centesimal notation, issuing pieces of ten cents, five cents, one cent, and other denominations.

In concluding this report it is proper that I should express my acknowledgment to the Officers, Clerks, and Employees of the Mint, for the faithful and efficient manner in which they have performed their respective duties.

The statistics relating to the coinage, will be found in tlie tabular statements hereto annexed. Also, a statement of the weight, fineness and value of certain foreign coins.

Very Respectfully, your obedient Servant,

H. R. LINDERMAN,
Director of the Mint.

Hon. HUGH McCULLOCH,
   Secretory of the Treasury..

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 30, 1868.

B.— Statement of the Coinage 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 30, 1868.

C.— Statement of Gold and Silver of Domestic Production, deposited at the Mint of the U.S., Branch Mint, San Francisco, Assay Office, New York, and Branch Mint, Denver, during the fiscal year, ending June 30, 1868.

D 1— Coinage of the Mint and Branches.

MINT OF THE UNITED STATES, PHILADELPHIA.

From their organization to the close of the fiscal year, ending June 30, 1868.

D 2— Coinage of the Mint and Branches, (Continued.)

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

D 3— Coinage of the Mint and Branches, (Continued,)

MINT OF THE UNITED STATES, PHILADELPHIA, (Continued.)

E 1— Coinage of the Mint and Branches, (Continued.)

BRANCH MINT, AT SAN FRANCISCO.

E 2— Coinage of the Mint and Branches, (Continued.)

BRANCH MINT SAN FRANCISCO. (Continued.)

F 1— Coinage of the Mint and Branches, (Continued.)

BRANCH MINT, NEW ORLEANS.

F 2— Coinage of the Mint and Branches, (Continued.)

BRANCH MINT, NEW ORLEANS, (Continued.)

G— Coinage of the Mint and Branches, (Continued.)

BRANCH MINT, DAHLONEGA, GA.

H— Coinage of the Mint and Branches, (Continued.)

BRANCH MINT, CHARLOTTE, N.C.

I— Coinage of the Mint and Branches, (Continued.)

ASSAY OFFICE, NEW YORK.

K— Coinage of the Mint and Branches, (Continued.)

BRANCH MINT, DENVER.

L— Coinage of the Mint and Branches, (Continued.)

Summary exhibit of the Coinage of the Mint and Branches, to the close of the year, ending June 30, 1868.

M— 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, 1868.

MINT OF THE UNITED STATES, PHILADELPHIA.

N— Statement of Gold of Domestic Production, (Continued.)

BRANCH MINT, SAN FRANCISCO.

O— Statement of Gold of Domestic Production, (Continued.)

BRANCH MINT, NEW ORLEANS.

P— Statement of Gold of Domestic Production.—(Continued.)

BRANCH MINT, DAHLONEGA.

Q— Statement of Gold of Domestic Production, (Continued.)

BRANCH MINT, CHARLOTTE, N.C.

R— Statement of Gold of Domestic Production.—(Continued.)

ASSAY OFFICE, NEW YORK.

S— Statement of Gold of Domestic Production.

BRANCH MINT, DENVER.

T— Statement of Gold of Domestic Production.

SUMMARY EXHIBIT OF THE ENTIRE DEPOSITS OF DOMESTIC GOLD AT THE MINT OF THE UNITED STATES AND BRANCHES, TO JUNE 30, 1868.

U— Statement of the Silver Coinage, at the Mint of the U.S. and Branches at San Francisco and New Orleans, under the Act of February 21, 1853.

V— Statement of the Amount of Silver, of Domestic Production Deposited at the Mint of the U.S. and Branches, from January 1841 to June 30, 1868.

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 re-coinage, 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.

W.

GOLD COINS.

X.

SILVER COINS.

List of Tables in Appendix.

A — Statement of Bullion deposited at the Mint of the U.S. and Branches during the fiscal year, ending June 30, 1868.

B — Statement of Coinage at the Mint of the U.S. and Branches during the fiscal year, ending June 30, 1868.

C — Statement of Gold and Silver of domestic production, deposited at the Mint of the U.S. and Branches during the fiscal year, ending June 30, 1868.

D1, 2, & 3 — Coinage at the Mint of U.S. from organization to close of fiscal year, ending June 30, 1868.

E1 & 2 — Coinage at Branch Mint at San Francisco, from organization to June 30, 1868.

F1 & 2 — Coinage at Branch Mint, New Orleans, from organization to danuary 31, 1861.

G — Coinage at Branch Mint at Dahlonega, Ga., from organization to February 28, 1861.

H — Coinage at Branch Mint, Charlotte, N.C., from organization to March 31, 1861.

I — Coinage at Assay Office, New York, from organization to June 30, 1868.

K — Coinage at Branch Mint, Denver, Colorado, from organization to June 30, 1868.

L — Summary Exhibit of Coinage at the Mint and Branches to the close of the year, ending June 30, 1868.

M — Gold of domestic production, deposited at Mint of U.S., to the close of the year, ending June 30, 1868.

N — Same at Branch Mint, San Francisco, to June 30, 1868.

O — Same at Branch Mint, New Orleans, to January 31, 1861.

P — Same at Branch Mint, Dahlonega, Ga., to Feb. 28, 1861.

Q — Same at Branch Mint, Charlotte, N.C., to March 31, 1861.

R — Same at Assay Office, New York, to June 30, 1868.

S — Same at Branch Mint, Denver, to June 30, 1868.

T — Summary Exhibit of Gold Deposits at Mint of U.S. and Branches, to June 30, 1868.

U — Statement of amount of Silver Coined at Mint of U.S. and Branches, at San Francisco and New Orleans, under Act of February 21, 1853.

V — Statement of amount of Silver of domestic production deposited at Mint of U.S. and Branches, from January 1841, to June 30, 1868.

W — Statement of the weight, fineness and value of Foreign Gold Coins.

X — Statement of the weight, fineness and value of Foreign Silver Coins.